2 TRANSPORTATION AND THE ECONOMY

INTERNATIONAL TRADE ¹ AND TRADE FLOWS

By the end of 2003, Canada's trade surplus with the rest of the world had fallen to its lowest level since 1999, as both exports and imports of merchandise decreased.

TRADE WITH THE UNITED STATES

In 2003, the United States was once again Canada's most important trading partner by far. It captured almost 75 per cent of the value of Canada's total trade with the world. In 1988, this figure was 69 per cent. More than 86 per cent of Canada's total exports were to the United States. In 1988, this figure was 73 per cent. By contrast, Canada's imports from the United States oscillated between 64 and 68 per cent of total imports during the 1988 - 1998 period before reaching a low of 61 per cent in 2003. As a result, Canada's annual trade surplus with the United States has enjoyed an annual average growth of 15 per cent since 1988.

Figure 2-3 tracks the value of trade with the United States from 1988 to 2003.

FIGURE 2-3: VALUE OF GOODS TRADED BETWEEN CANADA AND THE UNITED STATES, 1988 - 2003

Note: Customs-based trade data. Preliminary data for 2003.

Source: Transport Canada, adapted from Statistics Canada, International Trade Database

After peaking at $589 billion in 2000, Canada's trade with the United States totalled $531 billion in 2003. In terms of value, trucks carried 63 per cent of this trade, followed by rail (17 per cent), pipeline (10 per cent), air (six per cent) and marine (three per cent). Trucking was the dominant mode for both exports (53 per cent) and imports (80 per cent). By volume, pipelines ranked first, at 33 per cent (mainly in exports), followed by trucks (28 per cent), marine (20 per cent) and rail (19 per cent).

The most important trade flows between Canada and the United States involved Ontario and the U.S. Central Region, ² which totalled $169 billion. This included $94 billion from and to Michigan alone. Four of the top six Canada-U.S. trade flows involved Ontario. Almost 78 per cent of the Canada-U.S. trade carried by trucks (value) was concentrated at six border crossing points: Windsor/Ambassador Bridge, Fort Erie, Sarnia and Lansdowne in Ontario, Lacolle in Quebec and Pacific Highway in British Columbia.

TRADE WITH OTHER COUNTRIES

In 2003, Canada's trade with other countries totalled $185 billion, driven by imports valued at $132 billion. This trade has registered deficits since 1988, as imports from other countries generally exceeded Canada's exports to these countries. As Figure 2-4 shows, trade deficits have grown at an annual average rate of 17 per cent since 1988.

FIGURE 2-4: VALUE OF GOODS TRADED BETWEEN CANADA AND OTHER COUNTRIES, 1988 - 2003

Note: Customs-based trade data. Preliminary data for 2003.

Source: Transport Canada, adapted from Statistics Canada, International Trade Database

In terms of value as of volume, marine and air were the dominant modes, capturing more than 90 per cent of the trade with overseas countries. In 2003, six trade flows accounted for almost 75 per cent of Canada's total trade with countries other than the United States. Four of these were two-way flows between eastern provinces and West Europe ($15 billion in exports, $40 billion in imports) and between western provinces and the Asian countries ($13 billion in exports, $18 billion in imports). The other two-way flows were import-oriented, moving to eastern provinces from the Asian countries ($34 billion) and Latin American countries ($17 billion), mainly Mexico.

For more detailed information on Canada's trade with the United States and other countries, see tables A2-1 to A2-9 in the Addendum.

¹ Customs-based trade statistics are being used in the present report as detailed information on commodity, modes of transport and geographic region is presented on a Customs basis only.Back to text

² The U.S. Central Region includes states bordering the Great Lakes area (i.e. Michigan, Ohio, Indiana, Illinois, Wisconsin) as well as Minnesota, Iowa, Missouri, North Dakota, South Dakota, Nebraska and Kansas. Back to text

Canadian Economic Performance

International Trade and Trade Flows

Tourism

Employment

Energy Consumption

Productivity and Price Performance of Transport

Importance of Transportation to the Canadian Economy