Bilateral relationships are strong between Austria and Canada rooted in shared values, the common engagement for peace and an understanding for multiculturalism as reflected by the activities of both countries in international organizations. Canada is a member of the United Nations and other multilateral organizations such as G8, NATO, OECD, Commonwealth, OAS, WTO, NAFTA, APEC, Arctic Council, and Council of Europe. Austria is a member of the European Union and other organizations such as United Nations agencies, WTO, World Bank, OECD, and Council of Europe. Economically, both countries enjoy good trade relations with each other with continued efforts to increase bilateral investment opportunities. Additionally, scientific co-operation and academic programs are supported.
Trade relations Canada & Austria
Canada scores high (4th of 82 countries analyzed) on the Economist Intelligence Unit’s annual list (2014) of business environment scales. Austria follows at a respectable 18th with both countries sharing strengths of stable political institutions, healthy international competitiveness and attractive business locations.
In 2013, Austrian exports to Canada achieved a record high of €919 million, making it Austria’s fourth most important overseas export market following the USA, China and Japan. Austrian exports to Canada surpassed the worldwide growth average over the past several years with products such as tractors, trucks, motorcycles, electronic goods and equipment, and a major contribution from the iron and steel industries. This reflects not only the crisis-resistant economic situation in this important market, but also its receptiveness to the quality and reliability of Austrian manufacturing. Continued trade growth is expected due to the Comprehensive Economic and Trade Agreement (CETA) between Canada and the EU, which will ease trade tariffs, improve investment conditions and a host of other advantages for export oriented operations.
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.
Canadian exports to Austria amounted to €457 million in 2013 dominated by aluminum, aircraft and aerospace manufacturing and parts, however, the most important export market for Canada remains the United States with 75%, followed by China (4.4%) the United Kingdom (3%) and Japan (2.3%). The EU is Canada’s 2nd most important trading partner after the US with 11% of total import share and 8.8% of total export volumes. However, the balance of payments surplus between Canada and Austria has traditionally and continues to favour Austria.
(Information courtesy of the WKO Außenwirtschaft Österreich)