Recent developments
The COVID-19 crisis caused both exports and imports between the EU and Canada to fall in 2020, as shown in Figure 1. Imports reached a minimum of € 1.3 billion in April 2020. By December 2021 they had recovered to € 2.2 billion. Exports reached a minimum of € 2.2 billion in April 2020. By December 2021 they had recovered to € 3.4 billion.
Figure 1: EU trade in goods with Canada, 2020-2021
(€ billion, seasonally and working-day adjusted)
Source: Eurostat (ext_st_eu27_2020sitc)
Figure 2 compares EU trade with Canada to EU trade with other non-EU countries. Between January 2020 and December 2021, EU imports from Canada increased by 4.4% while imports from other non-EU countries increased by 25.8%. EU exports to Canada increased by 16.6% while exports to other non-EU countries increased by 4.7%.
Figure 2: EU trade in goods with Canada and other non-EU countries, 2020-2021
(Jan 2019 = 100%, seasonally and working-day adjusted)
Source: Eurostat (ext_st_eu27_2020sitc)
EU and Canada in world trade in goods
Figure 3a shows the position of Canada among the largest traders of goods in the world in 2020. The four largest exporters were China (€ 2 268 billion, 18.0%), the EU (€ 1 933 billion, 15.4%), the United States (€ 1 253 billion, 10.0%) and Japan (€ 561 billion, 4.5%). The four largest importers were the United States (€ 2 108 billion, 16.4%), China (€ 1 801 billion, 14.0%), the EU (€ 1 717 billion, 13.4%) and Japan (€ 556 billion, 4.3%). Figure 3b has some more details. It shows that Canada (€ 342 billion, 2.7%) was the ninth largest exporter in the world between the United Kingdom (€ 354 billion, 2.8%) and Singapore (€ 317 billion, 2.5%). Canada (€ 363 billion, 2.8%) was the eighth largest importer in the world between South Korea (€ 409 billion, 3.2%) and Mexico (€ 344 billion, 2.7%).
Figure 3a: Canada among the world's largest traders of goods, 2020
(% share of world exports/imports)
Source: Eurostat (ext_lt_introeu27_2020) and UNCTAD
Top traders in goods with a focus on Canada, 2020
(€ billion)
Source: Eurostat (ext_lt_introeu27_2020) and UNCTAD
The imports and exports of goods of the EU and Canada indexed at 100 in 2010 for the period to 2020 are shown in Figure 4. It also shows the cover ratio (exports / imports) for this period. Exports from the EU were lowest in 2010 (100) and highest in 2019 (149) and were 135 in 2020. Imports to the EU were lowest in 2010 (100) and highest in 2019 (132) and were 117 in 2020. The cover ratio for the EU was lowest in 2011 (97%) and highest in 2016 (116%) and was 113% in 2020. Exports from Canada were lowest in 2010 (100) and highest in 2014 (123) and were 101 in 2020. Imports to Canada were lowest in 2010 (100) and highest in 2012 (118) and were 103 in 2020. The cover ratio for Canada was lowest in 2020 (94%) and highest in 2014 (100%).
Figure 4: Trade in goods of the EU and Canada, 2010-2020
(exports and imports indexed at 100 in 2010, cover ratio in%)
Source: Eurostat (ext_lt_introeu27_2020) and UNCTAD
Both exports to and imports from Canada increased between 2011 and 2021.
The position of Canada among the largest trade partners of the EU in 2021 can be seen in Figure 5a. The four largest export partners of the EU were the United States (18.3%), the United Kingdom (13.0%), China (10.2%) and Switzerland (7.2%). The four largest import partners of the EU were China (22.4%), the United States (11.0%), Russia (7.5%) and the United Kingdom (6.9%). Figure 3b has some more details. It shows that Canada (€ 37 billion, 1.7%) was the twelfth largest export partner of the EU, between Mexico (€ 38 billion, 1.7%) and Brazil (€ 34 billion, 1.6%). In imports Canada (€ 23 billion, 1.1%) was the 16th largest partner of the EU, between Ukraine (€ 24 billion, 1.1%) and Mexico (€ 23 billion, 1.1%).
Figure 5a: Canada among the EU's main partners for trade in goods, 2021
(% share of extra-EU exports/imports)
Source: Eurostat (ext_st_eu27_2020sitc) and Comext DS-018995
Figure 5b: Top trade in goods partners of the EU with a focus on Canada, 2021
(€ billion)
Source: Eurostat (ext_st_eu27_2020sitc) and Comext DS-018995
Figure 6 shows the exports, imports and trade balance between the EU and Canada from 2011 to 2021. In 2011, the EU had a trade surplus with Canada of € 7 billion. The trade surplus remained throughout the whole period, reaching € 14 billion in 2021. Both exports to and imports from Canada increased between 2011 and 2021. EU exports to Canada were highest in 2019 (€ 38 billion) and lowest in 2011 (€ 24 billion). EU imports from Canada were highest in 2021 (€ 23 billion) and lowest in 2015 (€ 16 billion).
Figure 6: EU trade in goods with Canada, 2011-2021
(€ billion)
Source: Eurostat (ext_st_eu27_2020sitc) and Comext DS-018995
EU-Canada trade by type of goods
The breakdown of EU trade with Canada by SITC groups is shown in Figure 7. The red shades denote the primary goods: food & drink, raw materials and energy, while the blue shades show the manufactured goods: chemicals, machinery & vehicles and other manufactured goods. Finally, other goods are shown in green. In 2021, EU exports of manufactured goods (81%) had a higher share than primary goods (17%). The most exported manufactured goods were machinery & vehicles (35%), followed by other manufactured goods (25%) and chemicals (21%). In 2021, EU imports of manufactured goods (53%) also had a higher share than primary goods (43%). The most imported manufactured goods were machinery & vehicles (23%), followed by other manufactured goods (17%) and chemicals (13%).
Figure 7: EU trade with Canada by product group, 2011 and 2021
(€ billion)
Source: Eurostat (ext_st_eu27_2020sitc) and Comext DS-018995
Figure 8 shows the evolution of EU imports and exports by SITC group since 2011. In 2021, the EU had trade surpluses in machinery & vehicles (€ 7.8 billion), other manufactured goods (€ 5.1 billion), chemicals (€ 5.0 billion) and food & drink (€ 1.9 billion). The EU had trade deficits in energy (€ 0.1 billion), other goods (€ 0.3 billion) and raw materials (€ 5.5 billion).
Figure 8: EU trade with Canada by group, 2011-2021
(€ billion)
Source: Eurostat (ext_st_eu27_2020sitc) and Comext DS-018995
EU-Canada most traded goods
More detail about the goods exchanged between the EU and Canada is given in Figure 9, showing the 20 most traded goods at SITC-3 level. These top 20 goods covered 57% of total trade in goods in 2021. Eight belonged to machinery and vehicles, four to other manufactured goods, three to chemicals, two each to raw materials and energy and one to food and drink. The most traded group of goods at this level was medicaments. Another interesting way to look at the data is to investigate the cover ratio (exports / imports) of traded goods, showing the direction of the trade flows between the two economies. These ratios can be found in the right-hand margin of Figure 9. Six products were below 50%, indicating EU imports from Canada were more than twice as large as EU exports to Canada. Eleven products were above 200%, indicating EU exports to Canada were more than twice as large as EU imports from Canada. Three products were between 50% and 200%, showing more balanced trade.
Figure 9: Most traded goods between EU and Canada, 2021
(€ billion)
Source: Eurostat DS-018995
Trade with Canada by Member State
Table 1a shows the imports of goods from Canada by Member State. The three largest importers from Canada in the EU were Germany (€ 4 454 million), the Netherlands (€ 3 850 million) and Belgium (€ 3 628 million). Malta (16.0%) had the highest share for Canada in its extra-EU imports.
Table 1a: EU imports of goods from Canada, 2021
Source: Eurostat (ext_st_eu27_2020sitc) and Comext DS-018995
Table 1b shows the exports of goods to Canada by Member State. The three largest exporters to Canada in the EU were Germany (€ 10 026 million), Italy (€ 4 836 million) and Belgium (€ 4 254 million). Luxembourg (4.6%) had the highest share for Canada in its extra-EU exports.
Table 1b: EU exports of goods to Canada, 2021
Source: Eurostat (ext_st_eu27_2020sitc) and Comext DS-018995
The trade in goods balance between the EU Member States and Canada is shown in Table 1c. It shows that 22 Member States had a trade surplus with Canada. The largest surplus was held by Germany (€ 5 572 million), followed by Italy (€ 3 102 million) and Austria (€ 1 139 million). There were five Member States that had a trade deficit with Canada. The largest deficit was held by Latvia (€ 565 million), followed by Malta (€ 371 million) and the Netherlands (€ 114 million).
Table 1c: EU trade balance of goods with Canada, 2021
Source: Eurostat (ext_st_eu27_2020sitc) and Comext DS-018995
Source data for tables and graphs
EU - Canada international trade in goods statistics - graphs and tables
Data sources
EU data is taken from Eurostat's COMEXT database. COMEXT is the reference database for international trade in goods. It provides access not only to both recent and historical data from the EU Member States but also to statistics of a significant number of third countries. International trade aggregated and detailed statistics disseminated via the Eurostat website are compiled from COMEXT data according to a monthly process.
Data are collected by the competent national authorities of the Member States and compiled according to a harmonised methodology established by EU regulations before transmission to Eurostat. For extra-EU trade, the statistical information is mainly provided by the traders on the basis of customs declarations.
EU data are compiled according to Community guidelines and may, therefore, differ from national data published by the Member States. Statistics on extra-EU trade are calculated as the sum of trade of each of the 27 EU Member States with countries outside the EU. In other words, the EU is considered as a single trading entity and trade flows are measured into and out of the area, but not within it.
The United Kingdom is considered as an extra-EU partner country for the EU for the whole period covered by this article. However, the United Kingdom was still part of the internal market until the end of the transitory period (31 December 2020), meaning that data on trade with the United Kingdom are still based on statistical concepts applicable to trade between the EU Member States. Consequently, while imports from any other extra-EU trade partner are grouped by country of origin, the United Kingdom data reflect the country of consignment. In practice this means that the goods imported by the EU from the United Kingdom were physically transported from the United Kingdom but part of these goods could have been of other origin than the United Kingdom. For this reason, data on trade with the United Kingdom are not fully comparable with data on trade with other extra-EU trade partners.
Data for the non EU countries used in figures 1-3 are taken from the UNCTAD database of the United Nations. For the calculation of shares, the world trade is defined as the sum of EU trade with non-EU countries (source: Eurostat) plus the international trade of non-EU countries (source: UNCTAD).
Methodology
According to EU concepts and definitions, extra-EU trade statistics (trade between EU Member States and non-EU countries) do not record exchanges involving goods in transit, placed in a customs warehouse or given temporary admission (for trade fairs, temporary exhibitions, tests, etc.). This is known as 'special trade'. The partner is the country of final destination of the goods for exports and the country of origin for imports.
Product classification
Information on commodities exported and imported is presented according to the Standard international trade classification (SITC). A full description is available from Eurostat's classification server RAMON.
Unit of measure
Trade values are expressed in millions or billions (109) of euros. They correspond to the statistical value, i.e. to the amount which would be invoiced in case of sale or purchase at the national border of the reporting country. It is called a FOB value (free on board) for exports and a CIF value (cost, insurance, freight) for imports.
Context
Trade is an important indicator of Europe's prosperity and place in the world. The bloc is deeply integrated into global markets both for the products it sources and the exports it sells. The EU trade policy is one of the main pillars of the EU's relations with the rest of the world.
Because the 27 EU Member States share a single market and a single external border, they also have a single trade policy. EU Member States speak and negotiate collectively, both in the World Trade Organization, where the rules of international trade are agreed and enforced, and with individual trading partners. This common policy enables them to speak with one voice in trade negotiations, maximising their impact in such negotiations. This is even more important in a globalised world in which economies tend to cluster together in regional groups.
The openness of the EU's trade regime has meant that the EU is the biggest player on the global trading scene and remains a good region to do business with. Thanks to the ease of modern transport and communications, it is now easier to produce, buy and sell goods around the world which gives European companies of every size the potential to trade outside Europe.
