Canadian Plastics

Canadian exporters are underperforming: CIBC

Canadian exporters are not doing enough to reach emerging markets, according to the findings of a new report from CIBC World Markets.

April 17, 2013   Canadian Plastics

Canadian exporters are not doing enough to reach emerging markets, according to the findings of a new report from CIBC World Markets.

The report notes that despite the global trade market growing 70 per cent since 2002, Canada has largely failed to tap into the potential abroad.

“The volume of Canadian exports today is at the same level it was a decade ago,” said Benjamin Tal, Deputy Chief Economist at CIBC, who co-authored the report with CIBC Economist Andrew Grantham. “Regardless of how you look at it, this was a lost decade for Canadian exports. The lone bright spot has been in the very competitive Chinese market.

Although the share of Chinese imports stemming from Canada remains at just a little over one per cent, it has at least edged up over the last 10 years. In contrast, most other developed countries have seen their share of Chinese imports fall over that same period.”

According to Tal, Canadian companies have shown strength in performance against their southern neighbours. Of the top 15 Canadian exports to China, 10 face U.S. competition.

He also said Canadian exporters are holding their own against Chinese manufacturers seeking to further expand exports to Canada’s top trading partner; these successes would suggest that Canada should be more competitive in other emerging markets.

Over-dependence on China was a risk highlighted in the report, because growth there has slowed and authorities are beginning to refocus more towards domestic consumption. That will require a different product mix that Canadian companies may not be positioned to fill.

The authors also conducted a sectoral analysis of the impact the rise in the Canadian dollar had on manufacturing in the country, and found no direct correlation between the value of the loonie and economic performance.

Some high vulnerability sectors such as paper manufacturing and furniture did under-perform, while other equally vulnerable sectors such as machinery and electrical equipment actually outperformed.


Print this page

Related Stories

Leave a Reply

Your email address will not be published. Required fields are marked *

*