Canada is considered to be one of the world's leading developed economies with globally integrated commercial and financial markets. The nation's diverse economic landscape encompasses key industries such as energy/natural resources, tech/IT, aeronautics, finance, advanced manufacturing, life sciences and forestry. Inflation is on a recovery trajectory, as a result of interest rate hikes.

Climate policy, immigration and affordable housing are among the key priorities of the current government.

Source: The CIA World Factbook - Canada  



Your advisors at the Chamber of Commerce

Alissa Dörr

Contact us: northamerica@cc.lu


Key indicators

Area
9,984,670 km2
Population
38,929,902 (2022)
Government type
federal parliamentary democracy (Parliament of Canada) under a constitutional monarchy; a Commonwealth realm; federal and state authorities and responsibilities regulated in constitution
Languages
English (official) 87.1%, French (official) 29.1%, Chinese languages 4.2%, Spanish 3.2%, Punjabi 2.6%, Arabic 2.4%, Tagalog 2.3%, Italian 1.5% (2022 est.)
GDP
$2.16 trillion (Current US$, 2022)
Growth rate
+3.8% (2022)
HDI
18
Capital
Ottawa

Macroeconomic indicators

The Canadian economy is outperforming expectations. Despite high interest rates, Canada has avoided a recession. Inflation has fallen from a peak of 8.1% (Jun 2022) to 2.8% (Feb 2024). The labour market remains solid: 1.1 million new jobs have been created since the pandemic, marking the fastest employment recovery in the G7. Real wages have gone up, thereby increasing purchasing power. It is expected that economic growth will further pick up, with interest rates being lower and inflation declining to about 2% (according to predictions). Both the IMF and the OECD project that Canada will see the strongest economic growth in the G7 in 2025. Heightened risks surrounding the global economy call for careful economic and fiscal management. The federal government is maintaining the lowest net debt- and deficit-to-GDP ratio of all G7 countries and thereby preserves Canada's long-term fiscal sustainability. Canada's strong tradition of macroeconomic stability is an important foundation for economic growth and investment. Knowing that the federal government's finances are sustainable, even as aging populations put pressure on government budgets, is an important source of certainty for both Canadian and foreign investors.

Source: Government of Canada – Economic and fiscal overview

IM F Statistics:


Relationships with Luxembourg

Existing conventions and agreements

Non double taxation agreement

In order to promote international economic and financial relations in the interest of the Grand Duchy of Luxembourg, the Luxembourg government negotiates bilateral agreements for the avoidance of double taxation and prevent fiscal evasion with respect to Taxes on Income and on fortune with third countries.

  • Convention from 01.17.1989 (Memorial 1991, A, p.465)
  • Effective as of 07.08.1991 (Memorial 1991, A, p.1368)
  • Convention from 10.9.1999  (Memorial 2000, A No.89, p.2078)
  • Effective as of 1.01.2001 (Memorial 2000, A No.89, p.2078)
  • Amendment of the Convention from 08.05.2012 (Memorial 2013, p.1698)
  • Effective as of 01.01.2014 (Memorial 2013, p.1698)

Air Services agreement

  • Agreement from 06.23.2003
  • Effective as of 23.06.2003

Source: Administrations des contributions directes

 

EU-Canada Comprehensive Economic and Trade Agreement (CETA)


CETA is a progressive trade agreement between the EU and Canada. It entered into force provisionally in 2017 and has been ratified by Luxembourg in June 2020.
All national (and in some cases regional) parliaments need to approve CETA before it can take full effect.


CETA features some of the strongest commitments ever included in an EU trade agreement, including the promotion of labour rights, environmental protection and sustainable development.


The benefits of CETA include the eliminination of duties on 99% of all tariff lines, of which 98% were scrapped when it provisionally entered into force. It also improves and secures EU companies’ access to the Canadian services market.
Source: European Commission


More:
Comprehensive Economic and Trade Agreement (CETA) between Canada, of the one part, and the European Union and its Member States, of the other part
CETA - a boost for jobs and exports in Luxembourg

EU-Canada Comprehensive Economic and Trade Agreement (CETA)
CETA is a progressive trade agreement between the EU and Canada. It entered into force provisionally in 2017 and has been ratified by Luxembourg in June 2020.


All national (and in some cases regional) parliaments need to approve CETA before it can take full effect


CETA features some of the strongest commitments ever included in an EU trade agreement, including the promotion of labour rights, environmental protection and sustainable development.


The benefits of CETA include the eliminination of duties on 99% of all tariff lines, of which 98% were scrapped when it provisionally entered into force. It also improves and secures EU companies’ access to the Canadian services market.
 

Source: European Commission
 


Further information

Foreign Trade

The Statec Foreign Trade statistics provide information on the trade of goods - by product and by country. This information is collected respectively through the INTRASTAT declaration and on the basis of customs documents.

You can see the statistics on the website of the Statec.

Contact points in Canada

Embassy of the Grand Duchy of Luxembourg in Washington

Ambassador with residence in Washington: Ms Nicole BINTNER-BAKSHIAN 
2200 Massachusetts Avenue N. W.
Washington, D.C. 20008
United States of America

Tel.: (+1-202) 265-4171 / 72
Fax: (+1-202) 328-8270
E-Mail: washington.amb@mae.etat.lu
Site web: www.washington.mae.lu

 

Honorary consuls

Ottawa

Mr Paul WILLOX 

Honorary Consul with jurisdiction over the Capital Region:

150 Elgin Street, Floor 10
K2P 1L4 Ottawa, Ontario

Tel.: (+1) (613) 751-4472
Mobile: (+1) (613) 816-1955
E-Mail: ottawa@consul-hon.lu 

Toronto

Honorary Consul with jurisdiction over Ontario: 

Ms Shauneen Elizabeth BRUDER

1318 Cleaver Drive
Oakville
L6J 1W4 Toronto, Ontario
Canada

Tel.: (+1) (416) 809 1016
E-Mail: toronto@consul-hon.lu 

Vancouver

Honorary Consul with jurisdiction over  the Province of British Columbia:

Mr Ron BOZZER

Hungerford Tomyn Lawrenson and Nils.
Barristers & Solicitors
1100 Cathedral Place
925 West Georgia Street
V6C 3L2 Vancouver
Canada

Tel.: (+1) 604 408 5616
E-Mail: vancouver@consul-hon.lu 
 

Source: Ministry of Foreign affairs of Luxembourg

Country risk as defined by Office du Ducroire for Canada

Ducroire is the only credit insurer covering open account deals in over 200 countries. A rating on a scale from 1 to 7 shows the intensity of the political risk. Category 1 comprises countries with the lowest political risk and category 7 countries with the highest. Macroeconomics experts also assess the repayment climate for all buyers in a country.

Link: Link: Country Risk Insurance - ODL

Additional information on Ontario, Quebec, British Columbia and Alberta.

Ontario

- 415,598 sq mi

- Most populated province in Canada

- Over 14 million inhabitants

- 40% of Canada’s total chemical and biochemical production

- 3,000 cleantech companies

- 3,000 food and beverage businesses

- Extensive mining activities focused on mineral production for critical industries

Focus on: Toronto (city)

- Over 3 million inhabitants

- GDP of $171 billion

- Canada's financial and business capital

- 12,000 companies employing over 350,000 people and contributing to CAD 80 billion in GDP

- Strong technological sector, third-largest tech hub in North America

- Largest natural resources stock exchange in the world. The Toronto Stock Exchange and Venture Exchange host 40% of global public mining companies


- Over 96,000 businesses

- Workforce of 1.6 million

Quebec

- 595,391 sq mi

- Over 8 million inhabitants

- Strong aerospace and defense sector

- Developed pharmaceutical industry

- Fourth largest producer of primary aluminum

Focus on: Montreal

- Over 1,8 million inhabitants (city)

- GDP of $228 billion

- Third largest center of aerospace manufacturing

- Quebec’s leading export industry with more than < CAD 15 bn in annual shipments

- Home to the largest port in Eastern Canada

- Strong academic/research network composed of top tier universities, such as McGill University

British Columbia

- 364,764 sq mi

- Over 5 million inhabitants

- Second largest natural gas producer in Canada


- Major player worldwide in the wood industry, being one of the world’s largest exporters

- Logistics and maritime industries are key sectors; the port of Vancouver is Canada’s largest port and is considered to be the most diversified port in North America

Focus on: Vancouver

- Over 660,000 inhabitants (city)

- GDP of CA $163.7 billion

- Competitive tax regime

- Closest major port to Asia Alberta

- 255,541 sq mi

- Over 4 million inhabitants

- Alberta’s oil production amounts to 80% of Canada’s total oil production

- More than half of natural gas in Canada stems from Alberta

- Oil and gas represented 22% of Alberta’s revenue in 2021/22

- Developed agricultural industry

Of special interest: Plan Nord Quebec

Twenty-five years seem like a lifetime away, but the Quebec government's Plan Nord could result in a huge transformation of Northern Quebec in what's, in reality, a relatively short amount of time, given its ambitious objectives.                              

The numbers are nothing short of impressive. The Quebec Government projects Plan Nord to lead to over $80 billion in investments, $47 billion towards renewable energy and $33 billion for investments in the mining sector and public infrastructure such as roads, rail and airports. It will also create or consolidate about 20,000 jobs per year over a 25-year period. In its recently released  plan, the government says it hopes the initative will be to the coming decades what the development of La Manicouagan and James Bay were to the 1960-70s.

The mining industry could play a huge part in this investment. The 1.2 million km area the plan covers is a wealth of untapped opportunities that could surely captivate the interests of domestic and global mining companies. This territory produces all of Quebec's nickel, zinc and iron ore, to name a few. There are already at least 11 new projects that could be launched in the coming years in the territory the Plan Nord covers.

Other useful links

 


Chamber of Commerce and the country