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Is Canada Relying Too Much..

Is Canada Relying Too Much on its Export?

Canada is one of the biggest countries in the world. It has a consistent economy. A large amount of its economy comes from export. Canada is a country full of natural resources; it is also famous for its agriculture. Animal products, fish, seafood, pulp and paper, lumber and plywood, etc are the main products being exported to other countries. Canadian products are sold all over the world. Its products are exported to North America, South America, Asia and Europe. The amount of Canada's export suggests that the Canadian economy depends too much on its exports.

The United States of America is now Canada's major export partner. In 1998, the total value of products exported to the United States was 244.1 billion dollars and there was a 24.2 billion dollars of services. There is approximately 1.4 billion dollars worth of goods and services which cross the border each day. The United States of America supports over 2 million Canadian jobs and generates 28% of Canada's GDP. In Canada's total export, 81% goes to the United States. Prime products that Canada exports to the States are Sugar and sugar-containing product, softwood lumber, wheat and barley, wool suits, fish and alcohol. C


The People Republic of China is Canada's fifth largest export market and Canada's third largest, if the Hong Kong Special Administrative Region is included. In 1998, Canada's total exports of good and services to China and Hong Kong reached 3.78 billion dollars. An immense part of Canada's exports comes from telecommunication equipment. Chinese Taipei is Canada's fourth largest Asia Pacific exporting market. In 1998, around 6% of Canada's exports were shipped to Taiwan. The total value was 1.573 billion dollars. Taiwan imports cars, planes and agricultural foods from Canada.

From the above statistics, it is obvious that Canada is relying too much on exports to drive its economy. This will very much contribute to Canada's GDP. However, if the exports fall rapidly, the entire country's economy will collapse. In fact, Canada should now put some money into business investment instead of exporting, since the ratio between exporting and the total GDP is so high.

Canada-Mexico trade has increased steadily since Mexico implemented a sweeping series of economic reforms in the mid-1980s. In 1998, the total value of two-way merchandise trade was 8.243 billion dollars. That was a 13% increase over 1993. In 1998, Mexico had a merchandise surplus with Canada of 5.697 billion dollars. Judging from that point, the recorded value of Canada's export to Mexico is significantly underestimated. Canada's exporting goods to Mexico are mainly agricultural product and services. In October 1998, Canada and Mexico signed an agreement of exporting certain classes of seed potatoes. Canadian trucking companies are really interested in the Mexican market. But Mexico has been unwilling to accept applications to the Mexican Border States. Furthermore, a number of Canadian telecommunication companies are doing business in Mexico, which increases the opportunities for the merchants of the two countries to do business. As a result, more of Canadian workers are employed and the economy of Canada is doing

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Approximate Word count = 1354
Approximate Pages = 5 (250 words per page double spaced)


  

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