and Labrador poised to lead country in export growth next year
(HALIFAX) – November 8, 2016
Canada’s export story was driven by high demand and record prices in the
region’s seafood sector, a new global export forecast from Export Development
Canada (EDC) predicts that the energy and metal ore industries will drive Atlantic
Canada’s export growth in 2017.
high growth in the seafood sector this year was supported by tight global
supplies and steady demand from the US and Asian markets,” says Peter Hall,
Chief Economist, EDC. “Even with the slight deceleration in China, its
population’s rising disposable incomes and appetite for seafood continues to
drive growth in Atlantic Canada.”
“And with the
Comprehensive Economic and Trade Agreement between Canada and the European
Union finally being ratified, we can expect seafood exports to increase even
further in the future,” added Mr. Hall. “The phasing out of tariffs on these
goods will take several years, but it is a great development and something to
look forward to for Atlantic Canada.”
Next year, EDC
expects to see a swap in the top growth sectors in Atlantic Canada. While agri-food
exports will remain strong, prices have reached their peak. Energy and mining companies
in the region will be taking the lead in terms of export growth next year
thanks to an expected rebound from low commodity prices.
and Labrador will benefit most from this switch,” said Mr. Hall. “The province’s
exports struggled in 2016 because of recent quota cuts in seafood exports, but
the increase in mining output and higher oil prices is expected to completely
offset this drop next year. The result will be 12 per cent growth in
Newfoundland and Labrador’s exports in 2017, which will be the best provincial export
performance in Canada.”
forecast predicts that the improvement in the outlook for metals and ores
exports will be driven by stronger shipments than expected because of
investments coming online after prolonged delays.
The region’s forestry
sector is expected to see a lag in export growth in 2017 owing to tariffs
imposed by the US government on newsprint exports. In addition, the uncertainty
surrounding the expiry of the Softwood Lumber Agreement and the possibility
that the US will impose new lumber duties have the potential to negatively
affect New Brunswick and Nova Scotia.
EDC helps Canadian companies go, grow, and succeed in their international business. As a financial Crown corporation, EDC provides financing, insurance, bonding, trade knowledge, and matchmaking connections to help Canadian companies sell and invest abroad. EDC can also provide financial solutions to foreign buyers to facilitate and grow purchases from Canadian companies.
For more information about how we can help your company, call us at
1-888-434-8508 or visit www.edc.ca.