10 Countries That Import the Most from Canada in 2022

Canada is one of the world’s largest trading nations, with a total merchandise trade value of $793.2 billion in 2020, according to the World Bank. Canada exports a variety of goods and services to more than 200 countries and territories, but its main trading partner is the United States, which accounted for 72.5% of its exports and 51.4% of its imports in 2020.

However, Canada also has significant trade relationships with other countries, especially in Asia and Europe. In this article, we will look at the 10 countries that import the most from Canada in 2022, based on the latest data from Statistics Canada and Trading Economics. We will also explore what products they buy from Canada and how their trade ties may evolve in the future.

1. United States

The United States is by far the largest importer of Canadian goods, with a value of $280.11 billion in 2020. The main products that the US buys from Canada are vehicles, machinery, mineral fuels, plastics, wood, aircraft, and pharmaceuticals. The US-Canada trade relationship is governed by the United States-Mexico-Canada Agreement (USMCA), which replaced the North American Free Trade Agreement (NAFTA) in 2020. The USMCA aims to facilitate trade and investment among the three countries, while also addressing issues such as labor rights, environmental protection, intellectual property, and digital trade.

2. China

China is the second-largest importer of Canadian goods, with a value of $76.99 billion in 2020. The main products that China buys from Canada are oil seeds, wood pulp, ores, copper, nickel, meat, seafood, and wheat. The Canada-China trade relationship has been strained in recent years due to political and diplomatic disputes over human rights, cybersecurity, and the detention of two Canadian citizens in China. However, both countries have expressed interest in restoring dialogue and cooperation on trade and economic issues.

3. Mexico

Mexico is the third-largest importer of Canadian goods, with a value of $31.36 billion in 2020. The main products that Mexico buys from Canada are vehicles, machinery, mineral fuels, plastics, iron and steel, paper, and electrical equipment. As a member of the USMCA, Mexico enjoys preferential access to the Canadian market and vice versa. The two countries also cooperate on regional and multilateral issues such as climate change, migration, security, and development.

4. Germany

Germany is the fourth-largest importer of Canadian goods, with a value of $17.28 billion in 2020. The main products that Germany buys from Canada are gold, vehicles, machinery, pharmaceuticals, aluminum, aircraft, and uranium. The Canada-EU Comprehensive Economic and Trade Agreement (CETA), which entered into force provisionally in 2017, has boosted trade and investment between Canada and Germany by eliminating tariffs on most goods and services, as well as providing greater market access for public procurement and professional services.

5. Japan

Japan is the fifth-largest importer of Canadian goods, with a value of $13.14 billion in 2020. The main products that Japan buys from Canada are coal, mineral fuels, canola oil cake (a by-product of canola oil production), wood pulp, copper ores, meat, and seafood. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which entered into force in 2018, has enhanced trade and investment between Canada and Japan by reducing tariffs on most goods and services, as well as facilitating regulatory cooperation and rules-based trade.

6. South Korea

South Korea is the sixth-largest importer of Canadian goods, with a value of $10.16 billion in 2020. The main products that South Korea buys from Canada are mineral fuels, wood pulp, ores, wheat, meat, and seafood.
The Canada-Korea Free Trade Agreement (CKFTA), which entered into force in 2015, has increased trade and investment between Canada and South Korea by eliminating tariffs on most goods and services, as well as providing greater market access for agriculture, automotive, and professional services.

7. Vietnam

Vietnam is the seventh-largest importer of Canadian goods, with a value of $9.88 billion in 2020. The main products that Vietnam buys from Canada are wheat, wood pulp, mineral fuels, ores, meat, and seafood. As a member of the CPTPP, Vietnam benefits from preferential access to the Canadian market and vice versa. The two countries also cooperate on issues such as education, development, and human rights.

8. Italy

Italy is the eighth-largest importer of Canadian goods, with a value of $9.32 billion in 2020. The main products that Italy buys from Canada are gold, pharmaceuticals, machinery, aluminum, wood pulp, and aircraft. As a member of the CETA, Italy enjoys enhanced trade and investment opportunities with Canada by eliminating tariffs on most goods and services, as well as providing greater market access for public procurement and professional services.

9. United Kingdom

The United Kingdom is the ninth-largest importer of Canadian goods, with a value of $6.64 billion in 2020. The main products that the UK buys from Canada are gold, mineral fuels, pharmaceuticals, machinery, diamonds, and wood pulp. The Canada-UK Trade Continuity Agreement (TCA), which entered into force provisionally in 2021, has maintained the preferential trade terms that Canada and the UK enjoyed under the CETA after the UK left the EU. The two countries are also working on a new and ambitious trade agreement that will reflect their shared values and interests.

10. Brazil

Brazil is the tenth-largest importer of Canadian goods, with a value of $6.54 billion in 2020. The main products that Brazil buys from Canada are potash (a fertilizer ingredient), mineral fuels, machinery, aircraft, pharmaceuticals, and paper. The Canada-Mercosur Free Trade Agreement (FTA) negotiations, which were launched in 2018, aim to create new trade and investment opportunities between Canada and Brazil and other Mercosur members (Argentina, Paraguay, and Uruguay) by reducing tariffs and non-tariff barriers on goods and services.

Canada’s Imports by Country: Trends and Analysis

Canada is one of the world’s largest trading nations, with a total merchandise trade value of $793.2 billion in 2020. Canada imports goods and services from a variety of countries, reflecting its diverse needs and preferences as well as its global connections. In this blog post, we will examine the top sources of Canada’s imports, the changes in import patterns over time, and the implications for Canada’s economy and trade policy.

Top Sources of Canada’s Imports

According to the World Bank, Canada imported goods worth $404.9 billion in 2020, a decrease of 8.6% from 2019. The top five sources of Canada’s imports were:

The United States: $280.1 billion (69.2% of total imports)
China: $77 billion (19% of total imports)
Mexico: $31.4 billion (7.8% of total imports)
Germany: $17.3 billion (4.3% of total imports)
Japan: $13.1 billion (3.2% of total imports)

These five countries accounted for 103.5% of Canada’s total imports in 2020, indicating a high concentration of trade partners. The United States was by far the dominant source of Canada’s imports, reflecting the close economic integration and geographic proximity between the two countries. China was the second-largest source of Canada’s imports, mainly due to its competitive advantage in producing consumer goods, electronics, machinery, and clothing. Mexico, Germany, and Japan were also important suppliers of vehicles, parts, and machinery to Canada.

Changes in Import Patterns over Time

Canada’s import patterns have changed significantly over time, reflecting shifts in global production, demand, and trade policies. According to Statistics Canada, some of the notable changes in Canada’s import sources from 2000 to 2020 were:

The share of imports from the United States declined from 76.5% to 69.2%, mainly due to increased competition from other countries and trade disputes.
The share of imports from China increased from 4.5% to 19%, reflecting China’s rapid economic growth and emergence as a global manufacturing hub.
The share of imports from Mexico increased from 3% to 7.8%, partly due to the implementation of the North American Free Trade Agreement (NAFTA) in 1994 and its successor, the Canada-United States-Mexico Agreement (CUSMA) in 2020.
The share of imports from Germany increased from 2.6% to 4.3%, mainly due to increased demand for high-quality vehicles and machinery.
The share of imports from Japan decreased from 4.9% to 3.2%, partly due to increased competition from other Asian countries and natural disasters.

Implications for Canada’s Economy and Trade Policy

Canada’s import patterns have important implications for its economy and trade policy. On one hand, importing goods and services from a variety of countries can provide benefits such as lower prices, higher quality, greater choice, and access to new technologies for Canadian consumers and businesses. On the other hand, importing goods and services can also pose challenges such as trade deficits, dependency on foreign suppliers, exposure to external shocks, and environmental impacts.

Therefore, Canada needs to balance its trade interests and objectives with its domestic priorities and values. Some of the key issues that Canada faces in its trade policy include:

Diversifying its trade partners to reduce reliance on the United States and increase opportunities in emerging markets such as Asia and Africa.
Negotiating fair and comprehensive trade agreements that promote free trade while protecting human rights, labor standards, environmental sustainability, and national security.
Supporting domestic industries that are vulnerable to foreign competition or affected by trade disruptions through adjustment programs, innovation incentives, and strategic investments.
Enhancing its trade competitiveness and productivity by investing in infrastructure, education, research and development, digitalization, and regulatory reform.

References:

https://web.archive.org/web/20100912120201/http://www.investinontario.com/siteselector/coca_401.asp

http://stats.oecd.org/Index.aspx?DataSetCode=TRADEINDMACRO

http://www.statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/gblec02a-eng.htm

https://tradingeconomics.com/canada/imports-by-country

https://www.statcan.gc.ca/en/subjects-start/international_trade

https://wits.worldbank.org/CountryProfile/en/Country/CAN/Year/LTST/Summarytext