A product of the Private Sector Outreach of the Caribbean Regional Negotiating Machinery (CRNM)

Private Sector
Trade Note
Part 2
CAR I CO M -
Canada Trade
C
CANADA EXPORT OVERVIEW

In 2007, Canada was the world’s 10th largest

exporter of goods. Canadian exporters
generated US$454bn in sales globally in 2008,
which reflected 8.3% growth over 2007 export
revenue. Canada’s merchandise export sales
grew by 7.3% annually between 1999 and
2008 (see figure 1). Canada has consistently
generated a merchandise trade surplus
between 1999 and 2008. In 2008, Canada’s
top 25 exports were mainly capital
equipment, raw material/intermediate
products and energy products, and included
petroleum oils/products, natural gas, motor
vehicles, medicaments, gold, lumber, paper,

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aircrafts/aircraft parts and unwrought economies experienced growth rates which were below the 12.4% regional
aluminum alloy. growth rate. Based on this current growth trend, the Bahamas could overtake
Trinidad & Tobago by 2014 as Canada’s main export market in CARICOM.
Between January and March 2009, Canadian
exporters earned US$98bn on merchandise Between January to March 2009, Canada’s exports to CARICOM declined by 35%
exports. Export spending declined by 36% over the similar period in 2008. In the first quarter of 2008, Canadian exporters
over the similar period for 2008 showing the generated sales of US$229mn from CARICOM, and this declined to US$149mn in
impact of the global recession on the Q1 2009. In Q1 2009, the region’s top CARICOM export markets for Canadian
Canadian economy. merchandise were Trinidad & Tobago followed by Jamaica, Haiti, Barbados and
The Bahamas.
In 2008, 40% of Canada’s exports originated
in Ontario. However Ontario’s share of
national export spending has declined from
55% in 1999. Alberta, Quebec, British
Colombia, and Saskatchewan are the other
top export provinces between 1999 and
2008. Export spending in Alberta,
Saskatchewan and Newfoundland/Labrador
have been very dynamic, and their
importance in exports has increased
between 1999 and 2008. These provinces
represent some potential sources of
efficiency seeking investments which can be
promoted in CARICOM.

C
CANADA’S EXPORTS TO CARICOM

Between 1999 and 2008, Canada has spent
more on imports from CARICOM than the
export sales that it generates from the
region. Canada has increased exports to
CARICOM annually by 12.4%, from
US$296mn in 1999 to US$850mn in 2008.
This whilst CARICOM exporters have been
expanding export sales by 14.9% annually
between 1999 to 2008. This signals that the
region’s merchandise trade surplus with
Canada has been widening.
Canada has expanded its Q1 exports between 2008 and 2009 to the Bahamas,
Belize, Guyana and Haiti (See figure 3). Guyana (80% growth between Q1 2008
and 2009), and Haiti with 50% growth were notable observations. However,
Jamaica and Trinidad & Tobago have experienced a 63% and 34% decline
respectively, between 2008 and 2009 Q1. These declines offset the growth in
Guyana and Haiti and are the major contributors behind the general decline in
exports observed from Canada to CARICOM between Q1 2008 and 2009.

Trinidad & Tobago has consistently been

Canada’s largest CARICOM export market,
with The Bahamas, Jamaica, Haiti and
Barbados the other top 5 regional markets.
Between 1999 and 2008, Canadian
exporters have been very “bullish” (i.e.
dynamic) on exploring trade with the
Bahamas, with exports to the Bahamas
expanding by 32% annually. This dynamism
in exporting to the Bahamas has been the
main driving factor behind the general trade
expansion as most other CARICOM

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The top 25 imports from Canada in Q1
of 2009 are mainly non competing (i.e.
not produced in the region with much
scale). However, amongst these top
exports to the region from Canada, a
number of key sensitive sectors are
identified. These would include
potatoes, cured swine meat, beans,
soya bean oil, swine cuts, fish fillets
and poultry products.
Some of these sensitive products such
as beans, cuts/edible offal of fowls of
gallus domesticus and fish fillets have
been experiencing hyper growth rates
in import spending. It must also be
noted that swine meat exports from
Canada continued to grow in Q1 of
2009 despite significant tariffs
imposed on these products in some
Air Canada services several Caribbean international
airports
CARICOM member states.
In reflecting on the products the
private sector wants to protect in
these upcoming negotiations with
Canada, one important forethought
should be the lack of potency of tariffs
for stemming the tide of some
sensitive products. Attention must
therefore be placed on the general
suite of trade defense measures which
are at the disposal of the private
sector including safeguards and
antidumping measures. In addition,
there must be thought as to how well
Produced by the CRNM Information Unit, 2009
veterinary services, bureaus of
standards and other border safety DIRECT ALL COMMENTS OR QUERIES
agencies are policing imports.
Mr. Lincoln Price
Private Sector Liaison
lincoln.price@crnm.org
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