Alberta’s largest export numbers are to NAFTA members: report
January 20, 2010
Edmonton—Alberta has benefited exponentially from freer trade with North America Free Trade Agreement (NAFTA) members, with the value of exports rising tenfold between 1989 and 2008, says a new report from the University of Alberta’s Western Centre for Economic Research.
Exports to NAFTA partners grew 952 per cent in the 20-year span, from $9.2 billion to $97.7 billion, according to a report released January 20 by the centre.
This contrasts with export growth to non-NAFTA destinations of 223 per cent during the same period, from $4 billion to $12.9 billion.
“In the 20 years since the Canada-U.S. Free Trade Agreement became effective, tariffs were phased out and a common set of trading rules were applied,” said Rolf Mirus, a Professor from the WCER, an applied research centre at the U of A’s School of Business. “This provided Canadian exporters preferential access to the U.S. market.
“The North American Free Trade Agreement extended this co-operation to Mexico in 1994. In addition, since then, China, Brazil and India have emerged as major participants in international trade, as buyers and competing suppliers,” he added.
The report, titled Alberta’s Export Experience Under Free Trade Agreements: 1989–2008, Twenty Years of Free Trade, answers whether, and to what extent, freer trade helped sustain or improve Alberta's position as an exporter to the U.S. and Mexico, and foster its economic base and industrial structure.
The report describes these developments in detail with respect to key products and markets, and how Alberta's exports compare to other provinces and Canada as a whole.
While energy exports played a major role in Alberta's export success, benefitting from strong U.S. demand and favorable prices, the report shows Alberta’s manufacturing industry has emerged as a successful exporter of energy-related products globally.
The benefits of the free trade agreements are also reflected in increased market share in North America of Alberta's exports of plastics, grains and seeds, inorganic chemicals and energy-related manufactured products. The markets covered by the NAFTA accounted for 88.7 per cent of Alberta’s exports in 2008, compared to 82.3 per cent in 1993 prior to the NAFTA agreement.
For further information, contact:
Rolf Mirus
Research Professor
Western Centre for Economic Research
School of Business, University of Alberta
780.492.2921
wcer@ualberta.ca
Monica Wegner
Communications Strategist
University of Alberta
School of Business
780.492.7996
monica.wegner@ualberta.ca
Related Links
Western Centre for Economic Research