Archive:Canada-EU - international trade in goods statistics

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Data extracted in February 2019
Planned article update February 2019

Highlights

Canada is the tenth largest export partner of the EU and the twelfth largest import partner of the EU.

The United Kingdom is the largest partner for EU imports while Germany is the largest partner for EU exports.

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This article provides a picture of the international 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.

This article is part of an online publication providing recent statistics on international trade in goods, covering information on the EU's main partners, main products traded, specific characteristics of trade as well as background information.

Full article

=== EU and Canada in world trade in goods Figure 1a shows the position of Brazil among the largest traders in the world. The four largest exporters are China (EUR 2 004 billion, 16 %), the EU (EUR 1 879 billion, 15 %), the United States (EUR 1 368 billion, 11 %) and Japan (EUR 618 billion, 5 %). Together they account for 50 % of world exports. The four largest importers are the United States (EUR 2 131 billion, 17 %), the EU (EUR 1 857 billion, 15 %), China (EUR 1 632 billion, 13 %) and Japan (EUR 594 billion, 5 %). Together they account for 48 % of world imports. Figure 1b has some more details. It shows that Canada (EUR 372 billion, 3.0 %) is the seventh largest exporter in the world between Hong Kong (EUR 487 billion, 4.0 %) and Mexico (EUR 362 billion, 2.9 %). It is the eighth largest importer in the world (EUR 383 billion, 3.1 %) between India (EUR 393 billion, 3.2 %) and Mexico (EUR 372 billion, 3.0 %).

Figure 1a: The position of Canada among the world's largest traders in goods, 2017
source: Eurostat (ext_lt_introle)

Figure 1b: The position of Canada among the world's largest exporters and importers of goods, 2017 (EUR billion)
source: Eurostat (ext_lt_introle)

Figure 2 shows the imports and exports of the EU and Canada indexed at 100 % in 2007 for the period 2007 to 2017. It also shows the cover ratio (exports / imports) for this period. Exports for the EU were lowest in 2009 (90 %) and highest in 2017 (152 %). Imports for the EU were lowest in 2009 (86 %) and highest in 2017 (128 %). The cover ratio for the EU was lowest in 2008 (83 %) and highest in 2015 (104 %) and in 2017 was 101 %. Exports for Canada were lowest in 2009 (74 %) and highest in 2017 (122 %). Imports for Canada were lowest in 2009 (83 %) and highest in 2017 (138 %). The cover ratio for Canada was lowest in 2016 (97 %) and highest in 2014 (103 %) and in 2017 was 97 %.

Figure 2: Trade in goods of the EU-28 and Canada (2007 = 100) and cover ratio (%), 2007 to 2017
source: Eurostat (ext_lt_introle)

Both exports to and imports from Canada rose between 2008 and 2018

"Figure 3a shows the position of Canada among the largest trade partners of the EU. The four largest export partners of the EU are the United States (21 %), China (11 %), Switzerland (8 %) and Russia (4 %). The four largest import partners of the EU are China (20 %), the United States (13 %), Russia (8 %) and Switzerland (6 %). Figure 3b has some more details. It shows Canada (EUR 41 billion, 2.1 %) is the tenth largest export partner of the EU, between India (EUR 46 billion, 2.3 %) and Mexico (EUR 39 billion, 2.0 %). In imports Canada (EUR 31 billion, 1.6 %) is the twelfth largest partner of the EU, between Brazil (EUR 32 billion, 1.6 %) and Saudi Arabia (EUR 30 billion, 1.5 %).</newarticle> "

Figure 3: The position of Canada among the EU-28's main partners for trade in goods, 2018
Source: Eurostat (ext_lt_maineu)

Figure 4 shows exports, imports and trade balance between the EU and Canada. In 2008 the EU had a trade surplus with Canada of EUR 65 billion. This remained so throughout the whole period, reaching EUR 140 billion in 2018. EU exports to Canada were highest in 2018 (EUR 406 billion) and lowest in 2009 (EUR 204 billion). EU imports from Canada were highest in 2018 (EUR 267 billion) and lowest in 2009 (EUR 156 billion).

Figure 4: Imports, exports and balance for trade in goods between the EU-28 andCanada, 2008-2018 (EUR billion)
source: Eurostat (ext_lt_maineu)

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EU-Canada trade by type of goods

Figure 5 shows the breakdown of trade with Canada by SITC goups.The red colours denote the primary products: food & drink, raw materials and energy while the blue colours show the manufactured goods: chemicals, machinery & vehicles and other manufactured goods. Finaly other goods are shown in green. In exports manufactured goods (82.1 %) had a higher share than primary goods (17.4 %). The most traded manufactured goods were machinery & vehicles (41 %) followed by other manufactured products (21 %) and chemicals (21 %). In imports manufactured goods also (34.3 %) had a higher share than primary goods (23.3 %). The most traded manufactured goods were machinery & vehicles (21 %) followed by other manufactured products (14 %) and chemicals (10 %).

Figure 5: EU-28 exports to and imports from Canada by product group, 2008 and 2018 (EUR billion)
source: Eurostat DS-018995

Figure 6 shows the evolution of EU imports and exports by SITC group, since 2008. In 2018 the EU had trade surplusses in machinery & vehicles (EUR 10.0 billion), chemicals (EUR 5.4 billion), other manufactured products (EUR 4.1 billion) and food & drink (EUR 1.5 billion). The EU had trade deficits in energy (EUR -0.2 billion), raw materials (EUR -3.7 billion) and other products (EUR -7.0 billion).

Figure 6: EU-28 trade with Canada by product group, 2008-2018 (EUR billion)
source: Eurostat DS-018995

EU-Canada most traded goods

"Another interesting way to look at the data is to investigate the cover ratio (exports / imports) of traded goods, showing the direction of the trade flows between the two economies. These ratios can be found in the right-hand margin of Figure 7. Ten products have ratios above 200, indicating EU exports to Canada are at least twice as large as EU imports from Canada. Six products have ratios below 50, indicating EU imports from Canada are at least twice a large as EU exports to Canada. Four products have ratios between 50 and 200, showing more balanced trade. "

Figure 7: Most traded goods between EU-28 and Canada, top 20 of SITC level 3 products, 2018 (EUR billion)
source: Eurostat DS-018995

Trade with Canada by Member State

Figure 8a shows the imports to Canada by Member State. The three largest importers from Canada in the EU were the United Kingdom (EUR 11 535 million), Germany (EUR 3 928 million) and the Netherlands (EUR 2 898 million). Latvia (17.9 %) held the highest share for Canada in its total extra-EU imports

Table 8a: EU-28 imports of goods from Brazil by Member State, 2018
source: Eurostat DS-018995

Figure 8b shows the exports to Canada by Member State. The three largest exporters to Canada in the EU were Germany (EUR 10 271 million), The United Kingdom (EUR 6 143 million) and Italy (EUR 4 116 million). Luxembourg (4.0 %) held the highest share for Canada in its total extra-EU exports

Table 8b: Exports of goods to Brazil by Member State, 2018
source: Eurostat DS-018995

Figure 8c shows the trade balance between the EU member States and Canada. Twenty-three Member States had a trade surplus with Canada. The largest was held by Germany (EUR 6 343 million), followed by Italy (EUR 2 606 million) and the Netherlands (EUR 1 207 million). Five Member States had a trade deficit with Canada. The largest was held by The United Kingdom (EUR 716 million), followed by Latvia (EUR 33 million) and Malta (EUR 28 million).

Table 8c: Trade in goods balance with Brazil by Member State, 2018 (EUR million)
source: Eurostat DS-018995

Source data for tables and graphs

Canada-EU-28 – international trade in goods statistics - graphs and tables

Data sources

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 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 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 bloc 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.