Canada's exports diversify away from the U.S.

Canada's merchandise exports reached a record high of $440.2 billion in 2006. Of these, the vast majority (81.6%) were destined for the U.S. However, U.S. dominance has decreased in the past few years, down from the peak of 87.1% in 2002. This is due in part to the expansion of Canada's resource exports in 2006, as the U.S. is a relatively more important market for non-resource based exports, with the exception of energy. But the decrease in the U.S. share of exports is not due to any shrinkage in trade with the U.S. Instead, it is a result of Canada's trade with other countries growing more quickly. In particular, exports to Western Europe and the Asia-Pacific region have picked up, with exports to each of these regions totalling over $30 billion. China and Japan, two of Canada's top export markets, have seen increased shares, as has the U.K. in Europe. For more information, see Canada's State of Trade 2007, available on the Office of the Chief Economist's website.

Provided by the Office of the Chief Economist, Foreign Affairs and International Trade Canada.