Trade with China

Topic Box from the 2009 Ninth Annual Benchmark Report

Among the negative, there is some positive economic news buried in the summary figures. Two positives based on BC's exports to date in 2009 relative to exports in 2008 (January to September 2009 vs. January to September 2008) are worth mentioning.

One, despite an overall decrease of 25 percent in commodity exports to date in 2009, agriculture products grew by three percent and growth in whole salmon exports kept the fish products category in positive territory as well.

Two, and much more significantly for BC's long-term prospects, exports to China are up by 21 percent. Exports to BC's other major markets are down by: 13 percent for Korea; 27 percent for the US; and, 32 percent for Japan.

Growth in BC's exports to China is focussed on raw materials and some categories may drop as stockpiled inventories fill up and higher cost producers in China come back on stream as prices recover.

Canadian commodity exports to China were below three percent of total exports in every year prior to 2009. In contrast, BC's commodity exports to China have been climbing steadily for more than a decade, from 1.7 percent in 1997 to 6.1 percent in 2008 and probably over ten percent in 2009.

Sources: BC Stats: Exports, September 2009; Exports, August 2009; BC Progress Board, Interim Benchmarking Report 2005: Volume II – Special Focus on BC Trade and Emerging Asian Opportunities.