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<aside> 🌎 Canada - EU Country Relations

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The EU-Canada Statistics section aims to demonstrate the significance of the EU-Canada trade in a statistical manner with data analysis collected through various sources. The data is used to show the positive and/or negative impact of the trade between the two partners.

As Canada and Europe continue to see a strong bilateral trade and investment relationship, the EU has established itself as Canada’s second-largest trading partner, behind the United States, accounting for 9.6% of its trade in goods with the world in 2016. On the other hand, Canada accounts for 2% of the EU's total trade with the world, ranking 11th among the EU's most important partners. As the EU and Canada have constructed the CETA deal, there have been various expectations from both sides.

Expected Economic Benefits of CETA

When considering the expected economic benefits of the trade deal between the EU and Canada, CETA is anticipated to result in an annual increase in bilateral exports and imports between the EU and Canada by a minimum of 8%. This amounts to an approximate sum of €12 billion per year additionally by 2030 which will be divided evenly between the two partners. As customs duties on 98% of all tariff lines are expected to be terminated, about half of this incline is expected to be materialized in the first year of the CETA implementation.

EU-Canada Trade Performance

When considering the time period 2004-2015, the EU’s services exports to Canada increased by 125% which started from slightly more than €8 billion. At the same time, EU services imports from Canada increased during this time period by 64% from approximately €7 billion in 2004 to €12.1 billion in 2015. Thus, in 2015, the total trade in services between the EU and Canada amounted to an approximate €30 billion.

Based on Statistics Canada data, for the two-years since CETA entered into force:

Canadian merchandise exports to the EU including the United Kingdom (UK) averaged $46.6 billion in 2018 and 2019, up 16.6% compared to the pre-CETA level of $40 billion in 2016. (See Figure 1)

Figure 1

Canadian merchandise imports from Europe increased by 24.1% to an average of $75.5 billion. (See Figure 2)

Figure 2

Products that experienced the largest tariff reductions had stronger export growth (See Figure 3)

Figure 3

Trade Performance with Individual EU States

Exports

An expansion in the Canadian goods exports to the EU, since the formation of CETA, was a cause of growing exports to the Netherlands, Germany and the United Kingdom.

Canada’s third-largest export destination in the EU is the Netherlands. This is displayed with the growth of $2.1 billion due to the high exports of mineral fuels, oils, and aluminum.
Germany and the United Kingdom are significant contributors to Canada’s increases in various products. These products have led to a surge of $1.5 billion in exports to Germany and the United Kingdom through stones, metals, mineral fuels, and oils.

Copy of Top 10 Countries involved in Canadian Goods Exports to the EU