Each day TFO Canada publishes a sample of trade news on the Canadian import market along with any new, updated or changed regulations and legislations regarding international trade; countries in which TFO Canada offers services and on the export sectors which it promotes.
China and Strong Global Economy Boost Canadian Trade, WTO Says
China's increasing role in world trade and a generally strong global economy have helped boost Canada's share of international trade and create more jobs, says a report by the World Trade Organization.
The trade group report, made public Wednesday, said the integration of Asia, especially China, into the world economy helped boost prices for everything from metals and oil and gas to coal and other resources - which benefited Canada's economy, especially in the West.
The rising commodity prices also pushed up the exchange rate of the Canadian dollar and improved Canada's “terms of trade” - the ratio of export to import prices, the WTO said.
The report did not break any new ground but looked at the impact of global trade on the economy in recent years.
Canadian exports have risen sharply for years, especially to the United States, this country's biggest export market. However, soaring demand from China and other parts of Asia such as Japan has led to a boom in shipments of potash, petrochemicals, sulphur, wheat, lumber and coal.
Chinese companies have also eyed Alberta's growing oilsands sector. For example, a unit of Sinopec owns 40 per cent of the Northern Lights partnership developing an oilsands project in northern Alberta.
The project's operator, with 60 per cent, is Synenco Energy Inc. (TSX:SYN) of Calgary.
As a result of robust trade, the WTO report said a net total of 227,600 new jobs in Canada were created in 2005, and another 283,200 jobs in the first 11 months of 2006. About one in five of the positions, mostly full-time jobs, were related to global trade.
Meanwhile, the report said Canada is facing more intense global competition as the dollar rises and companies seek to locate to lower-wage countries to reduce costs.
Domestic spending has accelerated for several years, while real GDP has averaged 2.7 per cent annually since 2002, the WTO said.
Economic growth should range between 2.5 per cent and three per cent over the next two years.
In the first three quarters of 2006, exports of goods and services climbed from the same period a year earlier, though imports into Canada have risen by more. That appears to reflect the country's robust economy.
Canada ranks as the ninth-largest exporter, with exports equal to 38 per cent of its economy. It's also the tenth-largest importer in the world.