Canada has a population [1] of more than 30 million [2], and is the producer of a variety of goods and services. These goods and services are exported [3] to other countries (international exports) or to different provinces and territories within Canada (interprovincial exports). In addition, Canada imports many goods and services from other countries and Canadian provinces trade between themselves. In Canada, the provinces tend to trade more internationally than they do nationally, thus leading to a decrease in interprovincial trade in recent years. The goods that are exported and imported in Canada vary from coast to coast, as does the level of dependance on both international or interprovincial trade.
| Year | United States | Japan | The European Union | Other OECD Countries | Other Countries | Total Exports ($ millions) |
| 1993 | 78.4% | 4.8% | 6.3% | 1.7% | 8.8% | $190,21 |
| 1998 | 83.6% | 3.0% | 5.5% | 2.4% | 5.5% | $360,61 |
| 1994 | 1998 | |
| Total | $228 167.1 | $322 262.4 |
| Machinery and equipment | 20.0% | 24.5% |
| Car products | 25.2% | 24.0% |
| Industrial goods and materials | 18.7% | 17.8% |
| Forestry products | 12.8% | 10.9% |
| Agricultural and fishing products | 8.2% | 7.8% |
| Energy products | 8.5% | 7.4% |
| Other goods | 3.1% | 3.9% |
| Unallocated adjustments | 3.5% | 3.7% |
Variations occur in the products that different provinces in Canada export. For example, 63% of British Columbia's exports [5] relate to forestry - wood, wood pulp, and paper products; the province's main exports are lumber (22.9%), chemical wood pulp (9.2%), natural gas, bituminous coal, newsprint and copper ores.
British Columbia's export market is quite diverse, yet raw or semiprocessed materials still comprise 2/3 of the materials exported. Export diversification, especially through processing initiatives to increase the value of goods before they are sold to other countries or provinces, is an important goal of the province. While British Columbia's exports center around forestry products, Saskatchewan exports [6] mainly wheat, potassium chloride [7], oil seeds, potash, uranium, iron and optical products. The Canadian prairies extend 1500 kilometres from the foothills of the Rocky Mountains in western Alberta to the Precambrian Shield of eastern Manitoba, and consists of 49 million hectares of productive agricultural land. Wheat [8] accounts for ½ of the land seeded each year and the prairies supply 21% of the world's wheat market. In one year the Canadian Wheat Board markets [9] shipped more than 25 million tonnes of grain to more than 70 countries [10] around the world. Most of the sales are direct sales where the CWB negotiates directly with the buyer however, some sales are made to an accredited exporter. Accredited exporters are national and multinational companies such as Ag Pro Grain Inc. and ADM Milling Company, who buy the grain from the CWB and then resell it to customers. In addition to wheat, Saskatchewan is also the largest potash producer in the world earning a profit of $1.5 billion in 1997.
In contrast, Ontario is Canada's richest market and in 1997 exported more than $154 billion [11]. These exports included commodities such as cars, gold (in unwrought, non-monetary form), newsprint, car parts, fine paper and nickel. The majority of exports from Prince Edward Island consisted of potatoes [12], either frozen (25.4%) or fresh (13.2%). The province also exports frozen and prepared lobsters and some lumber.
In addition to exporting goods to other countries and from one province to another, Canada also imports goods from other places. Ontario imports (66.5%) the most goods from outside the country; the US supplies 77.7% of these imports. Major products imported by Ontario include parts for motor vehicles, and piston engines. British Columbia has motor vehicle parts brought in, computer parts, road tractors, electrical energy and television receivers, while the main imports into Saskatchewan consist of optical fibers, mechanical shovels and excavators, tractors, herbicides and public transport vehicles. Prince Edward Island imports goods such as diammonium phosphate, ammonium nitrate, grape wines and machinery for agricultural purposes. Overall, Canada exports only slightly more than what it imports.
| 1994 | 1998 | |
| Total | $207 872.5 | $303 399.7 |
| Machinery and equipment | 31.6% | 33.4% |
| Car products | 23.0% | 22.0% |
| Industrial goods and materials | 8.7% | 9.3% |
| Forestry Products | 8.7% | 0.8% |
| Agricultural and fishing products | 6.1% | 5.7% |
| Energy products | 3.3% | 2.9% |
| Other goods | 11.3% | 11.4% |
| Unallocated adjustments | 7.3% | 14.5% |
Ontario exports to (94% as of January 1999) and imports from (77.7%) the US more than any other country in the world. Other major export markets for Ontario include the UK, Germany, Mexico, Japan and Norway. British Columbia (65.3%) and Saskatchewan (61.9%) follow Ontario and send the bulk of their exports to the US; Japan is the next major export market for both of these provinces. Prince Edward Island also sends most of its exports to the United States (71.3%) followed by Venezuela, Uruguay, Norway, Portugal, the Dominican Republic and Trinidad and Tobago. Unlike the other provinces, Prince Edward Island only receives 18.5% of its imports from the US. Instead, Russia supplies Prince Edward Island with the majority of the imports (63.3%) [13].
Interprovincial trade accounts for more than 20% of Canada's GDP, a value greater than the intra-European trade in the European Union. In 1995, Ontario was the only province with a trade surplus ($25.9 billion) from interprovincial trade. British Columbia had the highest interprovincial trade balance deficit ($7.8 billion) followed by Newfoundland ($3.4 billion), Saskatchewan ($3.1 billion), Alberta ($2.9 billion) and Nova Scotia ($2.9 billion). During the period 1990 to 1995, the trade balances for all the provinces except for Quebec remained steady. Quebec's interprovincial trade balance went from a surplus of $2.6 billion to a deficit of $1.2 billion. Of all the provinces in Canada, Prince Edward Island is the one most dependent on interprovincial trade. In 1998 the province received 4.2% of its imports from within Canada, and in 1995, 79.2% of Prince Edward Island's GDP came from trade between the provinces. Overall, the Atlantic provinces depend the most on interprovincial trade (especially imports) followed by the prairie provinces. Ontario, British Columbia and Quebec rely more on international trade.
In order to increase the amount of trade between provinces, the Agreement on Internal Trade came into effect on July 1, 1995. Its goal is to eliminate barriers to trade, investment and mobility within Canada [14]. This is accomplished [15], in part, by restricting the ability of governments to charge businesses from other provinces higher fees than they charge their own businesses. In addition, governments cannot restrict the movement of people, goods, services or investments across provincial or territorial boundaries. The Ontario International Trade Corporation is a division of the Ontario Ministry of Economic Development, Trade and Tourism and leads trade promotion and development activities. The Canadian Exporters Association (CEA) is a national, private, non-profit organization working to promote and enhance Canadian Exports, while the Atlantic Canada Opportunities Agency (ACOA) [16] works toward increasing the number of Atlantic businesses involved in international trade.
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