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The Canadian government will go forward with the export permits that allow Saudi Arabia to acquire Canadian-made Light Armored Vehicle III (LAV III). The Minister of Foreign Affairs, Stéphane Dion, stated that Canada would block future export permits if Saudi Arabia uses the purchased military equipment against its own citizens.
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The next seven months could be very nervous times in Canada's forestry sector, particularly softwood lumber. That's because the Softwood Lumber Agreement that Canada signed with the U.S. in 2006 expired last October 12. Canada had hoped to simply renew the agreement at that time, but the U.S. refused.
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If it sticks to its historical range, the loonie mostly has an upside at this point.
Economists say data out this week is likely to show that Canada slipped into a technical recession in the second quarter, but the contraction should be short-lived.
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For years, economists have been saying that if Canada wants sustainable growth, it has to stop relying on consumers taking on more debt and start being an export economy again. The problem was that, u...
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How is Canada faring in our industrial diversification? Progress on trade diversification over the past 15 years is likely one of the most remarkable developments in Canadian economic history. A strong dependence on traditional markets was only enhanced by the Canada-US FTA, which saw exports to the US soar to over 85 per cent of the total. But a big shift began in the New Millennium.
Tightening U.S. monetary policy suggests that the Canadian dollar will remain weak. And in spite of competitiveness concerns, exports are rising enough this year to suggest 10 per cent growth, and an added 6 per cent in 2015. This in turn will spur business investment, lifting Canadian GDP growth to 2.8 per cent in 2015.
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Its small share of the overall marketplace might lead many to conclude that small exporters are too small to warrant attention. That would be a great mistake. The dynamism of this segment suggests that it is already a powerful new force in Canada's economy.
The tech wreck, the thickening border with the U.S. and the soaring loonie in the mid-2000's turned the attention of Canada's exporters to fast-growing emerging markets. In a relatively short time span, our trade with this rapidly-rising part of the global economy has risen from less than 5 per cent to almost 13 per cent of our merchandise exports.
OK, you're right -- this is really last week's news. But it is worth repeating. For a good many months now, economy watchers of many stripes have been looking to Canadian exporters to take the wheel a...
OTTAWA - Statistics Canada says merchandise exports declined 1.8 per cent in April, while imports increased 1.4 per cent, pushing the trade balance with the world to a deficit of $638 million from a s...
OTTAWA - Canada is missing out on about $40 billion in export sales and could continue to do so for years to come as uncompetitive producers continue to lose market share, Bank of Canada governor Step...
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Canada will see timely benefits as global trade picks up. Prospects for the domestic economy are not strong, but exports are already rising nicely. Domestic weakening should help to free up capacity for exports, which is running pretty tight in some industries. In others, there is capacity to absorb growth.
The world is getting hungrier. It has been said many times, but it bears repeating: the rise of emerging markets over the past three decades is now vaulting millions into the ranks of the middle class every year.
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When international trade collapsed in 2009, the Canadian economy turned inward, and for a change, discovered a steady source of growth. That source is now tapped out, and economy-watchers have for some time turned their eyes back to trade. So far, the view has been uninspiring. Will Canadian trade carry growth forward, or is our hopeful gaze in for a big disappointment?
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Canadian investors are well-known in Colombia, particularly in the oil and gas sector. The crisis proved to be a setback to impressive investment activity, but it has since rebounded. Canadian direct investment in Colombia is now over 70 per cent higher than at the 2008 peak, at just under $1.8 billion.
One brief look at Mexico's GDP numbers for 2013, and you'd likely say, "What happened?" At the outset of the year, forecasts were calling for between 3-to-4 per cent growth. Instead, the final tally is looking more like 1.2 per cent. That's a pretty sizeable miss. If lots went wrong in the year, foreign investment in Mexico wasn't on that list; in fact, it had a banner year. What's behind this success?
WASHINGTON - Signs of a thaw have emerged in a developing trade battle between Canada and the United States.The Canadian government has won a powerful friend in its fight against punishing U.S. meat-i...
Investment has been quiet -- almost asleep -- for an inordinate spell. Is it on the way back? A sleeping giant may be on the verge of awakening. When this one does rouse, it's likely to do so in a hurry. Those who are armed and ready to supply business quickly with the machinery and equipment it needs stand to win big in the next cycle.
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OTTAWA - Canada posted its first trade surplus in almost two years in October, although analysts were quick to note that the surprise reversal after a string of 22 consecutive deficits did not signal...
Canada no longer knows how to sell anything to the world except oil and gas. Okay, that’s an exaggeration, but if things keep going the way they are, it won't be for long. StatsCan’s latest numbers on...
Canada's overall numbers are not as impressive, but they reflect the growth rotation that will see exports and business investment grab the baton from the consumer and housing sectors. Conditions already favour export growth: a weakening loonie, a surge in leading sectors, a key export market that is leading the way, and strong demand for resources.
In the 2000-2008 period, Canadian exports to ASEAN grew by 9 per cent annually, just under the average pace to emerging markets as a whole. Post-crisis, the rate of growth is exactly the same. Doubling trade in five years would require notching that pace up to 15 per cent annually -- not an unachievable target by any stretch of the imagination.
What do bed sheets, binoculars and bovine semen have in common? Besides having vastly different uses (we hope), they cost and score Canada millions of dollars in imports and exports. The major chunk o...
How the mighty are falling. Resilience was a word used liberally to boast of the BRICS countries' staying power in the post-crisis period. Many even ascribed global-growth-engine status to these rising powerhouses. But 2013 has been a second tough year for the August group, even as OECD nations are steadily returning to growth.
There's a sour seasonality that has become entrenched in recent global economics. In the past few years, summer has become a disarmingly punctual momentum-killer of global production. Perhaps the most critical question in EDC's Summer 2013 Global Export Forecast is whether we are in for yet another summer drubbing, or whether this is the year we break with that sorry tradition.
The world has become used to perpetual gloom, and those at the early end of their careers have known nothing but. Recent budding optimism stateside could be the very remedy for an increasingly tentative Canadian exporter. US sentiment is an indicator worth keeping a keen eye on.
Companies need to take more risks in emerging markets so Canada doesn't experience another lost decade for exports, says CIBC's senior economist.Despite nine free trade agreements, the volume of Canad...
Commodity prices are all down, right? Wrong! Commodity prices have scored high on the economic shock-talk scale in the past decade. Although prices are generally still riding high, the recent trend ha...
Stable is not a word that can be used to describe much in today's economy. A notable exception is the Canadian dollar. The loonie has soared in a reasonably tight range around parity with the U.S. dollar for 3 years now. Although exporters would prefer a lower level, the stability has made activity and cash flows somewhat more predictable. Now, the loonie is losing some loft; what's happening?
Surprise of the year: World oil production is rising more than was forecast. A shock? No, that's what happens when prices spike. What is surprising is that it's occurring right in our backyard -- in the good ol' USA. The bottom line? How quickly we have gone from running out of oil to being awash in the stuff. Maybe the surprise is that we are surprised that history is merely repeating itself!
A weaker currency makes Canadian products more affordable for U.S. consumers. This factor alone may not be enough to offset demand-driven losses, but it could soften the blow.