Canada South Korea Publication No. 211-14-E 15 August 211 Alexandre Gauthier* Katie Meredith International Affairs, Trade and Finance Division Parliamentary Information and Research Service
Canada South Korea (Trade and Investment Series) HTML and PDF versions of this publication are available on IntraParl (the parliamentary intranet) and on the Parliament of Canada website. Ce document est également publié en français. The Library of Parliament Trade and Investment series provides information on Canada s trade and investment relationship with selected countries. Particular attention is paid to bilateral merchandise trade, trade in services, and foreign investment. These publications are prepared by the Parliamentary Information and Research Service, which carries out research for and provides information and analysis to parliamentarians and Senate and House of Commons committees and parliamentary associations. * Simon Lapointe, formerly of the Library of Parliament, contributed to the preparation of this document. Publication No. 211-14-E Ottawa, Canada, Library of Parliament (211)
CONTENTS MERCHANDISE TRADE... 1 PRODUCTS... 2 SERVICES AND INVESTMENT... 3 LIBRARY OF PARLIAMENT i PUBLICATION NO. 211-14-E
CANADA SOUTH KOREA Merchandise Trade Figure 1 In, Canada s bilateral merchandise trade with South Korea totalled $9.9 billion, consisting of $3.7 billion in Canadian exports to, and $6.2 billion in imports from, South Korea. South Korea is one of Canada s largest trading partners. In, it was Canada s third largest export destination in Asia, a region that comprises 27 countries, and its seventh largest export destination worldwide. In that year, South Korea was Canada s third largest source of imports from Asia and its seventh largest source of imports in the world. After a relatively small decline between 28 and 29 following the start of the global financial and economic crisis, both Canadian exports to, and imports from, South Korea increased again between 29 and. In, imports from South Korea surpassed their pre-crisis level, while exports to that country were only slightly lower than their 28 level. British Columbia is the largest provincial exporter to South Korea, accounting for more than half of total Canadian exports to that country in. Exports from British Columbia were valued at $1.9 billion in that year, while exports from Ontario the second largest exporter to South Korea had a value of $66.4 million. Although Prince Edward Island and the territories experienced the fastest growth in their exports to South Korea over the 25 to period, the value of these exports is relatively small. Among the provinces with relatively significant exports to South Korea, British Columbia had the largest growth in exports over the 25 to period, with an average annual growth rate of 1%. 6. 5. 4. 3. 2. 1.. -1. -2. -3. 8 6 4 2-2 -4-6 Merchandise Trade Trade balance Total exports Total imports 199 1993 1996 1999 22 25 28 5.6-1.8 2.7 1.2 Figure 2 Importance to Canada Average yearly growth (%): 25 South Korea World Exports Imports Alberta 14.8% 1. 1.4 Figure 3 Share of total trade (%): 1.5.6.6 1.4.9 Exp. Imp. 1995 2 25 Exports by Province/Territory Sask. 4.4% Manitoba 3.1% Atlantic 2.1% 1.5 1.8 1.6 1.4 1.2 1.8.6.4.2 Territories.% Ontario 16.3% Quebec 7.9% B.C. 51.4% All figures were prepared by the author using Statistics Canada annual figures as of spring 211. The merchandise trade data are customs-based; the services trade and foreign direct investment data are balance of payments-based. LIBRARY OF PARLIAMENT 1 PUBLICATION NO. 211-14-E
CANADA SOUTH KOREA Products Figure 4 In, Canadian exports to South Korea were comprised about equally of resource-based goods and manufactured products, at 49% and 51% respectively. Valued at $1.1 billion, coal was Canada s largest export to South Korea in, accounting for 3% of Canada s total exports to that country in that year. Other important export products included wood pulp, machinery and equipment, aluminium, copper ore and wheat. Manufactured goods dominated Canada s imports from South Korea in, accounting for almost 1% of imports from that country. Cars were Canada s single largest import product from South Korea in that year, with a value of $1.4 billion. Other major imports included computer processors, mobile telephones, machinery and equipment, and petroleum products. In, Canada was a large net importer of motor vehicles as well as other machinery and equipment from South Korea. Canada also had a small trade deficit in the categories of other manufactured goods and other goods. In the remaining product categories, however, Canada had a small trade surplus with South Korea. Major Export Products $ millions Energy and related Wood pulp, scrap paper Machinery and equipment Aluminum, articles thereof Ores, slag, ash Cereals 25 Wood, articles thereof 4 8 1,2 Figure 5 Major Import Products Motor vehicles, parts Electr., electron., etc. Machinery and equipment Energy and related Ships, boats and related 25 Iron, steel Rubber, articles thereof Plastics, articles thereof 1 2 3 Figure 6 Balance by Category Agriculture and food Metals, mines, energy Forest products Machinery and equipment Transport. equipment Other manufactured goods Other 25-3 -2-1 1 2 All figures were prepared by the author using Statistics Canada annual figures as of spring 211. The merchandise trade data are customs-based; the services trade and foreign direct investment data are balance of payments-based. LIBRARY OF PARLIAMENT 2 PUBLICATION NO. 211-14-E
CANADA SOUTH KOREA Services and Investment Figure 7 In 29, the most recent year for which data are available, Canada was a net exporter of services to South Korea, although services trade between the two countries is low relative to merchandise trade. In that year, Canadian services exports had a value of $695. million, while services imports were valued at $389. million. While, on the whole, Canada has had steady growth in services trade with South Korea since the mid-199s, services imports and exports declined from 28 to 29. Transportation and government services as well as travel services, valued at $497. million and $361. million respectively, accounted for most services trade between Canada and South Korea in 29. Commercial services trade between the two countries was relatively modest in that year. Canada had a positive trade balance with South Korea in all services trade categories in 29. The total stock of Canadian investment in South Korea was $44. million in. In comparison, Canada had a larger investment presence in New Zealand and Thailand, countries with which Canada s trade relationship is relatively less developed. South Korea s total stock of investment in Canada was valued at $2.8 billion in, about double its value in 28. In 29, the Korea National Oil Corporation purchased a Canadian energy company, contributing to this increase in South Korean investment in Canada. Services Trade $ millions 9 8 Balance 7 Exports 6 Imports 5 4 3 2 1 199 1993 1996 1999 22 25 28 Figure 8 Services Trade by Type 29 $ millions Transportation and gov't. Imports Commercial Exports Travel 5 1 15 2 25 3 Figure 9 Foreign Direct Investment 3 2 Canadian investment in South Korea South Korean investment in Canada 1 1987 199 1993 1996 1999 22 25 28-1 All figures were prepared by the author using Statistics Canada annual figures as of spring 211. The merchandise trade data are customs-based; the services trade and foreign direct investment data are balance of payments-based. LIBRARY OF PARLIAMENT 3 PUBLICATION NO. 211-14-E