Archive:Canada-EU - international trade in goods statistics

Data extracted in February 2019

Planned article update: February 2020

Highlights

In 2017, Canada was the seventh largest exporter and eighth largest importer of goods in the world, with a share of 3.0 % of world exports and 3.1 % of world imports.

Among the EU's trading partners, Canada was the 10th largest partner for EU exports of goods and the 12th largest partner for EU imports of goods in 2018.

Among EU Member States, the United Kingdom was the largest importer of goods (EUR 11.5 billion) from Canada in 2018, and Germany was the largest exporter of goods (EUR 10.3 billion).

Imports, exports and trade balance in goods between the EU and Canada, 2008-2017

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

Overview

In 2017, Canada was the seventh largest exporter and eighth largest importer of goods in the world with a share of 3.0 % of world exports and 3.1 % of world imports.
Among the EU's trading partners, Canada was the 10th largest partner for EU exports of goods and the 12th largest partner for EU imports of goods in 2018.
EU trade in goods surplus with Canada peaked in 2018 at EUR 10.4 billion.
Manufactured goods dominate the exports of goods from the EU to Canada with 80 %, but contribute only to 50 % of imports from Canada to the EU.
In 2018, among the EU Member States, the United Kingdom is the largest importer of goods (EUR 11.5 billion) from Canada and has the largest trade in goods deficit with Canada (EUR 5.4 billion).
In 2018, Germany is the largest exporter of goods (EUR 10.3 billion) to Canada and has the largest trade in goods surplus with Canada (EUR 6.3 billion).

EU and Canada in world trade in goods

Figure 1a shows that the four largest exporters of goods account for almost half of the world exports. The largest is China (16 %) followed by the EU (15 %), the United States (11 %) and Japan (5 %). The same four also account for almost half of the world imports of goods but in different order. Here the USA (17 %) leads, followed by the EU (15 %), China (13 %) and Japan (5 %).

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

A more detailed set of countries can be seen in Figure 1b, showing Canada's place between Hong Kong and Mexico for exports and between India and Mexico for imports of goods. With exports of EUR 372 billion and imports of EUR 383 billion, Canada is both the seventh largest exporter and eighth largest importer, accounting for 3.0 % of world exports and 3.1 % of world imports.

Figure 1b: Top 25 importers and exporters of goods in the world with a focus on Canada, 2017 (EUR billion)
Source: Eurostat (ext_lt_introle)

The evolution of trade in goods in the EU and Canada over the period 2007-2017 is the focus of Figure 2. In 2007, Canada had cover ratio (exports divided by imports ) of 110 % while that of the EU was 85 %. Between 2007 and 2017 EU exports grew by 52 percentage points (pp) while Canadian exports grew by only 22 pp. In imports the reverse was true, with Canada's growth (38 pp) being more than that of the EU 28 pp). Consequently, the European trade deficit turned into a surplus in 2013 and has remained so since then. Canada's cover ratio dropped below 100 in 2009 and has remained below 100 since then, except in 2014.

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

EU surplus with Canada peaked in 2018

Canada's trade in goods compared to the top four trading partners of the EU, which were the United States, China, Switzerland and Russia, is shown in Figure 3a. These four made up 44 % of all exports from the EU and 47 % of all imports to the EU. There is more detail in Figure 3b, which shows that in 2018, Europe's exports of goods to Canada amounted to 41.4 billion (2.1 %) which meant it was the 10th largest export destination, behind India (EUR 45.7 billion, 2.3 %) and ahead of Mexico (EUR 39.4 billion 2.0 %). In imports of goods, Canada was the 12th largest EU partner (EUR 31.0 billion, 1.7 %) between and Brazil (EUR 31.7 billion, 1.6 %) and Saudi Arabia (EUR 30.5 billion, 1.5 %) .

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

Figure 3b: Top 20 import and export partners for trade of goods of the EU with a focus on Canada, 2018 (EUR billion)
Source: Eurostat (ext_lt_maineu)

The EU had a trade in goods surplus with Canada from 2008 to 2010 and from 2012 to 2018 (see Figure 4). In this time span, trade between the two economies hit a low in 2009, but quickly recovered. Between 2009 and 2011 imports from Canada grew more strongly than exports to Canada resulting in a trade deficit in 2011. But while exports to Canada continued to grow after 2011, imports from Canada stagnated and the EU regained its trade surplus which peaked at EUR 10.4 billion in 2018 which was a EUR 4.2 billion increase compared to 2017.

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

EU exports of goods to Canada largely dominated by manufactured goods

When breaking down imports and exports by SITC groups (Figure 5), the main categories driving exports to Canada are 'Machinery and vehicles', 'Chemicals' and 'Other manufactured goods'. Together these manufactured products accounted for around 79 % of EU exports. In imports from Canada, manufactured goods made up 51 % of all imports.

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

The evolution of EU imports and exports by SITC group since 2008 is shown in Figure 6. The EU has trade deficits in 'Other goods' and 'Raw materials'. In 'Chemicals', 'Food and drink','Machinery and vehicles' and 'Other manufactured goods' the EU has a trade surplus. In 'Energy' the trade balance switched from a surplus to a deficit several times between 2007 and 2018.

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

Most traded good: non-monetary gold

More details about the goods exchanged between the EU and Canada are presented in Figure 7, showing the top 20 traded goods at a more detailed level (by SITC level 3). Those top 20 goods covered 58 % of total traded goods in 2018. Eight products among the top 20 belong to the 'Machinery and vehicles' group, three each to 'Energy ', 'Chemicals' and 'Raw materials' and 'Other manufactured products". Non-monetary gold was the most traded product followed by medicaments and motor cars and motor vehicles.

Another interesting way to look at data is to investigate the cover ratio (exports divided by imports) 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 7. Non-monetary gold, crude petroleum, iron ore and concentrates, pearls and coal and oil seeds all have very low values,indicating almost all imports from and hardly any exports to Canada. High ratios are found for alcoholic beverages, motor cars and motor vehicles and medicinal and pharmaceutical products, implying the opposite. Several products have fairly moderate values implying trade flows in both directions. Non-electric engines and motors as well as aircraft and associated equipment, both with a ratio of 90 are examples where imports and exports are fairly evenly balanced.

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

Germany and the United Kingdom are trading most with Canada

Figure 8a shows the imports of goods of EU Member States from Canada and the share of the partner Canada in national extra-EU imports in 2018. Figure 8b provides similar information but concerning exports of goods of EU Member States to Canada.

The United Kingdom is the largest importer of goods from Canada (EUR 11.5 billion) and the second largest exporter of goods (EUR 6.1 billion) to Canada in 2018. It also has the largest trade in goods deficit with Canada (EUR 5.4 billion). With 4.3 %, the United Kingdom has the third highest share for Canada in total extra-EU imports. Only Latvia (17.9 %) has a higher share.

Figure 8a: Imports of goods from Canada by Member State, 2018
Source: Eurostat DS-018995

Germany is the largest exporter of goods to Canada (EUR 10.3 billion) and the second largest importer of goods (EUR 3.9 billion) from Canada. It has the largest trade in goods surplus with Canada (EUR 6.3 billion). Only Luxembourg (4.0 %) and Belgium (3.0 %) have shares of more than 3 % for Canada in their extra-EU exports.

Figure 8b: Exports of goods to Canada by Member State, 2018
Source: Eurostat DS-018995

In 2018, five Member States had a trade in goods deficit with Canada (Figure 8c), ranging from just EUR 3 million for Bulgaria to EUR 5.4 billion for the United Kingdom. The remaining 23 Member States had a trade in goods deficit, starting at EUR 7 million for Cyprus to EUR 6.3 billion for Germany. Italy (EUR 2.6 billion) and the Netherlands (EUR 1.2 billion) were the only other Member States whose trade surplus was higher than one billion euro.

Figure 8c: Trade in goods balance with Canada 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.