Canada missing out on about $40B in exports to U.S., says BoC’s Poloz

OTTAWA – Bank of Canada governor Stephen Poloz says Canadian exporters are losing out on $35 billion to $40 billion in sales to the United States compared with what should be expected from the recovery south of the border.

The central banker says a “wedge” has developed between the level of sales in the United States that Canadian exporters would historically expect given the current level of economic activity in their primary market and what they are actually delivering.

Poloz adds that the difference will not be eliminated until underperforming industries improve their competitiveness or new firms take up the slack.

Poloz still expects Canadian exporters to benefit from the expanding U.S. recovery, which he says is starting to fire on all cylinders, but less so than in past recoveries.

He says Canada needs a pickup in exports in order to sustain it’s recovery.