How do exports affect Canada's economic growth?

Exports drive a substantial share of Canadian economic growth. Canadian merchandise exports totalled about $760 billion in 2023, services exports another $185 billion, and the trade-to-GDP ratio of 65 per cent makes Canada the most trade-dependent G7 economy. Export sectors employ about 3.3 million Canadians, and roughly one in five Canadian jobs depends directly or indirectly on exports.

Energy products are the largest single export category, generating about $180 billion in 2023 (crude oil, natural gas, refined petroleum, and electricity). Motor vehicles and parts contribute another $80 billion. Forest products (softwood lumber, pulp, paper, newsprint), metals and minerals, agricultural products, aerospace, services, and information and communications technology round out the top categories. Canada is one of only a handful of advanced economies whose exports are dominated by natural resources rather than manufactured goods, although manufacturing exports are substantial.

Provincial export profiles differ. Alberta exports oil and natural gas. Quebec exports aerospace, hydroelectric power, aluminum, and forest products. Ontario exports motor vehicles, parts, machinery, and services. British Columbia exports softwood lumber, coal, copper, and increasingly liquefied natural gas. Saskatchewan exports wheat, potash, and uranium. Newfoundland and Labrador exports offshore oil, fish, and iron ore. Each provincial export profile reflects the province's natural endowment and industrial history.

Federal export support comes through Export Development Canada (EDC, established 1944, with about $107 billion in trade support facilitated in 2023), the Trade Commissioner Service (with about 160 offices in 100 countries), the Canadian Trade Accelerator, and the CanExport program. Foreign-trade missions led by the prime minister, the Minister of Export Promotion, International Trade and Economic Development, and provincial premiers open new markets. Recent priorities include the Indo-Pacific Strategy of November 2022 (with $2.3 billion in funding) and trade diversification away from over-reliance on the United States.