• You are here: Home » NEWS
    • Canada’s foreign trade in need of a boost; U.S. shortfall returning to normal
    • Andy Jul 15

      Canada’s foreign trade position continues to flounder, according to the latest numbers from Statistics Canada. Since the onset of the recession in fall 2008, the nation’s merchandise trade account has been registering as many small deficits as small surpluses. The balance has been in minor deficit for the past two months. Prior to fall 2008, it was nothing but large surpluses.

      The Canadian economy is accustomed to recording a goods trade surplus of at least $50 billion (CDN) annualized. It’s a mix of factors that is causing the change in pattern. Exports of precious metals – in the form of gold coins, for example – have been performing well. The fact that the world price of gold has been hovering near an all-time high has been the major contributing factor. Furthermore, Canadian exports of autos and parts are double their January 2009 level.

      Forestry exports, however, are well below normal as continuing weakness in the U.S. housing market limits demand for Canadian lumber. Nor is the U.S. importing as much natural gas as in the past, due to new finds at home and industrial activity levels remaining far below capacity. Furthermore, imports from Europe have been climbing, due to the drop in value of the euro.

      Growth rates in China and Southeast Asia also warrant close watching. Those countries account for much of the demand for Canada’s raw materials such as iron ore, coal and potash. So far, emerging nations have continued to grow at rapid rates. But property price bubbles are an ongoing threat to prosperity. Therefore, Asian central bankers are trying to rein in credit.

      Looking south, the U.S. traditionally runs a sizable foreign trade deficit in goods plus services. However, this dropped from $800 billion (USD) annualized before the recession to only $300 billion in spring 2009. Over the past 12 months, with the improvement in U.S. national output, the trade deficit has been creeping back up again to stand at -$507 billion annualized in May.

      There may be more trouble ahead. The sovereign debt problems across the Atlantic have been causing a significant currency effect. While greater government austerity measures throughout the region have reduced expectations for growth, the lower-valued euro has provided a big boost to the exports of Germany and some of its neighbours. Luxury brand automobiles, engineering services, precision tools and industrial equipment are all finding willing foreign purchasers.

      The upward value adjustment of China’s yuan may cut into that nation’s exports. However, it is still not clear to what degree the yuan will be allowed to float freely. Other currencies in the region, such as the South Korean won and the Taiwanese dollar, will be carried upward as well.

       
  • NEED HELP

  • Tel.+852 8191 2766
    We are at your service 24 hours
    Email:sales@tradeinfo365.com
    If you have any questions. We're here to help!

What is TI365?

TI365 is an intelligent global trade information analysis system. We set up the largest trade database, which excavates and analyzes the mass data and creates various reports according to customers' requirements. Details about TI365.

What is the resource of TI365?

All trade intelligence of TI365 is from various official mission or business partners from more than 10 countries. Of course we can not reveal their information but every trade record is collected from original documents. We can ensure the accuracy and authority.

Which countries data are available?

We provide import trade records for 10 countries, such as North America, Russia, Ukraine, Pakistan, Argentina, Chile, Peru, Columbia, UK, Korea. We are trying best to search more trade data of various countries.

How to get assistance?

Please contact Customer Service if you meet any questions: Send mail to service@tradeinfo365.com or call +852 8191 2766.

What is the purchasing process?

You can use TI365 after registering and paying. You can pay monthly or annually. There is discount for you if you pay annually.

How to pay?

PAYPAL online is available. MasterCard, Visa, American Express is accepted. The account will be activated generally in 1 minutes after your payments. Please contact us if this is failed in 24 hours.

How to deal with payment delay?

Payment delay is possible for third-party payment platform. We will activate your account at the first time we receive your payment.

How to upgrade or change membership?

You can change your membership type at any time. For example, you can choose to use our system for one month and change to other membership if the system is ok for you. Send email to sales@tradeinfo365.com if you need to change your membership.