7 Reasons to Choose Import Companies in Canada for Your Business

If you are looking for a reliable and profitable way to source products for your business, you might want to consider import companies in Canada. Importing goods from other countries can offer many benefits, such as lower costs, higher quality, greater variety, and access to new markets. Here are seven reasons why you should choose import companies in Canada for your business.

1. Canada has a strong and stable economy

Canada is one of the world’s largest economies, with a gross domestic product (GDP) of $1.9 trillion in 2020. It ranks 10th in the world in terms of GDP per capita, and has a low inflation rate, a low unemployment rate, and a high standard of living. Canada also has a sound banking system, a stable political system, and a transparent legal system, making it a safe and trustworthy trading partner.

2. Canada has free trade agreements with many countries

Canada is a member of the World Trade Organization (WTO), and has signed free trade agreements (FTAs) with 15 countries, including the United States, Mexico, the European Union, Japan, South Korea, and Israel. These FTAs eliminate or reduce tariffs and non-tariff barriers on goods and services traded between Canada and its partners, making it easier and cheaper to import products from these countries.

3. Canada has a diverse and multicultural population

Canada is home to more than 38 million people, who come from various ethnic, cultural, linguistic, and religious backgrounds. According to the 2016 census, more than 250 ethnic origins were reported by Canadians, and more than 200 languages were spoken at home. This diversity means that Canadians have a wide range of tastes and preferences, creating a demand for different types of products from around the world.

4. Canada has a strategic location and infrastructure

Canada is located in North America, bordering the United States, the world’s largest economy and consumer market. It also has access to the Atlantic Ocean, the Pacific Ocean, and the Arctic Ocean, making it a gateway to Europe, Asia, and other regions. Canada has an extensive network of roads, railways, ports, airports, and pipelines that facilitate the transportation and distribution of goods across the country and beyond.

5. Canada has a supportive and innovative business environment

Canada is ranked among the top 10 countries in the world for ease of doing business by the World Bank. It offers various programs and incentives to support businesses of all sizes and sectors, such as tax credits, grants, loans, guarantees, and export assistance. Canada also invests heavily in research and development (R&D), and has a highly skilled and educated workforce that can help businesses innovate and compete.

6. Canada has a high demand for imported products

Canada is a net importer of goods and services, meaning that it imports more than it exports. In 2020, Canada imported $547 billion worth of goods from other countries, while exporting $462 billion worth of goods to other countries. The main categories of imported goods were machinery and equipment ($116 billion), motor vehicles and parts ($74 billion), consumer goods ($72 billion), electronic and electrical equipment ($66 billion), and industrial machinery ($40 billion). These figures indicate that there is a high demand for imported products in Canada.

7. Canada has a positive reputation and image

Canada is widely regarded as one of the most peaceful, friendly, tolerant, respectful, and environmentally conscious countries in the world. It has a strong global influence and leadership role in various issues such as human rights, democracy, security, climate change, health, education, and humanitarian aid. These factors enhance Canada’s reputation and image as a desirable trading partner.

Import companies in Canada can help you take advantage of these benefits by providing you with quality products at competitive prices. They can also assist you with customs clearance, logistics, marketing, customer service, and other aspects of importing goods into Canada. Whether you are looking for raw materials, intermediate goods, finished goods, or services, you can find import companies in Canada that can meet your needs.

The State of Import Companies in Canada

Canada is one of the world’s largest trading nations, with imports of goods and services worth about 940.39 billion Canadian dollars in 2022. The country’s major import partners are the United States, China, Mexico, and Germany . In this post, we will look at some statistics and trends that show the increase or decrease of global demand in the import industry in Canada.

Imports by Product Category

According to the Canadian Importers Database, the top five product categories that Canada imported in 2021 were:

Vehicles and parts (87.03 billion Canadian dollars)
Machinery and electrical equipment (77.28 billion Canadian dollars)
Mineral products (52.76 billion Canadian dollars)
Chemical products (36.98 billion Canadian dollars)
Plastics and rubber (19.75 billion Canadian dollars)

These product categories accounted for more than half of the total value of imports in 2021. Compared to 2020, the value of imports increased for all product categories except for mineral products, which decreased by 8.9 percent. This reflects the lower demand for crude oil and refined petroleum products due to the COVID-19 pandemic and its impact on global travel and transportation.

Imports by Trading Partner

The United States is by far the largest source of imports for Canada, accounting for 49 percent of the total value of imports in 2021. China is the second-largest source, with 14 percent of the total value of imports, followed by Mexico (5.5 percent), Germany (3.1 percent), and Japan (2.4 percent) .

The value of imports from the United States increased by 16.6 percent in 2021 compared to 2020, while the value of imports from China increased by 18.7 percent. The value of imports from Mexico and Germany also increased by 12.9 percent and 10.4 percent, respectively. However, the value of imports from Japan decreased by 3.8 percent in 2021 compared to 2020.

Imports by Multinational Enterprises

Multinational enterprises (MNEs) play a significant role in Canada’s import industry, as they account for more than two-thirds of the total value of imports in 2019 (the latest year for which data is available). MNEs are enterprises that have at least one foreign affiliate or parent company.

The top five MNEs that imported goods into Canada in 2019 were:

General Motors Company (10.6 billion Canadian dollars)
Ford Motor Company (9.8 billion Canadian dollars)
Toyota Motor Corporation (7.6 billion Canadian dollars)
Honda Motor Co., Ltd. (5.8 billion Canadian dollars)
Volkswagen AG (4.7 billion Canadian dollars)

These MNEs are mainly involved in the vehicle and parts industry, which is consistent with the overall trend of imports by product category. Compared to 2018, the value of imports by MNEs increased by 2.4 percent in 2019.

The import industry in Canada is a vital part of the country’s economy, as it provides access to a variety of goods and services from around the world. The statistics and trends presented in this post show that the global demand for imports in Canada has increased in most sectors and regions, despite the challenges posed by the COVID-19 pandemic. However, there are also some areas where the demand has decreased or remained stable, such as mineral products and Japan.

References:

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

https://www.international.gc.ca/economist-economiste/statistics-statistiques/annual_merchandise_trade-commerce_des_marchandises_annuel.aspx?lang=eng

https://www.statcan.gc.ca/en/subjects-start/international_trade/activities_of_multinational_enterprises
https://ised-isde.canada.ca/site/canadian-importers-database/en
https://tradingeconomics.com/canada/imports
https://www.statista.com/statistics/463924/volume-of-imports-of-trade-goods-and-services-in-canada/
https://oec.world/en/profile/country/can/

https://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/index.aspx?lang=eng

https://www.doingbusiness.org/en/rankings

https://www.investcanada.ca/