Jobs and innovation: Tracking progress and results
Targets
- Increase the value of Canada's exports by 30% by 2025
- Increase the value of Canada's overseas exports by 50% by 2025 (Fall Economic Statement 2018)
Exports play an important role in the Canadian economy, contributing to growth, productivity and employment. Trade diversification helps Canadian businesses access new markets and growth opportunities.
The value of exports of goods and services rose 6.4% in 2018 (Statistics Canada, 2019) to a record $706.1 billion (Figure 12.1). In terms of industry composition, oil and gas extraction, chemical manufacturing and petroleum product wholesale industries led the increase in exports in 2018 (Statistics Canada, 2019).
Canada's export growth to non-American countries (9.2%) outpaced growth to the U.S (5.2%). Over the past five years, Canada's exports to the non-U.S. countries grew by approximately 19% while exports to the U.S. grew by approximately 8%.
Figure 12.1: Value of exports of goods and services (in $billions)
In 2017, 25% of total Canadian enterprises exported goods or services (Statistics Canada, 2018). While small and medium-sized enterprises (less than 500 employees) make up 99.8% of all businesses, only 12% exported goods or services in 2017 with export sales accounting for about 4% of total company revenues (Statistics Canada, 2017).
A small number of large firms are responsible for most of the exports of goods in Canada. In 2018, large enterprises (500 or more employees) accounted for 2.7% of all goods exporting firms, but 59% of the total value of goods exports. On the other hand, small and medium-sized enterprises accounted for less than half (41%) of the total value of goods exports in 2018 (Statistics Canada, 2018).
The 2018 Fall Economic Statement announced the Government's intention to significantly bolster export opportunities for Canadian businesses, and diversify Canada's overseas trade. The Government launched an Export Diversification Strategy, through which $1.1 billion would be invested over six years, starting in 2018–19, to help Canadian businesses access new markets. The Strategy has three key components: investing in infrastructure to support trade, providing Canadian businesses with resources to execute their export plans and enhancing trade services for Canadian exporters.