In this page: Foreign Trade in Figures | Trade Compliance | Standards
Canada is a country open to foreign trade, which represents 67% of its GDP (World Bank, latest data available). Product-wise, Canada’s main exports in 2023 were petroleum oils (20.2%), motor vehicles (6.7%), gold (3.6%), petroleum gas (2.6%), and parts of motor vehicles (2.4%); whereas imports were led by motor vehicles (10.6%) and their parts (3.6%), petroleum oils (5.7%), telephones (2.3%), and automatic data-processing machines (1.8% - data Comtrade). Energy product exports fell 19.1% in 2023 after nearly tripling from 2020 to 2022. Motor vehicle and parts exports rose 26.1% to CAD 102.0 billion.
The main destinations for Canada’s exports in 2023 were the U.S. (by far the leading partner, accounting for 77.6% of total exports), China (4%), Japan (2.1%), and the United Kingdom (1.9%). Similarly, almost half of Canada’s imports had a U.S. origin (49.6%), followed by China (11.8%), Mexico (6.1%), Germany (3.3%) and Japan (2.7% - data Comtrade). In 2023, exports to the U.S. dipped 0.4% to CAD 592.7 billion, driven by a decline in energy product exports, whose share of U.S.-bound exports fell from 34.2% in 2022 to 27.9%. Imports from the U.S. rose 2.3% to CAD 484.0 billion, led by increased motor vehicle and parts imports as supply met pent-up demand. Exports to non-U.S. countries fell 4.7% to CAD 175.6 billion, with the largest drops to the United Kingdom (-23.9%), Japan (-12.4%), and South Korea (-20.0%). Non-U.S. imports remained steady at about CAD 286 billion for the second year in a row (Statistics Canada). The tariffs introduced by the U.S. in early 2025 (25% levy on most Canadian goods) are expected to hit Canada hard by slashing export revenues in key sectors like steel, aluminium, automotive, and energy. This could lead to significant job losses, increased production costs, and higher inflation while prompting Canada to retaliate with its own tariffs that may further strain bilateral trade and force businesses to seek new markets.
In 2023, Canada’s merchandise exports fell 1.4% to CAD 768.2 billion, while imports rose 1.4% to CAD 770.2 billion. This shifted the trade balance from a CAD 19.7 billion surplus in 2022 to a CAD 1.9 billion deficit, equal to about 0.1% of total trade (CAD 1.54 trillion), resulting in a near-balanced trade position. In the same year, services exports rose 13.3% to CAD 208.5 billion, while imports grew 8.9% to CAD 205.9 billion, driven by increased international travel. This resulted in a CAD 2.6 billion services trade surplus, the first time exports exceeded imports (Statistics Canada). In 2024, Canada's total merchandise exports increased by 1.0% from 2023, while imports rose by 1.9%. As imports grew faster than exports, the merchandise trade deficit expanded from CAD 610 million in 2023 to CAD 7.2 billion (Statistics Canada preliminary figures).
Foreign Trade Values | 2019 | 2020 | 2021 | 2022 | 2023 |
---|---|---|---|---|---|
Imports of Goods (million USD) | 462,993 | 420,934 | 506,053 | 583,549 | 570,419 |
Exports of Goods (million USD) | 448,817 | 390,821 | 507,992 | 599,032 | 569,257 |
Imports of Services (million USD) | 126,638 | 104,752 | 120,604 | 145,199 | 155,598 |
Exports of Services (million USD) | 115,242 | 98,529 | 118,794 | 132,768 | 148,580 |
Source: World Trade Organisation (WTO), Latest data available.
Foreign Trade Indicators | 2019 | 2020 | 2021 | 2022 | 2023 |
---|---|---|---|---|---|
Foreign Trade (in % of GDP) | 66.2 | 61.2 | 62.4 | 67.6 | 67.2 |
Trade Balance (million USD) | -14,168 | -30,277 | 1,928 | 15,509 | -1,460 |
Trade Balance (Including Service) (million USD) | -25,538 | -36,499 | 118 | 3,078 | -9,809 |
Imports of Goods and Services (Annual % Change) | -0.1 | -9.4 | 8.1 | 7.6 | 0.9 |
Exports of Goods and Services (Annual % Change) | 2.3 | -9.0 | 2.7 | 3.2 | 5.4 |
Imports of Goods and Services (in % of GDP) | 33.8 | 31.7 | 31.2 | 33.7 | 33.8 |
Exports of Goods and Services (in % of GDP) | 32.4 | 29.5 | 31.2 | 33.8 | 33.4 |
Source: World Bank, Latest data available.
Foreign Trade Forecasts | 2024 | 2025 (e) | 2026 (e) | 2027 (e) | 2028 (e) |
---|---|---|---|---|---|
Volume of exports of goods and services (Annual % change) | 1.2 | 2.6 | 2.9 | 3.3 | 3.3 |
Volume of imports of goods and services (Annual % change) | 1.2 | 3.7 | 4.0 | 4.4 | 4.3 |
Source: IMF, World Economic Outlook, Latest data available.
Note: (e) Estimated Data
Main Customers (% of Exports) |
2023 |
---|---|
United States | 77.6% |
China | 4.0% |
Japan | 2.1% |
United Kingdom | 1.9% |
Mexico | 1.1% |
See More Countries | 13.4% |
Main Suppliers (% of Imports) |
2023 |
---|---|
United States | 49.6% |
China | 11.8% |
Mexico | 6.1% |
Germany | 3.3% |
Japan | 2.7% |
See More Countries | 26.4% |
Source: UN Comtrade Database, Latest data available.
Source: UN Comtrade Database, Latest data available.
To go further, check out our service Import/Export Flows.
145.8 bn USD of services exported in 2023 | |
---|---|
30.73% | |
26.38% | |
13.23% | |
10.00% | |
8.03% | |
4.97% | |
2.92% | |
1.50% | |
1.02% | |
0.89% | |
0.33% |
154.1 bn USD of services imported in 2023 | |
---|---|
25.67% | |
25.37% | |
16.66% | |
10.10% | |
8.51% | |
5.03% | |
3.36% | |
3.11% | |
0.90% | |
0.66% | |
0.63% |
Source: United Nations Statistics Division, Latest data available.
Monetary Indicators | 2016 | 2017 | 2018 | 2019 | 2020 |
---|---|---|---|---|---|
American Dollar (USD) - Average Annual Exchange Rate For 1 CAD | 0.75 | 0.77 | 0.77 | 0.77 | 0.75 |
Source: World Bank, Latest data available.
To go further, check out our service Shipping Documents.
Canada uses supply management systems - which involve production quotas, producer marketing boards to regulate price and supply, and border protection achieved through tariff-rate quotas (TRQs) - to regulate its dairy, chicken, turkey and egg industries. Alcoholic beverages are subject to interprovincial shipping restrictions, and are regulated differently in each province, for example through sales quotas, requirements for in-province agents and specific labelling. The Canadian Radio-television and Telecommunications Commission (CRTC) imposes quotas that determine both the minimum Canadian programming expenditure (CPE) and the minimum amount of Canadian programming that licensed Canadian broadcasters must carry (Exhibition Quota).
Some goods are prohibited, especially importing second hand motorised vehicles, except for vehicles coming from the USA (the rules are becoming more flexible for Mexico), as well as weapons, munitions, nuclear materials and goods of a similar nature. Health Canada restricts the marketing of breakfast cereals and other products, such as orange juice, that are fortified with vitamins and/or minerals at certain levels. Processed Products Regulations prescribe standard container sizes for a wide range of processed fruit and vegetable products.
The rules of origin allowing reduction of duties, especially for textiles, have been draconian since the agreements within the CUSMA. These rules are considerably favourable to products which have proof of their origin in the USA.
Moreover, Canada is one of the biggest users of anti-dumping measures, with more than 85 products concerned (SIMA, Special Import Measures Act). These measures affect 35 countries or Customs areas (including the EU, for example). More than 50% of the products concerned are metallurgical.
For further information about import regulations and procedures in Canada, please consult the article Importing Goods into Canada produced by the Canada Border Services Agency.
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Latest Update: March 2025