Canada’s exports to emerging markets rise despite strong currencySouce:Xinhua Publish By Jane B. Hatcher Updated 23/01/2013 8:57 pm in Business / no comments
VANCOUVER, Jan. 22 — Canada’s exports to emerging markets have been growing since 2000 despite the strong Canadian dollar as the country’s trade relatively shifted away from traditional markets, a local think tank said.
Canada’s exports to emerging markets grew 80 percent as its exports to the United States, its largest trading partner, have been flat since the turn of the century, according to the Conference Board of Canada.
Some people might blame the strong Canadian dollar for no growth in Canada’s overall exports since 2000, but they could not explain the trend of Canada’s increasing exports to emerging markets, the think tank said in a report.
As Canadian exports to its neighbor stagnated, Canadian imports from the United States should have risen due to the stronger Canadian dollar. But that has not happened, it said.
The Canadian dollar has risen against many other currencies, such as the euro, the British pound, the Chinese yuan, and the Mexican peso, yet its bilateral trade with these countries increased, it noted.
“Focusing on the value of the dollar as a key cause of Canada’s changing trade patterns, and thus a tool to change them, is counter-productive,” said Michael Burt, director of Industrial Economic Trends of the think tank.
Since 2000, Canada’s trade patterns have shifted and emerging markets such as China have become more important.
Bilateral trade between Canada and China neared 47.5 billion U.S. dollars in 2011, up 27.8 percent from 2010.