How Natural Resource Exports Help Canadians “Pay the Bills” for Our Imports

How Natural Resource Exports Help Canadians “Pay the Bills” for Our Imports

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Natural resource exports help Canadians pay for the cost of their imported goods such as computers, machinery, cars, and more

Canada imports a lot of what we use every day—consumer goods, technology, vehicles, and other manufactured products from around the world. What often gets forgotten is how we pay for all of it.

Think of it all as Canada’s national trade “piggy bank,” where resource exports generate the earnings that allow us to purchase imported goods and services—machinery, vehicles, computers, and more—that support our standard of living.

These exports don’t just help balance the trade books. They also support the value of the Canadian dollar. Many economists consider the loonie a commodity dollar because of our heavy reliance on resource exports. When the dollar falls and the economy is weak, Canadians feel it through higher prices at the checkout and reduced purchasing power.

The following graphs illustrate how natural resources “pay the bills” for Canadians across the country.

Canada's Net Exports By Type Ending Jun. 25

Canada's net exports by trade ending june 2025 - natural resources pay the bills

Canada's Net Exports By Type Ending Sep. 24

Canadian oil and gas exports pay for its imports - graph

Canada’s Trade Deficit Without Conventional Oil & Gas Exports

Canada's trade deficit would be much worse if it weren't for oil and gas industry

Energy is Canada's Most Valuable Export

Energy—especially oil and natural gas—is by far Canada’s most valuable export and plays an irreplaceable role in generating income for our country.

Over the past decade, Canada's cumulative trade deficit totalled $130 billion. Without contributions from the conventional oil and natural gas sector, our country’s trade deficit would have been about $1 trillion [1].

In other words, the energy plays an instrumental role in significantly reducing the net cost gap between what Canada imports and what we export. Forestry, mining, and agriculture also play vital roles in helping Canada pay for the goods we rely on every day.

Supporting Natural Resources = A Stronger Economy

Canada's vast natural resources have historically been, and continue to be, the bedrock of our economic prosperity. From the early days of fur trading to today's modern energy, mining, forestry, and agriculture industries, these industries have provided a strong foundation for Canada's economic development and international trade.

Resources play a critical role in maintaining healthy trade balances, paying for our imports while supporting the value of the Canadian dollar [2]. They also play an irreplaceable role in the economy, accounting for 21% of national GDP and 15% of total employment in 2023 [3], while generating tens of billions of dollars in tax revenues that fund essential public services such as healthcare, education, and infrastructure.

Why Strong Exports Matter for Canadians

Oil and Gas is Canada's Largest Export - Toronto World Series

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• Economic stability for communities: Resource development is often the primary economic driver in many remote communities and supports urban municipalities. These financial opportunities don’t come around frequently for many of Canada’s rural municipalities.

• High productivity and economic growth: Canada’s natural resource sectors are among the most productive parts of our economy, with the ability to attract major business investment with the right regulatory framework while supporting well-paying jobs across the country. By strengthening these industries, we can boost overall economic performance, drive higher incomes, and create a more prosperous future for Canadians today and for future generations.

• Growing global demand: As developing economies grow, demand for Canada’s energy, minerals, forestry, and food products continues to increase—creating ongoing economic opportunities for Canadian families.

• Indigenous economic reconciliation: Resource projects often create generational partnership, equity, and employment opportunities for Indigenous communities and local businesses. Strengthening these industries can support long-term, mutually beneficial relationships that advance economic reconciliation while sharing the benefits of development more broadly.

• Canada does it best: Canada’s resource industries operate under some of the world’s most transparent and stringent regulatory regimes. Supporting resource extraction and production here often leads to better global outcomes than ceding market share to countries with lower, sometimes non-existent standards.

Join Us Today!

Natural resources make life more affordable for Canadians - banner snip

As long as the world needs energy, forestry, mining, and agricultural products, they should be produced in Canada—supporting Canadian families, creating jobs, and building a more prosperous future for our children.

Join us today to learn more about the positive impacts of Canada’s natural resource sectors on our economy and communities, and to help share a balanced, fact-based conversation about our role in the world.

SOURCES:

1 - https://static1.squarespace.com/static/63dbf842797d5000eb7ede22/t/65f5ce48389daf7bdff08689/1710607949270/Fragile+Growth+Report+-+For+web.pdf

2 - https://www.oanda.com/us-en/trade-tap-blog/trading-knowledge/canadian-dollar-key-drivers-cad/

3 - https://chamber.ca/news/investing-in-natural-resources-sector-a-solution-to-canadas-productivity-problem-report-says/