Archive:Canada-EU - international trade in goods statistics
- Data extracted in September 2017. Most recent data: Further Eurostat information, Main tables and Database. Planned article update: October 2018.
This article provides a picture of the trade in goods between the European Union (EU) and Canada. It analyses the type of goods exchanged between the two economies and the shares of each EU Member State in those exchanges.
Source: Eurostat (ext_lt_introle)
_and_cover_ratio_2007-2016_(1).png)
Source: Eurostat (ext_lt_introle)
Source: Eurostat (ext_lt_maineu)
Source: Eurostat DS-018995
Source: Eurostat DS-018995
_by_SITC_group_for_EU_imports_from_Canada,_Jan_2007_-_Jul_2017.png)
Source: Eurostat (ext_st_eu28sitc)
_by_SITC_group_for_EU_exports_to_Canada,_Jan_2007_-_Jul_2017.png)
Source: Eurostat (ext_st_eu28sitc)
Source: Eurostat DS-018995
Main statistical findings
- In 2016, Canada was the seventh largest exporter and importer of goods in the world with a share of 3.2 % both of world exports and of world imports.
- Among EU's trading partners, Canada was the 11th largest partner for EU imports, and the 12th largest partner for EU exports in 2016.
- EU trade balance with Canada peaked in 2015 at EUR 6.8 billion before dropping to EUR 6.1 billion in 2016.
- Manufactured goods dominate the exports of goods from the EU to Canada but contribute only to 45 % of imports from Canada to the EU.
- Among EU Member States, the United Kingdom is the largest importer (EUR 12.3 billion in 2016) from Canada and 2nd largest exporter (EUR 5.6 billion) to Canada and has the largest trade deficit with Canada (EUR 6.8 billion). Germany is the largest exporter (EUR 9.6 billion) to Canada and 2nd largest importer (EUR 3.4 billion) from Canada and has the largest trade surplus with Canada (EUR 6.1 billion).
EU and Canada in world trade in goods
Figure 1 shows that the four largest exporters account for almost half of the world exports. The largest is China (17 %) followed by the EU (16 %), the United States (12 %) and Japan (5 %). The same four also account for almost half of the world imports but in different order. Here the USA (18 %) leads, followed by the EU (15 %), China (12 %) and Japan (5 %). Canada is the seventh largest exporter and importer in the world, in both cases accounting for 3.2 % of world trade.
Figure 2 focuses on the evolution of trade in the EU and Canada over the period 2007-2016. In 2007 Canada had cover ratio (exports divided by imports ) of 110 % while that of the EU was 85 %. Between 2007 and 2016 EU exports grew by 41 points while Canadian exports only grew by 15 points. In imports the reverse was true with Canada's growth (31 points) being less than that of the EU (18 points). Consequently in 2016 the European trade deficit disappeared in 2013 when its cover ratio first grew above 100 while Canada's cover ratio dropped below 100 in 2009 and remained close to 100 between 2009 and 2016 when it was 97.
EU surplus with Canada peaked in 2015
Figure 3 shows that in 2016, Canada had a share of 2.0 % in extra-EU exports (EUR 35.2 billion) and 1.7 % in extra-EU imports (EUR 29.5 billion). This meant it was the 11th largest partner for exports to the EU ahead of Hong Kong (EUR 35.0 billion, 2.0%) and behind India (EUR 37.8 billion, 2.2 %). Canada was the 12th largest partner for EU exports ahead of Taiwan (EUR 25.9 billion, 1.5 %) and behind Brazil (EUR 29.5 billion, 1.7 %).
The EU had a trade surplus with Canada from 2007 to 2010 and from 2012 to 2016 (see Figure 4). In this time span, trade between the two economies hit a low in 2009, but quickly regained. Between 2009 and 2011 imports from Canada grew more strongly than exports to Canada resulting in a trade deficit in 2011. But while exports continued to grow after 2011imports stagnated and the EU regained its trade surplus which peaked at EUR 6.8 billion in 2015 before dropping slightly to EUR 6.1 billion in 2016.
EU trade with Canada largely dominated by manufactured goods
When breaking down imports and exports by SITC groups, the main categories driving the exports to Canada are 'machinery & vehicles', 'chemicals' and 'other manufactured goods'. Together they accounted for around 80 % of the EU exports. In imports from Canada 'other goods' are the most traded category with 31 %, followed by 'machinery & vehicles' with 25 %.
Figure 6 shows the evolution of EU imports and exports by SITC group since 2007. The EU has had trade deficits in 'other goods' and 'raw materials'. In 'chemicals', 'food & drink','machinery and vehicles' and other manufactured goods the EU has had a trade surplus. In 'energy' the trade balance switched from a surplus to a deficit several times between 2007 and 2017.
Figure 7a shows the unit value index for EU imports from Canada by SITC group. Four of the import indexes were below the total index in 2016, namely 'raw materials'. 'energy', 'chemicals' and 'other manufactured goods'. The indexes for 'food & drink' and 'machinery and vehicles' were above the total index.
On the export side, indexes for 'food & drink' and 'other manufactured goods' remained very close to the total index throughout 2007 to 2016. Index for 'raw materials', 'energy' and 'chemicals' were all well below the total index. Only 'machinery and vehicles' gained considerably compared to the total index.(see figure 7b).
Comparing import indexes to export indexes shows for machinery and vehicles shows that they are not only very close to each other in 2017 but are in both cases the group with the most gains since 2010. As was shown in figure 4 this is the most exported group to Canada and the second most imported group from Canada.
Most traded good: non-monetary gold
Figure 8 gives more details about the goods exchanged between the EU and Canada, showing the top 20 traded goods at a more detailed level (by SITC level 3). Those top 20 goods covered around 60 % of total traded goods in 2016. Eight products among the top 20 belong to the'machinery and vehicles' group and three each to 'chemicals' and 'raw materials'. 'Non-monetary gold was the most traded product followed by 'motor car and motor vehicles'.
Another interesting way to look at data is to investigate the export/import ratio of traded goods, in order to better identify the direction taken by flows and specialisation between the two areas. These ratios can be found in the right margin of Figure 9. 'Non-monetary gold', 'iron ore and concentrates', 'pearls' and 'oil seed' all have values below five, showing that imports from Canada dominate trade. High ratios are found for 'alcoholic beverages', 'motor cars and motor vehicles' and 'medicinal and pharmaceutical products' implying the opposite. The remaining products all have fairly moderate values implying trade flows in both directions. 'Engines and motors, non-electric' with a ratio of 100 is an example where imports and exports are perfectly balanced.
The United Kingdom is the Member State trading most with Canada
Figure 9a shows Member States' imports from Canada and the share of the partner Canada in national extra-EU imports. Table 9b provides similar information but concerning Member States' exports to Canada.
The United Kingdom is the largest importer from Canada (EUR 12.4 billion) and the second largest exporter (EUR 5.6 billion) to Canada. It also has the largest trade deficit with Canada (EUR 6.8 billion). In total extra-EU imports Canada's share of the United Kingdom is 4.3 % which is third highest of all EU member states only behind Luxembourg (4.7 %) and Malta (22.7 %).
Germany is the largest exporter to Canada (EUR 9.6 billion) and the second largest importer (EUR 3.4 billion) from Canada. It has the largest trade surplus with Canada (EUR 6.1 billion). There are only two Member States where Canada's share of total extra-EU export is higher than 3 %. These are Poland (3.3 %) and Luxembourg (3.2 %)
Figure 9c shows that 8 Member States had a trade deficit with Canada in 2016, ranging from just EUR 3 million for Cyprus to EUR 6.8 billion for the United Kingdom. The remaining 20 Member States had a trade deficit, starting at EUR 9 million for Latvia to EUR 6.1 billion for Germany. Italy (EUR 2.2 billion), the Netherlands (EUR 1.1 billion) and Poland (EUR 1.0 billion) were the only other Member States whose trade surplus was higher than one billion euro.
Data sources and availability
EU data is taken from Eurostat's COMEXT database. COMEXT is the reference database for international trade in goods. It provides access not only to both recent and historical data from the EU Member States but also to statistics of a significant number of third countries. International trade aggregated and detailed statistics disseminated via the Eurostat website are compiled from COMEXT data according to a monthly process.
Data are collected by the competent national authorities of the Member States and compiled according to a harmonised methodology established by EU regulations before transmission to Eurostat. For extra-EU trade, the statistical information is mainly provided by the traders on the basis of customs declarations.
EU data are compiled according to Community guidelines and may, therefore, differ from national data published by the Member States. Statistics on extra-EU trade are calculated as the sum of trade of each of the 28 EU Member States with countries outside the EU. In other words, the EU is considered as a single trading entity and trade flows are measured into and out of the area, but not within it.
Data for the other major traders are taken from the Comtrade database of the United Nations. Data availability differs among countries, therefore Figure 1 shows the latest common available year for all the main traders. For the calculation of shares the world trade is defined as the sum of EU trade with non-EU countries (source: Eurostat) plus the international trade of non-EU countries (source: IMF Dots database).
Methodology
According to the EU concepts and definitions, extra-EU trade statistics (trade between EU Member States and non-EU countries) do not record exchanges involving goods in transit, placed in a customs warehouse or given temporary admission (for trade fairs, temporary exhibitions, tests, etc.). This is known as 'special trade'. The partner is the country of final destination of the goods for exports and the country of origin for imports.
Product classification
Information on commodities exported and imported is presented according to the Standard international trade classification (SITC). A full description is available from Eurostat's classification server RAMON.
Unit of measure
Trade values are expressed in millions or billions (109) of euros. They correspond to the statistical value, i.e. to the amount which would be invoiced in case of sale or purchase at the national border of the reporting country. It is called a FOB value (free on board) for exports and a CIF value (cost, insurance, freight) for imports.
Context
Trade is an important indicator of Europe's prosperity and place in the world. The block is deeply integrated into global markets both for the products it sources and the exports it sells. The EU trade policy is an important element of the external dimension of the'Europe 2020 strategy for smart, sustainable and inclusive growth' and is one of the main pillars of the EU's relations with the rest of the world.
Because the 28 EU Member States share a single market and a single external border, they also have a single trade policy. EU Member States speak and negotiate collectively, both in the World Trade Organization, where the rules of international trade are agreed and enforced, and with individual trading partners. This common policy enables them to speak with one voice in trade negotiations, maximising their impact in such negotiations. This is even more important in a globalised world in which economies tend to cluster together in regional groups.
The openness of the EU's trade regime has meant that the EU is the biggest player on the global trading scene and remains a good region to do business with. Thanks to the ease of modern transport and communications, it is now easier to produce, buy and sell goods around the world which gives European companies of every size the potential to trade outside Europe.
See also
Further Eurostat information
Data visualisation
Main tables
- International trade in goods (t_ext_go), see:
- International trade in goods - long-term indicators (t_ext_go_lti)
- International trade in goods - short-term indicators (t_ext_go_sti)
Database
- International trade in goods (ext_go), see:
- International trade in goods - aggregated data (ext_go_agg)
- International trade in goods - long-term indicators (ext_go_lti)
- International trade in goods - short-term indicators (ext_go_sti)
- International trade in goods - detailed data (detail)
- EU trade since 1988 by SITC (DS-018995)
Dedicated section
Methodology / Metadata
- International trade in goods statistics - background
- International trade in goods (ESMS metadata file — ext_go_esms)
- User guide on European statistics on international trade in goods
Source data for tables, figures and maps (MS Excel)
External links
- European Commission