List of the largest trading partners of Canada
Encyclopedia
This is a list of the largest trading partners of Canada. Canada considered to be a trading nation
as its total trade is worth more than two-thirds of its GDP (the second highest level in the G7 after Germany
).
Historically the issue of Canada's largest trade partners, and dependence on particular markets, has been a major political issue. At the time of Confederation
in 1867, the United Kingdom was by far Canada's largest trading partner, reflecting the close historical, cultural, and institutional ties within the British Empire
. Over time, more and more of Canada's trade was proportionally done with the United States. Various governments hoped to strengthen or reverse this trend, by changing tariff policy either to one of Imperial Preference
with the British, Reciprocity
with the Americans, or a National Policy
of internal development. The 1891 and 1911 elections were fought partly over the issue of closer trade relationships with the USA. Following the World Wars, the United State emerged as Canada's largest trading partner. By the time the United Kingdom joined the European Economic Community
in 1973, the idea of the UK as an alternative to the USA Canada's largest market was no longer viable. Canada and the United States signed the Free Trade Agreement in 1988 (which was expanded into NAFTA by the addition of Mexico in 1994). Since that time the United States has dominated Canadian trade by an overwhelming degree. After the Wars, trade with Asia began to expand, especially Japan
. After the opening of Canada – People's Republic of China relations in 1970, trade with China has expanded rapidly.
indicates that:
This list does not include the European Union
which is a single economy and trading bloc (including France, Germany and the United Kingdom from the above list). The EU would be Canada's second largest trading partner with 10.5% of its trade (€46.6bn) in 2010.
Trading nation
A trading nation is a country where international trade makes up a large percentage of the total economy...
as its total trade is worth more than two-thirds of its GDP (the second highest level in the G7 after Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
).
Historically the issue of Canada's largest trade partners, and dependence on particular markets, has been a major political issue. At the time of Confederation
Canadian Confederation
Canadian Confederation was the process by which the federal Dominion of Canada was formed on July 1, 1867. On that day, three British colonies were formed into four Canadian provinces...
in 1867, the United Kingdom was by far Canada's largest trading partner, reflecting the close historical, cultural, and institutional ties within the British Empire
British Empire
The British Empire comprised the dominions, colonies, protectorates, mandates and other territories ruled or administered by the United Kingdom. It originated with the overseas colonies and trading posts established by England in the late 16th and early 17th centuries. At its height, it was the...
. Over time, more and more of Canada's trade was proportionally done with the United States. Various governments hoped to strengthen or reverse this trend, by changing tariff policy either to one of Imperial Preference
Imperial Preference
Imperial Preference was a proposed system of reciprocally-levelled tariffs or free trade agreements between the dominions and colonies within the British Empire...
with the British, Reciprocity
Reciprocity (Canadian politics)
In nineteenth and early twentieth century Canadian politics, the term reciprocity was used to describe the concept of free trade with the United States of America...
with the Americans, or a National Policy
National Policy
The National Policy was a Canadian economic program introduced by John A. Macdonald's Conservative Party in 1876 and put into action in 1879. It called for high tariffs on imported manufactured items to protect the manufacturing industry...
of internal development. The 1891 and 1911 elections were fought partly over the issue of closer trade relationships with the USA. Following the World Wars, the United State emerged as Canada's largest trading partner. By the time the United Kingdom joined the European Economic Community
European Economic Community
The European Economic Community The European Economic Community (EEC) The European Economic Community (EEC) (also known as the Common Market in the English-speaking world, renamed the European Community (EC) in 1993The information in this article primarily covers the EEC's time as an independent...
in 1973, the idea of the UK as an alternative to the USA Canada's largest market was no longer viable. Canada and the United States signed the Free Trade Agreement in 1988 (which was expanded into NAFTA by the addition of Mexico in 1994). Since that time the United States has dominated Canadian trade by an overwhelming degree. After the Wars, trade with Asia began to expand, especially Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
. After the opening of Canada – People's Republic of China relations in 1970, trade with China has expanded rapidly.
Recent trends
The 2010 Canada Year Book published by Statistics CanadaStatistics Canada
Statistics Canada is the Canadian federal government agency commissioned with producing statistics to help better understand Canada, its population, resources, economy, society, and culture. Its headquarters is in Ottawa....
indicates that:
2008
| Country | % Share of Total Exports | % Share of Total Imports |
|---|---|---|
 United States |
77.7 | 52.4 |
 Mainland China |
2.2 | 9.8 |
 United Kingdom |
2.7 | 2.9 |
 Japan |
2.3 | 3.5 |
 Mexico |
1.2 | 4.1 |
 Germany |
0.9 | 2.9 |
 Netherlands |
0.8 | |
 South Korea |
0.8 | 1.4 |
 Vietnam |
0.7 | |
 Early Modern France |
0.7 | 1.4 |
 Algeria |
1.8 | |
 Norway |
1.4 | |
| Total of Top Ten | 90.0 | 81.6 |
This list does not include the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
which is a single economy and trading bloc (including France, Germany and the United Kingdom from the above list). The EU would be Canada's second largest trading partner with 10.5% of its trade (€46.6bn) in 2010.