Canadian Industrial Profile: Plastic and Rubber Products—Winter 2017

Comprehensive and Economic Trade Agreement (CETA)—The EU is the destination for only 2 per cent of Canadian plastics and rubber exports. Tariff reductions included in CETA provide substantial incentive for firms to increase their penetration into the world’s second-largest integrated market.

Key Input Prices—The prices for plastic resins and natural rubber, two key inputs, have dropped considerably over the past year. This has resulted in significant cost savings for the industry.

Domestic Vehicle Production—Although U.S. demand for motor vehicles is strong, the outlook for Canada’s auto sector over the short term is not promising. This could translate into weaker domestic demand for key upstream plastic and rubber products.