It expects the OPEC quotas to be increased in March 2000 or at the following OPEC meeting and is looking to new markets, including Canada. Balance of Payments Libya has traditionally had a favourable merchandise trade balance. The IMF estimates that Libya ran a merchandise trade deficit in 1998 due to the collapse in crude oil prices. Canadian merchandise exports increased rapidly in 1996-97 and fell in 1998 and 1999, partly as the result of a political embargo imposed by Libya on imports of some goods. The main products exported are dairy products and wheat.
Quantities can vary considerably from year to year.
There is regular trade in other commodities, wood and paper and in pipes, steel and industrial equipment. Libya is also an attractive market for Canadian service suppliers. Major Canadian engineering firms have won contracts in the water, electricity and petroleum sectors. Several Canadian firms operate petroleum exploration concessions and several hundred Canadian experts work in Libya for Libyan, Canadian and other foreign companies. Libya also purchases education and technical training from Canadian institutions.