7 Common Exports in Canada You Should Know About

Canada is a trading nation with a diverse and rich natural resource base. The country exports a wide range of goods and services to the world, contributing to its economic growth and development. In this article, we will look at some of the most common exports in Canada and why they are important for the Canadian economy.

1. Crude Petroleum

Crude petroleum is the top export of Canada, accounting for 30.2% of its total exports in 2022. Canada has the third-largest proven oil reserves in the world, mostly located in the oil sands of Alberta. Crude petroleum is used to produce refined petroleum products such as gasoline, diesel, jet fuel, and lubricants. Crude petroleum is mainly exported to the United States, which is Canada’s largest trading partner.

2. Cars

Cars are the second-largest export of Canada, representing 8.4% of its total exports in 2022. Canada is home to several major automakers, such as General Motors, Ford, Toyota, Honda, and Fiat Chrysler. Cars are manufactured in various plants across the country, using parts and components from both domestic and foreign suppliers. Cars are exported to various markets around the world, especially to the United States, Mexico, China, and Europe.

3. Petroleum Gas

Petroleum gas is the third-largest export of Canada, accounting for 4% of its total exports in 2022. Petroleum gas is a by-product of crude oil extraction and refining, as well as natural gas processing. Petroleum gas includes propane, butane, ethane, and other liquefied gases. Petroleum gas is used for heating, cooking, power generation, and as a feedstock for petrochemicals. Petroleum gas is mainly exported to the United States and Asia.

4. Gold

Gold is the fourth-largest export of Canada, representing 4% of its total exports in 2022. Canada is one of the world’s largest gold producers, with mines operating in several provinces and territories. Gold is a precious metal that is used for jewelry, investment, industrial applications, and as a reserve asset. Gold is exported to various countries around the world, especially to China, India, Switzerland, and the United Kingdom.

5. Wood

Wood is the fifth-largest export of Canada, accounting for 3.3% of its total exports in 2022. Canada has vast forests that cover about 40% of its land area, providing a renewable source of timber and pulpwood. Wood is used for construction, furniture, paper products, bioenergy, and other purposes. Wood is exported to various markets around the world, especially to the United States, China, Japan, and Europe.

6. Plastics

Plastics are the sixth-largest export of Canada, representing 2.9% of its total exports in 2022. Canada produces various types of plastics from petrochemicals derived from crude oil and natural gas. Plastics are used for packaging, consumer goods, medical devices, automotive parts, and other applications. Plastics are exported to various countries around the world, especially to the United States, China, Mexico, and Europe.

7. Aluminum

Aluminum is the seventh-largest export of Canada, accounting for 2.4% of its total exports in 2022. Canada is one of the world’s largest aluminum producers, with smelters located mainly in Quebec and British Columbia. Aluminum is a lightweight metal that is used for transportation, construction, packaging, electrical equipment, and other purposes. Aluminum is exported to various markets around the world, especially to the United States,

These are some of the most common exports in Canada that you should know about. These exports reflect Canada’s natural resource endowment, competitive advantages, and trade relationships with other countries. They also contribute to Canada’s economic growth, employment, and innovation.

Common Exports in Canada: An Overview

Canada is one of the world’s largest exporters of goods and services, with a total value of $596.9 billion in 2022, up by 18.5% from 2021 . The country’s export sector is diverse and includes natural resources, manufactured products, agricultural products and services. In this blog post, we will look at three of the most common exports in Canada and how they have been affected by the global demand and supply dynamics.

Crude Petroleum

Crude petroleum is Canada’s top export product, accounting for 30.2% of the total exports in 2022 . Canada has the third-largest proven oil reserves in the world, mostly located in the oil sands of Alberta . The country produces about 4.6 million barrels per day of crude oil, of which about 3.8 million barrels per day are exported, mainly to the United States .

The global demand for crude oil has been recovering from the sharp decline caused by the COVID-19 pandemic in 2020, which led to a collapse in oil prices and a reduction in oil production. According to the International Energy Agency (IEA), the global oil demand is expected to grow by 5.7% in 2022, reaching 99.6 million barrels per day, close to the pre-pandemic level . The IEA also projects that the global oil supply will increase by 2.5% in 2022, reaching 100.8 million barrels per day, driven by the production growth from OPEC+ countries and the United States .

The outlook for Canada’s crude oil exports is positive, as the country benefits from the higher oil prices and the strong demand from its main market, the United States. However, Canada also faces some challenges, such as the limited pipeline capacity, the environmental regulations and the competition from other oil producers.

Cars

Cars are Canada’s second-largest export product, accounting for 8.4% of the total exports in 2022 . Canada is one of the world’s leading car manufacturers, with a production capacity of about 2.4 million vehicles per year . The country hosts several major car companies, such as General Motors, Ford, Toyota, Honda and Fiat Chrysler. The majority of Canada’s car exports are destined for the United States, which accounts for about 90% of the market share .

The global demand for cars has been recovering from the slump caused by the COVID-19 pandemic in 2020, which resulted in a drop in car sales and production. According to the International Organization of Motor Vehicle Manufacturers (OICA), the global car sales increased by 15.9% in 2021, reaching 77.6 million units . The OICA also estimates that the global car production increased by 16% in 2021, reaching 78.9 million units .

The outlook for Canada’s car exports is positive, as the country benefits from the higher car demand and the free trade agreements with its main markets, such as the United States-Mexico-Canada Agreement (USMCA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). However, Canada also faces some challenges, such as the global shortage of semiconductors, which affects the car production and supply chain, and the transition to electric vehicles, which requires more investment and innovation.

Wheat

Wheat is Canada’s seventh-largest export product, accounting for 3.3% of the total exports in 2022 . Canada is one of the world’s largest wheat producers and exporters, with an average annual production of about 35 million tonnes and an average annual export of about 24 million tonnes . The country is known for its high-quality wheat varieties, such as durum, hard red spring and soft white spring. The main markets for Canada’s wheat exports are China, Indonesia, Japan and Mexico .

The global demand for wheat has been stable in recent years, as wheat is a staple food for many countries and regions. According to the Food and Agriculture Organization (FAO), the global wheat consumption is expected to increase by 1.3% in 2022/23, reaching 780 million tonnes . The FAO also forecasts that the global wheat production will increase by 1.9% in 2022/23, reaching a record high of 790 million tonnes .

The outlook for Canada’s wheat exports is positive, as the country benefits from its competitive advantage in quality and price and its diversified market access. However, Canada also faces some challenges, such as the weather variability, the trade barriers and the competition from other wheat exporters, such as Russia, the European Union and the United States.

References:

https://atlas.media.mit.edu/en/explore/tree_map/hs/export/can/all/show/2012/

http://www.bankofcanada.ca/wp-content/uploads/2010/11/inflation_control_target.pdf

https://en.wikipedia.org/wiki/List_of_exports_of_Canada
https://oec.world/en/profile/country/can/
https://www.iea.org/reports/oil-market-report-february-2022
https://www.investcanada.ca/industries/automotive
http://www.oica.net/category/sales-statistics/
https://cerealscanada.ca/canadian-wheat-production-and-exports/
http://www.fao.org/worldfoodsituation/csdb/en/

https://en.wikipedia.org/wiki/List_of_exports_of_Canada