Canada is doing Great!! - China's appetite for Canadian exports surges
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Good news. Exports are growing. More jobs
http://www.reportonbusiness.com/servlet/story/RTGAM.20071108.wchinatrade1108/BNStory/robNews/home
According to a Statistics Canada report released Thursday, Canada's exports to China nearly doubled to $8-billion in 2006 from $4-billion in 2002. In the first seven months of 2007, they soared 43 per cent over the same period one year ago, the largest gain by any of the G-7 countries.
“Canada is clearly benefiting from the magnitude of China's demand for natural resources,” said Statistics Canada's Diana Wyman. “The nation of more than 1.3 billion people is expanding its manufacturing base and building massive infrastructure projects, from ports and bridges to facilities for the 2008 Olympic Games.”
Canada's exports to China surged 43 per cent in the first seven months of this year, as the eastern economic giant's appetite for Canadian metals, crude oil, chemicals, potash and agricultural goods picked up ahead of the 2008 Olympic games in Beijing (Getty Images)
Chinese demand accelerated in 2007, at the same time as prices for metals, potash, canola and industrial goods have climbed. In addition, China is now Canada's second-largest consumer of crude oil, which is also trading at record highs.
Canadian trade has diversified in recent years, Statscan said. Rising demand from Europe and Asia, combined with relatively flat demand growth in the United States, led to a sharp rise in the share of Canadian exports heading to countries other than the U.S., which has long been Canada's biggest trading partner.
So what kind of Canadian goods is China devouring? Industrial products like metals, fertilizers such as potash, chemicals like ethylene glycol, which is used to make polyester, make up just over half of Canadian exports to China, Statscan said. They are set to triple their 2002 values in 2007.
Location: Canada-Glorious and Free
Posted on: 08-11-07 14:49:35
Quote:
Originally posted by jayaram
http://www.reportonbusiness.com/servlet/story/RTGAM.20071108.wchinatrade1108/BNStory/robNews/home
Canadian trade has diversified in recent years, Statscan said. Rising demand from Europe and Asia, combined with relatively flat demand growth in the United States, led to a sharp rise in the share of Canadian exports heading to countries other than the U.S., which has long been Canada's biggest trading partner.
In the late 80's and early 90's, Canada was regarded as the backwaters of the G8 because our economy was based on commodities. Canada did not add value to them and sold on a global market. But since the rise of India, China, Brasil and some other smaller economies, the demand for commodities have gone through the roof! The rise of oil over $ 40 a barrel helped make oil sands possible. Finally with the looming energy crisis - uranium is going to be HOT!
US is still the single largest trading partner and the slow down in their economy will hurt us. It will be compounded by the dropping US $, but I think we will be spared a recession.
Any other thoughts?
Slowing down economy of US will not hurt Canada, infact I firmily believe the opposite way.
Like you rightly mentioned the rise of new economies like INDIA, CHINA, BRAZIL, etc.. they will also need the raw material inputs (their imports) which are necessary for their soaring exports.
I read an article on China's import of Cotton and Yarn, their imports is almost double than exports. Even their hunger for Steel, iron ore, commodities, cement, etc.. will also grow.
Russia's downfall was due to their only success industry of weapons and missiles even when they have good source of OIL. They did not kept the manufacturing or service industry growth speed with the world.
In short, create more manufacturing industries or service industries ... so more jobs... so more immigrants... so more savings.... economy of Canada will get the uplift, on its own...
Now is the time for Canada to come out from "US shadow" and join the other nations and stand on its own.
Pour your thoughts.......
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