Canada Hong Kong Publication No. 2011-137-E 15 November 2011 Alexandre Gauthier* International Affairs, Trade and Finance Division Parliamentary Information and Research Service
Canada Hong Kong (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. 2011-137-E Ottawa, Canada, Library of Parliament (2011)
CONTENTS MERCHANDISE TRADE... 1 PRODUCTS... 2 SERVICES AND INVESTMENT... 3 LIBRARY OF PARLIAMENT i PUBLICATION NO. 2011-137-E
CANADA HONG KONG Merchandise Trade Figure 1 In, Canada s bilateral merchandise trade with Hong Kong totalled $2.3 billion, consisting of $1.9 billion in Canadian exports to, and $369.7 million in imports from, Hong Kong. Hong Kong was Canada s 15 th largest export destination globally in, and its fifth largest export destination in Asia, a region that includes 27 countries. It was Canada s 56 th largest source of imports globally in that year, and its 13 th largest import source in Asia. Over the 2005 to period, the value of Canada s exports to Hong Kong grew at an average annual rate of 5.5%, compared to a decrease of 1.8% worldwide. The value of Canada s exports to the region increased by 27% between 2009 and. The value of Canada s imports from Hong Kong decreased at an average annual rate of 7.9% over the 2005 to period, compared to an increase of 1.2% worldwide. From 2009 to, the value of Canada s imports from the region increased by 2%. The value of Canada Hong Kong trade as a share of the value of Canada s total trade has decreased over time. In 1995, Canada s trade with Hong Kong accounted for 0.7% of the value of Canada s exports worldwide and 0.6% of the value of Canada s global imports. In, these shares were 0.5% and 0.1% respectively. At the provincial level, Ontario and British Columbia together accounted for two thirds of the value of Canada s exports to Hong Kong in, with exports valued at $974.3 million and $281.2 million respectively. Over the 2005 to period, Saskatchewan and Newfoundland and Labrador were the fastestgrowing provincial exporters to Hong Kong, with an average annual growth rate of 36% and 25% respectively in the value of their exports to the region. 2.5 2.0 1.5 1.0 0.5 0.0-0.5-1.0 8.00 6.00 4.00 2.00 0.00-2.00-4.00-6.00-8.00-10.00 1990 1993 1996 1999 2002 2005 2008 5.5-1.8-7.9 Merchandise Trade Trade balance Total exports Total imports 1.2 Figure 2 Importance to Canada Average yearly growth (%): 2005 Hong Kong World Exports Imports Alberta 7.4% Quebec 10.3% 0.7 0.6 Figure 3 Share of total trade (%): 0.4 0.3 0.3 0.1 0.5 Exp. Imp. 1995 2000 2005 Exports by Province/Territory Sask. 0.4% Manitoba 10.7% B.C. 14.8% Atlantic 5.0% Territories 0.0% Ontario 51.3% 0.1 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 All figures were prepared by the author using Statistics Canada annual figures as of spring 2011. 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. 2011-137-E
CANADA HONG KONG Products Figure 4 In, manufactured goods represented 70% of the value of Canada s exports to Hong Kong, with resource-based goods accounting for the remaining 30%. This composition had changed since 2005, when manufactured goods and resource-based goods represented 80% and 20% respectively of the value of Canada s exports to the region. Canada s highest-valued exports to Hong Kong in were gold, nickel, raw fur skins and ginseng roots. The value of Canadian gold, raw fur skins and ginseng roots exports to the region increased from $16.2 million, $102.4 million and $65.9 million respectively in 2005 to $196.7 million, $145.2 million and $11.8 million respectively in. The value of Canadian nickel exports to Hong Kong decreased from $168.6 million in 2005 to $157.7 million in. In, as in 2005, manufactured goods represented 99% of the value of Canada s imports from Hong Kong, with resource-based goods accounting for the remaining 1%. Canada s highest-valued imports from Hong Kong in were electronic machinery and equipment, at $124.9 million, and coins and jewellery, at $45.9 million. Together, they accounted for 46% of the value of Canada s imports from the region. This is an increase from 2005, when electronic machinery and equipment imports from Hong Kong were valued at $106.1 million, and coins and jewellery imports were valued at $26.9 million. Canada is a relatively strong net exporter to Hong Kong in most major product categories, the exception being transportation equipment, where the value of trade is roughly balanced. Major Export Products $ millions Precious metals, jewellery, coins Electr., electron., etc. Meat and edible offal Nickel, articles thereof Fur skins, related clothing Oilseeds, seeds, etc. 2005 Fish, seafood 0 100 200 300 Figure 5 Major Import Products $ millions Electr., electron., etc. Precious metals, jewellery, coins Books, newspapers, etc. Machinery and equipment Toys, games, sports equip. Clothing, apparel (woven) 2005 Clocks and watches Clothing, apparel (knitted) 0 50 100 150 Figure 6 Balance by Category $ millions Agriculture and food Metals, mines, energy Clothing, textiles, etc. Machinery and equipment Transportation equipment Other manufactured goods 2005 Other 0 200 400 600 All figures were prepared by the author using Statistics Canada annual figures as of spring 2011. 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. 2011-137-E
CANADA HONG KONG Services and Investment Figure 7 In 2009, the most recent year for which data are available, Canada s bilateral services trade with Hong Kong totalled $3.5 billion, comprised of $950.0 million in exports to, and $2.5 billion in imports from, Hong Kong. The value of Canada s services exports to Hong Kong decreased by 11% from 2008 to 2009, while the value of Canada s services imports from that region fell by almost 7% during that period. 3 2 1 0-1 Services Trade Balance Exports Imports In 2009, Canada s trade deficit in services with Hong Kong was the result of transportation and government services. Canada imported $2.1 billion in transportation and government services from Hong Kong and exported $373.0 million in transportation and government services to the region. Canada imported $175.0 million in commercial services and $245.0 million in travel services from Hong Kong in that year, and exported $155.0 million in commercial services and $422.0 million in travel services to the region. Canada had a $177.0-million trade surplus with Hong Kong in travel services in 2009. In, the stock of Canadian direct investment in Hong Kong totalled $6.3 billion, making it Canada s 15 th largest destination for foreign investment abroad. Canadian direct investment in the region increased by 15% between 2009 and. Though data have been unavailable since 2005, Hong Kong s direct investment in Canada nearly doubled between 2000 and 2005. The stock of Hong Kong direct investment in Canada was $6.2 billion in 2005. -2 1990 1993 1996 1999 2002 2005 2008 Transportation and gov t. Commercial Travel Figure 8 Services Trade by Type 2009 0 1 2 3 Figure 9 Foreign Direct Investment Imports Exports 8 Canadian investment in 7 Hong Kong 6 Hong Kong s investment in 5 Canada 4 3 2 1 0 1987 1990 1993 1996 1999 2002 2005 2008 All figures were prepared by the author using Statistics Canada annual figures as of spring 2011. 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. 2011-137-E