I have written a little bit about Canada and its trade with China especially with respect to food.
Last Friday, a study detailing Canada’s trade with China was released by Statistics Canada. The study reveals that China has moved into the rank of Canada’s second largest trading partner after having surpassed Japan and the U.K. in recent years. Canada now (as of 2006) exports $7.7 billion of goods and imports $34.5 billion of goods from China.
Exports of Canadian goods to China in 2006 were four times their 1997 level while import from China were eight times their 1997 level. This is quite a large and rapid increase in trade. This increased trade with China is not confined to Canada and it accounts for China’s rapid development and rise as an global economic powerhouse. In fact, between 1997 and 2005 China has moved from being the world’s 7th largest economy to being the 4th largest economy by surpassing France, Italy and Britain.
Despite the increase in Canadian exports to China, the even greater increase in Chinese imports means that Canada’s trade deficit with China has increased from $3.9 billion in 1997 to $26.8 billion in 2005. Wow!