Home Trade and Investment State Trade Fact Sheets 2006 California

California

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• Canada–U.S. trade supported 5.2 million U.S. jobs
• Total Canada–U.S. merchandise trade: $461 billion
• Canada–California trade supported 626,000 U.S. jobs
• Canadians made more than 1,006,900 visits to California, spending $710 million
• California residents made 877,400 visits to Canada, spending $504 million

A Golden opportunity
With a population and economy larger than Canada, the Golden State is unquestionably a major market for Canadian manufactured goods, energy, forest and agri-food products and a wide range of services. Bilateral trade in 2005 exceeded $30 billion, with Canada ranking as California's third largest foreign market (after Mexico and Japan). Not reflected are the enormous non-merchandise flows that occur as a consequence of film and media production based in Hollywood, technology transfer out of Silicon Valley and San Diego, and financial services based on California's venture capital structures. California is home to significant Canadian investments and is the source of important direct investment into Canada.

Agriculture and technology
While the relationship between California and Canada includes numerous intangible transfers, traditional sectors composed the bulk of cross border commerce. Reflecting the integrated North American industry, the single largest Canadian export to car-happy California was automobiles. Valued at $9.3 billion, cars accounted for almost 50% of California's Canadian imports. Golden State fruits, vegetables and nuts fed the economy, with agricultural exports to Canada totaling $2.1 billion, or more than 20% of the state's 2005 exports. Silicon Valley's innovations in computers and telecommunication products totaled $1.9 billion in sales, accounting for another 20% of the state's exports to Canada.

The future holds
Building on existing strengths tremendous opportunity exists for new and expanded linkages in the fields of environmental technologies, renewable/alternative energy and urban transportation systems and technologies.

Cutting edge research
California conducts $44 billion in research annually (more than all of Canada), leads in university and industrial R&D; in the U.S., and is the birthplace of high-tech related venture capital. Consequently, opportunities for collaboration in the field of science and technology abound. Areas of mutual interest include biotechnology and health sciences (including medical devices), IT, aerospace and defense, nanotechnologies, energy and environment. The Canada–California Strategic Innovation Partnership highlights this relationship — engaging academia, financial services, business and government to explore and utilize each other's R&D; capacities and to encourage greater commercial outcomes.

California dreaming
Los Angeles beaches and Bay Area landmarks made California a popular vacation destination for Canadians, who visited the state over 1,006,900 times and contributed $710 million dollars to the local economy. The World Next Door held considerable allure for Californians who made over 870,000 visits and spent $504 million throughout the country

California's Leading Exports to Canada
2005, in millions of U.S. dollars

• Motor vehicle parts* ($315)
• Aircraft parts* ($237)
• Trucks ($204)
• Fuel oil ($194)
• Medical, ophthalmic & orthopaedic supplies ($187)
• Medicine, in dosage ($177)
• Electronic tubes & semi-conductors ($173)
• Televisions, radios & personal electronics ($159)
• Medical & related equipment ($150)

*not including engines

California's Leading Imports from Canada
2005, in millions of U.S. dollars

• Automobiles ($9,301)
• Trucks ($1,510)
• Organic chemicals ($526)
• Office machines & equipment ($433)
• Petroleum & coal products ($324)
• Meat ($308)
• Newsprint ($273)
• Synthetic rubber & plastics ($267)
• Motor vehicle parts* ($259)
• Containers ($257)

*not including engines

Canada-California Success Stories

Carmanah Technologies Inc. of Victoria, BC, is contributing to safer public transportation in Southern California through the recent supply of leading-edge solar-powered LED bus stops to the Orange County Transportation Authority. With a presence in Santa Cruz, the firm has been successful throughout the state. One of their systems powers a stop on San Francisco's famous Golden Gate Bridge.

Canadian production skills, great film locations and investment contributed to the immensely successful Canada–USA production of Capote. Partnership with Infinity Media Inc., a Canadian film production and finance company and an equity investment from Manitoba Film and Sound gave the project the resources necessary to make the Oscar-winning feature for United Artists and Sony Classics.

San Francisco-based private equity firm Elevation Partners has formed a creative and management partnership with Pandemic Studios, LLC (Los Angeles) and BioWare Corp. (Edmonton, Alberta), two leading independent video game developers; creating one of the world's best-funded and largest independent game development houses and ensuring ongoing collaboration between Canada and California in game creation.

Arctic Glacier Inc. (Winnipeg, Manitoba) acquired California Ice, the leading independent manufacturer and distributor of packaged ice in California in May 2006. This Canadian investment with operations across the state is one of the four largest packaged ice companies in the United States.

California-Canada Facts at a Glance:

• State jobs supported by Canada–U.S. trade: 626,000

July 2006

For more information on Canada's trade with California, please contact:

Consulate General of Canada
550 South Hope 9th Floor
Los Angeles, CA 90071
Phone: (213) 346-2719  •  Fax: (213) 346-2767
lngls-td@international.gc.ca
www.losangeles.gc.ca

Consulate General of Canada
580 California Street, 14th Floor
San Francisco, CA 94104
Phone: (415) 568-4324  •  Fax: (415) 834-3189
sfran-td@international.gc.ca
www.sanfrancisco.gc.ca

Consulate General of Canada
402 West Broadway
Suite 400
San Diego, California 92101
Phone: (619) 615-4286  •  Fax: (619) 615-4287
www.sandiego.gc.ca

Sources: Merchandise trade and tourism figures are from Statistics Canada, converted at the rate of US$1.00=C$1.2116. Merchandise trade data is customs-based for the year 2005. Job numbers are based on 2001 data from a 2003 study by Trade Partnership Worldwide commissioned by the Canadian Embassy. Canada's export ranking is from the World Institute for Strategic Economic Research (WISER). All figures are in U.S. dollars. Figures may not add up due to rounding.

• Read the 2005 state trade figures
• Read the 2004 state trade figures
• Read the 2003 state trade figures
• Read the 2002 state trade figures