Canada and Austria

Generally it has to be stressed that there exist very good bilateral relationships between Austria and Canada. These are based on the common understanding for peace and the common engagement for multiculturalism, which is clearly reflected by the activities of both countries in international organizations. Economically, both countries enjoy good trade relations with each other, which set the ground for increasing bilateral investment activities. Additionally, scientific co-operations and student exchanges are supported.

Trade relations Canada & Austria

At the all-time record in 2004, Austria's exports to Canada increased by 27.8% and the export volume amounted up to EUR 760 million. However, even in 2005, Austrian exports showed an additional increase. Turnovers of around EUR 816 million mean an additional plus of 7.5%. Besides this, Canadian exports to Austria increased by 36% amounting up to EUR 395 million. Nevertheless, there is a trade surplus for Austria of approximately +EUR 421 million.

One reason for the Austrian advantage is that Austrian companies have around 90 establishments in Canada with around 28 production plants, whereas only around 30 Canadian subsidiaries exist in Austria.

The most important export market for Canada is the United States with around 84%, followed by Japan (2.1%), the United Kingdom (1.88%) and China (1.62%). When analyzing this data, an additional growth towards Korea, Germany and the Netherlands can be seen.

The volume of imports increased by around 6.6% amounting up to CAD 379 billion. However, imports from the United States significantly dominate with around 58% followed by China (7.8%), Japan and Mexico (both around 3.8%).

Canada's most important European trade partner is the United Kingdom with 2.74%, shortly followed by Germany with 2.7%. In total, the 25 EU member states exported goods and services with a value of around CAD 45.5 billion to Canada, constituting a total import quota of 12%. Despite the general trade surplus of the EU in the EU-Canadian trade, it is worth mentioning that Canada has enjoyed a positive foreign trade in the last years.

Many of the Austrian production plants in Canada are set up by keeping in mind the strategic importance of the US market in the south as well as the Mexican market. Production plants in Canada additionally have the advantage of lower costs and a relatively good choice of workers. Therefore, it is very important to consider Canada an option when thinking of setting up a subsidiary in North America.

(The Austrian-Canadian Society wishes to thank the WKO Außenwirtschaft Österreich for providing this information.)