In 2009, Canada experienced a significant rise in prices of commodity. This significant rise led Canada to report its first deficit within 34 years. According to Statistics, Canada’s import and export was impacted by the global recession which account for a deficit of $4.8 billion lost. In 2008, Canada’s import and export netted the country a $47 billion surplus. Canada’s exports declined by 35% in 2009, while imports fell 26.5% during that same year (Fergusson, 2009).
Exports account for nearly 45% of Canada’s Gross Domestic Product or GDP. Canada is a net exporter of energy. The export partners of Canada are Japan, the United Kingdom, the United States, Germany, South Korea, the Netherlands, and China. The items exported by Canada to its partners were “motor vehicles and parts, industrial machinery, aircraft, telecommunications equipment; chemicals, plastics, fertilizers; wood pulp, timber, crude petroleum, natural gas, electricity and aluminum” (Ferguson, 2009). Canada’s experienced a 33% decline in 2009.
International trade accounts for a major share of the Canadian economy, led by exports of natural resources. Exports accounted for approximately 40% of Canada's GDP in 2010. “Agricultural, energy, forestry and mining exports accounted for about 58% of total exports. Machinery, equipment, automotive products and other manufactured goods accounted for a further 38% of Canada’s exports”. The United States is by far its largest trading partner, accounting for about 75% of exports and 51% of imports (followed by China 11% and Mexico 5%). Canada's combined exports and imports ranked 8th among all nations. Canada’s trade for 2010 was resulted in a positive balance: exports C$407B and imports C$ 406B. In 2007 and 2008, Canada’s trade with the United States was positive, however, in 2009 the results was quite different. Trade with the United States resulted in a negative balance for 2009 (See Exhibit 1) (CIA, 2010)....