Recent data from Statistics Canada shows that the Great White North incurred a C$520-million trade deficit during the first 6 months of 2011.
That deficit represents a dramatic reversal from the $983-million surplus that Canada enjoyed from January to June 2010.
Top Canadian Trade Deficits by Country
The following 10 countries contributed the most heavily to Canada’s trade deficit as of June 2011. In total, the countries below created a $33.1-billion deficit for Canada in just 6 months.
- China … $14.3 billion deficit, up 6.4% from first 6 months of 2010
- Mexico … $9.5 billion, up 18.1%
- Germany … $4.4 billion, up 18.6%
- Algeria … $2.4 billion, up 34.7%
- Peru … $1.8 billion, up 20.8%
- Italy … $1.5 billion, up 20.9%
- Taiwan … $1.47 billion, up 31.6%
- Iraq … $1.4 billion, up 91.1%
- Kazakhstan … $1.3 billion, up 30.7%
- Angola … $1.27 billion, up 116.9%
Among the 219 jurisdictions with which Canada conducts trade, 109 trade partners generated deficits. In total, those deficits amounted to a $61.1-billion negative trade balance.
Canada’s Top Trade Surpluses by Country
But it wasn’t all bad news. Canada posted its highest trade surpluses with the following 10 trade partners, which amounted to an overall $59.3-billion negative trade balance.
- United States … $53.1 billion, up 10.5% from first 6 months of 2010
- United Kingdom … $2.8 billion, up 85.2%
- Hong Kong … $1.3 billion, up 72.1%
- Netherlands … $1.2 billion, up 129.8%
- Pakistan … $221 million, up 158.6%
- Morocco … $173.6 million, up 966.3%
- Egypt … $168.7 million, up 54%
- Turkey … $115.5 million, down 8.1%
- Indonesia … $114 million, down 264.1%
- Sri Lanka … $113.6 million, down 13%.
Canada had surpluses with 110 trade partners during the first 6 months of 2011, for a collective $60.6 billion in positive trade balance earnings -- with those partners, at least.
Canada must address its own trade deficit
The statistics show that the U.S. contributes 87.6% of per-country trade balances that Canada generated as of June 2011.
One can see why Canadian leaders fear another recession in America; the first-half 2011 trade deficit will worsen should U.S. demand for Canadian exports weaken.
But no one should blame the U.S. or China for Canada's trade deficit problem.
Canadians must take it upon themselves to do a better job of selling its rich resources and innovative products around the world.
Sources:
- Industry Canada’s Trade Data Online (accessed August 19, 2011).
- Central Intelligence Agency’s World Factbook (accessed August 19, 2011).
Daniel Workman - A senior business and finance writer who also does French translations, notably international trade and insurance materials.
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