Canada Trade &
Export Diversification
Tracking where Canada sends its merchandise exports — and how that concentration has shifted over time.
This page examines which countries receive Canadian goods and how that distribution has changed. It covers merchandise exports only; services trade is tracked separately.
Export diversification measures how broadly a country's sales are spread across trading partners. Canada has historically been highly concentrated — the vast majority of merchandise exports flow to the United States, a pattern shaped by geography, supply chains, and successive trade agreements.
Export diversification index · 0–100 scale · Source: Statistics Canada, Table 12-10-0011-01
Hover to explore. Statistics Canada, Table 12-10-0011-01. Inverted Herfindahl–Hirschman Index, normalized 0–100.
Scope
This page covers merchandise exports from Canada to all trading partners as reported in Statistics Canada Table 12-10-0011-01 (Canadian international merchandise trade). Services exports are not included. Data begin in 1997, reflecting the start of the Statistics Canada quarterly series.
Diversification Index
The diversification score is computed from the Herfindahl–Hirschman Index (HHI), a standard measure of market concentration. The HHI is the sum of squared export shares across all trading partners. This value is then inverted (1 − HHI) to produce a diversification measure, and normalized to a 0–100 scale. A score of 0 indicates all exports flow to a single destination; a score of 100 indicates exports are perfectly evenly distributed.
Partner Groupings
For the bar chart and snapshot panel, individual EU member states are aggregated into a single "European Union" entry. The United States, China, Mexico, Japan, United Kingdom, and South Korea are shown individually. All other partners — including the D1 "Other" residual category — are grouped as "Rest of World". Any partner with a share below 0.1% is excluded from display.
Data Revisions
Statistics Canada regularly revises merchandise trade data for up to three prior years as more complete information becomes available. This site re-runs the full pipeline on each daily refresh, so revisions are automatically incorporated. Historical values shown in the chart may change slightly over time as the underlying source data is revised.
Merchandise exports by destination — —
Rest of World includes all other trading partners and the statistical residual category.
Trade Questions
Source: Statistics Canada, Table 12-10-0011-01
What percentage of Canada's exports go to the United States?
The latest available data shows that a large majority of Canada's total merchandise exports — historically above 70 per cent — are directed to the United States. This long-standing concentration reflects deep continental supply chain integration, geographic proximity, and preferential access established under successive free trade agreements since 1988. The exact current share is shown in the snapshot above.
Has Canada reduced its dependence on the US over time?
Modestly. The US share of Canadian merchandise exports peaked above 84 per cent in the early 2000s and has declined over the following two decades, driven partly by commodity export growth to Asian markets and partly by diversification agreements such as CETA and CPTPP. Progress has been gradual, and Canada's structural export concentration remains high by international standards. The current trend is visible in the line chart above.
How did CUSMA (USMCA) affect Canada's trade composition?
CUSMA, which replaced NAFTA in July 2020, largely preserved Canada's preferential access to the US and Mexican markets. Its direct effect on diversification was limited — the agreement updated rules of origin for automotive products and added digital trade provisions, but did not redirect significant export flows toward new markets. CUSMA is best understood as a stabilization of existing continental trade rather than a diversification instrument.
Did CETA increase trade with the European Union?
The Canada–EU Comprehensive Economic and Trade Agreement entered provisional application in September 2017. Analysis from Statistics Canada and the Bank of Canada suggests a moderate increase in bilateral trade volumes, particularly in goods subject to tariff elimination. The EU's share of Canadian exports has remained in a broadly similar range after CETA's implementation, though absolute volumes have increased alongside overall global trade growth.
How has trade with China changed over time?
China's share of Canadian merchandise exports has grown from under 2 per cent in the early 2000s to a larger share today, driven primarily by commodity exports — canola, potash, coal, and softwood products. Political and trade tensions, particularly following the 2018 Meng Wanzhou detention, disrupted agricultural exports temporarily. China remains Canada's second-largest individual export destination but is well behind the United States.
Who are Canada's largest trading partners?
The latest available data places the United States as by far Canada's largest export destination, accounting for the majority of merchandise exports. The European Union (as a bloc), China, Mexico, Japan, and the United Kingdom are the next-largest destinations, collectively receiving most of the remaining share. The exact rankings and shares for the most recent quarter are shown in the bar chart and snapshot above.
How dependent is Canada on the United States for trade?
As of the most recent quarter, approximately of Canada's merchandise exports were destined for the United States — by far the dominant trading partner. This concentration reflects decades of integrated continental supply chains under NAFTA and CUSMA, as well as geographic proximity and complementary industrial structures. The European Union, China, Mexico, and Japan collectively account for most of the remaining share.
What are Canada's largest export markets?
The United States is Canada's largest export market, accounting for approximately of merchandise exports as of the latest available data. The European Union (as a bloc) receives approximately , followed by China, Mexico, Japan, and the United Kingdom. The current quarter's exact rankings and shares are shown in the bar chart and snapshot above.
Has Canada reduced its reliance on the U.S. since NAFTA or CUSMA?
Modestly. The U.S. share of Canadian merchandise exports peaked above 84 per cent in the early 2000s and has declined over subsequent decades, driven partly by commodity export growth toward Asian markets and partly by diversification agreements such as CETA and CPTPP. As of the most recent quarter, the diversification score stands at — / 100 — improved from its concentration peak but still reflecting a high degree of dependence on a single partner by international standards.
Which countries is Canada increasing trade with?
The most notable long-run shift in Canada's export composition has been the growth of trade with China and, to a lesser extent, with CETA partners (the EU) and CPTPP members (Japan, Mexico, Vietnam, Australia, and others). Commodity exports — energy, canola, potash, and metals — have been the primary driver of non-US growth. The bar chart shows the current distribution; the line chart tracks how the overall diversification score has evolved quarter by quarter since 1997.