Navigate Up
Sign In
Don’t forget the other two big trade agreements

Don’t forget the other two big trade agreements

Posted on: 10/11/2018 | Author: ATB Financial's Economics + Research Team

Any way you cut it, the United States is Alberta’s most important international customer. Almost nine in 10 dollars worth of the merchandise we sell to the world goes south of the border. Even if we subtract our main export (oil and gas), the US still buys over six in 10 dollars worth of the other products we sell. Hence the importance of the new US-Mexico-Canada Agreement (USMCA) on trade.

Our dependence on the US market also points to the ongoing need to diversify our customer base. New trade agreements between Canada and the European Union ( CETA*) and ten countries that border the Pacific Ocean (CPTPP**) should help in this regard.

Alberta sold about $4 billion worth of goods last year to the countries in the CPTPP (4.0 per cent of our total exports) and about $1.3 billion to EU countries (1.3 per cent). If we remove our oil and gas exports from the equation (99.9 per cent of which go to the US), the share of our trade that goes to CPTPP countries rises to 11.6 per cent while the European Union’s share increases to 3.7 per cent.

These numbers tell us two things.

On the one hand, the US remains and will remain, our most important market for the foreseeable future. Even if we manage to double our trade with the rest of the world, the US would still account for 77.2 per cent of our sales.

On the other hand, our trade with other countries is nothing to sniff at, and there is room to grow it both in general and with the aid of CETA and CPTPP

*Canada-European Union Comprehensive Economic and Trade Agreement (in force)

**Comprehensive and Progressive Agreement for Trans-Pacific Partnership (still needs to be ratified by the signatories)

Trade deals, graph​​​​

Share this article:

GlassdoorThis icon serves as a link to download the
eSSENTIAL Accessibility assistive technology app for individuals with physical disabilities. It is
featured as part of our commitment to diversity and inclusionDiversity and Inclusion

About ATB | Contact Us | Find a Branch or ABM | Current Rates | Privacy and Security | Legal | Code of Conduct | Site Map | Supplier Resources

©ATB Financial 2019. All rights reserved. ATB Financial is a trade name/registered trademark.

ATB Financial