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Economic Cooperation

 

Economic Cooperation

Canada is seen as a country with solid economic and financial bases, with a robust industrial economy aided by a wealth of raw materials, and highly dependent on US demand (60 to 70% of Canada’s trade is with the United States,) which directly influences consumption and economic recovery.

The yearly economic growth forecast issued by the Bank of Canada is +2.1% for 2015 and +2.4% in 2016. The resistance of the Canadian market to the financial shocks of 2008/2009, and and its marked independence in the energy, mining, and agri-food sectors make Canada an excellent potential base for Italian businesses wishing to gain a foothold in NAFTA markets (roughly 462 million potential consumers) as well as in emerging Asian markets, in view of future bilateral and regional agreements. On September 6, 2014, negotiations were completed in Ottawa between the European Union and Canada on the “Comprehensive Economic and Trade Agreement (CETA.) CETA is one of the most ambitious economic and trade agreements in the world, and estimates are for a 22.9%, increase in trade or 38 billion CAD, and for a European GDP growth of 2.9 billion Euro per year.

The stability of Canada’s political system, its labour market conditions, production costs, and credit access make it especially attractive to Italian companies interested in increasing their exports or in internationalizing their production presence.

2014 was a record year for Italy-Canada bilateral trade, which registered an overall growth of +36.1%. Italy solidified its position as Canada’s 8th supplier and it became the 8th destination market for Canadian goods (up from 20th in 2013.) According to Statistics Canada, Italy-Canada trade in 2014 amounted to 10.6 billion CAD compared to 7.8 billion for the previous year, with a positive balance for Italy of approximately 2.2 billion CAD (a historic high since the collection of comparative data began in 1992.)

This result goes hand in hand with an increase in Italy’s exports (+10%, for a value of 6.4 billion CAD) and confirms a largely consistent positive trend in the past decade, as well as the extraordinary growth of Canada’s imports from Italy (+113.6%, for a total of 4.1 billion CAD.) A large part part of the increase in Italy’s imports comes from the crude oil sector: Italy imported a value of 1.59 billion CAD in 2014 (a 731% increase over 2013.) Grain imports from Canada also figure prominently (604 billion CAD): Canada is the number two exporter of grain in the world and Italy is its number one destination market.

Italy’s principal export products are machine tools and general machinery (1.6 billion CAD,) pharmaceuticals (544 million CAD,) and wines (533 million CAD.)


 

 


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