1. Chap 11 - International Trade Trends in Merchandise & Agri-Food Trade Inter-regional vs International Trade language & culture specialized transport services government regulatory differences how prices and exchange rates collide

2. Exports and Imports 2002 - 2010 ($CA Million - current) Source: Statistics Canada, CANSIM, table (for fee) 228-0003 228-0043 Imports Trends in Merchandise Trade

3. Source: Statistics Canada, The Daily

4. Exports of Goods – $million (current) NB - not all sectors represented in table

5. Imports of Goods – $million (current) NB - not all sectors represented in table

6. Imports, exports & trade balance of goods, by country Source: Statistics Canada, CANSIM, table 228-0003. 73% 81%

7. Trends in Agri-Food Trade Canada as an exporter 47% primary (farm) output exported ~ $30 - 35 billion $5 - 6 Billion trade surplus Export markets (2009) United States50% of agri-food exports Japan8% EU 6%, China 7% Products: grains + products (28%) oilseeds + products (20%), livestock + products (18%) Source: Agriculture and Agri-Food Canada, An overview of the Canadian Agri-Food System, 2011, Ottawa 4th largest exporter of agr products (2009) 3.4% of world exports: EU (48%) US (11%) and Brazil (6%)

11. 55% Primary 1997 52% Primary 2009 71% of imports are processed (2009)

12. Canadian Agri-Food Imports Imports (2009). 2.8% World Imports US is largest source (~ 61% ) EU (13%), Mexico (4%) Products: fruit & vegetables + processed products (28%) beverages (ex fruit juice) (13%) Exports vs. Imports complementary - competitive imports gains from trade import sources becoming more diverse

13. International vs. Interregional Trade Language and culture communications transactions costs (“gifts”) Transportation requirements clear rules of transaction freight costs, load/unload transfer of ownership ( incoterms: EXW, FAS, FOB ) insurance documentation

14. Government regulation International organizations Facilitate trade Bilateral - regional (NAFTA) Multinational (WTO, Codex Alimentarius Commission) Transactions Costs Phyto-sanitary Transport Food labelling & packaging Country of origin Import/export agencies

15. Exchange Rates Two prices in every trade another transaction cost ER volatility (post 1970’s) significant effects on trade & profitability dealing with exchange rates - fixed versus floating rates Canada vs China - role for forward exchange markets Canada-US exchange rate - recent history Jan 2002(1.60/0.63)

16. $US per Canadian Dollar 2002 - 2011 Source: Globe & Mail - Globe Investor 60% appreciation

17. $Euro per Canadian Dollar 2002 - 2011 Source: Globe & Mail - Globe Investor

18. $US per Euro 2002 - 2011

19. $US per Chinese Yuan Renminbi 1982 - 2011

20. China Daily, Oct 27, 2011