Trade with Austria

With a GDP of $ 380,4 billion in 2004, Austria has the ninth-largest economy and fourth-highest per capita income in the EU15. Austria has a domestic market of 8.2 million people. Canada is a logical partner for Austrians seeking to do business in North America, and our attractiveness as an investment destination has been increased by NAFTA. Likewise, Austrian accession to the EU bolsters its strategic position in Europe. There are marketing, trading, financial and technology advantages to pursuing regional markets in cooperation with Austrian companies. Two way trade was $ 1.8 billion in 2005.

112 Austrian companies have established a subsidiary/ invested in Canada. NAFTA (North American Free Trade Agreement) has further improved the attraction of Canada as an investment market and as a gateway to the Far East. While StatsCan figures only reflect Austrian investment at $ 215 million for 2005, it is estimated to be about twice that, namely half a billion dollars as some investments are carried out through financial holdings or regional centres. Therefore, investments are not necessarily assigned to the country from which the transfer of know-how occurs or which manufactures products. Examples are Swarovski Canada as a subsidiary of Swarovski USA and Jungbunzlauer which has its main production facility in Lower Austria but the group headquarters in Switzerland and is therefore counted as a Swiss investment.

AMAG (Austria Metal AG), part of the Alouette aluminum smelter in Sept-Îles, Quebec, is the largest Austrian investment in Canada. Casinos Austria is currently the largest Austrian employer in Canada, followed by Engel Maschinenbau, Diamond Aircraft, AMAG and Doppelmayr.

Canadian exports to Austria in 2005 amounted to $ 596 million and included aircraft ($ 163 m), automotive parts ($ 126 m), machinery and wood pulp. Generally speaking, machinery and vehicles are traditionally Canada`s main export items to Austria ($ 368 m). Finished goods ($ 89 m) however experienced the highest growth rate in 2005 at 91% . Austrian exports to Canada were at a record high in 2005 at $ 1.2 billion and included machinery, iron and steel, electric appliances, metal, automotive parts, pharmaceuticals, fittings for furniture, wood and paper.

Austria's favourable location, skilled workforce, access to EU markets and cost advantage over Germany along with its experience in the emerging markets of Central & Eastern Europe are attracting Canadian business for strategic partnerships and investment. There are about 30 Canadian firms located in Austria of which at least 10 are involved in production. The leading Canadian investor in Austria is Magna with several production sites. Bombardier with two plants is the second largest Canadian investor in Austria. Nortel Networks uses its offices in Austria to serve selected Central and Eastern European markets.

In 2005 Austrian FDI in the Central and Eastern European Countries (CEECs) reached a total value of approximately $ 34.7 billion. In total, there are some 12,500 Austrian subsidiaries and joint ventures in the CEECs (of a total number of approximately 15,000), and more than 220,000 people were employed in Austrian companies in the CEECs in 2004. In 2004 and 2005, more than 50% of all Austrian FDI outflows went to the CEECs. Apart from the financial services sector, there is a high demand for investment in the areas of environment, energy and traffic infrastructure.

Our Trade Services

If you are an Austrian importer or investor interested in Canada, check out Trade with Canada, or contact the Commercial Section of the Canadian Embassy in Vienna for services and information.

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