Friday, August 12, 2005

The second way

As the softwood lumber dispute escalates, word comes out that Canada's trade surplus is higher than expected - and that it isn't the U.S. that's responsible:
Canada's trade balance with the world increased to just short of $5.0-billion in June as our exports to countries other than the United States hit an all-time high...

While exports to the United States slipped slightly, they rose to all other principal trading partners, in particular to the European Union (EU) and other Organisation for Economic Co-operation and Development (OECD) countries, which posted gains of 10.4% and 31.4% respectively...

Exports to the EU have increased from $2.2 billion to $2.5 billion since March. Exports to other OECD countries have been on the rise for four consecutive months, increasing from $992.7 million in February to $1.6 billion in June. Exports to Japan were also up in June (+9.8%). Rising coal exports to several European Union countries, other OECD countries and Japan have contributed to each of these increases.

Elsewhere, exports of metal ores to China contributed to a 1.2% increase in exports to all other countries combined.

Lest there be any doubt, Canada's ability to export isn't (and shouldn't be) entirely reliant on the U.S., and right now we're doing a better job than usual of diversifying. That's a trend that has to continue - both for the positive economic impact, and for the added ability to stand up to the U.S. when needed.

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