A look at the Canadian market, 10th economy in the world

The webinar “Doing business with CanadaHeld Wednesday in conjunction with Harvard Consulting. The purpose of this meeting, organized by the Moroccan Association of Exporters (ASMEX), in the presence of its President, Hassan Sentissi El Idrissi, Saad Hamoumi, CEO of Harvard Consulting and Frédéric Lhotellier of Adexia, specialist in business development in the Canadian market and to help exporters to develop their post-Covid-19 business.

In a note, ASMEX reveals that Canada represents a market of 38 million people and is the 10th economy in the world. The country tops the ranking of the best destinations for expats among the G7 countries, while the Moroccan diaspora represents about 100,000 people. The country also ranks first in the G7’s list of the safest banking systems, the association specifies.

Canada’s main customers, the same source continues, are the United States with 74% of Canadian exports to this market, followed by China with 4.5% of exports and Japan with 2.3% of exports. Morocco is the country’s 44th customer with $ 453 million in imports.

«Business opportunities are everywhere, but you need to know how to prepare, adapt to, and take advantage of them. We have established a Canadian business club within ASMEX to reflect on actions to be taken towards this market with the aim of developing exports, but also to attract Canadian investment to Morocco ”Hassan Sentissi El Idrissi said.

ASMEX thus underlines that Canada’s main suppliers are the United States with 53% of imports from the neighboring country, followed by China with 12% of imports and Mexico with 5.9% of imports. For Morocco, it ranks 59th as a supplier to Canada with a value of $ 463 million, the association said.

Indeed, ASMEX indicates that Moroccan exports to Canada increased by 12.7% between 2015 and 2019. 38% of these exports are destined for Quebec. Only the two provinces of Quebec and Ontario account for ¾ of Moroccan exports.

The Kingdom mainly exports fruit and fertilizers (18.9%). Clothing and air navigation systems rank 3rd and 4th with 9% of exports worth C $ 43 million.

«Canadians love organic and high-quality products, a niche that Moroccan exporters can conquer. Canada has the 16th highest GDP per capita of the OECD countries», Explains Frédéric Lhotellier.

Of the main Canadian buyers of Moroccan products, only one is from the aviation industry (Canadair), which nonetheless accounts for 9% of Moroccan exports in the sector to Canada. The rest of Canadian buyers mainly buy Moroccan fruits and vegetables, salt, clothing or specialize in the food industry.

For Frédéric Lhotellier, the promising sectors for Moroccan exporters are aerospace, agri-food and textile industries. In terms of textiles, Morocco is the 20th supplier of ready-to-wear in Canada, with sales totaling $ 56 million. The kingdom is also the country’s 16th shoe supplier ($ 7.4 million) and the 32nd supplier of saddlery. Clothing sales fell 20% between the 3rd quarter of 2019 and 2020 as a result of the Covid-19 crisis, the association explains.

On the other hand, ASMEX indicates that Canadian exports to Morocco have increased by 48% between 2015 and 2019, while exports from the province of Quebec have in turn increased by 177%, pointing out that 65% of Canadian exports come from Saskatchewan, the main producer of durum wheat and fertilizers.

Ultimately, the association reports that the main trade from Canada has focused on grains (mainly durum wheat and legumes) with 57.39% of exports. Aviation (mainly aircraft) accounts for 12.91% of Canadian exports to Morocco, while fertilizers account for 10.23% of Moroccan imports from Canada.

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