Annual international trade in services, 2024

Canada's exports and imports of services both increased in 2024, led by growth in international travel. Exports of services totalled $231.7 billion, up 5.9% from 2023, while imports of services into Canada reached $230.2 billion (+7.2%). 

Chart 1: International trade in services

Consequently, Canada's balance of international transactions in services posted a surplus of $1.5 billion in 2024, as exports of services exceeded imports for the second consecutive year.

International travel services increase significantly

Canada's travel services exports increased 16.5% to reach $70.4 billion in 2024. Education-related travel services rose, as international students' expenditures in Canada reached $36.1 billion, up 19.6% from 2023. Expenditures of international students in Canada relate to tuition, food and accommodation.

Meanwhile, tourism-related travel services exports climbed 14.4% to $24.1 billion in 2024, driven by increased spending in Canada by travellers from the United States.

Imports of travel services increased 12.1% in 2024 to $59.4 billion, as tourism-related travel services imports rose 15.0% to $48.4 billion. Canadian travellers returning from destinations other than the United States drove this increase.

Chart 2: Services balances

Commercial services exports and imports increase

Commercial services exports (+2.7% to $134.7 billion) and imports (+4.8% to $125.0 billion) posted modest gains in 2024, following stronger increases in 2023 from computer services. Financial services led both export and import gains in 2024. Higher exports of construction services, maintenance and repair services, operating leasing services and scientific and technical services contributed to the overall increase in receipts. Higher imports of management services and computer services and higher fees for the use of intellectual property led the increase in payments.

Exports of commercial services to affiliated parties abroad were stable in 2024, while imports of commercial services from affiliated parties were up $2.5 billion. In 2024, 54.1% of commercial services exports and 56.9% of commercial services imports were classified as exchanged between affiliated parties in Canada and abroad. Affiliated party trade in commercial services continued to be highest in research and development services (91% of exports and 78% of imports) and management services (75% of imports and 77% of exports). This encapsulates intellectual property assets or services, such as legal and accounting services, being provided within a multinational enterprise between an entity in Canada and an entity in a trading partner country. Affiliated party trade in commercial services was lowest in computer services (31% of exports and 30% of imports) and financial services (42% of exports and 47% of imports). This means transactions tended to be between an independent entity in Canada and an independent entity in a trading partner country abroad.

Transportation services imports rise, while exports edge down

Transportation services imports increased 10.3% to $37.9 billion in 2024. Marine transportation services (+9.6% to $19.7 billion) and air passenger fares (+21.6% to $7.7 billion) were responsible for the increase.

Meanwhile, transportation services exports fell 2.6% to $21.3 billion in 2024, led by a decline in air passenger fares (-11.9% to $5.2 billion). The 10.6% increase in marine transportation services dampened the overall decline.

Growth in trade flows with major trading partners

In 2024, Canada's exports of services to the United States increased 3.4% to $119.6 billion, while imports of services from the United States rose 2.9% to $129.6 billion. The United States remained Canada's largest services trading partner in 2024, accounting for 51.6% of total exports of services and 56.3% of total imports of services. This compares with 52.9% of total exports and 58.6% of total imports in 2023.

Exports of services to countries other than the United States rose 8.7% to $112.1 billion in 2024, while imports from these countries increased 13.3% to $100.6 billion. Exports to India rose 16.3% to $15.6 billion, as education-related travel services increased. Since 2022, India has been Canada's primary services export market behind the United States. In 2024, exports to the United Kingdom (+13.0%), Nigeria (+41.0%), China (+6.4%), the Philippines (+20.1%) and France (+4.2%) posted the next-highest gains. In 2024, Canada imported $12.4 billion of services from the United Kingdom (+10.0%), which was the primary source of imports behind the United States. Other major trading partners posted significant increases, notably China (+29.3%), Hong Kong (+16.1%), Mexico (+13.4%), Japan (+17.5%), Portugal (+61.1%) and Italy (+16.9%).

Table 1: Trade in services by category 

Table 2: Trade in services by region