Trade brings two countries closer
Future likely to be full of new opportunities for Canadian exporters, especially in services, writes Nazvi Careem
Canada's trade and economic relationship with China has changed significantly over the past decade, with both countries keen to expand the range of products and investments needed to satisfy their evolving markets.
Not too long ago, cheap consumer goods, toys and clothing formed the bulk of Chinese exports to Canada. These have since been overtaken by sophisticated hi-tech products, such as electrical machinery, comprising cellphones and wireless network devices and mechanical machinery - particularly computers.
Canada imported C$1.5 billion (HK$10.6 billion) worth of automotive parts from China in 2012, two-thirds of which were vehicle parts and accessories. Vehicle imports from China increased sixfold from 2011 to 2012 to C$133 million, according to data from Canadian statistics agency Statcan.
The data shows that last year, Canada imported close to C$53 billion worth of goods from China, of which C$23.2 billion, or almost 45 per cent, was classified as machinery and mechanical appliances - electrical equipment and parts, sound recorders and reproducers, and related parts.
Domestic exports to China totalled C$20.2 billion last year, with mineral products, such as ores, slag and ash, top of the list at around C$4.8 billion. Bilateral trade came to C$72.9 billion last year compared to C$70.1 billion for 2012, a rise of 4 per cent.
The strong growth in trade relations over the years means that China has now become Canada's second-largest trading partner, behind the United States. Canada is China's 13th largest trading partner.
