CANADA

A tale of two Canadas: the two-speed economy

AA1

LOW RISK for entreprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

The country risk assessments are your North Star metrics to make the right decision for your business and understand the risks in international trade. We have always the best solution for your needs

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GDP USD 1736bn (World ranking 12, World Bank 2019)
Population 38mn (World ranking 39, World Bank 2019)
Form of state Constitutional parliamentary monarchy
Head of government Justin Trudeau (PM)
Next elections 2023, legislative
  • Politically stable
  • High per capita GDP
  • Robust banking system
  • High data transparency
  • Large oil and gas reserves
  • Diverse GDP
  • Dependence on exports
  • High exposure to the U.S. economy
  • Sensitive to commodity prices
  • High personal debt
  • Government revenues dependent on oil

Trade structure by destination/origin

(% of total)

Exports Rank Imports
United States 75%
1
51% United States
China 4%
3
12% China
United_Kingdom 4%
3
6% Mexico
Japan 2%
4
4% Germany
Mexico 2%
5
3% Japan

Trade structure by product

(% of total)

Exports Rank Imports
Cars And Cycles 12%
1
8% Cars And Cycles
Crude Oil 11%
2
5% Engines
Aeronautics 4%
3
5% Vehicles Components
Non Ferrous Metals 4%
4
4% Miscellaneous Hardware
Other Edible Agricultural Prod 4%
5
4% Commercial Vehicles
Although the payment behavior of domestic companies is good, the law provides no standard payment terms and does not facilitate the debt collection process meaning late payment conditions (delays, interest rates, collection costs) are left for the parties to consider contractually.

  • Low

  • Medium

  • Sensitive

  • High

  • Payments

  • Court proceedings

  • Insolvency proceedings

  • Payments

  • Court proceedings

  • Insolvency proceedings

Canada offers an efficient judiciary system despite being complex insofar as different federal and local rules are applicable. Contractual ownership protection mechanisms, like retention of title, are recognized as a security interest and governed by the Personal Property Security Act (PPSA). However, enforcement is uncommon, difficult, and costly.

Insolvency law provides sophisticated mechanisms, but their efficiency in recovering unsecured debt is very limited, therefore pre-legal action should be considered as the best debt collection opportunity.

Contact Euler Hermes

Economic Research Team

research@eulerhermes.com

Contact Dan North

Senior Economist for North America

dan.north@eulerhermes.com

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