OTTAWA — Canada is less reliant on U.S. trade than it’s ever been before.

According to a 2008 year-round review by Stats Canada, major declines in the U.S. automobile and housing markets led to a dip in combined exports and imports with the U.S., which accounted for less than two-thirds (65.7%) of Canada’s total merchandise trade.

That’s down from 67.2 percent in 2007 and 74 percent in 2003, which is more than a 10 percent decline in only five years.

Meanwhile, exports to countries other than the U.S. have been growing this decade. In 2008, they represented 22.3 percent of total exports, up from 14.3 percent in 2003.

Leading the gain for Canada’s exports from 2007 to 2008 were the Asia Pacific countries and Brazil, driven by coal, canola, and wheat.

Japan (up 20.2% to $11.1 billion from 2007) actually outpaced China in 2008, which was up 9.1 percent, totaling $10.4 billion. As a result, Japan replaced China as Canada’s second most important export destination, behind the U.S.

Asia, Brasil trade outpaces
US exports and imports this decade

But exports to Brazil rose the most in one year — jumping a whopping 70.7 per cent from 2007, led by potash, used as a fertilizer, as well as coal and newsprint.

Similarly, imports from countries other than the U.S. have been on the rise for the past seven years. In 2008, they accounted for 47.6 percent of Canada’s total imports, up from 39.4 percent in 2003. China continues to be our second largest trading partner for imports, selling $42.6 billion worth of merchandise to Canada last year, up 11.3 percent from 2007.

Energy, Not Auto, Canada’s Bread & Butter:

Exports of energy products rose 37.6 percent in 2008 compared with a year earlier, totaling $126.1 billion. While the U.S. continued to be the leading consumer of Canada’s energy products, growing demand for coal in the Asia Pacific region boosted energy exports to that area.

Imports also grew for the sixth straight year, increasing 44.9 percent to $53.0 billion as both prices and volumes rose. Leading the gain was crude petroleum.

Meanwhile, Exports of automotive products fell 21 percent from to $61.1 billion in 2008. These products have been on a downward trend since 2002.

Further, imports declined 10.1 percent from 2007 to $72.0 billion, halting four straight years of increases. Leading the decline was motor vehicle parts, which fell 14.9 percent.