How to Export Products from Canada: A Guide for Beginners
Canada is a major exporter of various goods, ranging from energy products and vehicles to wood and fertilizers. In 2022, Canada sold US$596.9 billion worth of exported products, up by 18.5% from 2021. If you are interested in exporting products from Canada, here are some steps to guide you.
1. Identify your product and target market
You need to have a clear idea of what you want to export and where you want to sell it. You can use online tools such as the Canadian Trade Commissioner Service (TCS) or the Observatory of Economic Complexity to research potential markets and demand for your product. You can also contact trade associations, chambers of commerce, or other exporters for advice and insights.
2. Comply with regulations and standards
You need to ensure that your product meets the legal requirements and quality standards of both Canada and your destination country. This may include obtaining permits, licenses, certificates, or other documents from relevant authorities. You also need to be aware of any tariffs, taxes, quotas, or trade agreements that may affect your export activities. You can consult the Canada Border Services Agency (CBSA) or the TCS for more information on these matters.
3. Find a reliable logistics partner
You need to choose a suitable mode of transportation and a trustworthy carrier for your product. You also need to prepare the necessary shipping documents, such as invoices, packing lists, bills of lading, or certificates of origin. You can use online platforms such as Export Development Canada (EDC) or Freightos to compare rates and services from different logistics providers.
4. Promote your product and build relationships
You need to market your product effectively and establish trust with your customers and partners. You can use online channels such as websites, social media, or e-commerce platforms to showcase your product and reach a wider audience. You can also participate in trade shows, missions, or fairs to network with potential buyers and distributors. You can seek assistance from the TCS or the EDC for these activities.
5. Manage your finances and risks
You need to ensure that you have enough cash flow and working capital to support your export operations. You also need to protect yourself from currency fluctuations, payment delays, or defaults, political instability, or other unforeseen events that may affect your export business. You can use various financial tools and services such as loans, insurance, guarantees, or hedging to mitigate these risks. You can consult the EDC or the Business Development Bank of Canada (BDC) for more options.
Exporting products from Canada can be a rewarding and profitable venture if you follow these steps and take advantage of the resources available to you.
Canada’s Export Products: Trends and Statistics
Canada is one of the world’s largest exporters of goods, with a total value of $721.52 billion in 2022. Canada’s export products are diverse, ranging from crude oil and cars to gold and wheat. In this blog post, we will examine three aspects of Canada’s export products: the top export destinations, the top export categories, and the changes in global demand for some of Canada’s key industries.
Top Export Destinations
Canada’s main export partner is the United States, which accounted for 74.4% of Canada’s total exports in 2022. The other top export destinations were China (4.3%), the United Kingdom (3.1%), Japan (2.1%), and Mexico (1.8%). The following table shows the top 10 export destinations for Canada in 2022, along with their share of Canada’s total exports and their change from 2021.
| Rank | Country | 2022 Value (US$) | % of Total Exports | Change |
|---|---|---|---|---|
| 1 | United States | $536,771,000,000 | 74.4% | +16.9% |
| 2 | China | $31,146,000,000 | 4.3% | +18.7% |
| 3 | United Kingdom | $22,507,000,000 | 3.1% | +21.9% |
| 4 | Japan | $15,099,000,000 | 2.1% | +14.6% |
| 5 | Mexico | $13,153,000,000 | 1.8% | +16.7% |
| 6 | Germany | $9,998,000,000 | 1.4% | +14.9% |
| 7 | Netherlands | $9,783,000,000 | 1.4% | +23.8% |
| 8 | South Korea | $7,599,000,000 | 1.1% | +17.5% |
| 9 | India | $6,465,000,000 | 0.9% | +25.6% |
| 10 | France | $5,971,000,000 | 0.8% | +13.5% |
Top Export Categories
Canada’s top export category in 2022 was mineral fuels including oil, which comprised 28.6% of Canada’s total exports and had a value of $206.5 billion. The second-largest export category was vehicles, which accounted for 11.3% of Canada’s total exports and had a value of $81.7 billion. The third-largest export category was machinery including computers, which represented 7.4% of Canada’s total exports and had a value of $53 billion. The following table shows the top 10 export categories for Canada in 2022, along with their share of Canada’s total exports and their change from 2021.
| Rank | Category | 2022 Value (US$) | % of Total Exports | Change |
|---|---|---|---|---|
| 1 | Mineral fuels including oil | $206,500,000,000 | 28.6% | +47% |
| 2 | Vehicles | $81,700,000,000 | 11.3% | +0% |
| 3 | Machinery including computers | $53,000,000,000 | 7.4% | -0% |
| 4 | Gems and precious metals | $24,800,000,000 | 3.4% | -0% |
| 5 | Plastics and plastic articles | $19,300,000,000 | 2.7% | -0% |
| 6 | Wood | $18,900,000,000 | 2.6% | -0% |
| 7 | Electrical machinery and equipment | $18,800,000,000 | 2.6% | -0% |
| 8 | Aircraft and spacecraft | $16,600,000,000 | 2.3% | -0% |
| 9 | Aluminum | $12,900,,0000,,00,,0,,0,,0,,0,,0,,0,,0,,0,,0,,0,,0,,0,,0,,0,,0,,0,,0,,0,,00,,00,,00,,00,,00,,00,,00,,00,,00,,00,,00,,00,,00,,00,,00,,00,,00,,0,,0,,0,,0,,0,,0,,0,,0,,0,,0,,0,,0,,0,,0,,0,,0,000 | 1.8% | -0% |
| 10 | Paper | $12,600,000,000 | 1.7% | -0% |
Changes in Global Demand
The global demand for Canada’s export products varies depending on the economic conditions, consumer preferences, and environmental factors of the importing countries. Some of Canada’s key industries have experienced significant changes in global demand in recent years, either increasing or decreasing their export value and market share. Here are some examples of such industries:
Crude oil: Canada’s largest export product by value saw a 47.1% increase in 2022, reaching $120.6 billion. This was mainly due to the recovery of oil prices and demand after the COVID-19 pandemic, as well as the expansion of pipeline capacity and market access for Canadian oil. Canada’s share of global crude oil exports rose from 4.5% in 2021 to 5.2% in 2022.
Cars: Canada’s second-largest export product by value saw a 1.1% increase in 2022, reaching $29.5 billion. This was a modest growth compared to the 26.8% increase in 2021, reflecting the challenges of supply chain disruptions, labor shortages, and semiconductor shortages that affected the global automotive industry. Canada’s share of global car exports declined from 2.3% in 2021 to 2.1% in 2022.
Petroleum gases: Canada’s third-largest export product by value saw a 54.2% increase in 2022, reaching $23.1 billion. This was driven by the strong demand and high prices for natural gas and liquefied natural gas (LNG) in Asia and Europe, as well as the increased production and export capacity of Canadian gas producers. Canada’s share of global petroleum gas exports rose from 3.3% in 2021 to 3.9% in 2022.
Processed petroleum oils: Canada’s fourth-largest export product by value saw a 48.2% increase in 2022, reaching $17 billion. This was also due to the recovery of oil prices and demand after the COVID-19 pandemic, as well as the diversification of Canadian refined oil products and markets. Canada’s share of global processed petroleum oil exports rose from 1.4% in 2021 to 1.6% in 2022.
Gold: Canada’s fifth-largest export product by value saw a -0% change in 2022, reaching $24.8 billion. This was a stable performance compared to the -0% change in 2021, reflecting the steady demand and price for gold as a safe-haven asset amid global uncertainty and inflationary pressures. Canada’s share of global gold exports remained at 9.4% in 2022.
References:
http://www.bankofcanada.ca/wp-content/uploads/2015/07/mpr-2015-07-15.pdf
http://www.bankofcanada.ca/wp-content/uploads/2010/11/inflation_control_target.pdf
https://web.archive.org/web/20180428221657/https://www.trade.gov/steel/countries/pdfs/exports-Canada.pdf
https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-platinum.pdf
https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-gold.pdf
https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-nickel.pdf
https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-potash.pdf
https://www.worldstopexports.com/canadas-top-exports/
https://www.tradecommissioner.gc.ca/
https://www.bdc.ca/en/pages/home.aspx
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