Canada is the world's second-largest country by land area and the eleventh largest economy globally, backed by stable economic and political conditions. It holds a top rated economy, a transparent legal system, and a long-standing culture of open trade. Canada is the only G7 country with free trade agreements with every other G7 member – part of a broader network of 15 agreements covering 51 countries. For European businesses, the Canada-EU Comprehensive Economic and Trade Agreement (CETA) removes most of the friction from day one: since entering into provisional application in 2017, it has eliminated tariffs on 98% of trade lines between Canada and the EU. The result is one of the lowest-risk, best-connected entry points into the North American market.
Snapshot of Canada
-
41.6 million people Population
2026
-
10 million km² Area of Canada
Roughly 28 times bigger than Germany
-
3 Oceans
Atlantic Ocean, Pacific Ocean and Arctic Ocean
-
243,042 km Longest coastline worldwide
linking the Atlantic, Arctic, and Pacific oceans
-
2 Official languages
English and French
-
17 Port authorities
Québec being home to the majority
-
1.7% Real GDP growth in 2025
Stable, long-term economic growth
-
11th Economy size
By nominal GDP
-
6.5% Unemployment rate
June 2026
Canadian Context
Infrastructure
Canada's physical trade infrastructure is built for export and import volume. The country operates 17 federal port authorities under the Canada Marine Act, which together handle roughly 60% of Canada's commercial cargo tonnage, according to Transport Canada. These are complemented by 23 international airports, 117 land border crossings with the United States, and national highway and rail networks that connect producers to markets across the continent. Today Canada is one of the world's most ethnically diverse nations, shaped by large-scale immigration.
History
What is now Canada has been continuously inhabited by Indigenous peoples for thousands of years. Beginning in the early 16th century, British and French expeditions explored the Atlantic coast and subsequently settled there. In 1867, Canada was established as a federal Dominion of four provinces — the start of a gradual territorial expansion that was accompanied by the displacement and dispossession of Indigenous peoples, while also setting in motion a growing process of autonomy from the United Kingdom. Today, Canada is a parliamentary democracy and a constitutional monarchy under the Westminster system, with English and French as its two official languages.
What market access does Canada provide?
Canada functions as a gateway to three major trading blocs:
- North America: Through the Canada-United States-Mexico Agreement, CUSMA (the successor to NAFTA), businesses in Canada gain tariff-free access to the United States and Mexico. Trilateral goods and services trade under the agreement increased by 39% since coming into force in 2020.
- Europe: CETA provides preferential access to the EU's single market of roughly 450 million consumers.
- Asia-Pacific: The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) links Canada with 10 economies including Japan, Australia, Singapore, and Vietnam, eliminating tariffs on 99% of covered products.
Top Industries in Canada
Are you interested in learning more about current developments in the Canadian economy? You can find out more at GTAI (information in German only).
