It’s finally happened. Canada is no longer the top supplier to the USA. The US imported US$321.5 billion of merchandise from China in 2007 and only US$313.1 billion from Canada. The following quote encapsulates the issue:

‘No one thought China’s re-emergence would be as robust, rapid or consistent as it has been,’ former U.S. Trade Representative Charlene Barshefsky said in an interview. Barshefsky negotiated the U.S. side of China’s WTO accession agreement during the Clinton administration. ‘You will see China continue to rise, despite issues of product safety” and criticisms by lawmakers, she said.’

While this is bad news for Canada, it once again raises the big questions for global trade:
1. Is it sensible for global manufacturers to continue putting all their eggs into China’s Basket?
2. Will the rising price of oil force put an end to China’s increasing role in trade?
3. Will countries like Vietnam, Mexico, etc be able change their policies and markets enough to offer legitimate competition to China.

We will just have to keep watching…..

The full text of the article can be seen here