International Trade by Region

Saskatchewan's top trade partners for 2003 are shown below. The top ten export destinations represented 85% of total provincial exports. Imports by Saskatchewan were more concentrated with the top ten sources of imports accounting for 97% of total provincial imports. The US is Saskatchewan's top trade partner, accounting for 64% of the province's goods exports and 89% of its imports. Exports to the US grew by an average annual rate of 4% from 1999 to 2003, much faster than the growth in total exports. Saskatchewan's exports of goods to Illinois and Minnesota, the top two destinations in the US, were $1.9 B and $1.6 B respectively.¹ Exports to each of these states are greater than three times the level of exports to the next largest market, Japan.

While imports from the US remained constant over the period 1999 to 2003 and total imports contracted, imports from countries such as Germany and China grew very quickly. Among the Canadian provinces, Saskatchewan has the lowest share of goods exports to the US and the highest share of imports from the US. In 2003, the US accounted for 86% of total goods exports by Canada and 61% of total imports of goods by Canada.

SK's Top Ten Trade Partners in Goods, 2003
	Exports			Imports

	000 $	Share	Growth		000 $	Share	Growth
US	6,592,308	64%	4%	US	3,709,883	89%	0%
Japan	500,265	5%	-6%	Germany	72,472	2%	13%
China	410,809	4%	-8%	China	42,925	1%	15%
Belgium	236,232	2%	27%	Japan	40,980	1%	3%
Mexico	229,965	2%	3%	UK	37,698	1%	12%
Italy	209,307	2%	21%	Re-Imports	35,108	1%	-12%
Brazil	183,038	2%	8%	Mexico	34,677	1%	-33%
Algeria	176,680	2%	-13%	Italy	19,892	0%	-11%
India	175,758	2%	17%	France	17,493	0%	17%
S Korea	85,499	1%	-7%	S Korea	16,018	0%	43%
Top Ten Total	8,799,861	85%	3%	Top Ten Total	4,027,147	97%	-1%
Total	10,338,489		1%	Total	4,151,378		-1%
Average Annual Growth from 1999 to 2003
Statistics Canada from Strategis

Since the Canada – US Free Trade Agreement (FTA) has been in place, Saskatchewan's trade with the US has increased.² Saskatchewan's exports of goods to the US expanded from $2.5 B in 1990 to $7.9 B in 2000 before contracting to $6.6 B in 2003. The share of Saskatchewan's exports going to the US increased from 45% in 1990 to 64% in 2003. Imports of goods from the US by Saskatchewan rose from $1.3 B in 1990 to reach $4.2 B in 2001. Saskatchewan imported $3.7 B of goods from the US in 2003.

Within the US, most of Saskatchewan's exports of goods are to the Great Lakes and Plains regions. Exports to the Great Lakes region have grown significantly since 1994.

In 1994, when NAFTA was signed, Saskatchewan exported $178 M of goods to Mexico but imported only $7 M. In 2003, Saskatchewan exported $230 M of goods to Mexico and imported $35 M of goods. Saskatchewan's exports to Mexico in recent years have been affected by the lower availability of agricultural products for export because of consecutive droughts. Although Saskatchewan's exports to Mexico have increased since 1994 as import tariffs were reduced, the type of goods exported remains primarily agricultural products like canola, wheat and malt and forestry products like semi-chemical wood pulp. The type of products imported from Mexico changed as the Mexican economy industrialized due in part to inflows of foreign direct investment once NAFTA was implemented. In 1994, imports were primarily fruit, vegetables and alcohol. In 2003, the top three imports were detonators, electric static converters and road tractors.

Free Trade Agreements

Canada also has free trade agreements with Chile (1997), Israel (1998) and Costa Rica (2002). In 2003, Saskatchewan exported $30 M of goods to Chile and imported $2.9 M of goods. Saskatchewan's top exports to Chile were durum, lentils, potash, and wheat. The top imported products from Chile were grapes, wine and peaches. Saskatchewan's exports of goods to Israel in 2003 were $5.5 M while imports were $1.7 M. Parts for products such as televisions and radar, canola, lentils and peas were Saskatchewan's most valuable exports to Israel in 2003. The top imports from Israel were toluidines (used in the production of agricultural chemicals) and fabrics. Saskatchewan's exports and imports of goods to and from Costa Rica were $5.3 M and $270,000 in 2003. Potash was the major export to Costa Rica while melons were the major import.

Canada recently launched discussions with MERCOSUR (Brazil, Argentina, Paraguay and Uruguay) regarding a trade and investment agreement that would fit into the Free Trade Area of the Americas (FTAA). Saskatchewan's exports of goods to MERCOSUR were $190 M in 2003. Brazil accounted for 96% of exports to the region. Saskatchewan's imports from MERCOSUR totaled $12.5 M in 2003 with Brazil accounting for most of the imports. Potash is Saskatchewan's largest export to MERCOSUR and represented 76% of total exports in 2003. The next largest exports were canary seed and wheat, each about $15 M. Herbicides accounted for 20% of total imports in 2003.

Canada is also exploring the possibility of a free trade agreement with South Korea which is considered to be the "gateway" to Northeast Asia. In 2003, Saskatchewan exported $85 M in goods and imported $16 M from South Korea. Semi-chemical wood pulp and potash were the major export products. Transmission/reception devices represented almost 50% of imports in 2003.

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¹ Data from Strategis on Saskatchewan's trade with individual US states and regions is not allocated properly by state and region. The data used in this study was obtained from Government Relations.

² Free trade agreements improve access to markets and reduce tariffs facing importers and exporters.

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