Canadian exports to exceeded Canada’s imports from other North American nations by $87.9 billion in 2014. Otherwise, Canada endured deficits against all other continents as a whole – but not all in individual countries from those continents.
The fact that Canada earns country-specific trade surpluses indicates Canadian competitive advantages albeit for a specific set of export products highlighted below.
These major product supply advantages help to explain the fact that Canada earned the world’s eighteenth-largest trade surplus in 2014. While that is good news, it is tempered by the perspective that Canada’s positive balance trailed China’s $384.3 billion surplus by over $370 billion.
Canada’s trade $10.9 billion surplus in 2014 is a creditable achievement considering that the Great White North racked up a -$5.5 billion trade deficit for 2010.
Canada Major Product Supply Advantages
Top 10
Presented in descending order, the following list showcases the general product categories under which Canada earned the highest trade surpluses in 2014.
- Mineral fuels including oil: US$81.3 billion (50.4% of all product surpluses)
- Wood: $9.4 billion (5.9%)
- Cereals: $7.9 billion (4.9%)
- Gems, precious metals: $7.6 billion (4.7%)
- Oil seed: $6.8 billion (4.2%)
- Woodpulp: $6.5 billion (4%)
- Ores, slag and ash: $5 billion (3.1%)
- Aluminum: $4.9 billion (3%)
- Aircraft, spacecraft: $4.7 billion (2.9%)
- Fertilizers: $4.2 billion (2.6%)
The above top 10 product categories represent 71.1% of Canada’s overall product-category surplus subtotal which amounted to $161.3 billion. For that subtotal, 31 of Canada’s 97 general product categories delivered a surplus in 2014.
Growth
Canada enriched its trade surplus amounts at the fastest-pace during 2010 to 2014 under the product categories below.
- Explosives and pyrotechnics: Up 594.2% since 2010 (US$46.6 million)
- Tobacco: Up 204.9% ($49.9 million)
- Wood: Up 73% ($9.4 billion)
- Ores, slag and ash: Up 67.3% ($5 billion)
- Vegetables: Up 61% ($1.6 billion)
- Cereals: Up 60.7% ($7.9 billion)
- Raw hides, skins not furskins, leather: Up 56.7% ($259 million)
- Mineral fuels including oil: Up 54.7% ($81.3 billion)
- Live animals: Up 53.7% ($2.3 billion)
- Oil seed: Up 40.9% ($6.8 billion)
Detail
From the perspective of the more detailed 4-digit harmonized tariff system (HTS) level, below are 15 products that enabled Canada to achieve the highest surpluses in its international trade with other countries.
- Crude oil: US$66.4 billion
- Cars: $17.9 billion
- Petroleum gases: $11.3 billion
- Sawn wood: $7.3 billion
- Wheat: $7.1 billion
- Gold (unwrought): $7 billion
- Aluminum (unwrought): $5.4 billion
- Aircraft, spacecraft: $5 billion
- Potassic fertilizers: $4.7 billion
- Rape/colza seeds: $4.6 billion
- Chemical woodpulp (non-dissolving): $4.6 billion
- Ethylene polymers: $3.3 billion
- Coal, solid fuels made from coal: $3.1 billion
- Iron ores, concentrates: $3 billion
- Copper ores, concentrates: $2.8 billion
Among these, crude oil had the fastest-growing Canadian surplus with a 142.6% gain since 2010. In second place were copper ores and concentrates up 102.7% while exported sawn wood moved ahead in value by 64.5%.
Canada Major Product Supply Advantages by Country
Top 10
Presented in descending order, the following list shows with which trade partners Canada earned the highest trade surpluses in 2014.
- United States: US$112.2 billion (86.1% of Canadian country-specific surpluses)
- United Kingdom: $5.5 billion (4.2%)
- Hong Kong: $3.9 billion (3%)
- United Arab Emirates: $1.5 billion (1.2%)
- Belgium: $1.2 billion (0.9%)
- Malta: $714 million (0.5%)
- Venezuela: $584.5 million (0.4%)
- Botswana: $495.4 million (0.4%)
- Russia: $471.8 million (0.4%)
- Indonesia: $467.5 million (0.4%)
The above 10 trade partners represent 97.4% of Canada’s subtotal surplus of $130.3 billion from the 120 geographic entities with which Canada demonstrated competitive trade advantages.That subtotal excludes the 96 trade partners with which Canada incurred trade deficits.
Growth
Canada enriched its trade surplus amounts with the countries below at the fastest-pace during 2010 to 2014.
- Belize: Up 3,622% since 2010 (US$17.9 million)
- Rwanda: Up 3,272% ($25.1 million)
- Seychelles: Up 2,603% ($20.7 million)
- Malta: Up 704% ($714 million)
- Mozambique: Up 618% ($79.2 million)
- Chad: Up 483% ($32.7 million)
- Barbados: Up 456% ($165.1 million)
- Sudan (North + South): Up 335% ($146.4 million)
- Maldives: Up 235% ($15.5 million)
- Uganda: Up 222% ($24.7 million)
From the above list, Canada showed major product supply advantages over trade partners with comparatively small populations and for generally small surplus amounts.
US
Below are the products that gave Canada the highest surpluses in its international trade with the United States.
- Crude oil: US$73.8 billion (65.8% of Canada’s surplus versus America)
- Cars: $28.7 billion (25.6%)
- Petroleum gases: $11.6 billion (10.4%)
- Sawn wood: $4.7 billion (4.2%)
- Aluminum (unwrought): $4.4 billion (4%)
- Gold (unwrought): $3.1 billion (2.7%)
- Ethylene polymers: $2.8 billion (2.5%)
- Potassic fertilizers: $2.5 billion (2.3%)
- Electrical energy: $2.1 billion (1.9%)
- Chemical woodpulp (non-dissolving): $1.9 billion (1.7%)
Among these, unwrought gold had the fastest-growing Canadian surplus from 2010 to 2014 with the US posting a 60.5% gain. In second place was sawn wood up 52.5% followed by petroleum gases ahead by 46.9%.
UK
Below are the products that gave Canada the highest surpluses in its international trade with the United Kingdom.
- Gold (unwrought): US$6.9 billion (125.7% of Canada’s surplus versus UK)
- Nickel matte, oxide sinters: $812.5 million (14.8%)
- Crude oil: $458.4 million (8.4%)
- Precious metal waste, scrap: $397 million (7.2%)
- Aircraft, spacecraft: $361.7 million (6.6%)
- Radioactive chemical elements: $355.7 million (6.5%)
- Fuel wood, wood chips, sawdust: $144.9 million (2.6%)
- Wheat: $89.1 million (1.6%)
- Iron ores, concentrates: $88.1 million (1.6%)
- Dried shelled vegetables: $73.7 million (1.3%)
Among these, iron ores and concentrates had the fastest-growing Canadian surplus with the UK from 2010 to 2014 posting a 24.2% gain. In second place was fuel wood, wood chips and sawdust up 23.4% followed by dried shelled vegetables ahead by 22%.
Hong Kong
Below are the products that gave Canada the highest surpluses in its international trade with Hong Kong.
- Gold (unwrought): US$2.2 billion (56.1% of Canada’s surplus vs. Hong Kong)
- Medicinal plants: $218.8 million (5.6%)
- Frozen beef: $139.8 million (3.6%)
- Miscellaneous raw furskins: $127 million (3.3%)
- Nickel (unwrought): $126.3 million (3.2%)
- Aircraft, spacecraft: $101.6 million (2.6%)
- TV receiver/transmit/digital cameras: $55.7 million (1.4%)
- Diamonds (unmounted/unset): $51.9 million (1.3%)
- Integrated circuits/microassemblies: $49.9 million (1.3%)
- Moluscs: $47.3 million (1.2%)
Among these, diamonds had the fastest-growing Canadian surplus with Hong Kong from 2010 to 2014 posting a 253% gain. In second place was unwrought gold up 218.9% and frozen beef ahead by 96.8%.
See also Canada’s Top 10 Exports, Highest Value Canadian Export Products, Canada’s Top 10 Imports and Canada’s Top Import Partners
Research Sources:
The World Factbook, Country Profiles, Central Intelligence Agency. Accessed on December 2, 2015
Trade Map, International Trade Centre. Accessed on December 2, 2015
Investopedia, Net Exports Definition. Accessed on December 2, 2015