Canada is one of the founding members of the G8 and ranked 9th in Human Development Index 2014 of the UN. With a stable banking system, a diversified economy, a great wealth in natural resources and foreseeable budget policies, Canada expects positive developments in the future (+1.7% in growth expected for 2017).
The most important trade partner of Canada are the USA, accounting for more than 75% of Canadian exports. With CETA, the free trade agreement between Canada and the EU signed in 2016, the European market is gaining weight in the Canadian foreign exchange balance. Germany is Canada’s 5th trade partner. Bavaria makes 15% of German exports to Canada.
What makes Canada special is also its wealth of natural resources – the country is one of the 5 world leaders in the exploitation of potash salt, uranium, aluminium, titan, brimstone, nickel, diamonds and platinum. Furthermore Canada has the 3rd largest oil reserves in the world, estimated at 170 billions of barrels. The heaviest economical sectors are energy production, agriculture, natural resources and industry. Canada is the 3rd largest producer of natural gas in the world.
Business relations & opportunities
Canada and Bavaria share a long economic relationship with an impressive trade balance. In 2014, Bavarian exports to Canada amounted 1,5 billion EUR, and in 2015 1,69 billion EUR, which e.g. an annual progress of 7,1%. About 15% of the German exports to Canada come from Bavaria. This emphasizes the importance of Bavaria as Canadian trade partner. The imports of Canadian goods to Germany counted 389 million EUR in 2014 and held steady in 2015.
Bavarian companies should enjoy benefits from the CETA between Canada and the EU – which aims at cancelling 99% of tariffs and most of non-tariff related trade barriers.
Canada's Key Sectors
Québec is one of the global leaders in the aerospace industry, attracting major international companies such as Bell Helicopter Textron, Bombardier Aerospace, CAE, Pratt & Whitney Canada and many others. The province alone accounts for more than 50% of Canada’s aerospace production, and Montréal is one of the world’s top three aeronautics hubs, alongside Seattle and Toulouse. The aeronautics industry in Québec employs close to 40,000 highly trained individuals in a wide variety of professions, including engineers, technicians and specialized workers. Québec’s universities, technical colleges and trade schools offer programs to meet the industry’s needs, training 4,800 students every year. Approximately 205 aerospace companies, research centres and associations offer ample business and partnership opportunities.
Gaming & Film (Québec)
Québec's multimedia industry welcomes new players each year and is a leader in growth sectors such as virtual reality. Employment in the video game industry has been booming, with the number of jobs up tenfold since 2002. Today more than 10,000 people are putting their talent at work in Québec's video game industry. A number of studios in Montréal specialize in technical and post-production services: Autodesk, Cinesite, Digital Dimension, Framestore, Moving Picture Company, Rodeo FX and Vision globale are some notable examples. Every year, over 6,100 students trained in every aspect of the industry graduate with degrees in multimedia and related programs. Québec is one of the only places in the world to offer generous tax credits for the multimedia industry—credits that can cover up to 37.5% of labour costs.
State-of-the-art centres of excellence such as IREQ and IVI are conducting research into electric vehicles and other advanced transportation. As a government corporation that generates, transports and distributes electricity, Hydro-Québec develops electric mobility: clean, renewable energy, a reliable power grid, recognized expertise and promising technologies. Thanks to its impressive hydroelectric system (more than 97% of all the energy produced in Québec is renewable, with nearly all of it coming from hydropower), Québec is the ideal venue for researching and testing ground transportation electrification. Montréal will have its own integrated and fully automated electric light-rail transit system by the end of 2020, an investment of approximately $5.5 billion expected to generate approximately 7,500 jobs annually during the construction phase, and more than 1,000 permanent jobs once in operation. The new REM train project is set to become the third-largest automated transportation system in the world.
Ontario's automotive corridor extends from Windsor to Oshawa. More than 700 automotive parts manufacturers and over 500 tool, die and mould makers take advantage of the infrastructure and skilled trades, a high-quality workforce, strategic access to the North American market, a dynamic environment for R&D and a culture of high-quality manufacturing. Chrysler, Ford, GM, Honda, and Toyota run 12 plants in Ontario – the only province or state in North America with five OEMs. With its 104,000 autoworkers, Ontario produced 15% of all of North America’s light vehicle production in the early 2010s. Ontario is home to nine leading universities with 24+ auto-focused research programs. Between Detroit and Ottawa lies a 500-mile corridor with expertise in connected and autonomous vehicle technology, artificial intelligence, connectivity, cybersecurity, and quantum computing: more than 170 companies in Ontario are teaching cars to think.
Ontario's IT industry is located in three key cities: Ottawa, Toronto and Waterloo. The sector employs a workforce of about 280,700 workers, 80% of whom have a post-secondary degree. 44 colleges and universities, which offer more than 200 cooperative programs in the field of IT, graduate approximately 40,000 skilled graduates yearly. The University of Waterloo's engineering program is the second largest source of engineering talent after the MIT in North America. The government R&D tax incentive program offers generous innovation incentives. World leaders in big data and cloud computing, data centres, microelectronics, digital media, security encryption, mobile gaming, mobile payments, wireless, telecom and networks and seven of the 10 largest tech companies in the world conduct R&D in Ontario. Major corporations such as Cisco, IBM and Xerox have set up major research centres.
Energy Production (Alberta)
Alberta is Canada’s energy province. As a share of provincial GDP, Energy production represents close to 25% in Alberta, which is said to hold the third largest petroleum reserves in the world after Saudi Arabia and Venezuela. Alberta has 4 ethane-cracking plants, including 2 of the world’s largest. Oil and gas technology and services is focused on upstream-related oil and gas equipment and services – advanced seismic and innovative pumping technologies, multilateral, non-invasive or horizontal drilling. But Alberta is also one of the Canadian provinces currently investing the most in renewable energies, pursuing a target of decarbonisation and diversification of the energy supply. Alberta has some of most competitive tax rates in North America, with a combined federal/provincial rate of 27%. World class universities and research facilities and collaboration through Campus Alberta and Alberta Innovates. A diverse workforce: Nearly one in five Albertans was born outside of Canada, making Alberta one of the most multi-national and multi-cultural provinces in the country.
Natural Resource Extraction (Alberta and Saskatchewan)
Home to almost half of Canada's total cultivated farmland and the centre of Canadian crop production, the province is gaining worldwide attention for its wealth of minerals and energy resources. Saskatchewan is home to the world’s richest uranium deposits, currently providing one-fifth of the world’s production. It also harbours the world’s largest potash industry, accounting for half of known global reserves, and one of the world’s largest diamond-bearing kimberlite fields, which has led to extensive exploration and drilling for diamonds. Innovative manufacturers with a highly skilled, young and multicultural workforce collaborate to build leading-edge technology such as continuous mining equipment and remote-controlled underground mining equipment. The province’s power utility, SaskPower, is undertaking one of the world’s largest carbon capture and storage projects, one of the first at a coal-fired power generation plant on a commercial scale.