Nowadays, Canada and Germany are amongst the world’s wealthiest nations.
Though Germany is much smaller in size as well as in population, its revenue is almost double than that of Canada. Germany Produces about $1.53 trillion per year making it the fifth largest economy in the world and the largest in Europe.
These stats don’t make Canada a small country by any means. Besides being the second largest country in the world, considering land mass, it is home to strong economy based not only in tourism as well as in manufacturing and exportation of a variety of goods and services. These goods and services are desired all throughout Europe, especially in Germany despite the fact that it is a leading exporter of machinery, and vehicles itself.
However, being a large exporter, does not mean Germany is self-sufficient, it needs a number of manufactured products that they do not produce domestically. Even entertainment, a country as demanding as Germany has such high standards for what the expect, such as kostenlose pornos. Thus, it is also a large importer as well, and being blessed with such a large market means that it can import and receive goods from all over the world.
One of the places Germany imports from is Canada. Canada, exports such things as; computers, as well as their parts; motor vehicles from such manufacturers as are Fiat-Chrysler, Ford, General Motors, Honda, and Toyota; aircraft in general and parts for their manufacturing; fossil fuels, such as coal; as well some products such as fertilizers.
Having a wide market itself, means that Canada exports to countries many different countries around the globe. This includes The United States of America, which imports over 75% of Canada’s products; China, which is also a large world consumer; as well as the countries in the European Union in general. However, the main consumer for Canadian goods and services in Europe is none other than Germany.
Even though Canada’s largest trading partner is the United States, due to their free trade agreement (NAFTA) and for being it’s next-door neighbor. It also sends Europe many of its goods and services. This is mainly due to the fact that Canada is also signatory to a free trade agreement with the European Union. The name of this agreement is CETA (Comprehensive Economic and Trade Agreement), signed on October 30th 2016, fully implemented almost a year later. Though Canada does trade with all of the countries in the European Union, it’s largest market in Europe is Germany.
In whole, Germany is mainly interested in importing machinery, data processing equipment, vehicles, chemicals, oil and gas, metals, electric equipment, pharmaceuticals, foodstuffs, agricultural products. These are exactly the things that Canada brings to the world market.
So, why this interest in Canadian products? To begin with, their quality. Canada is well-know for building great helicopter and car engines for example, which are then put in vehicles and aircraft in manufactures all over the world.
But, if you consider that quality comes at high cost, What makes it so interesting for Canada to export to Germany across the world, if its neighbor the United States has an agreement with them and needs their products as well?
Due to the structure of the European Union, they are considered a single market economy. This basically means that CETA removes tariffs on trade in industrial goods between Canada and the whole European Union. Germany, being a strong country, with a superb economy capable of going practically unscathed through economic crisis, being it the largest economy in the EU makes Canada’s ideal economic partner.
Germany is Canada’s 6th largest trading partner in the world and the two way trading between these two nations totaled $23.8 billion of joint trade in 2018 alone.
This over $23 billion in trade included not only the goods and services mentioned above, but also included products related to information and technology, aerospace exploration and satellites; the manufacturing of advanced products such as computer controller chips; a variety of parts for the automotive industry; as well as electronic material and machinery.
CETA is a great facilitator for this trade but Canada and Germany are partners in many other aspects and have many different treaties signed such as Canada-Germany Agreement on Scientific and Technical Cooperation; World Trade Organization Agreement on Trade Facilitation (TFA); Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement on Trade-related Investment Measures (TRIMS); General Agreement on Tariffs and Trade 1994 (GATT); General Agreement on Trade in Services (GATS); World Trade Organization Information Technology Agreement (ITA); World Trade Organization Agreement on Government Procurement (GPA); and the World Trade Organization Environmental Goods Agreement (EGA).
All treaties and agreements aside, both of these great nations are also linked historically due German influence and immigration that date back to the French and British dispute over the territory that would later become Canada. So, in a way all the right ingredients are there to make both countries contribute to the growth of each others economies.