Canada : A Profile

CANADA- AN INTRODUCTION
Land Mass
Canada is the world's second-largest country (9 970 610 km2), surassed
only !y the "ussian #ederation$
Capital
%ttawa, in the ro&ince o' %ntario$
Provinces and Territories
Canada has 10 ro&inces and ( territories, each with its own caital city (in
!rackets)) Alberta (*dmonton)+ British Columbia (,ictoria)+ Prince Edward
Island (Charlottetown)+ Manitoba (-innieg)+ New Brunswick (#redericton)+
Nova Scotia (.ali'a/)+ Nunavut (01aluit)+ Ontario (2oronto)+ Quebec (3ue!ec
City)+ Saskatchewan ("egina)+ Newfoundland (4t$ 5ohn's)+ Northwest
erritories (6ellowkni'e)+ and !ukon erritor" (-hitehorse)$
Parks and Historic Sites
Canada maintains (7 national arks, which co&er a!out 28 o' the country's
landmass$ 9an'', located on the eastern sloes o' :l!erta's "ocky ;ountains,
is the oldest (est$ 177<)+ 2uktut =ogait, in the =orthwest 2erritories, was
esta!lished in 1996$ 2here are 7(6 national historic sites, designated in
honour o' eole, laces and e&ents that 'igure in the country's history$
Canada also has o&er 1000 ro&incial arks and nearly <0 territorial arks$
Time ones
Canada has si/ time >ones$ 2he easternmost, in =ew'oundland, is three
hours and (0 minutes !ehind ?reenwich ;ean 2ime (?;2)$ 2he other time
>ones are the :tlantic, the *astern, the Central, the "ocky ;ountain and,
'arthest west, the @aci'ic, which is eight hours !ehind ?;2$
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Canada : A Profile
National !m"lem
2he male lea' has !een associated with Canada 'or some time) in 1767, it
'igured in coats o' arms granted to %ntario and 3ue!ec+ and in !oth world
wars, it aeared on regimental !adges$ 4ince the 196< introduction o' the
Canadian 'lag, the male lea' has !ecome the country's most imortant
sym!ol$
T#e Canadian $la%
4e&eral eole articiated in designing the Canadian 'lag$ 5ac1ues 4t$ Cyr
contri!uted the styli>ed male lea', ?eorge 9ist the roortions, and Ar$
?unter -ys>echi the colouration$ 2he 'inal determination o' all asects o' the
new 'lag was made !y a 1<-mem!er arliamentary committee, which is
'ormally credited with the design$ :'ter lengthy de!ate, the new 'lag was
adoted !y @arliament$ 0t o''icially !ecame the national 'lag on #e!ruary 1<,
196<, now recogni>ed as Canada's #lag Aay$
National Ant#em
O Canada was comosed in 1770, with music !y Cali/a Ba&allCe and words
!y 5udge :dolhe-9asile "outhier$ 0n 1907, "o!ert 4tanley -eir wrote the
translation on which the resent *nglish lyric is !ased$ %n 5uly 1, 1970, a
century a'ter !eing sung 'or the 'irst time, O Canada was roclaimed the
national anthem$
CANADA&S NATIONAL ANTH!M
% CanadaD %ur home and nati&e landD 2rue atriot lo&e in all thy sons
command$ -ith glowing hearts we see thee rise, 2he 2rue =orth strong and
'reeD #rom 'ar and wide, % Canada, -e stand on guard 'or thee$ ?od kee
our land glorious and 'reeD % Canada, we stand on guard 'or thee$ % Canada,
we stand on guard 'or thee$
E% C:=:A:E was roclaimed Canada's national anthem on 5uly 1, 1970, a
century a'ter it was 'irst sung on 5une 2F, 1770$ 2he music was comosed !y
Cali/a Ba&allCe, a well-known comoser+ #rench lyrics to accomany the
music were written !y 4ir :dolhe-9asile "outhier$ 2he song gained steadily
in oularity$ ;any *nglish &ersions ha&e aeared o&er the years$ 2he
&ersion on which the o''icial *nglish lyrics are !ased was written in 1907 !y
;r$ 5ustice "o!ert 4tanley -eir$ 2he o''icial *nglish &ersion includes
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Canada : A Profile
changes recommended in 1967 !y a 4ecial 5oint Committee o' the 4enate
and .ouse o' Commons$ 2he #rench lyrics remain unaltered$
C'rrenc(
2he Canadian dollar is di&ided into 100 cents$
Pop'lation
:s o' the summer o' 1996, Canada's oulation was o&er (0 million$
Main Cities
:s o' 5uly 1, 1996, the leading Canadian cities are 2oronto (F$FF million),
;ontreal (($(6 million), ,ancou&er (1$79 million), %ttawa-.ull, the =ational
Caital "egion (1$0( million)$
Distri"'tion o) Pop'lation
: large maGority o' Canadians, 77 ercent, li&e in cities and towns$
$amil( Si*e
:t the time o' the 1996 national census, the a&erage 'amily si>e was ($1,
including 1$2 children$
Livin% Standard
Canada ranks si/th in the world in standard o' li&ing (measured according to
gross domestic roduct er caita), !ehind only the Hnited 4tates,
4wit>erland, Bu/em!ourg, ?ermany, and 5aan$ Canada's rank among
nations tends to rise e&en higher in assessments that consider ?A@ er
caita along with other 'actors (e$g$, li'e e/ectancy, education) that
contri!ute to E1uality o' li'e$E
Healt# Care and Social Sec'rit(
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Canada : A Profile
9asic health care, with the e/cetion o' dental ser&ices, is 'ree at the oint o'
deli&ery$ :nd rescrition drugs are in most cases disensed without charge
to eole o&er 6< and social aid reciients$ Canada also has an e/tensi&e
social security network, including an old age ension, a 'amily allowance,
unemloyment insurance and wel'are$
A"ori%inal Peoples
0n 1996, a!out (8 o' Canadians !elonged to one or more o' the three
:!original grous recogni>ed !y the Constitution :ct, 1972) =orth :merican
0ndian, ;Ctis, or 0nuit$ %' this ercentage, a!out 698 are =orth :merican
0ndian, 268 ;Ctis, and <8 0nuit$
Reli%ion
:ccording to the 1991 census, more than 'our-'i'ths o' Canadians are
Christian, with Catholics accounting 'or a!out F78 o' the oulation and
@rotestants a!out (68$ %ther religions include 5udaism, 0slam, .induism,
4ikhism and 9uddhism$ 4ome 12$<8, more than any single denomination
e/cet "oman Catholic, ha&e no religious a''iliation at all$
Lan%'a%es
Canada has two o''icial languages) *nglish, the mother tongue o' a!out <98
o' Canadians+ and #rench, the 'irst language o' 2(8 o' the oulation$ : 'ull
178 ha&e either more than one mother tongue or a mother tongue other than
*nglish or #rench, such as Chinese, 0talian, ?erman, @olish, 4anish,
@ortuguese, @unGa!i, Hkrainian, :ra!ic, Autch, 2agalog, ?reek, ,ietnamese,
Cree, 0nuktitut, or other languages$
2he Official #an$ua$es Act makes #rench and *nglish the o''icial languages
o' Canada and ro&ides 'or secial measures aimed at enhancing the &itality
and suorting the de&eloment o' *nglish and #rench linguistic minority
communities$ Canada's 'ederal institutions re'lect the e1uality o' its two o''icial
languages !y o''ering !ilingual ser&ices$
!t#nic Ori%in
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Canada : A Profile
0n 1996, a!out 198 o' the oulation reorted ECanadianE as their single
ethnic origin, with 178 reorting 9ritish 0sles-only ancestry and 98 #rench-
only ancestry$ :!out 108 reorted a com!ination o' 9ritish 0sles, #rench, or
Canadian origin, with another 168 reorting an ancestry o' either 9ritish
0sles, #rench or Canadian in com!ination with some other origin$ 4ome 278
reorted origins other than the 9ritish 0sles, #rench or Canadian$
Main Nat'ral Reso'rces
2he rincial natural resources are natural gas, oil, gold, coal, coer, iron
ore, nickel, otash, uranium and >inc, along with wood and water$
Leadin% Ind'stries
2hese include automo!ile manu'acturing, ul and aer, iron and steel work,
machinery and e1uiment manu'acturing, mining, e/traction o' 'ossil 'uels,
'orestry and agriculture$
!+ports
Canada's leading e/orts are automo!ile &ehicles and arts, machinery and
e1uiment, high-technology roducts, oil, natural gas, metals, and 'orest and
'arm roducts
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Canada : A Profile
HISTOR,
:!original eoles are thought to ha&e arri&ed 'rom :sia thousands o' years
ago !y way o' a land !ridge !etween 4i!eria and :laska$ 4ome o' them
settled in Canada, while others chose to continue to the south$ -hen the
*uroean e/lorers arri&ed, Canada was oulated !y a di&erse range o'
:!original eoles who, deending on the en&ironment, li&ed nomadic or
settled li'estyles, were hunters, 'ishermen or 'armers$ #irst contacts !etween
the nati&e eoles and *uroeans ro!a!ly occurred a!out 1000 years ago
when 0celandic =orsemen settled 'or a !rie' time on the island o'
=ew'oundland$ 9ut it would !e another 600 years !e'ore *uroean
e/loration !egan in earnest$
$irst Colonial O'tposts 4eeking a new route to the rich markets o' the
%rient, #rench and 9ritish e/lorers lied the waters o' =orth :merica$ 2hey
constructed a num!er o' osts -- the #rench mostly along the 4t$ Bawrence
"i&er, the ?reat Bakes and the ;ississii "i&er+ the 9ritish around .udson
9ay and along the :tlantic coast$ :lthough e/lorers such as Ca!ot, Cartier
and Chamlain ne&er 'ound a route to China and 0ndia, they 'ound something
Gust as &alua!le -- rich 'ishing grounds and teeming oulations o' !ea&er, 'o/
and !ear, all o' which were &alued 'or their 'ur$ @ermanent #rench and 9ritish
settlement !egan in the early 1600s and increased throughout the century$
-ith settlement came economic acti&ity, !ut the colonies o' =ew #rance and
=ew *ngland remained economically deendent on the 'ur trade and
olitically and militarily deendent on their mother countries$ 0ne&ita!ly, =orth
:merica !ecame the 'ocal oint 'or the !itter ri&alry !etween *ngland and
#rance$ :'ter the 'all o' 3ue!ec City in 17<9, the 2reaty o' @aris assigned all
#rench territory east o' the ;ississii to 9ritain, e/cet 'or the islands o' 4t$
@ierre and ;i1uelon, o'' the island o' =ew'oundland$ Hnder 9ritish rule, the
6< 000 #rench-seaking inha!itants o' Canada had a single aim -- to retain
their traditions, language and culture$ 9ritain assed the Quebec Act (177F),
which granted o''icial recognition to #rench ci&il laws and guaranteed
religious and linguistic 'reedoms$ Barge num!ers o' *nglish-seaking
colonists, called Boyalists !ecause they wished to remain 'aith'ul to the 9ritish
*mire, sought re'uge in Canada a'ter the Hnited 4tates o' :merica won its
indeendence in 1776$ 2hey settled mainly in the colonies o' =o&a 4cotia and
=ew 9runswick, and along the ?reat Bakes$ 2he increase in oulation led to
the creation in 1791 o' Her Canada (now %ntario) and Bower Canada
(3ue!ec)$ 9oth were granted their own reresentati&e go&erning institutions$
"e!ellions in Her and Bower Canada in 17(7 and 17(7 romted the
9ritish to Goin the two colonies, 'orming the united @ro&ince o' Canada$ 0n
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Canada : A Profile
17F7 the Goint colony was granted resonsi!le go&ernment e/cet in matters
o' 'oreign a''airs$ Canada gained a 'urther measure o' autonomy !ut remained
art o' the 9ritish *mire$
A Co'ntr( Is -orn 9ritain's =orth :merican colonies -- Canada, =o&a 4cotia,
=ew 9runswick, @rince *dward 0sland and =ew'oundland -- grew and
rosered indeendently$ 9ut with the emergence o' a more ower'ul Hnited
4tates a'ter the :merican Ci&il -ar, some oliticians 'elt a union o' the 9ritish
colonies was the only way to 'end o'' e&entual anne/ation$ %n 5uly 1, 1767,
Canada *ast, Canada -est, =o&a 4cotia and =ew 9runswick Goined together
under the terms o' the British North America Act to !ecome the Aominion o'
Canada$ 2he go&ernment o' the new country was !ased on the 9ritish
arliamentary system, with a ?o&ernor ?eneral (the Crown's reresentati&e)
and a @arliament consisting o' the .ouse o' Commons and the 4enate$
@arliament recei&ed the ower to legislate o&er matters o' national interest
(such as ta/es and national de'ence), while the ro&inces were gi&en
legislati&e owers o&er matters o' EarticularE interest (such as roerty, ci&il
rights and education)$
.est/ard !+pansion 4oon a'ter Con'ederation, Canada e/anded into the
northwest$ "uert's Band -- an area e/tending south and west 'or thousands
o' kilometres 'rom .udson 9ay -- was urchased !y Canada 'rom the
.udson's 9ay Comany, which had !een granted the &ast territory !y Iing
Charles o' *ngland in 1670$ -estward e/ansion did not haen without
stress$ 0n 1769, Bouis "iel led an urising o' the ;Ctis in an attemt to de'end
their ancestral rights to the land$ : comromise was reached in 1770 and a
new ro&ince, ;anito!a, was car&ed 'rom "uert's Band$ 9ritish Colum!ia,
already a Crown colony since 17<7, decided to Goin the Aominion in 1771 on
the romise o' a rail link with the rest o' the country+ @rince *dward 0sland
'ollowed suit in 177($ 0n 1797, the northern territory o' 6ukon was o''icially
esta!lished to ensure Canadian Gurisdiction o&er that area during the Ilondike
gold rush$ 0n 190<, two new ro&inces were car&ed 'rom "uert's Band)
:l!erta and 4askatchewan+ the residual land !ecame the =orthwest
2erritories$ =ew'oundland re'erred to remain a 9ritish colony until 19F9,
when it !ecame Canada's 10th ro&ince$ 2he creation o' new ro&inces
coincided with an increase o' immigration to Canada, articularly to the west$
0mmigration eaked in 191( with F00 000 coming to Canada$ Auring the
rewar eriod, Canada ro'ited 'rom the roserous world economy and
esta!lished itsel' as an industrial as well as an agricultural ower$
A Nation Mat'res Canada's su!stantial role in the #irst -orld -ar won it
reresentation distinct 'rom 9ritain in the Beague o' =ations a'ter the war$ 0ts
indeendent &oice !ecame more and more ronounced, and in 19(1
Canada's constitutional autonomy 'rom 9ritain was con'irmed with the assing
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Canada : A Profile
o' the 4tatute o' -estminster$ 0n Canada as elsewhere, the onset o' the ?reat
Aeression in 1929 !rought hardshi$ :s many as one out o' e&ery 'our
workers was without a Go! and the ro&inces o' :l!erta, 4askatchewan and
;anito!a were laid waste !y drought$ 0ronically, it was the need to suly the
:llied armies during the 4econd -orld -ar that !oosted Canada out o' the
Aeression$ 4ince -orld -ar 00, Canada's economy has continued to
e/and$ 2his growth, com!ined with go&ernment social rograms such as
'amily allowances, old-age security, uni&ersal medicare and unemloyment
insurance has gi&en Canadians a high standard o' li&ing and desira!le 1uality
o' li'e$ =oticea!le changes ha&e occurred in Canada's immigration trends$
9e'ore -orld -ar 00, most immigrants came 'rom the 9ritish 0sles or eastern
*uroe$ 4ince 19F<, increasing num!ers o' southern *uroeans, :sians,
4outh :mericans and eole 'rom the Cari!!ean islands ha&e enriched
Canada's multicultural mosaic$ %n the international scene, as the nation has
de&eloed and matured, so has its reutation and in'luence$ Canada has
articiated in the Hnited =ations since its incetion and is the only nation to
ha&e taken art in all o' the H='s maGor eacekeeing oerations$ 0t is also a
mem!er o' the Commonwealth, la #rancohonie, the ?rou o' 4e&en
industriali>ed nations, the %:4 (%rgani>ation o' :merican 4tates) and the
=:2% (=orth :tlantic 2reaty %rgani>ation) de'ence act$
A Ne/ $ederation in t#e Makin% 2he last 1uarter o' a century has seen
Canadians grale once more with 'undamental 1uestions o' national identity$
Aiscontent among many #rench-seaking 3ue!eckers led to a re'erendum in
that ro&ince in 1970 on whether 3ue!ec should !ecome more olitically
autonomous 'rom Canada, !ut a maGority &oted to maintain the status 1uo$ 0n
1972, the rocess toward maGor constitutional re'orm culminated in the signing
o' the Constitution Act$ Hnder this act, the British North America Act o' 1767
and its &arious amendments !ecame the Constitution :ct, 1767-1972$ 2he
Constitution, its Charter of %i$hts and &reedoms, and its general amending
'ormula rede'ined the owers o' go&ernments, entrenched the e1uality o'
women and men, and ad&anced the rights o' indi&iduals and ethnocultural
grous$ 2wo maGor e''orts were made to re'orm the constitutional system) the
1977 ;eech Bake :ccord - which was not imlemented since it did not o!tain
the legislati&e consent o' all ro&inces - and the 1991 Charlottetown :ccord$
2he Charlottetown :ccord would ha&e re'ormed the 4enate and made maGor
changes in the Constitution$ 0t was reGected in a national re'erendum held on
%cto!er 26, 1992$ 2he @arliament o' Canada has since assed a !ill, on
#e!ruary 2, 1996, guaranteeing Canada's < maGor regions that no
constitutional change concerning them would !e made without their
unanimous consent$ :s well, less than a month a'ter the 3ue!ec so&ereignty
re'erendum o' %cto!er (0, 199<, the @arliament o' Canada assed a
resolution recogni>ing 3ue!ec as a distinct society within Canada$ #ederal
e&olution is also underway in Canada's =orth$ %n :ril 1, 1999, the =orthwest
8
Canada : A Profile
2erritories was di&ided into two !y :ct o' @arliament, creating a new 2 000
000 km2 territory called =una&ut (Eour landE in 0nuktitut, the 0nuit language)$
9
Canada : A Profile
0!O0RAPH,
%ccuying the northern hal' o' the =orth :merican continent, Canada has a
land mass o' 9 970 610 km2, making it the second-largest country in the world
a'ter "ussia$ #rom east to west, Canada encomasses si/ time >ones$
Canada's motto, E#rom 4ea to 4ea,E is geograhically inaccurate$ 0n addition
to its coastlines on the :tlantic and @aci'ic, Canada has a third sea coast on
the :rctic %cean, gi&ing it the longest coastline o' any country$ 2o the south,
Canada shares an 7792 km !oundary with the Hnited 4tates$ 2o the north,
the :rctic islands come within 700 km o' the =orth @ole$ Canada's neigh!our
across the :rctic %cean is "ussia$ 9ecause o' the harsh northern climate,
only 12 ercent o' the land is suita!le 'or agriculture$ 2hus, most o' the
oulation o' (0 million li&e within a 'ew hundred kilometres o' the southern
!order, where the climate is milder, in a long thin !and stretching !etween the
:tlantic and the @aci'ic oceans$ 0' you 'ly o&er ;anito!a or northern %ntario
in summer, you will see more water than land) lakes, !ig and small, so many
that they could not ossi!ly !e counted$ 0t has !een estimated that Canada
has one-se&enth o' the world's 'resh water$ 0n addition to the ?reat Bakes,
which it shares with the Hnited 4tates, Canada has many large ri&ers and
lakes$ Canada is di&ided into se&en regions, each with a &ery di''erent
landscae and climate$
12 T#e Paci)ic Coast 9athed !y warm, moist @aci'ic air currents, the
9ritish Colum!ia coast, indented !y dee 'iords and shielded 'rom
@aci'ic storms !y ,ancou&er 0sland, has the most moderate climate o'
Canada's regions$ ,ancou&er 0sland's west coast recei&es an
e/cetional amount o' rain, gi&ing it a temerate rain 'orest climate$
:lthough it does not contain the di&ersity o' secies o' a troical rain
'orest, the island's west coast does ha&e the oldest and tallest trees in
Canada) -estern "ed Cedars 1(00 years old and Aouglas 'irs 90 m
high$
32 32 T#e Cordillera #rom 9ritish Colum!ia to Gust east o' the :l!erta
!order the land is young, with rugged mountains and high lateaus$
4igns o' geologically-recent &olcanic acti&ity can !e seen in ?ari!aldi
@ro&incial @ark in southern 9ritish Colum!ia and at ;ount *d>i>a in
the north$ 2he "ocky ;ountains, the Coastal ;ountains and other
ranges, running north to south, osed maGor engineering ro!lems 'or
the !uilders o' the transcontinental railways and highways$ Canada's
highest eaks, howe&er, are not in the "ockies, !ut in the 4t$ *lias
;ountains, an e/tension o' the Cordillera stretching north into the
10
Canada : A Profile
6ukon and :laska$ 2he highest oint in Canada, ;ount Bogan (60<0
m), rises amid a huge ice'ield in the southwest corner o' 6ukon, the
largest iceca south o' the :rctic Circle$ 2he 9ritish Colum!ia interior
&aries 'rom aline snow'ields to dee &alleys where desert-like
conditions re&ail$ %n the leeward side o' the mountains, 'or e/amle,
a rain-shadow e''ect is created, 'orcing %kanagan ,alley 'armers to
irrigate their orchards and &ineyards$
42 T#e Prairies 2o dri&e across the @rairies is to see endless 'ields o'
wheat riening under a sky that seems to go on 'ore&er$ 2he lains o'
:l!erta, 4askatchewan and ;anito!a are among the richest grain-
roducing regions in the world$ 6et, e&en here are surrises$ 0' you
lea&e the road at 9rooks, :l!erta, and dri&e north, you descend into
the "ed Aeer "i&er ,alley$ .ere, in desert-like conditions, water and
wind ha&e created strange shaes in the sandstone called Ehoodoos$E
2he same 'orces o' erosion ha&e unco&ered some o' the largest
concentrations o' dinosaur 'ossils in the world$
52 T#e Canadian S#ield : huge inland sea called .udson 9ay e/tends
into the heart o' Canada, and wraed around this !ay is a rocky
region called the Canadian 4hield$ Canada's largest geograhical
'eature, it stretches east to Ba!rador, south to Iingston on Bake
%ntario and northwest as 'ar as the :rctic %cean$ 2he 4hield is
considered to !e the nucleus o' the =orth :merican continent$ 0ts
gneiss and granite rocks are ($< !illion years old, three-1uarters the
age o' the *arth$ 4craed !y the ad&ance and retreat o' glaciers, the
4hield has only a thin layer o' soil that suorts a !oreal 'orest o'
sruce, 'ir, tamarack and ine$ 2he region is a storehouse o' minerals,
including gold, sil&er, >inc, coer and uranium$
62 T#e 0reat Lakes-St2 La/rence Lo/lands 4outhern 3ue!ec and
%ntario, the industrial heartland o' Canada, contain Canada's two
largest cities, ;ontreal and 2oronto$ 0n this small region, <0 ercent o'
Canadians li&e and 70 ercent o' Canada's manu'actured goods are
roduced$ 2he region also has rime agricultural land, 'or e/amle,
the =iagara @eninsula$ 2he large e/anses o' lakes *rie and %ntario
e/tend the num!er o' 'rost-'ree days, ermitting the culti&ation o'
graes, eaches, ears and other 'ruits$ 2he ?reat Bakes and 4t$
Bawrence region is sugar male country$ 0n the autumn, the sugar
male lea&es, Canada's national sym!ol, are a!la>e in red, orange and
gold$ 2he sa is collected in sring and e&aorated to make male
syru and sugar, a culinary delicacy 'irst reared and used !y the
:!original =orth :merican eoles$
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Canada : A Profile
72 T#e Atlantic Provinces-Appalac#ian Re%ion =ew 9runswick, =o&a
4cotia, @rince *dward 0sland and =ew'oundland are the smallest
Canadian ro&inces, and were the 'irst to !e settled !y *uroeans$
2he ?rand 9anks ha&e !een called the Ewheat 'ieldsE o'
=ew'oundland$ 2his shallow continental shel' e/tends F00 km o'' the
east coast, where the mi/ing o' ocean currents has created one o' the
richest 'ishing grounds in the world$ %nce thought to contain a &irtually
ine/hausti!le suly o' 'ish, the 9anks are now considered a
&ulnera!le resource that must !e wisely managed$ 2he :tlantic
ro&inces are an e/tension o' the :alachians, an ancient mountain
range$ ;uch o' the region has low, rugged hills and lateaus and a
deely indented coastline$ :griculture 'lourishes in the 'ertile &alleys,
such as the 4aint 5ohn "i&er ,alley, in =ew 9runswick, and the
:nnaolis ,alley, in =o&a 4cotia$ @rince *dward 0sland in the ?ul' o'
4t$ Bawrence has a gently rolling landscae with a rich, red soil$ 2his
'ertile island is Canada's smallest ro&ince, making u a mere 0$1
ercent o' Canada's land mass$
82 T#e Arctic =orth o' the tree-line is a land o' harsh !eauty$ Auring the
short summer, when daylight is nearly continuous and a ro'usion o'
'lowers !looms on the tundra, the temerature can reach (0oC$ 6et the
winters are long, !itterly cold and dark$ 2he :rctic is no longer an
inaccessi!le 'rontier$ 0nu&ik, in the ;acken>ie delta, can !e reached !y
road, and e&ery community is ser&ed !y air$ ;ost ha&e electricity,
stores and health ser&ices$ =orth o' the mainland is a ma>e o' islands
searated !y con&oluted straits and sounds, the most 'amous o' which
link together to 'orm the 'a!led =orthwest @assage, the route to the
%rient sought !y so many early e/lorers$
12
Canada : A Profile
Climate
Canada's climate is characteri>ed !y its di&ersity, as temerature and
reciitation di''er 'rom region to region and 'rom season to season$ -hile it
is true that in the e/treme north temeratures clim! a!o&e 0oC 'or only a 'ew
months a year, most Canadians li&e within (00 km o' the country's southern
!order, where mild srings, hot summers and leasantly cris autumns re&ail
at least 7 months o' 12$
2he seasons dictate the look o' the land) according to whether the natural
en&ironment is in a state o' dormancy or growth, Canadians may !e aline
skiing$$$or water skiing$
-hile seasonal change signals 'luctuations in temerature and the num!er o'
hours o' sunshine, the shi'ting osition o' air masses also lays a art$ 2he
usual air 'low 'rom west to east is disruted in winter when cold, dry air mo&es
down 'rom the :rctic and in summer when warm, troical air mo&es u 'rom
the southeast$ :dded to these 'actors are the e''ect o' mountain ranges,
lains and large !odies o' water$
T#e .est Coast
2he coast o' 9ritish Colum!ia has the most temerate climate in Canada,
thanks to warm, moist @aci'ic %cean airstreams$ 2he ro&ince's most
oulous cities, ,ancou&er and ,ictoria, enGoy com'orta!le and relati&ely dry
summers and mild, wet winters$ 4now seldom 'alls in low-lying areas, and
when it does, it usually melts the same day$
2he Cordilleran mountain system, which includes the Coastal "ange and the
"ocky ;ountains, !locks the warm, moist @aci'ic air 'rom the interior lains o'
the @rairie ro&inces$ :s the moist air is 'orced to rise o&er the mountains, it
cools and 'alls on the western sloes in hea&y amounts o' reciitation, as
rain at lower altitudes and snow at higher ones$ 2he &alleys !etween the
mountain ranges recei&e much less reciitation and e/erience warm, e&en
scorching, summers$
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Canada : A Profile
T#e Prairies
@art o' the &ast central lains o' =orth :merica, the Canadian @rairies e/tend
east 'rom the "ocky ;ountains to the ?reat Bakes$ .ere, cold winters and hot
summers are the norm, with relati&ely light reciitation$ #or instance, in the
dry southern ortion o' 4askatchewan, annual reciitation a&erages less
than (00 mm$ ;anito!a, the wettest o' the @rairie ro&inces, recei&es a!out
<00 mm each year$
4ring rains and dry autumn conditions ha&e heled make the @rairies one o'
the to grain-growing areas o' the world$ #arming is not without its risk,
howe&er, in the 'orm o' wind erosion, drought, thunderstorms and hailstorms
and unseasona!ly early autumn 'rosts$
:mong the most remarka!le 'eatures o' the @rairie winter is the Echinook,E a
warm, usually dry winter wind that a''ects much o' southern :l!erta$ 2he
chinook swees down 'rom the "ocky ;ountains and has !een known to
raise temeratures as much as 16oC in a single day$
T#e 0reat Lakes-St2 La/rence Re%ion
;ore than hal' the Canadian oulation li&es close to the ?reat Bakes or
along the 4t$ Bawrence "i&er$ .ere, winter !rings hea&y snow'alls$ 4ummers
tend to !e longer and more humid than elsewhere in Canada$ "ain'all &aries
little year to year and is amle enough to sustain some o' the !est 'arming
areas in Canada$ ;ean daily temeratures reach close to 20oC 'rom mid-
5une to mid-4etem!er, with week-long heat wa&es in the (0s a not
uncommon occurrence$ -arm, sunny days and cris, cool nights make the
'all season oular$
Atlantic Canada
2he com!ined in'luence o' continental air masses with air currents o'' the
ocean gi&e this region one o' the most rugged and most &aria!le climates
anywhere in the country$ 0n winter, mean temeratures can &ary markedly as
:rctic air is relaced !y maritime air 'rom assing storms$ 4now'all is
relati&ely hea&y, and 'og is common in sring and early summer$ 2he warmest
month is 5uly, when mean temeratures are in the 16 to 17oC range$
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Canada : A Profile
T#e Nort#
4anning the entire country north o' the @rairies and the oulated ?reat
Bakes-4t$ Bawrence "egion is the !oreal 'orest$ 2his area is usually snow-
co&ered more than hal' the year+ its EsummerE - the 'rost-'ree eriod - lasts
!arely two months$ @reciitation is light, e/cet along the coast o' Ba!rador
where the in'luence o' :tlantic storms is 'elt$
#arther north, a!o&e the tree-line, lies the :rctic$ .ere, temeratures rise
a!o&e 'ree>ing only a 'ew weeks a year$ 5ust a metre !elow the delicate !ut
tenacious &egetation that grows in summer, the ground remains ermanently
'ro>en$
15
Canada : A Profile
TH! 0O9!RNM!NT
Canada is a constitutional monarchy, a 'ederal state and arliamentary
democracy with two o''icial languages and two systems o' law) ci&il law and
common law$ 0n 1972, the Charter o' "ights and #reedoms was entrenched in
the Canadian Constitution$ Canada's Constitution was initially a 9ritish
statute, the 9ritish =orth :merica :ct, 1767, and until 1972, maGor
amendments re1uired action !y the 9ritish @arliament$ 4ince 1972 when the
Constitution was EatriatedE - that is, when Canadians o!tained the right to
amend all arts o' the Constitution in Canada - this 'ounding statute has !een
known as the Constitution :ct, 1767-1972$
T#e Monarc#( #rom the days o' #rench coloni>ation and 9ritish rule to
today's sel'-go&ernment, Canadians ha&e li&ed under a monarchy$ :lthough
Canada has !een a sel'-go&erning EAominionE in the 9ritish *mire since
1767, 'ull indeendence 'or Canada, as 'or all 9ritish colonies, was
esta!lished only in 19(1 !y the 4tatute o' -estminster$ *li>a!eth 00, 3ueen
o' *ngland, is also Canada's 3ueen and so&ereign o' a num!er o' realms$ 0n
her caacity as 3ueen o' Canada, she delegates her owers to a Canadian
?o&ernor ?eneral$ Canada is thus a constitutional monarchy) the 3ueen
rules !ut does not go&ern$
T#e $ederal 0overnment Canada's (( E#athers o' Con'ederationE adoted a
'ederal 'orm o' go&ernment in 1767$ : 'ederal state is one that !rings together
a num!er o' di''erent olitical communities under a common go&ernment 'or
common uroses and searate regional go&ernments 'or the articular
needs o' each region$ 0n Canada, the resonsi!ilities o' the 'ederal
@arliament include national de'ence, interro&incial and international trade
and commerce, the !anking and monetary system, criminal law and 'isheries$
2he courts ha&e also awarded to the 'ederal @arliament such owers as
aeronautics, shiing, railways, telecommunications and atomic energy$ 2he
ro&incial legislatures are resonsi!le 'or such matters as education, roerty
and ci&il rights, the administration o' Gustice, the hosital system, natural
resources within their !orders, social security, health and municial
institutions$
T#e Parliamentar( S(stem 2he roots o' Canada's arliamentary system lie
in 9ritain$ 0n keeing with traditions handed down !y the 9ritish @arliament,
the Canadian @arliament is comosed o' the 3ueen (who is reresented in
Canada !y the ?o&ernor ?eneral), the 4enate and the .ouse o' Commons$
16
Canada : A Profile
2he 4enate, also called the Her .ouse, is atterned a'ter the 9ritish .ouse
o' Bords$ 0ts 10F mem!ers are aointed, not elected, and are di&ided
essentially among Canada's 'our main regions o' %ntario, 3ue!ec, the -est
and the :tlantic @ro&inces$ 2he 4enate has the same owers as the .ouse o'
Commons, with a 'ew e/cetions$ 2he .ouse o' Commons is the maGor law-
making !ody$ 0t currently has (01 mem!ers, one 'rom each o' the (01
constituencies or electoral districts$ 2he Canadian Constitution re1uires the
election o' a new .ouse o' Commons at least e&ery 'i&e years$ :s in the
Hnited Iingdom and the Hnited 4tates, in Canada &oters elect a single
mem!er 'or their electoral constituency, in one round o' !alloting$ 0n each
constituency, the candidate who gets the largest num!er o' &otes is elected,
e&en i' his or her &ote is less than hal' the total$ Candidates usually reresent
a recogni>ed olitical arty - although some run as indeendents - and the
arty that wins the largest num!er o' seats ordinarily 'orms the go&ernment$
0ts leader is asked !y the ?o&ernor ?eneral to !ecome @rime ;inister$ 2he
real e/ecuti&e authority is in the hands o' the Ca!inet, under the direction o'
the @rime ;inister$ 0n general, the @rime ;inister is the leader o' the arty
with the largest num!er o' seats in the .ouse o' Commons and is &ested with
e/tensi&e owers$ 0t is the @rime ;inister who chooses the ministers 'rom
among the mem!ers o' @arliament in the go&erning arty$ 4trictly seaking,
the @rime ;inister and Ca!inet are the ad&isers o' the monarch$ EAe 'actoE
ower, howe&er, lies with the Ca!inet, and the ?o&ernor ?eneral acts on its
ad&ice$ Ca!inet de&elos go&ernment olicy and is resonsi!le to the .ouse
o' Commons$ 2he ?o&ernment o' Canada, headed !y its Ca!inet o' some 2<
ministers, er'orms its duties through the intermediary o' the 'ederal
deartments and agencies, !oards, commissions and state-owned
cororations$
Political Development Canada, which had !een a sel'-go&erning colony in
1767, rose to the status o' an indeendent state a'ter its articiation in -orld
-ar 0 and achie&ed Ede GureE indeendence with the 4tatute o' -estminster in
19(1$ 2he Constitution o' 1767 had one serious 'law) it contained no general
'ormula 'or constitutional amendment$ 0t was necessary to address the 9ritish
@arliament in Bondon each time the 'ounding statute needed change$ :n
amending 'ormula should ha&e !een included in the Constitution at the time o'
the coming into 'orce o' the 4tatute o' -estminster in 19(1, !ut it was not
until =o&em!er 1971, a'ter numerous attemts, that the 'ederal go&ernment
and the ro&inces (e/cet 3ue!ec) agreed to the amending 'ormula that is
now art o' the Constitution :ct, 1972$ 4ince that time, all arts o' the
Constitution can !e amended only in Canada$ A $le+i"le S(stem 2he
Canadian constitutional system has !een changed o&er the years, sometimes
1uite e/tensi&ely, !ut always eace'ully and gradually$ 0n the 1970s and
1990s, two maGor e''orts were made at re'orm$ 2he 1977 ;eech Bake :ccord
sought to !ring 3ue!ec !ack into Canada's constitutional 'amily !y meeting
'i&e constitutional conditions set out !y 3ue!ec$ 2he conditions centred on
17
Canada : A Profile
ro&incial articiation in the aointment o' 4ureme Court Gudges and
senators, the Constitution's amending 'ormula, increased owers 'or the
ro&inces in immigration matters, some reduction in 'ederal sending owers
and a constitutional declaration that 3ue!ec is a Edistinct society$E .owe&er,
the ;eech Bake :ccord was not imlemented !ecause it did not o!tain the
legislati&e consent o' all ro&inces and the 'ederal go&ernment$ 0n 1991-92,
another round o' constitutional re'orm was initiated, leading to the
Charlottetown :ccord$ 2he :ccord, which was suorted !y the @rime
;inister, the 10 ro&incial remiers, the two territorial leaders and 'our
national :!original leaders, ro&ided 'or a re'ormed 4enate and changes to
the di&ision o' legislati&e owers !etween the 'ederal and ro&incial
go&ernments$ 0t also suorted the right o' Canada's :!original eoles to
inherent sel'-go&ernment and recogni>ed 3ue!ec as a distinct society$ 2he
:ccord, howe&er, was reGected !y Canadians in a national re'erendum held
on %cto!er 26, 1992$ 2he @arliament o' Canada has since assed a !ill, on
#e!ruary 2, 1996, guaranteeing Canada's < maGor regions that no
constitutional change concerning them would !e made without their
unanimous consent$ :s well, less than a month a'ter the 3ue!ec so&ereignty
re'erendum o' %cto!er (0, 199<, the @arliament o' Canada assed a
resolution recogni>ing 3ue!ec as a distinct society$ 2he ?o&ernment o'
Canada is also trans'erring greater resonsi!ility 'or some rograms and
ser&ices to the ro&inces$ */amles o' some o' the areas in which these
changes are taking lace include la!our-market training and mining and
'orestry de&eloment$ 2oday, the arliamentary system is still the 'orm o'
go&ernment that is the choice o' Canadians$ 2he 'ederal structure, with the
sharing o' owers it entails, is the one 'ormula that can take into account
Canada's geograhical realities, the di&ersity o' its cultural communities and
its dual legal and linguistic heritage$
18
Canada : A Profile
CANADA: A $L!;I-L! AND !9OL9IN0 $!D!RATION
2he #athers o' Con'ederation chose a system o' go&ernment that allows
each ro&ince and territory to de&elo in accordance with its own
characteristics and riorities while enGoying the !ene'its o' !eing art o'
Canada$
2he Constitution is the 'oundation o' the Canadian 'ederation$ 2he 'ederal
system is !ased on 'le/i!le mechanisms that make it ossi!le to make
changes and adGustments without the need to amend this 'undamental law$
4ince the 1960s, a series o' agreements !etween the Canadian and
3ue!ec go&ernments has ena!led the ro&ince o' 3ue!ec to !roaden its
'ield o' acti&ity to areas traditionally occuied !y the ?o&ernment o'
Canada$
4ince 1971, the Canadian and 3ue!ec go&ernments ha&e negotiated 'our
administrati&e agreements on immigration that ena!le 3ue!ec to select
and integrate its immigrants$ 4imilar agreements were su!se1uently
concluded with regard to economic de&eloment and international
agreements$ 0t was ossi!le to achie&e these agreements without
amending the Constitution$
%ther e/amles o' administrati&e arrangements and agreements include)
- an agreement !etween the ?o&ernment o' Canada and the
go&ernments o' two ro&inces - 3ue!ec and =ew 9runswick - granted
these go&ernments the status o' articiating go&ernments within Ba
#rancohonie+
- non-articiation agreements allowed ro&incial go&ernments to ot
out o' a num!er o' 'ederal-ro&incial rograms and to assume the
administrati&e and 'inancial owers associated with these rograms,
while recei&ing e1uita!le 'inancial comensation 'rom the Canadian
go&ernment$ : good e/amle o' this tye o' agreement is the Canada
@ension @lanJ3ue!ec @ension @lan+
19
Canada : A Profile
- in 5uly 199F, the ro&inces and the Canadian go&ernment rati'ied a
key agreement on interro&incial trade which reduces the !arriers to
trade !etween the ro&inces$ 2he urose o' this agreement was to
romote economic growth and Go! creation$ 4ince then, the ro&inces
and the Canadian go&ernment ha&e !een working together to imro&e
the agreement which underlies our economic union+
- an agreement was also concluded !etween the Canadian go&ernment
and the ro&inces - with the e/cetion o' 3ue!ec - to ena!le residents
o' these ro&inces to 'ile Gust one ta/ return, at the 'ederal le&el$ 2he
Canadian go&ernment then turns o&er to each ro&ince the amounts
collected on its !ehal'$ KL Canada is a 'le/i!le and dynamic 'ederation
caa!le o' adGusting and e&ol&ing to meet the changing needs o' all its
mem!ers$
20
Canada : A Profile
-
TH! L!0AL S,ST!M
Canada is a young country, !ut it has a legal system rich in tradition$
Common law, which is used in all ro&inces e/cet 3ue!ec, is !ased on
rinciles that were de&eloed in medie&al *ngland$ 2he rinciles o'
3ue!ec's ci&il law date !ack e&en 'urther, to the "oman *mire, and re'lect
many o' the recets o' #rench law$ 2hese traditions 'orm the !asis o'
Canada's legal heritage$ %&er time, they ha&e !een adated to meet
Canadian needs$ 2he courts interret the law in a way that re'lects changing
conditions and circumstances$
T#e Canadian Constit'tion Canada's Constitution is the sureme law o'
the country, and it esta!lishes the 'ramework 'or the system o' law and Gustice$
0t sets out the !asic rights o' indi&iduals in Canada, and de'ines the nature
and owers o' the 'ederal and ro&incial go&ernments$
T#e S(stem o) 0overnment Hnder Canada's 'ederal system o' go&ernment,
the authority to make laws is di&ided !etween the @arliament o' Canada and
the ro&incial legislatures$ 2he 'ederal @arliament deals with matters that
a''ect all o' Canada, such as interro&incial trade and commerce, national
de'ence and criminal law$ :s well, the 'ederal go&ernment has resonsi!ility
'or :!original eole and lands reser&ed 'or :!original eole$ 2he
ro&incial legislatures ha&e the authority to make laws in such areas as
education, roerty rights, the administration o' Gustice, hositals,
municialities and other local or ri&ate matters$ 0n addition, the ro&inces
may create local or municial go&ernments that can deal with matters such as
arking regulations or local !uilding standards$
T#e C#arter o) Ri%#ts and $reedoms 0n 1972, the Canadian Charter of
%i$hts and &reedoms !ecame a 'undamental art o' the Canadian
Constitution$ 2he Charter sets out the !asic rights and li!erties o' each
erson in Canada, which must !e resected !y all go&ernments$ :nyone who
!elie&es these rights ha&e !een &iolated may aly to the courts 'or redress$
2he courts may declare any 'ederal or ro&incial law to !e o' no 'orce or
e''ect where it is not consistent with the Charter$ 2he Charter rotects rights
and li!erties in the 'ollowing areas)
)'ndamental )reedoms -- including 'reedom o' e/ression, religion,
association and eace'ul assem!ly
21
Canada : A Profile
democratic ri%#ts -- the right to &ote in elections and to !e eligi!le to run 'or
u!lic o''ice
mo"ilit( ri%#ts -- the right to tra&el, li&e and work anywhere in Canada
lan%'a%e ri%#ts -- 'or instance, the right to recei&e ser&ices 'rom the 'ederal
go&ernment in either o' Canada's two o''icial languages, *nglish or #rench
e<'alit( ri%#ts -- guaranteeing rotection against discrimination !ased on
race, national or ethnic origin, religion, colour, se/, age, or mental or hysical
disa!ility
le%al ri%#ts -- including the rights to li'e, li!erty and security o' the erson+ to
consult a lawyer i' arrested+ to stand trial within a reasona!le eriod o' time+
to !e resumed innocent until ro&en guilty+ and to !e rotected against
unreasona!le searches, ar!itrary imrisonment and cruel or unusual
unishment
minorit( lan%'a%e ed'cation ri%#ts -- the right o' Canadians who are art o'
the #rench or *nglish minority o' a ro&ince to ha&e their children educated in
their own language$ 2he Constitution also seci'ically recogni>es and a''irms
the e/isting :!original and treaty rights o' the :!original eoles o' Canada$
International La/ Canada is also go&erned !y the rules o' international law,
whether !ased on custom or on treaty$ ;any issues cannot !e dealt with
domestically and may re1uire the cooeration o' se&eral go&ernments$ 4ome
e/amles are trans!oundary ollution, 'ishing o' straddling or migratory
stocks, international money laundering, and trade issues$
Le%islation and Re%'lation -ithin the limits set out !y the Constitution,
laws can !e made or changed !y means o' written statutes enacted !y
@arliament or a ro&incial or territorial legislature$ :ny ;em!er o' @arliament
or a legislature may roose a new law, !ut most new laws are ut 'orward !y
the go&ernment in ower$ : roosed law must !e resented 'or
consideration !y all mem!ers, who study and de!ate it$ 2he roosal
!ecomes a statute only i' it is aro&ed !y the maGority$ #ederal laws must !e
aro&ed !y !oth .ouses o' @arliament) the .ouse o' Commons and the
4enate$
Common La/ and Civil La/ 2he laws that deal with ri&ate matters
!etween indi&iduals, such as roerty ownershi, 'amily resonsi!ilities and
!usiness transactions, &ary 'rom ro&ince to ro&ince$ 2his area o' law is
22
Canada : A Profile
!ased on common law in nine o' Canada's 10 ro&inces$ Common law is a
system !ased on Gudgments made !y courts, which !ecome ErecedentsE that
esta!lish the underlying rinciles o' the law$ 2he law in 3ue!ec, howe&er, is
!ased on a written code (the Code civil), which contains general rinciles
and rules 'or di''erent tyes o' situations$ -hen a case is considered under
ci&il law, the Gudge looks 'irst to this written code 'or guidance and then to the
recedents set !y earlier decisions$ :lthough the aroach used in common
law is di''erent 'rom that in ci&il law, the resulting decisions are o'ten much the
same$
T#e Co'rts Canada's laws are interreted and alied !y the courts, which
are resided o&er !y Gudges whose indeendence is guaranteed$ *ach
ro&ince is resonsi!le 'or esta!lishing its own courts, which deal with
matters arising under !oth 'ederal and ro&incial law$ 0n addition, the 'ederal
@arliament has esta!lished a num!er o' courts o' seciali>ed Gurisdiction and
a general court o' aeal, the 4ureme Court o' Canada$ 2he court system o'
each ro&ince is generally di&ided into two le&els$ :t the 'irst le&el is the
@ro&incial Court, which deals with most criminal o''ences$ 2his le&el may also
include 4mall Claims courts, which deal with ri&ate disutes in&ol&ing limited
sums o' money, and 6outh and #amily courts$ 5udges at this le&el are
aointed !y the ro&inces$ :t the second le&el is the ro&incial 4uerior
Court, which deals with the trial o' the most serious criminal and ci&il cases$
:!o&e this le&el o' court is the ro&incial Court o' :eal, which hears
aeals 'rom the lower courts$ 5udges at these le&els are aointed !y the
'ederal go&ernment$ 2he @arliament o' Canada esta!lished the #ederal Court
to deal with claims against the 'ederal go&ernment (as do the ro&incial
4uerior Courts)$ 2he #ederal Court also deals with such matters as atents,
coyright and maritime law, aeals 'rom 'ederal !oards and tri!unals, and
aeals 'rom the 2a/ Court o' Canada, which has Gurisdiction in 'ederal
re&enue matters$ 2he highest court in the country is the 4ureme Court o'
Canada$ 2his court hears aeals 'rom the ro&incial and 'ederal aeal
courts$ 0ts decision is always 'inal$ 0n addition, !oth the ro&inces and the
'ederal go&ernment ha&e esta!lished a num!er o' seciali>ed !oards and
tri!unals that deal with such matters as !roadcasting licences, sa'ety
standards and la!our relations$
La/ !n)orcement 2he "oyal Canadian ;ounted @olice ("C;@),
maintained !y the 'ederal go&ernment, is Canada's national olice 'orce$ 2he
"C;@ en'orces many 'ederal statutes, with articular emhasis on criminal
and narcotics laws$ 2he "C;@ is the sole olice 'orce in the 6ukon and the
=orthwest 2erritories$ *ight ro&inces emloy the "C;@ to carry out
ro&incial olicing resonsi!ilities within their !orders, such as highway atrol
and assisting municial olice 'orces in the in&estigation o' serious crimes$
2he ro&inces o' %ntario and 3ue!ec ha&e their own olice 'orces$ 4ome
23
Canada : A Profile
municialities emloy a local olice 'orce$ -here no municial 'orce e/ists,
local ser&ices are ro&ided !y either the 'ederal or the ro&incial olice 'orce$
Le%al Advice 2he legal ro'ession is regulated !y the ro&incial and
territorial law societies, which determine standards 'or admission to ractise
in each ro&ince and territory$ :ll ro&inces and territories oerate u!licly
'unded legal aid rograms, ro&iding legal ad&ice at little or no cost to
ersons o' limited means$ 2he seci'ic re1uirements 'or using these rograms
di''er 'rom ro&ince to ro&ince, !ut in each case their urose is the same) to
ensure that e&eryone can ha&e access to roer legal reresentation when
necessary, regardless o' 'inancial circumstances$
24
Canada : A Profile
TH! !N9IRONM!NT
Canadians, ha&e the good 'ortune to li&e in one o' the !est countries on earth$
:nd one o' the !est things a!out country is its en&ironment$ Canada's
en&ironment is central to our 1uality o' li'e$ %ur &ast 'orests, 'ields and tundra,
our seas and our thousands o' lakes and ri&ers sustain health and roserity$
%n 5une 11, 1971, Canada !ecame the second country in the world (a'ter
#rance) to esta!lish a 'ormal ministry o' en&ironment$ *n&ironment Canada
continues to acti&ely conser&e and rotect our air, water, land, wildli'e, and
eole$ 2he 'ederal go&ernment shares Gurisdiction o&er the en&ironment with
the ro&incial and territorial go&ernments$ Colla!oration !etween the &arious
le&els o' go&ernment, there'ore, is &ital$ 0n 199<, 1996 and 1997, in terms o'
human de&eloment, the Hnited =ations rated Canada highest in the world$
Canadians scored high on the key 'actors o' li'e e/ectancy, which is
signi'icantly a''ected !y en&ironmental 1uality, and a&erage income, which 'or
one-third o' our oulation comes 'rom en&ironment-related acti&ities$ 0n
199<, a -orld 9ank reort ranked Canada as the second-richest nation er
caita$ 2he -orld 9ank looked at nations' resources--natural, material, and
human--and ranked Canada high 'or its wealth o' land, water, 'orests and
minerals$ "ecently, 2oronto was named the !est international city in which to
work and raise a 'amily$ &ortune maga>ine ranks 2oronto num!er one on its
1996 international list o' !est cities, !asing its assessment largely on E1uality
o' li'e$E 0ntimately connected with 2oronto's 1uality o' li'e is the 1uality o' its
en&ironment--the clean streets, accessi!le water'ront, and green saces 'rom
which much o' the city's easygoing &itality is deri&ed$ Canada e/tends o&er
almost 10 million km2 , occuying two-'i'ths o' =orth :merica and se&en er
cent o' the world's land mass$ #orests and other wooded areas co&er almost
<0 er cent o' Canada's land area$ 0n 'act, Canada has 10 er cent o' the
world's 'orests and signi'icant reser&es o' oil, gas, coal and other minerals$
,ast natural areas, esecially in the tundra region and the mountains, co&er
70 er cent o' Canada and reresent 20 er cent o' the world's remaining
wilderness areas (:ntarctica e/ceted)$ 2he num!er, si>e and &ariety o'
rotected areas in Canada ha&e !een growing since the !eginning o' the
century$ 0n 19<0, rotected areas totalled 2 er cent o' the territory+ !y 199(
there were some (,000 national sites with an en&ironmental conser&ation
urose, or some 7$9 er cent (792,7F9km2)$ 0n terms o' area rotected,
Canada ranks second among %*CA countries$ :mong %*CA countries,
Canada has the second lowest ercentage o' threatened mammal secies
and the lowest ercentage o' threatened !ird secies$ Canada has the
largest na&iga!le coastline in the world$ -ithin Canada, the ?reat Bakes 'orm
the largest 'reshwater system in the world and Canada has 9 er cent o' the
25
Canada : A Profile
world's renewa!le 'reshwater suly$ 4ome 7$6 er cent o' Canada's total
sur'ace area is inland water$ Canada shares 'our o' the ?reat Bakes with the
Hnited 4tates$ 0n addition to Bakes 4uerior and .uron, Canada's ?reat 9ear
and ?reat 4la&e Bakes are among the world's largest$ Canada's .udson's
9ay lowland is the largest wetland in the world$ ?reat Bakes -ater 3uality
:greements !etween Canada and %ntario, and with the Hnited 4tates, are
steadily imro&ing the en&ironment$ Continuing declines in industry
discharges o' ollutants and to/ic su!stances, imro&ed treatment o'
municial wastewater, and declines in the le&els o' contaminants in 'ish and
wildli'e ha&e !een measured$ :reas o' concern such as the 2oronto
water'ront, .amilton har!our and 4arnia ha&e shown imro&ement$ Canada
has layed a leading role in the international e''ort to re&ent o>one-deleting
su!stances 'rom entering the atmoshere$ 0n 5une 1976, Canada !ecame the
'irst nation to rati'y the ,ienna Con&ention 'or rotection o' the o>one layer$
Canada has !een ahead o' schedule in hasing out su!stances that harm the
o>one layer$ 0n recognition o' Canada's leadershi role, a secial
international secretariat has !een located in ;ontreal$ 0t will administer a
multi-layer 'und to de&eloing countries, heling them to hase out their use
o' o>one-deleting su!stances$ Sources' OEC( Environmental Performance
%eviews) *++,- %e.ort of Canada to the /nited Nations Commission on
Sustainable (evelo.ment) *++012
26
Canada : A Profile
A0RICULTUR!
:griculture has !een a &ital 'orce in the Canadian economy 'or centuries and
today remains a maGor contri!utor to Canada's trade in international markets$
%ne o' the world's leading 'ood roducers, Canada is !est known 'or its
e/cellent grains, oilseeds, &egeta!les, meats and dairy roducts$ Canadian
'arming ractices, 'ertili>er and 'eed technologies, e1uiment and
management techni1ues all contri!ute to Canada's a!undant roduction o'
cros and li&estock$ 2he Canadian agricultural sector ro&ides F(7,000 Go!s
to Canadians, who reresent a!out 1$< er cent o' the country's total
oulation and ( er cent o' its work'orce$ :nother 1$< million, or 10 er cent
o' the total la!our 'orce, are emloyed in 'ood and !e&erage rocessing, 'ood
retail, 'ood ser&ices, and related industries in the agri-'ood system$ :ll in all,
the agri-'ood sector generates a!out 7 er cent o' Canada's gross domestic
roduct (?A@)$
$armland Canada is a sectacular land o' contrasts in climate, geograhy,
and soils$ 0t is the second-largest country in the world, occuying more than
9$9 million s1uare kilometres, o' which only 67 million hectares, or 7 er cent,
are de&oted to agriculture$ 2his roducti&e area 'orms a narrow !and along
the southern !order$ Canada's long winters, with su!->ero temeratures in
most o' the country, act as a ower'ul !iological control !ecause many insects
and disease organisms cannot sur&i&e the intense cold$ 2he di&ersity o'
climatic conditions and soil tyes slits Canada into 'our maGor agricultural
regions) :tlantic, Central, @rairie, and @aci'ic$
T#e Atlantic Re%ion 2he :tlantic region grows some o' the 'inest otatoes
in =orth :merica$ .orticultural cros 'rom ales to !lue!erries are also
a!undant$ ;ost 'armers grow cash cros such as 'ruits, &egeta!les and
'orage, as well as raising !ee', swine and dairy cattle$ Barge and modern
'ood-rocessing 'acilities are also located in the region$ T#e Central Re%ion
2he 'ertile lowlands o' the 4t$ Bawrence "i&er, in the ro&inces o' %ntario and
3ue!ec, e/tend through Canada's most oulated region$ 2he area is a
com!ination o' modern cities and large tracts o' 'armland$ 0t is the maGor corn-
roducing area o' Canada and is well known 'or its li&estock and horticultural
sectors$ ;ale syru and honey ha&e long !een imortant sidelines$ 4outhern
%ntario's mild climate o''ers lenty o' sun and rain'all and yields e/cellent
har&ests o' graes, cherries, eaches and other 'ruits$ 9ecause o' the large
local oulation, the well-de&eloed industrial !ase and e/cellent shiing
routes to world markets, most maGor 'ood-rocessing lants are located in the
central region o' Canada$
27
Canada : A Profile
T#e Prairie Re%ion 2he @rairie region reresents 70 er cent o' Canada's
'armland$ 2he winters are harsh and long, the summers hot and sunny with
little rain$ 0n site o' these conditions, modern technology has reha!ilitated
the southern ortion into roducti&e dryland$ %nly 60 years ago, high winds
com!ined with desert-like summer heat and little rain raised dust storms that
each year stried the land o' its thin, 'ertile tosoil$ 9y de&eloing a totally
new 'arming technology, Canadians ha&e con&erted such areas into some o'
the richest grain'ields in the world, roducing annually o&er F< million tonnes
o' wheat, oats, !arley, rye, canola, and 'la/seed$ 0n addition, the interior
lains suort some o' Canada's largest herds o' !ee', swine and dairy cattle
on 20 million hectares o' rangeland and asture$
T#e Paci)ic Re%ion 2he &aried climates and soils o' the @aci'ic region allow
'or great di&ersity in li&estock and cro roduction$ :griculture in the
northeast is similar to that o' the @rairies, roducing grains and oilseeds, as
well as a &ariety o' root cros and 'orages$ "anching dominates agricultural
acti&ities o' the &ast interior heartland, scattered o&er ri&er &alleys and
grassland ranges$ 2he hot, dry climate o' the southern &alleys is ideal 'or
orchards and &ineyards$ 2ree 'ruits, 'orages, and grains are maGor
commodities in the mountainous southeastern corner o' the region$ 2he mild,
moist climate o' the coast and islands suorts an a!undance o' seciality
roducts such as nursery, 'loriculture, greenhouse &egeta!les and !erry
cros$ 0ntensi&e li&estock, oultry and dairy roduction add to the strength
and the sta!ility o' the agri-'ood sector$ 0n addition, 'ood and 'ish rocessing
generates signi'icant sales and emloyment$ 2he @aci'ic region is a maGor
ort o' entry and e/it$ Close to (0 er cent o' out!ound shiments are
agricultural, comrising mostly rairie grains and agri-'ood roducts$
0rains and Oilseeds -heat is Canada's most imortant 'ield cro and
largest agricultural e/ort commodity$ *&ery year, a!out 12 million hectares in
Canada are lanted with wheat to yield a cro o' nearly 27 million tonnes$
:!out 7< er cent o' this cro is e/orted$ =e/t to wheat, !arley is Canada's
most imortant grain cro and maGor coarse grain e/ort$ 9arley, oats, and
corn roduced in Canada are used rimarily as 'eed 'or li&estock and oultry$
Canola is an oilseed de&eloed !y Canadian scientists$ Canola roduces a
high-1uality edi!le oil used as salad or cooking oil, as shortening or as
margarine$ 2he high-rotein canola meal, le't a'ter the oil is e/tracted 'rom the
crushed seed, is mi/ed 'or li&estock and oultry 'eed$ Canola and canola
roducts are gaining oularity on international markets$
Livestock Canada has large oulations o' !ee' cattle, dairy cattle and
swine$ 2he Canadian !ee' cattle oulation amounts to 1( million head$
Canada's !ee' cattle are recogni>ed 'or their growth and reroducti&e
characteristics and their carcass 1uality$ ?enetic imro&ement o' !ee' cattle
28
Canada : A Profile
has !een accelerated in Canada in recent years through the use o' arti'icial
insemination and em!ryo trans'er$ %' the 1$( million dairy cows in Canada,
a!out 90 er cent are .olstein !reed$ :!out 79 er cent o' Canadian dairy
cows are !red with 'ro>en semen$ :s a result, Canadian !reeders ha&e
de&eloed animals renowned 'or their milk roduction and longe&ity$ 2he
a&erage milk roduction o' a mature .olstein dairy cow raised under
Canadian management conditions is 7,21F B er year$ 2he Canadian swine
in&entory e/ceeds 12 million head, o' which a!out 1$2< million are !reeding
stock$ 9red 'or intensi&e rearing conditions, Canadian swine are noted 'or
their leanness, hardiness and o&erall 1uality$ 2he Canadian oultry industry
is distri!uted across Canada in roortion to oulation concentration$ Aue to
climatic conditions, oultry is almost entirely roduced in indoor 'acilities$
-ith a highly e''icient and mechani>ed system, one erson can oerate a unit
caa!le o' roducing o&er one million do>en eggs er year$ #or oultry meat,
a single oerator can handle (<0,000 !roiler chickens a year to ro&ide 6F0
tonnes o' meat$
!<'ipment Canadian 'arm e1uiment manu'acturers ro&ide a comlete
range o' machinery 'or land clearing, drainage, irrigation, li&estock raising and
dairy roduction, dryland 'arming, grain handling, storage and rocessing,
horticultural, and seciality cros$ 2he industry is considered to !e a world
leader in dryland 'arming e1uiment, large 'our-wheel-dri&e tractors,
com!ines and to!acco har&esting machinery, and e/orts o&er 60 er cent o'
its roduction$
$ood Processin% 0n 199<, the Canadian agri-'ood rocessing sector,
contri!uting 2$F er cent o' ?A@, was one o' the to 'i&e economic sectors in
terms o' shiments and emloyment$ 0t also reresents a maGor market 'or
Canada's 270,000 'arms, urchasing o&er M26$9 !illion in cros, li&estock and
'ish each year$ 2his, together with MF$2 !illion o' raw 'ood imorts such as
cane sugar, soya meal and troical 'oods, is con&erted into M<($< !illion o'
rocessed 'ood and &egeta!les$ %' this total, M9$2 !illion is e/orted$
Researc# and Development "esearch and de&eloment lay a critical role
in maintaining Canada's cometiti&e ad&antage in the glo!al marketlace$
4cientists conduct world-class research, imro&ing the long-term
cometiti&eness o' the Canadian 'ood and agriculture sector through the
de&eloment and trans'er o' inno&ati&e technologies$ 2he Canadian
go&ernment oerates a network o' research centres and e/erimental 'arms
in each o' Canada's maGor agricultural ecosystems$ *ach centre has a
seciali>ed research 'ocus o' national imortance, re'lecting the industry
strengths to its home region$
29
Canada : A Profile
CANADIAN MININ0
2he mining industry is an enormous and &ital contri!utor to the Canadian
economy, as the 'ollowing 'igures make clear)
K @ercentage o' national gross domestic roduct contri!uted !y mining
(F$(8)
K @eole emloyed in the mining and mineral rocessing industries
((<0,000)
K :&erage weekly earnings in the mining industry (M10<1)
K @ercentage o' total e/orts ro&ided !y minerals and mineral roducts
(1<$28)
K @ercentage o' mineral and metal roduction e/orted (708)
K -orld rank o' Canada in e/loration in&estment (2nd)
K =um!er o' Canadian communities 'or whom mining is the maGor source
o' economic acti&ity (11<)
K @ercentage o' stocks traded on the 2oronto 4tock */change that are
issued !y mining comanies (198)
4uch an o&er&iew, howe&er, does not tell the whole story$ 9esides a''ecting
our national li&elihood, mining has a direct imact on some o' the most
imortant asects o' our e&eryday li&es, including)
Food ;ining !egins at the ground le&el to ut 'ood on your ta!le$ #ertili>ers
containing hoshate, nitrogen, sulhur and otash (o' which Canada is the
world's largest roducer) hel 'ruits and &egeta!les grow$ #ood is reser&ed
in cans made o' tin-lated steel and reared in stainless steel cookware$
.alite, or salt, is used 'or seasoning$ :nd ta!les are set with stainless steel
cutlery and lates made 'rom a num!er o' di''erent clays$
30
Canada : A Profile
Housing "emo&e mining's contri!ution to your home, and a!out the only
thing you'd ha&e le't is the mortgage$ 9uilding a house would !e out o' the
1uestion without the tools and comonents made ossi!le !y mining$
#oundations are made rincially o' minerals) limestone, sand and gra&el$
Clays are used to manu'acture !ricks and tiles$ Coer ies carry water
thoughout the house$ ?ysum is used in drywall$ 9arium, manganese,
titanium igments and talc are used to manu'acture aint$ Binoleum contains
calcium car!onate$ Bime is used in making carets$ -indows contain silica$
:nd as the world's third-leading roducer o' coer--some M2$7 !illion a
year--Canada hels to ut a lot o' roo's o&er a lot o' heads$
Protection and cultivation of the earth ;etals and minerals lay a key role
in rotecting the earth$ Bime ser&es to treat industrial waste water and to
reduce ollution+ water uri'ication systems emloy manganese and acti&ated
car!on+ and emissions 'rom cars and trucks are controlled !y latinum$
.orticulture also makes use o' mining roducts, and sometimes e&en mines
themsel&es$ @eat is used to condition soil throughout Canada+ while in
;anito!a, (6< metres !elow the earth's sur'ace, a decommissioned >inc-
coer mine ro&ides the site 'or a thri&ing garden that roduces roses,
orchids, tomatoes, and a wide &ariety o' trees and !ushes$
Medicine Aiaer rash is treated with ointment containing >inc$ 0odine hels to
disin'ect cuts and scraes$ ;any eole rely on milk o' magnesia ('rom
magnesium) or calcium car!onate to deal with the e/cesses and stresses o'
modern li'e$ Aentists in =orth :merica use roughly (0$7 kilograms o' gold
daily$ :nd millions o' eole take &itamins with mineral sulements such as
>inc, iron and calcium to maintain health$
Electrical power ;ining is lugged into the electrical needs o' Canadians$
Coal and uranium ro&ide one-third o' our electrical re1uirements e&ery day$
-e are the world's largest roducer o' uranium, e/orting a!out 7< ercent o'
what we e/tract to nuclear electric utility customers in 5aan, *uroe, and the
Hnited 4tates$ :l!erta, meanwhile, which roduces hal' the coal mined in
Canada, relies on coal 'or 7F ercent o' its electric ower$ Coer is used in
the wiring that distri!utes the ower to our homes and o''ices, and !ul!s
contain silica$
Jewelry #or generations, eole ha&e !een saying it with diamonds, and
making the ultimate commitment with gold$ :s the world's 'i'th leading
roducer o' gold, Canada's mining industry has always taken its role in
romance &ery seriously$ 2his role may soon !e e/anded$ 0' the amount sent
on e/loration 'or diamonds (now o&er M100 million a year) results in
ro'ita!le 'inds, Canada will !e in a osition to !ecome a leading international
diamond roducer$
31
Canada : A Profile
Sports 0n years ast, Canadians who stri&ed 'or hockey medals did so on
!lades o' steel$ =ow, on skates made o' comle/ alloys, layers ass and
shoot with sticks o' grahite$ 6oung !ase!all layers swing 'or the 'ences with
aluminum !ats while skate!oarders soar 'or the skies on wheels with
aluminum !earings$ ?ol'ers sha&e strokes with grahite dri&ers$ :t local clu!s
and neigh!ourhood courts, tennis layers call on the ser&ices o' grahite-'i!re
and aluminum rac1uets to dri&e the !all !eyond the reach o' oonents$
Entertainment 6our tele&ision re1uires (< minerals and metals to make it
work$ -ithout !arite, there would !e no tu!e$ Bead is needed to manu'acture
the glass 'or the screen, while rare earths gi&e the colours their richness$
;ining strikes a &ital note in the music industry as well$ ,i!rating magnets
lend 1uality to the sound roduced !y your seakers$ :luminum is 'ound in
comact discs, while !rass (a coer->inc alloy) is used in a &ariety o'
instruments such as trumets and trom!ones$
Travel :irlanes, cars, !uses, trains--all rely on the metals and minerals
'ound !eneath the earth's sur'ace$ 0magine the si>e o' your world without the
co!alt used to make tur!ine !lades in Get engines and gas tur!ines, or without
the steel, iron, coer, >inc and aluminum used in the construction o' your
car$ 0n total, more than 1< metals and minerals are 'ound in your car alone$
Leisure ;ining adds com'ort to summer and makes &acations more
memora!le$ Ninc, o' which Canada is the world's largest roducer, is an
essential ingredient in manu'acturing sunscreen and in gal&ani>ing outdoor
'urniture such as !each chairs$ 4il&er, another o' Canada's imortant
roducts, 'inds use in de&eloing and rinting hotograhs$
2hroughout history, mining has !een a creati&e, ci&ili>ing acti&ity, constantly
searching 'or new sites, new resources, and new methods o' encouraging the
earth to yield u its wealth$ Innovation is mining's middle name+ chan$e is its
stock in trade$ Contrast the traditional image o' ick-and-sho&el miners and
rosectors with the eole and e1uiment who make u the mining industry
today$ : 'ull 7< ercent o' today's workers, many o' whom are women, already
use ro!otics, comuters, and the most u-to-date high-tech e1uiment$ :nd
the M1 !illion a year that mining comanies are now loughing into research
and de&eloment is seeding the take-u o' higher technology and aying o''
in rising roducti&ity$ :s 'or mining's 'uture, the economic 'orces that dri&e the
industry ha&e always made redictions di''icult, as any sur&ey o' mining's ast
years will ro&e$ 9ut there are two things you can deend on) it will !e a
continuing resence in our way o' li'e, and it won't !e standing still$
32
Canada : A Profile
CANADA: AN !N!R0, INDUSTR, O9!R9I!.
0n Canada, the a!undance o' etroleum, uranium, coal and hydroelectric
ower has dri&en this nation's industrial de&eloment, and allowed Canadians
to ha&e one o' the highest standards o' li&ing in the world$ :&aila!le and
a''orda!le energy is crucial in Canada, where homes and worklaces must !e
regulated against temerature e/tremes, and goods shied long distances$
*nergy roduction, distri!ution and e/orts account 'or 7$< ercent o'
Canada's gross domestic roduct (?A@), contri!uting M<1 !illion to Canada's
M671$<-!illion economy in 199<$ 2he energy sector attracts M21$7 !illion a
year in new in&estment, more than one-si/th o' the Canadian total$
!+port po/er *nergy is also a maGor contri!utor to Canada's !alance o'
trade$ 2he M1<$< !illion in net energy e/orts accounts 'or F0 ercent o' the
country's o&erall merchandise trade !alance$ =inety ercent o' Canada's
energy e/orts go to the Hnited 4tates$
T#e n'clear ind'str( Canada is a ioneer in de&eloing nuclear energy 'or
eace'ul uses$ 2he industry sans the nuclear 'uel cycle, 'rom uranium mining
and electricity roduction to decommissioning, managing nuclear 'uel-waste,
nuclear research and de&eloment, and alying nuclear technology in the
medical 'ield$ :tomic *nergy o' Canada Btd$ (:*CB), a 'ederal Crown
cororation, does the research, de&eloment and !asic C:=AH (C:=ada
Aeuterium Hranium) reactor design and engineering work$ 0t also markets the
C:=AH a!road, and manages reactor-!uilding roGects$
T#e petrole'm ind'str( 2he etroleum industry lays a key role in
Canada's MF0$< !illion energy sector$ 0n 199<, the roduction o' crude oil and
natural gas, the sale o' re'ined etroleum roducts and ieline transortation
were together worth M2($1 !illion$ 2his reresents F$( ercent o' Canada's
gross domestic roduct and nearly 200,000 Go!s$ Petrole'm-related
ind'stries :n imortant secondary industry has de&eloed around Canada's
etroleum industry$ #or e/amle, there are now a!out 1,<00 small- and
medium-si>ed enterrises, emloying a!out (<,000 eole, in&ol&ed in
sulying oil and gas e1uiment and ser&ices$ 0n 199F, the estimated &alue o'
shiments was M< !illion$ */orts accounted 'or nearly one-third o' this
amount$ :d&anced technologies de&eloed !y Canadian 'irms, o'ten in
cooeration with key customers, in&ol&e drilling, seciali>ed reco&ery and
roduct rocessing$ :mong other things, these technologies use automation
33
Canada : A Profile
to reduce manual la!our, imro&e rocesses and er'ormance, and enhance
sa'ety on the rig 'loor$
!lectrical po/er e<'ipment and services 4imilarly, an associated industry
has grown around Canada's e/tensi&e electricity-generating oerations$ ;ore
than (00 comanies manu'acture e1uiment 'or hydro-, thermal- and nuclear-
generating stations$ @roducts include ower transmission and distri!ution
e1uiment, electrical wire and ca!le roducts, ower and distri!ution
trans'ormers, control and rotection e1uiment, ower-con&ersion e1uiment
and alternati&e energy systems$ 2here is also a related ser&ices industry,
including (< consulting engineering 'irms$ 2he com!ined outut o' this sector,
emloying (<,000 eole, is M6$7 !illion$
34
Canada : A Profile
TRANSPORTATION
CanadaOs history is closely linked to the history o' transortation$ %ne need
only look at a ma to understand the &arious geograhical o!stacles osed
!y the nationOs landscae$ 2ransortation has always layed - and will
continue to lay - a &ital role in CanadaOs relationshi with the land$ :lthough
it is the worldOs second largest country, Canada ranks 27th in terms o'
oulation$ -ith a oulation density o' aro/imately three ersons er
s1uare kilometre, CanadaOs (0 million eole are scattered across an area
that is more than 10 million s1uare kilometres in si>e, stretching <,<00
kilometres 'rom the :tlantic %cean to the @aci'ic$ -hat Canada needs is
sa'e, e''icient, sustaina!le transortation !y the most aroriate com!ination
o' modes - air, sur'ace and marine$ CanadaOs transortation system is well-
ositioned to make the !est use o' each mode and to ensure that the !alance
among the modes is !oth economically and en&ironmentally sustaina!le$
Sa)et( and Sec'rit( :s a nation, Canada has an e/cellent a&iation sa'ety
record$ Aesite the unrecedented growth in assenger tra&el in recent
years, the num!er o' a&iation accidents actually declined !y nearly (7 er
cent !etween 1990 and 1997$ 0n 1996, marine accidents were at an 17-year
low$ Canada recently signed a Goint declaration with many other maritime
nations on ort state control that will tighten the en'orcement o' international
shi standards and reduce the num!er o' unsa'e shis lying Canadian
waters$ :lthough highway tra''ic has dou!led, Canada has seen a <0 er
cent decline in tra''ic 'atalities o&er the ast 2< years$ 0n 'act, the 'igures 'or
1997 are the lowest since these statistics !egan$ "ailway accident rates and
crossing 'atalities ha&e reached their lowest le&els in a decade$
Air Transportation CanadaOs a&iation industry has e/anded dramatically
o&er the years$ 2he num!er o' registered aircra't increased !y 1F7 er cent
!etween 1970 and 199< and clim!ed to 27,0<F in 1997$ 2he num!er o'
enlaned and delaned assengers carried er year !y commercial airlines
reached an all-time high o' o&er 77 million in 1997$ CanadaOs domestic routes
are ser&ed !y its two maGor carriers, :ir Canada and Canadian :irlines
0nternational, and their regional a''iliates, as well as !y smaller indeendent
oerators that use !oth Get and roeller-dri&en e1uiment$ 0n 1997, some
1,<02 licensed domestic carriers ro&ided scheduled and charter ser&ices
throughout the country$ 4cheduled international ser&ices to and 'rom 60
countries are ro&ided on the !asis o' !ilateral agreements !etween Canada
and each country$ 2he 199< P%en 4kiesQ agreement with the Hnited 4tates,
'or e/amle, has ro&ided Canadians with signi'icantly imro&ed access to
35
Canada : A Profile
maGor H$4$ !usiness destinations$ =ew international all-cargo air ser&ices
olicies ha&e recently !een announced 'or !oth scheduled and chartered
'lights to ro&ide shiers and air carriers with additional oortunities and
more 'le/i!ility 'or mo&ing cargo !y air$ 2he cornerstone o' the moderni>ation
o' CanadaOs air transortation system is the 'ederal go&ernmentOs =ational
:irorts @olicy$ 2he olicy allows 'or the trans'er o' airorts to local grous
that know their market and are 'ree to run their airort like a !usiness$ 4ince
the olicy was announced in 5uly 199F, nearly 90 airorts ha&e !een
trans'erred$ 0n 'act, 90 er cent o' all commercial air tra&ellers in Canada now
use 'acilities that ha&e !een trans'erred$ 4ince 1996, CanadaOs air na&igation
system has !een oerated !y =a& Canada, an indeendent not-'or-ro'it
cororation$ 4a'ety will continue to !e regulated and monitored !y 2ransort
Canada$
Marine Transport Canada has <9,<09 kilometres o' coastline lus (,000
kilometres o' inland waterways (e/cluding island coastlines)$ 2he marine
sector handles more than 200 million tonnes o' cargo each year, generating
o&er M2$< !illion in re&enue annually and directly emloying more than F<,000
Canadians$ 2he Canada ;arine :ct, which recei&ed "oyal :ssent on 5une
11, 1997, will commerciali>e CanadaOs u!lic orts, ena!ling them to !e
trans'erred to local not-'or-ro'it organi>ations$ 2he :ct also allowed 'or the
commerciali>ation o' the 4t$ Bawrence 4eaway on %cto!er 7, 1997$ 2he
4eaway is one o' the worldOs largest inland waterways ((,700 kilometres),
stretching 'rom the ?ul' o' 4t$ Bawrence to the western end o' Bake 4uerior$
Road Transportation Canada has more automo!iles er erson than any
other country in the world e/cet the Hnited 4tates, with at least one
automo!ile 'or e&ery two Canadians$ 2oday there are more than 900,000
kilometres o' roads and highways+ the national highway system is o&er 2F,000
kilometres in length$ Canada also !oasts the longest highway in the world -
the 2rans-Canada .ighway - and the !usiest section o' highway in the world -
.ighway F01 through the ?reater 2oronto :rea$ 0ntercity !uses ro&ide the
most e/tensi&e u!lic assenger ser&ices in Canada$ =early 1,000 oerators
o''er school !us, charter and ur!an transit ser&ices in more than (,F00
communities$ "oads also suort one o' the most highly used 'orms o' cargo
transortation+ in 1997, a!out 76 er cent o' total 'reight sur'ace re&enues in
Canada were generated !y the trucking industry$ :n estimated 117,000 large
trucks that haul 'reight commercially+ trucking re&enues and ser&ices
(including 'or-hire, ri&ate and courier) were &alued at aro/imately M(1
!illion in 1996$ 2echnology is laying an increasingly imortant role in
CanadaOs highway system$ #or e/amle, there is a ilot roGect in lace to test
the 'easi!ility o' allowing secially e1uied trucks to cross the H$4$ !order
without stoing+ the time sa&ings could make a signi'icant di''erence to
shiers, esecially those hauling erisha!le goods$
36
Canada : A Profile
Rail Transport "ailways continue to lay an imortant art in CanadaOs
transortation network$ Canadian =ational "ailway (C=) and Canadian
@aci'ic "ailway (C@) are resonsi!le 'or oerating most o' CanadaOs rail
'reight ser&ices$ ,0: "ail Canada, a 'ederal Crown cororation, ro&ides
assenger rail ser&ice$ :ro/imately F6 Canadian railways oerate on some
<0,000 route kilometres o' track$ 0n 1996, some F million rail assengers
tra&elled a total o' 1$F6 !illion assenger-kilometres$ "ailways account 'or
270 !illion tonne-kilometres o' 'reight$
Tec#nolo%( Canadians continue to introduce imro&ements across the
sectrum o' transortation technology$ Ae&eloments also include a new
commuter tur!o-ro and tur!o-'an aircra't, as well as a uni1ue aircra't that
can scoo u 6$6 tonnes o' water 'rom a lake in 10 seconds and dro it on a
'orest 'ire with inoint accuracy$ "esearch is also !eing conducted into sa'er
log trucks and airlane de-icing regulations$ -ith the launch o' the :louette 1
in 1962, Canada !ecame the third nation in sace and has since earned an
international reutation in aerosace technology with such de&eloments as
the Canadarm, which was designed 'or the H$4$ sace shuttle rogram and is
in ongoing use$ Canada is also a world leader in the de&eloment o'
alternati&e 'uel sources$ 2he 9allard 'uel cell, 'or e/amle, will ower the cars
o' the 'uture with no !yroducts other than hot water+ the auto industry has
now in&ested hundreds o' millions o' dollars into this new &enture$ *1ually
inno&ati&e is the new Pclean air truck,Q which runs on natural gas with diesel
ilot ignition+ this truck emits 7< er cent 'ewer smog-roducing !yroducts
than do regular trucks$
S'staina"ilit( :!out 27 er cent o' CanadaOs greenhouse gas emissions
come 'rom transortation sources - mostly road transortation$ 0n 1997,
Canada made a su!stantial commitment in Iyoto, 5aan to reduce
greenhouse gas emissions to si/ er cent !elow 1990 le&els o&er the eriod
2007 to 2012$ 2his resents a articular challenge 'or the transortation
sector$ 2o meet this challenge, 'ederal and ro&incial en&ironment ministers
met and aro&ed a rocess 'or de&eloing a national strategy on climate
change$ 2he rocess called 'or the esta!lishment o' a num!er o' Pissue
ta!les,Q including one that will deal with transortation$ 4ustaina!ility must !e
at the heart o' any credi!le strategy 'or Canadian transortation i' a
roserous national 'uture is to !e secured$
37
Canada : A Profile
NATIONAL CULTURAL INSTITUTIONS:
4ince 19(6, the Canadian 9roadcasting Cororation (C9C), one o' the
world's 'oremost u!lic !roadcasting organi>ations, has !een heling
Canadians to areciate their nation and understand the Canadian
e/erience$ 0t now oerates two core national tele&ision networks (one in
*nglish, the other in #rench)+ 'our national radio networks (two #rench, two
*nglish)+ radio and tele&ision ser&ices 'or the =orth in *nglish, #rench, and
eight a!original languages+ two sel'-suorting secialty ca!le tele&ision
ser&ices (one *nglish, one #rench)+ and an international shortwa&e radio
ser&ice that !roadcasts in se&en languages$ -orking under the terms o' the
Broadcastin$ Act, the C9C ro&ides a wide range o' rogramming that
in'orms and entertains Canadians 'rom coast to coast$ 0ts u!lic rogramming
enGoys a high le&el o' aro&al) o&er hal' o' adult Canadians listen to C9C
radio and a!out 9 out o' 10 watch C9C tele&ision$
National $ilm -oard Created in 19(9, the =ational #ilm 9oard o' Canada
(=#9) is a u!lic agency that roduces and distri!utes 'ilms and other
audio&isual works that re'lect Canada to Canadians and the rest o' the world$
2he =#9 is a centre o' 'ilmmaking and &ideo technology as well as a
storehouse 'or an imortant art o' the country's audio&isual heritage$ .ailed
o&er (,000 times at maGor 'esti&als, the =#9 has won nine %scars 'or its
roductions and an honorary %scar Ein recognition o' its dedicated
commitment to originate artistic, creati&e and technological acti&ity and
e/cellence in e&ery area o' 'ilmmaking$E "ecent =#9 roductions include
documentaries, animation shorts, CA-"%;4 and interacti&e &ideos$ =#9
'ounder 5ohn ?rierson wanted to esta!lish a national cinema that would Esee
Canada and see it whole) its eole and its urose$E 2his early insiration,
through the work o' the =#9, continues to consolidate the Canadian character
and gi&e shae to the national dream$
Canada Co'ncil 2he Canada Council is an indeendent, arm's-length
organi>ation created !y the @arliament o' Canada in 19<7 to E'oster and
romote the study and enGoyment o', and the roduction o' works in, the arts$E
2o 'ul'ill this mandate, the Council o''ers a !road range o' grants and ser&ices
to ro'essional Canadian artists and arts organi>ations working in music,
writing, u!lishing, dance, theatre, &isual arts and media arts$ *ach year, the
Council awards some F,200 grants in all discilines and some 10,700
ayments to authors through the @u!lic Bending "ight Commission$ 2he
Council also administers the Iillam @rogram o' scholarly awards and ri>es,
and o''ers a num!er o' other restigious awards, including the ?lenn ?ould
38
Canada : A Profile
@ri>e, the Canada Council 'or the :rts ;olson @ri>es and the ?o&ernor
?eneral's Biterary :wards$ 2he Canadian Commission 'or H=*4C% and the
@u!lic Bending "ight Commission also oerate under its aegis$
Canadian $ilm Development Corporation =Tele)ilm Canada> 2ele'ilm
Canada, a crown cororation, was created !y @arliament in 1967$ 2ele'ilm's
role di''ers 'rom that o' the =ational #ilm 9oard in that 2ele'ilm is a 'unding
agency rather than a roducer or distri!utor$ 0t has 'inanced some 600 'eature
'ilms and 1,<00 tele&ision shows and series, heling to !uild what is now a
multi!illion-dollar Canadian industry$ 2ele'ilm suort has also allowed
Canadian talent and culture to ac1uire currency a!road) :t international 'ilm
'esti&als, works !acked !y 2ele'ilm Canada ha&e won more than 1,600 ri>es
in some (< countries$ %' all who areciate 2ele'ilm's contri!ution, it is
erhas the audio&isual artists who !est understand what it has meant to
Canadian culture$ #ilmmaker Aenys :rcand (he (ecline of the American
Em.ire) states the ersecti&e 'rom his ro&ince in words that hold true 'rom
=ew'oundland to 9ritish Colum!ia) E2he e/istence o' 2ele'ilm determined the
e/istence o' a 3ue!ec 'ilm industry$ %nce again, in a ro&ince such as
3ue!ec, i' there is no 2ele'ilm, there is no 'ilm$
E Social Sciences and H'manities Researc# Co'ncil o) Canada =SSHRC>
44."C is Canada's 'ederal 'unding agency 'or uni&ersity-!ased research and
graduate training in the social sciences and humanities$ Created as an
indeendent !ody in 1977, 44."C reorts to @arliament through the ;inister
o' 0ndustry$ 44."C contri!utes to Canada's social and economic
de&eloment through 'unding 'or research and training in 'ields such as
health care, social and legal issues, culture and heritage, economics, and the
en&ironment$ 2his research, !esides !eing o' academic interest, 'urnishes an
imortant art o' the ractical knowledge re1uired 'or sound decisions in
matters a''ecting our standard o' li&ing and 1uality o' li'e$
National 0aller( o) Canada #ounded in 1770, the =ational ?allery o'
Canada holds the country's 'oremost collection o' Canadian and *uroean
art$ 2he resent gallery !uilding, located on 4usse/ Ari&e in %ttawa, is a
'ormida!le work o' art in its own right--a magni'icent structure o' rose granite,
towering glass, and steel enclosing o&er (0,000 s1uare metres o' !alanced
sace and light$ 2he =ational ?allery has always de&oted itsel' to making
Canadian art !etter known, sending e/hi!itions to museums across Canada
and around the world$ 2he ?allery's ermanent collections o' Canadian, 0nuit,
*uroean, :merican, :sian, and contemorary art, together with its secial
e/hi!itions and creati&e rogramming, gi&e the Canadian u!lic wide access
to art o' an e/cetional range and 1uality$
39
Canada : A Profile
Canadian M'se'm o) Civili*ation 2he Canadian ;useum o' Ci&ili>ation,
located across the %ttawa "i&er 'rom @arliament .ill, is one o' the most
distinguished and !est e1uied museums in the world$ Aesigned !y Aouglas
Cardinal and oened in 1979, the !uilding is nota!le 'or its rare com!ination
o' massi&eness and swee, which ser&es to !ring the structure into accord
with !oth its ri&er!ank surroundings and the 'low o' time deicted in its
interior$ -ith an archaeological collection dating 'rom 17F2, and a tradition o'
anthroological research going !ack to 1910, the ;useum is an esta!lished
centre 'or the study o' human li'e in Canada$ :cti&ities are !ased on 'our
general areas o' research) archaeology, ethnology, 'olklore, and history$ =ow
the nation's largest and most oular museum, the Canadian ;useum o'
Ci&ili>ation attracts o&er 1$( million &isitors a year$
Canadian .ar M'se'm *sta!lished in 1770, the Canadian -ar ;useum is
located in %ttawa at ((0 4usse/ Ari&e, ne/t door to the =ational ?allery$ 0t
houses ermanent and temorary e/hi!its a!out Canada's accomlishments
in war and eacekeeing$ :rti'acts o' all tyes and eriods illustrate Canada's
ast military acti&ities, 'rom its days as a #rench colony to its modern
missions in eacekeeing$ Bi'e-si>e dioramas, dislays, and a magni'icent
collection o' war art allow &isitors to e/erience a art o' Canada's military
history$ 2he museum re&eals, in a way that words alone cannot, how
Canadians 'ought and how the 'ighting a''ected Canada$ ;ore imortant, it
stands as a memorial, and a tri!ute, to all Canadians who ser&ed in war and
eacekeeing$
National Li"rar( o) Canada 2he =ational Bi!rary o' Canada, at (9<
-ellington 4treet in %ttawa, is home to Canada's u!lished heritage$ 2he
=ational Bi!rary's main role is to ac1uire, reser&e, and romote the world's
most comrehensi&e collection o' Canadiana 'or all Canadians, now and in
years to come$ 2he Bi!rary holds materials such as !ooks, eriodicals, sound
recordings, manuscrits, and electronic documents$ #ounded in 19<( as a
deartment o' the 'ederal go&ernment, the Bi!rary now contains some three
million items$ =ota!le strengths include Canadian music, newsaers, and
o''icial go&ernment u!lications$ 2he Bi!rary is also a leading centre 'or
Canadian rare !ooks, city directories, literary manuscrits, and literature 'or
children and 'or adults$
National Arc#ives o) Canada #ounded in 1772, the =ational :rchi&es o'
Canada today contains millions o' records that !ring the ast to li'e, including
te/ts, hotograhs, 'ilms, mas, &ideos, !ooks, aintings, rints, and
go&ernment 'iles$ 2he =ational :rchi&es acts as the collecti&e memory o' the
nation, reser&ing an essential art o' Canada's heritage and making it
a&aila!le to the u!lic through a &ariety o' means--u!lications, e/hi!itions,
secial e&ents, and re'erence and researcher ser&ices$ @u!lic records also
40
Canada : A Profile
ro&ide much o' the e&idence re1uired to uhold rights, su!stantiate claims,
and maintain Gustice$ 2he =ational :rchi&es is located at (9< -ellington
4treet in %ttawa$
National Arts Centre =NAC> 2he =ational :rts Centre, located on the !anks
o' %ttawa's "ideau Canal, is Canada's leading !icultural theatre 'or the
er'orming arts$ Aesigned !y #red Be!ensold, the trile-he/agon !uilding
contains three suer! er'ormance halls--the %era, the 2heatre, and the
4tudio--which together gi&e the =:C a seating caacity o' o&er (600$ 9y
consistently encouraging artistic e/cellence, di&ersity, and youth, the =ational
:rts Centre has heled to shae the careers o' countless Canadian artists$
2he =ational :rts Centre gi&es the u!lic year-round access to arts and
entertainment, o''ering comlete seasons o' dance, *nglish and #rench
theatre, music and &ariety$ @rominent attractions include #esti&al Canada, a
summer cele!ration o' the er'orming arts+ and the =ational :rts Centre
%rchestra, one o' the 'inest ensem!les o' its kind in the world$
41
Canada : A Profile
MULTICULTURALISM !THNIC AND RACIAL
DI9!RSIT, IN CANADA
;ulticulturalism is a 'undamental characteristic o' Canadian society$ %ur
society has always !een luralist and di&erse and is !ound to !ecome e&en
more so$ :lready aro/imately two-'i'ths o' the Canadian oulation has one
origin other than 9ritish, #rench or :!original$
.#at is M'ltic'lt'ralism? 0n 1971, Canada !ecame the 'irst country in the
world to adot a multiculturalism olicy$ 0n 1976 the go&ernment assed the
Em.lo"ment E3uit" Act and in 1977 it assed the Canadian Multiculturalism
Act1 #ounded on a long tradition o' Canadian human rights legislation, the
;ulticulturalism @olicy a''irms that Canada reco$ni4es and values its rich
ethnic and racial di&ersity$ 2he Canadian Multiculturalism Act gi&es seci'ic
direction to the 'ederal go&ernment to work toward achie&ing e1uality in the
economic, social, cultural and olitical li'e o' the country$ 2hrough its
multiculturalism olicy, the go&ernment wants to hel !uild a more inclusi&e
society !ased on resect, e1uality and the 'ull articiation o' all citi>ens,
regardless o' race, ethnic origin, language or religion$ 0n a recent reort o'
the H=*4C% -orld Commission on Culture and Ae&eloment, Canada's
aroach to multiculturalism was cited as a model 'or other countries$ Canada
is recogni>ed today as a world leader in this 'ield$
T#e $ederal 0overnment@s M'ltic'lt'ralism Pro%ram 0n 1997, the
deartment o' Canadian .eritage restructured the 'ederal ;ulticultural
@rogram$ 2he renewed rogram works towards three main goals) KL Identit"$
#ostering a society in which eole o' all !ackgrounds 'eel a sense o'
!elonging and attachment to Canada KL Civic Partici.ation$ Ae&eloing
citi>ens that are acti&ely in&ol&ed in shaing the 'uture o' their &arious
communities and their country KL Social 5ustice$ 9uilding a nation that
ensures 'air and e1uita!le treatment and that resects and accommodates
eole o' all origins
Campai%ns and Promotional Activities @romotional acti&ities seek to
imro&e u!lic understanding o' multiculturalism and racism and to
encourage in'ormed u!lic dialogue and action on issues related to ethnic
and racial di&ersity in Canada$
42
Canada : A Profile
Marc# 31 Campai%n: ARacism: Stop ItBA 2he March 6* Cam.ai$n is at the
heart o' the ;ulticulturalism @rogram's acti&ities$ 2his nationwide camaign is
intended to make the u!lic aware o' the International (a" for the Elimination
of %acial (iscrimination$ 2he ;arch 21 camaign 'eatures a !road range o'
acti&ities throughout the country, in&ol&ing community grous, schools, school
!oards, colleges, uni&ersities, ri&ate comanies, arliamentarians and
media$
T#e Mat#ie' Da Costa A/ards 0n 1996, the ;ulticulturalism @rogram
esta!lished the ;athieu Aa Costa :wards as art o' @arliament's o''icial
designation o' #e!ruary as 9lack .istory ;onth$ 2his rogram encourages
intercultural understanding and ro&ides an e/cellent &ehicle !y which youth
can de&elo an areciation o' the di&ersity and shared e/eriences that 'orm
the Canadian identity$
M'ltic'lt'ralism in t#e Media 2he Broadcastin$ Act, assed in 1991, a''irms
that the Canadian !roadcasting system should, through its rogramming and
the emloyment oortunities it creates, ser&e the needs o' a di&erse society
and re'lect the multicultural and multiracial nature o' Canada$ 2he
'mainstream' media is slowly coming to re'lect the di&erse nature o' the
country$ 4uccess'ul tele&ision rograms such as North of 07) (e$rassi 5unior
8i$h) 5asmine and Ces enfants d9ailleurs are elo1uent e/amles o' this trend$
2he :cademy o' Canadian Cinema and 2ele&ision has a secial ?emini
award, called E2he Canada :wardJ@ri/ ?Cmeau/ du multiculturalisme,E which
is sonsored !y the ;ulticulturalism @rogram$ 0t honours e/cellence in
mainstream tele&ision rogramming that !est re'lects the cultural di&ersity o'
Canada$ *thnic radio and tele&ision !roadcasting is also thri&ing in Canada$
=ine radio stations in 'i&e cities de&ote much o' their rogramming to seci'ic
ethnic grous, nota!ly the 0talian, Hkrainian, ?erman, ?reek, @ortuguese and
Chinese communities$ 2oronto has a 'ull-time ethnic tele&ision station which
is a&aila!le throughout %ntario$ 2hree ethnic secialty tele&ision ser&ices are
licensed, and more than 60 radio stations include ethnic !roadcasting in their
schedules$ =umerous ca!le comanies carry rogramming in a &ariety o'
languages on community channels$ 0n the rint media, ethnic newsaers
ha&e 'lourished across Canada 'or more than 70 years$ 0n 2oronto alone,
there are more than 100 daily, weekly, monthly or 1uarterly ethnic-language
u!lications$ ;ore than F0 cultures are reresented in Canada's ethnic ress+
many o' these u!lications are national in scoe, such as the Chinese &ersion
o' Maclean9s maga>ine$
M'ltic'lt'ralism and -'siness Canada's di&ersity is increasingly
recogni>ed as an asset in !oth the domestic and the international market, and
as a maGor contri!utor to Canadian economic roserity$ 2he Con'erence
9oard o' Canada has worked with other !usiness, industry and trade
43
Canada : A Profile
associations to identi'y new ways 'or Canadian organi>ations to use Canada's
linguistic and cultural di&ersity to their ad&antage at home and a!road$ :lso,
the 9usiness Ae&eloment 9ank o' Canada consults regularly with
ethnocultural !usiness associations in maGor centres$ Canada's multicultural
nature will !ecome e&en more o' an asset in the emerging glo!al economy$
Canadian comanies already recogni>e the !ene'its and are drawing on the
cultural di&ersity o' our work 'orce to o!tain the language and cultural skills
needed to comete success'ully in international markets$
Artistic and C'lt'ral and Creative !+pression Canada's arts and cultural
institutions should ser&e the needs and re'lect the contri!utions o' artists and
culture workers 'rom di&erse cultural !ackgrounds$ :rtists 'rom all arts o' the
world today enrich the Canadian cultural scene$ ;any artists 'rom di&erse
communities are not only seeking e1uita!le access to cultural institutions
which de'ine and re'lect who we are as Canadians+ they are also articulating
a new de'inition o' Canadian culture, a new cultural model$ : growing
num!er o' writers 'rom &arious ethnocultural origins are acclaimed in Canada
and a!road$ =ino "icci won the ?o&ernor ?eneral's :ward 'or his no&el he
#ives of the Saints) 'ilmmaker ;ina 4hum's ?enie award-winning 'ilm (ouble
8a..iness had an e/tensi&e =orth :merican theatrical release and :tom
*goyan's 'ilms ha&e recei&ed worldwide acclaim$ :ll three artists were
suorted !y the ;ulticulturalism @rogram in the early days o' their careers$
,isual artists like *d @oitras and 4tan Aouglas, !y reresenting Canada at
the restigious ,enice 9iennial, are e/anding and rede'ining the ercetion
o' the Canadian artist !oth within and outside Canada$ ;ulticulturalism is
wo&en into the &ery 'a!ric o' Canadian li'e$ 9y recogni>ing multiculturalism as
a 'undamental characteristic o' Canadian identity and national heritage,
Canadians o' all cultural origins ha&e the oortunity to contri!ute to the
common goals o' e1uality, sharing, social Gustice and economic roserity$
44
Canada : A Profile
$R!NCH LAN0UA0! AND ID!NTIT,: A 9I-RANT
PR!S!NC!
K :ccording to the 1991 census, #rench is the mother tongue o' 72
ercent o' 3ue!ec's oulation and is soken at home !y 7( ercent
o' 3ue!eckers$ ;ore than a million #rancohones li&e outside 3ue!ec$
K #rench is soken !y 7$< million eole in Canada, 2< ercent o' whom
li&e outside 3ue!ec$ %' this num!er, 6$6 million ha&e #rench as their
mother tongue$
K ;ore and more children are learning #rench in schools throughout
Canada) enrolment in #rench immersion rograms Gumed 'rom F0 000
in 1977 to some (1( 000 in 1996$
K 0n 199<, 2$7 million young eole (<F ercent o' students) were
studying #rench or *nglish as a second language, an increase o' 10
ercent in 2< years$
K :ccording to the 1991 4tatistics Canada census, the le&el o'
!ilingualism among young Canadians aged 1< to 2< has risen 'rom 16
ercent to 2( ercent in a single decade$ 6oung Canadians in this age
grou are the most !ilingual generation in our nation's history$
K 0nternationally, it is estimated that some 700 million eole seak
*nglish and 2<0 million seak #rench$ :s well, Ba #rancohonie
makes u 17 ercent o' the world economy and accounts 'or more than
M100 !illion in trade annually$ Clearly, a knowledge o' !oth languages
ro&ides a cometiti&e edge in the !attle to con1uer new markets$ :s a
!ilingual nation, Canada has that edge$
K 2he %''icial Banguages :ct makes #rench and *nglish the o''icial
languages o' Canada and ro&ides 'or secial measures aimed at
enhancing the &itality and suorting the de&eloment o' *nglish and
#rench linguistic minority communities$ Canada's 'ederal institutions
must re'lect the e1uality o' its two o''icial languages !y o''ering
!ilingual ser&ices$
45
Canada : A Profile
K 2he Constitution :ct o' 1972 makes #rench and *nglish the o''icial
languages o' Canada+ the two languages ha&e e1ual status in terms o'
their use in all the institutions o' the ?o&ernment o' Canada$
K 2he 4ociCtC "adio-Canada (the #rench-language di&ision o' the
Canadian 9roadcasting Cororation) !roadcasts rograms in #rench
across the country$ 0n addition, since 5anuary, 199< the "Cseau de
l'in'ormation ("A0) has !een !roadcasting #rench-language tele&ision
news and u!lic a''airs rograms 2F hours a day$ 0ts o!Gecti&e is to
ensure a #rench current a''airs resence throughout the country$
K 2he ?o&ernment o' Canada suorts a grou o' tele&ision networks
'rom 3ue!ec and across Canada as art o' an international
#rancohone !roadcasting consortium known as 2,<$ 2oday, the
?o&ernment o' Canada contri!utes MF million annually so that 2,< can
continue to ro&ide high-1uality domestic and international
#rancohone !roadcasting 'or Canadians$
46
Canada : A Profile
SPORTS
2hink o' sorts in Canada and you'll likely think o' hockey$ 4ome o' the
world's !est-known hockey layers are Canadian$ :nd hockey is !y 'ar
Canada's 'a&ourite sectator sort and one o' its most widely layed
recreational sorts$ 9ut ask young Canadians to list their 'a&ourite sorts
acti&ities and a much !roader icture emerges$ 2hose aged 1( to 2F cite
swimming, downhill and cross-country skiing, soccer, !ase!all, tennis and
!asket!all$ Canadians &iew sorts as an integral art o' a well-rounded,
healthy li'e$
Sports on Ice and Sno/ ;ore than F<0,000 youngsters articiate in
organi>ed hockey leagues$ ;any more lay on streets, lakes and outdoor
rinks and e&en dream o' Goining the =ational .ockey Beague (=.B)$ 2he
maGority o' the =.B layers are Canadian and Canadians ha&e 'ared
e/tremely well in international amateur hockey cometition) the ;en's 5unior
=ational 2eam has won 'i&e consecuti&e -orld 5unior Chamionshis+ the
;en's =ational 2eam catured sil&er medals in the 1992 and 199F -inter
%lymic ?ames+ and the -omen's =ational 2eam has won e&ery world
chamionshi layed to date (1990, 1992, 199F, 1997), as well as the sil&er
medal in the 1997 -inter %lymic ?ames$ Canada's @aralymic sledge
hockey team won the sil&er at the 1997 @aralymic ?ames in =agano$ 4kiing
is a sort that has catured the hearts o' Canadians$ 2he country !oasts
hundreds o' ski areas, including world-renowned resorts in 9an'', :l!erta, and
-histler, 9ritish Colum!ia, as well as an a!undance o' cross-country ski
trails$ 0n international cometition, Canadian skiers ha&e e/celled on the
-orld Cu circuit and at the -inter %lymic ?ames$ Canada's @aralymians
are chamions on the sloes$ :t the 1997 @aralymics in =agano, Aan
-esley ut together a to-'light er'ormance, winning gold in the men's suer
? 'or sit skiers, and taking a !ron>e in downhill$ 4eed skating (!oth long-
track and short-track) is where Canada truly shines$ 4eed skating has
roduced Canada's great -inter %lymian, ?aCtan 9oucher, the winner o'
two gold medals and a !ron>e at the 197F %lymics$ Canadian seed skaters
showed their rowess at the 199F Billehammer %lymics, where they
catured one !ron>e and three sil&er medals$ 2hey more than dou!led that at
the 1997 -inter %lynic ?ames in =agano with 'i&e medals in the long-track
and 'our in short-track$ Canada also e/cels in 'igure skating$ : &ast network
o' 'igure-skating clu!s throughout the country has roduced a long line o'
world and %lymic medalists, 'rom 9ar!ara :nn 4cott and *li>a!eth ;anley
to 2oller Cranston and Iurt 9rowning$ :mong the latest grou o' Canadians
to e/cel in international 'igure skating are *l&is 4toGko, who won a sil&er
47
Canada : A Profile
medal at the Billehammer ?ames and a gold medal at the -orld
Chamionshis in 199F, 199< and 1997+ and the airs team o' 4hae-Bynn
9ourne and ,ictor Iraat>, who won a !ron>e medals at the -orld
Chamionshis in !oth 1997 and 1997$ : relati&ely new sort that has
attracted a large 'ollowing in Canada is ringette$ ;ore than (<,000 Canadian
ringette cometitors lay on a!out 2,<00 teams$ 0n 1997, 2eam Canada and
2eam #inland, the world's two ringette owerhouses, toured *uroe in a
romotional 4ummit 4eries, laying in #inland, 4weden, ?ermany and
#rance$ 0n addition, Canada won gold medals at =agano in two new %lymic
sorts) snow!oarding and curling (women's)$ 9oth are enGoyed !y thousands
o' Canadians+ snow!oarding is one o' the 'astest-growing sorts in the nation,
and Canada's curlers num!er almost F00,000$ 2he 'irst @aralymic ?ames
were held in 4weden in 1976, with 12 countries cometing in aline and
cross-country e&ents$ :t the 1997 -inter @aralymic games in =agano, (2
countries cometed in three additional sorts) sledge hockey, sledge ice
racing, and !iathlon$ Canada has !een an early and committed suorter o'
the @aralymics, articiating since 1976$ 0t sent (2 athletes to =agano in
1997 and they returned with their !est-e&er result) 1< medals (one gold, nine
sil&er and 'i&e !ron>e)$
Sports 9ariet( : &ariety o' warm-weather sorts are layed in Canada$
2hese include swimming, sailing, windsur'ing, rowing, track and 'ield, tennis,
'oot!all, soccer, rug!y, 'ield hockey and gol'$ 4wimming is not only one o' the
most oular recreational sorts in Canada, it is also a owerhouse e&ent 'or
Canadian athletes in international cometition$ Canadians ha&e won more
than <0 %lymic medals in swimming e&ents since the 1912 4ummer ?ames
in 4tockholm and ha&e held numerous world records$ Canada's swim team
ended the 1997 -orld Cu short-course season in sectacular 'ashion,
winning eight medals including a gold 'or 5essica Aeglau o' ,ancou&er in the
women's 200 m !utter'ly$ Canada has also !een a world leader in
synchroni>ed swimming since the sort !egan more than <0 years ago$
4ynchroni>ed swimming reached 'ull medal status at the 1977 4ummer
%lymic ?ames, where Carolyn -aldo won two gold medals 'or Canada$ :t
the 9arcelona games in 1992, 4yl&ie #rCchette was awarded the gold, while
the duo o' @enny and ,icky ,ilagos catured the sil&er$ :t the :tlanta ?ames
in 1996, the Canadian team won a sil&er medal$ "owing has also enGoyed a
recent usurge in oularity in Canada 'ollowing tremendous success on the
international circuit$ Canada won 'our gold and one !ron>e in rowing at the
1992 9arcelona 4ummer ?ames, and 'ollowed u in the 1996 :tlanta
4ummer ?ames !y winning si/ medals$ 4occer, the world's most oular
sort, is now entrenched in Canada with a large !ase o' young cometitors
and a ro'essional league$ 2he sort o' !asket!all, in&ented !y Canadian
5ames =aismith, is also &ery oular in Canada, with almost 6<0,000
articiants$ 0n addition, the sort o' wheelchair !asket!all is one o' the most
oular sorts 'or athletes with a disa!ility$ 2he Canadian -omen's 2eam is
48
Canada : A Profile
the reigning -orld and @aralymic chamion$ 0n terms o' sectator aeal,
ro'essional !ase!all and 'oot!all rank with hockey at the to o' the list$ 2he
annual ?rey Cu game is traditionally one o' the most watched sorts e&ents
in Canada$ ;aGor-league !ase!all teams in ;ontreal and 2oronto attract
millions o' sectators e&ery season$ 0n 1992, the 2oronto 9lue 5ays !ecame
the 'irst team outside the Hnited 4tates to win the -orld 4eries$ 2he 9lue
5ays added to their 'ame !y winning the -orld 4eries again in 199($ 9ase!all
and so't!all are oular recreational sorts in Canada, with countless local
teams and leagues in oeration in the summer and autumn$ 2he Aeartment
o' Canadian .eritage, through 4ort Canada, ro&ides 'unding and suort to
high-er'ormance sorting e/cellence and 'airness in sort$ 0t contri!utes to
the hosting o' amateur cometitions--international, national and
interro&incial$ 0t works with artners to suort Canadian athletes and to link
sort organi>ations at the community, ro&incial and national le&els$
International Role -ith more than 60 national teams articiating in
international cometition, Canada has a wealth o' technical and
administrati&e sort e/ertise that it shares with other countries through
&arious rograms and e/changes$ Canada has hosted almost e&ery maGor
international sorts cometition) the 4ummer and -inter %lymics,
Commonwealth ?ames, @an-:merican ?ames, -orld Hni&ersity ?ames, and
4ecial %lymics$ 2he 1999 @an-:merican ?ames will !e taking lace in
-innieg$ 0n 2001, Canada will host its 'irst 5eu/ de la #rancohonie in
%ttawa-.ull$
T#e $'t're =othing unites Canadians like sort$ %&er 9 million Canadians
articiate regularly in one or more sorts at some le&el$ ;ore than anything
else, sort re'lects what Canadians &alue most) the ursuit o' e/cellence,
'airness and ethics, inclusion, and articiation$ Canada also suorts
international e&ents !ecause during such e&ents the whole world !ecomes a
glo!al &illage, united in its lo&e o' sort and in its areciation 'or the
e/cellence o' all athletes$ 2he 'ederal go&ernment recently announced
additional 'unding 'or sort o' M10 million a year o&er 'i&e years$ 2hese 'unds
will directly suort high-er'omance athletes, emloy additional 'ull-time
coaches, and ro&ide additional oortunities 'or athletes to train and
comete$
49
Canada : A Profile
TH! ARTS
2hroughout the world, Canada is resected 'or its achie&ements in the arts$ 0n
music, dance, literature, theatre, cinema and &isual arts Canadians are held
in high regard$
M'sic 2he talents o' Canadian musicians can !e heard in all tyes o' music$
9ryan :dams, CCline Aion, 4arah ;cBachlan, Beonard Cohen, "och ,oisine
and Aaniel Ba&oie are oular with rock 'ans all o&er the world$ 2he grou
Iashtin has added ;ontagnais to the list o' languages in which Canadians
songwriters and er'ormers can !ecome 'amous$ ;ontreal's world-renowned
annual Ga>> 'esti&al is a must on the itinerary o' all Ga>> 'ans$ 4uch grous as
HN*9 ha&e taken their lace among the world's most cele!rated Ga>>
ensem!les$ %scar @eterson is considered one o' the all-time Ga>> greats,
while others, such as Borraine Aesmarais, %li&er 5ones, Iaren 6oung, ;ichel
Aonato and *d 9ickert, are now !uilding reutations 'or themsel&es$ 0n the
area o' classical music, a num!er o' Canadian cities ha&e their own
symhony orchestras and there are many smaller ensem!les, such as 0
;usici and 2a'elmusik$ Hnder the !aton o' Charles Autoit, ;ontreal's
4ymhony %rchestra has earned an imressi&e collection o' ri>es and
distinctions$ :mong classical er'ormers, ?len ?ould is widely regarded as
an inno&ati&e, musical genius$ :rtists such as :ngela .ewitt, %'ra .arnoy,
Bouis Bortie and 9en .ener ha&e already gained international renown$
%era lo&ers need not look !eyond Canada's !orders 'or e/cellence$
;aureen #orrester, 5on ,ickers and Bouis 3uilico ha&e le't a rich legacy,
while ?ino 3uilico, "ichard ;argison, and 5udith #orst are e/tending the
tradition with e/citing inno&ations o' their own$ 2he ,ancou&er %era
:ssociation, the Canadian %era Comany, #9O.:ra de Montr:al and others
are known 'or the originality and 1uality o' their er'ormances$
Dance 2hree large Canadian !allet comanies er'orm on the international
circuit) the "oyal -innieg 9allet+ the ;rands Ballets Canadiens+ and the
=ational 9allet o' Canada$ 2hey ha&e !een the home !ase and steing
stone to international careers 'or dancers such as Iaren Iain and *&elyn
.art$ #ans o' modern dance throughout the world are delighted !y the
er'ormances o' Canadian troues that include) Ba Ba Ba .uman 4tes+ the
2oronto Aance 2heatre+ the Aesrosiers Aance 2heatre+ and % ,ertigo$ *&ery
year, a growing num!er o' indeendent choreograhers and dancers mount
er'ormances in Canada and a!road$ :mong this grou o' more than 1<0 are
;argie ?illis, ;arie Chouinard, ?inette Baurin, 5udith ;arcuse, @eggy 9aker
and 5ean-@ierre @errault$
50
Canada : A Profile
Literat're Canadian literature tells the story o' Canada, in all its richness
and di&ersity$ Canadian no&elists, essayists, laywrights and oets such as
?a!rielle "oy, 5ac1ues #erron, ;argaret :twood, "o!ertson Aa&ies, :lice
;unro, :nne .C!ert, 6&es 9eauchemin, :rlette Cousture, ;ichel 2rem!lay,
5ac1ues ?od!out, .u!ert :1uin, ?aston ;iron, =orthro #rye, ;ichael
%ndaatGe, =ancy .uston, 2omson .ighway and ;ordecai "ichler ha&e gi&en
&oice to the deeest thoughts and 'eelings o' Canadians$
T#eatre 0' all the world is a stage, Canada's role on that stage is rominent
and much admired$ 2he comelling nature and high 1uality o' Canadian
theatre is recogni>ed internationally$ 2he 4haw and 4trat'ord 2heatre
'esti&als are well known a!road$ 3ue!ec theatre has !ecome increasingly
oular !oth at home and a!road in recent years, thanks in good measure to
the lays o' ;ichel 2rem!lay, which ha&e now !een translated into more than
20 languages$ Canadian theatre is distinguished !y its inno&ati&e sirit and
search 'or new 'orms$ Comanies such as Carbone *<, /B/ and %ne yellow
"a!!it tour the world and recei&e critical acclaim where&er they go$ %thers,
like ?reen 2hum!, #es (eu= Mondes and ;ermaid ha&e channelled their
energies into creating outstanding children's theatre$ 2he Cir3ue du Soleil
has !een re&olutioni>ing entertainment under its yellow and !lue !ig to since
197F$ ;illions o' eole around the world ha&e mar&elled at its sectacular
roductions, which !lend theatre, acro!atics and music$
Cinema Canadian cinema is known throughout the world 'or its uni&ersality
and rele&ance$ 0nternational acclaim has !een recei&ed !y 'ilmmaker Aa&id
Cronen!erg 'or his 'ilm, Naked #unch+ !y Aenys :rcand 'or his 'ilms, (ecline
of the American Em.ire and 5esus of Montreal+ !y :tom *goyan 'or he
Sweet 8ereafter- !y roducer BCa @ool 'or Anne rister- and !y the late 5ean-
Claude Bau>on 'or #:olo and Ni$ht >oo$ 2he =ational #ilm 9oard (=#9), and
=orman ;cBaren, in articular, ha&e esta!lished Canada as an artistic 'orce
in the 'ield o' animation$ 2he =#9 has !een nominated 'or 61 %scars and has
won 10$ #rederick 9ack's 1977 %scar-winning animated work, he Man ?ho
Planted rees) is a !rilliant continuation o' this tradition$ Comuter-image
animation is now ro&iding 'ertile ground 'or the imaginations and talents o'
Canadian artists in this 'ield$
9is'al Arts #rom the landscaes o' Cornelius Iriegho'' and the ortraits o'
2hCohile .amel to the multidiscilinary works o' ;ichael 4now and the
hyerrealism o' :le/ Col&ille, the tradition o' &isual arts in Canada is rich and
&aried$ *arly in this century, the ?rou o' 4e&en catured the maGestic
Canadian landscae as ne&er !e'ore$ .ere emerged a uni1uely Canadian
&iew o' our land, our skies and our magical light$ EBet there !e room 'or
magic, room 'or hoe, room 'or imaginati&eness,E roclaimed Canadian
ainter @aul-Rmile 9orduas in 19F7, introducing his %efus $lobal$ 2his
51
Canada : A Profile
mani'esto, signed !y 1F artists, called 'or the a!andonment o' academicism
and the ad&ent o' a new social order+ 9orduas and his grou, the :utomatists,
ad&ocated non-o!Gecti&ity in art$ 0n this track, ainters :l'red @ellan and 5ean-
@aul "ioelle mo&ed away 'rom 'igurati&e reresentation$ 2he aintings o'
5ean-@aul Bemieu/, on the other hand, remained 'aith'ul to 'iguration$ Auring
the 1960s another style, leaning toward geometrical a!straction, was
introduced !y Canadian artists ?uido ;olinari, 6&es ?aucher and Claude
2ousignant$ 0n 2oronto, @ainters *le&en was 'ormed !y 5ock ;acAonald,
5ack 9ush, -illiam "onald and eight other a!stract ainters$ ;ore recently,
artists such as @aterson *wen, E?eneral 0deaE and 5e'' -all ha&e drawn
international attention to Canadian art$ 2hese artists use &arious modern
techni1ues, such as electronics and &ideo, to e/ress themsel&es$ 2oday,
new &isions are !eing resented !y Canadian artists such as ?ene&iS&e
Cadieu/, ;el&in Charney, 4tan Aouglas and 5ana 4ter!ak$ 4ince 197F,
Canadian 0nuit artists ha&e roduced a !rilliant art in car&ings o' stone, i&ory,
antler and whale!one, as well as drawings, aintings and rints$ 4uch artists
as car&er Iaroo :she&ak, rintmakers @udlo, @arr and 5essie %onark create
works that, while they em!race the 'orms and techni1ues o' the *uramerican
artist, are distinctly reresentati&e o' their own culture and their uni1ue
ercetion o' the Canadian Elandscae$E Canada's nati&e artists such as
.aida scultor 9ill "eid and ainters :le/ 5an&ier and =or&al ;orrisseau
reach dee into the traditions and techni1ues o' their ancestors, while
continually e/anding their &ision to create works that are uni&ersally
comelling$
52
Canada : A Profile
.OM!N
-omen ha&e a long history o' acti&e in&ol&ement in all asects o' Canadian
li'e$ 0n 1917, a'ter a long struggle, they won the right to &ote in 'ederal
elections$ 0n 1929, they heled o&erturn a re&ious court ruling that !arred
women 'rom aointments to the 4enate on the grounds that they were not
EersonsE within the meaning o' the law$ 2here ha&e !een remarka!le
changes to society and to the li&es o' Canadian women since then$ 0n 1929,
less than F ercent o' women worked outside the home+ in 1991, 60 ercent
were in the la!our 'orce$ 0n re&ious generations, a tyical Canadian 'amily
had a 'ather as the only !readwinner and a mother working unaid in the
home, looking a'ter the children and shouldering the resonsi!ility 'or
household tasks$ 0n 1992, only 16 ercent o' all Canadian 'amilies were still o'
this tye$ -hile the redominant 'amily tye is now the dual-earner coule,
with or without children, 16 ercent o' 'amilies are headed !y a lone 'emale
arent$ @erhas the most remarka!le change in recent years has !een the
increased num!er o' mothers who ha&e young children and work outside their
homes$ : record 69 ercent o' mothers in two-arent 'amilies with children
under age si/ are now in the aid la!our 'orce, while F7 ercent o' lone
arent mothers with young children are in the same situation$ =ot
surrisingly, these raid changes in 'amily li'e ha&e 'ocussed attention on
child care and the !alancing o' work and 'amily resonsi!ilities$ 0t is estimated
that 60 ercent o' 'amilies with children younger than 1( need some
sulemental child care while the arents are at work$ 2he 'ederal
go&ernment ro&ides more than M1 !illion a year in suort o' child care
through ta/ deductions and allowances$ 0n the 1997 9udget, the ?o&ernment
o' Canada allocated an additional M600 million in child !ene'its 'or low income
'amilies$ :ll Gurisdictions in Canada gi&e women a statutory right to take
maternity lea&e without enalty, usually 'or a eriod o' 17 weeks$ :n
additional eriod o' 2F weeks' arental lea&e, which may !e taken !y either
arent, is a&aila!le to certain workers, mostly in the 'ederal u!lic ser&ice,
!anks, and transortation and communications comanies$ -hile these
rights are 'or unaid lea&e, the *mloyment 0nsurance @rogram ro&ides 1<
weeks o' maternity !ene'its 'or mothers and 10 weeks o' arental !ene'its 'or
natural or adoti&e arents$
.omen and T#e !conom( -omen now account 'or F< ercent o' the
Canadian la!our 'orce, comared with (6 ercent in 197<$ 0n 'act, women
accounted 'or almost three-1uarters o' all growth in emloyment !etween
197< and 1991$ .owe&er, women still tend to !e concentrated in lower-aying
occuations$ %n the other hand, the num!er o' women who are emloyed in
their own !usinesses has increased 172 ercent since 197<$ -omen now
make u (0 ercent o' all sel'-emloyed ersons in Canada$ : wage ga
53
Canada : A Profile
ersists !etween women and men in the la!our 'orce) women working 'ull-
time 'or a 'ull year in 199( earned, on a&erage, 72 ercent o' what men
earned$ *1ual ay 'or work o' e1ual &alue laws ha&e !een in lace at the
'ederal le&el 'or more than a decade, and se&eral ro&inces are also trying to
integrate ay e1uity legislation in their Gurisdictions, to which most Canadian
workers are su!Gect$ 2he laws are !ased on an e&aluation o' Go!s that takes
into account the skill, e''ort and resonsi!ility re1uired to do a Go!, and the
conditions under which the work is er'ormed$ *mloyers with more than 100
emloyees and those who want to do !usiness with the 'ederal go&ernment
also 'all under a rogram o' emloyment e1uity$ *mloyers are re1uired to
reort annually on their rogress in integrating women and other target
grous into their work'orces$ :!out one-1uarter o' emloyed women work
art-time$ 0n 'act, 69 ercent o' all art-time workers are women$ 2here is a
growing trend to art-time work in the Canadian economy, articularly in the
ser&ice sector, where the maGority o' women work$ 0ncreasingly, in Canada as
elsewhere, a E'emini>ation o' o&ertyE articularly a''ects lone 'emale arents
and their children, as well as elderly women$ -omen who head lone arent
'amilies are now among the oorest o' the oor) almost 62 ercent o' 'amilies
li&ing in o&erty are headed !y lone 'emale arents$ @o&erty rates among the
elderly ha&e !een declining, thanks to go&ernment rograms such as the %ld
:ge 4ecurity !ene'it and the ?uaranteed 0ncome 4ulement$ .owe&er,
elderly women, esecially those who ha&e ne&er !een in the la!our 'orce, still
'ace economic challenges$ %ne o' the keys to women's economic e1uality is
imro&ed access 'or women and girls to education and training oortunities$
%' all women aged 1< and o&er, F0 ercent ha&e a high school diloma or
!etter$ %&er 10 ercent o' women hold a uni&ersity degree$ -omen make u
more than <( ercent o' 'ull-time undergraduate students at Canadian
uni&ersities$ #ederal, ro&incial and territorial go&ernments ha&e !een
working together to eliminate se/ual stereotying in school curricula,
te/t!ooks and career counselling$ 2hey also encourage greater articiation
!y women and girls in non-traditional discilines such as mathematics,
science and technology$
.omen and 0overnment 4ince 197<, the Charter o' "ights and #reedoms,
art o' Canada's Constitution, has guaranteed e1ual rights to women and
men as well as secial measures to correct ast discrimination on the !asis o'
se/$ Aiscrimination is also rohi!ited in the human rights acts o' the 'ederal
go&ernment and all 10 ro&inces$ Canada is also committed to se&eral
international agreements, esecially the 197< Hnited =ations Con&ention on
the *limination o' :ll #orms o' Aiscrimination against -omen, and the =airo!i
#orward-Booking 4trategies$ ?ender e1uality is also !eing sought through
work with other international organi>ations such as the Commonwealth and
the %rgani>ation 'or *conomic Co-oeration and Ae&eloment (%*CA)$
-omen are increasingly !ecoming acti&e in olitics at all le&els$ 0n the 199(
'ederal election, <( women were elected to the 29<-seat .ouse o' Commons -
54
Canada : A Profile
the highest num!er in Canada's history$ -omen ha&e e/tensi&e
reresentation at the municial le&el on city councils and school !oards$
.omen as Activists 2he achie&ement o' !asic olitical rights in the early
art o' this century set the stage 'or the much larger, more organi>ed women's
mo&ement o' today$ 0n the 1960s, indi&idual women and women's
organi>ations con&inced the 'ederal go&ernment to esta!lish the "oyal
Commission on the 4tatus o' -omen$ 2he Commission's landmark reort,
u!lished in 1970, was a !luerint 'or olicy and legislation to ensure e1uality
'or Canadian women$ 2here are almost 70 national women's organi>ations in
Canada and thousands o' ro&incial, regional and local women's grous$
Lookin% A#ead @rogress has !een made$ 0mro&ed olicies to hel women
as well as men !alance their aid emloyment with 'amily resonsi!ilities and
measures to address the needs o' lone arent 'amilies and &iolence against
women and children are riority issues$ 0n Gust the last 'ew years the
?o&ernment o' Canada has ut into lace new legislation on gun control,
child suort and rohi!itions against 'emale genital mutilation, created
centres o' e/cellence on women's health and introduced new olicies on
gender-sensiti&e medical research$ 2he task ahead is clear) to continue
initiating change and ensure that olicy makers at all le&els maintain their
e''orts to ad&ance the situation o' women on !oth a national and an
international le&el$
55
Canada : A Profile
CANADA - R!AD, $OR TH! .ORLD MARC!TS
2he secret o' success in this era o' trade glo!ali>ation lies in the caacity o'
national economies to adGust 1uickly so as to !ene'it 'rom the new
oortunities oening u on world markets$ Canada holds the keys to
success in the new economy) Canadian entrereneurs are at the 'ore'ront o'
key industrial and technological sectors+ our workers are skilled and mo!ile+
and the ?o&ernment o' Canada is an imortant artner in securing trade
oortunities and suorting "TA$ Hnder our 'ederal system, the Canadian
economic and olitical union 'acilitates adatation !ecause it allows the 'ree
circulation o' goods, ser&ices, technology, caital and eole$ 2he
?o&ernment o' Canada has undertaken to lay the 'oundation 'or an economy
that is more 'le/i!le and !etter adated to the challenges o' the ne/t
millennium) !y suorting "TA in key sectors - M2$<< !illion across Canada+
!y in&esting in artnershi with the ri&ate sector in key growth areas such as
en&ironmental technologies, ena!ling technologies and the aerosace
industry to increase our market share a!road and ensure economic growth at
home+ !y artnering with !usiness in seeking out 'oreign in&estment in
leading-edge and growth sectors through 0n&estment @artnershi Canada+ !y
signing an interro&incial trade agreement designed to increase the 'ree
mo&ement o' goods and ser&ices within Canada+ !y imlementing Canada
0n'rastructure -orks, the national in'rastructure rogram, which contri!utes to
the success'ul renewal o' our !asic in'rastructure$ 2eam Canada trade
missions led !y the @rime ;inister and ro&incialJterritorial leaders ha&e
gi&en Canadian 'irms the !oost they need to succeed in new markets$ 2o
date, 2eam Canada missions ha&e !rought home more than M22 !illion worth
o' !usiness deals, creating or sustaining high-&alue-added Go!s 'or
Canadians$ ,arious 3ue!ec comanies ha&e also car&ed out an en&ia!le
lace on the national and international scene$ 2hese enterrises include
9om!ardier, 4=C-Ba&alin, 4o't0mage, 9ioChem, 3uC!Ccor, Cascades,
Aomtar 0nc$ and 9ell .elicoter 2e/tron Canada$ : recent indeendent study
!y the consulting 'irm I@;? con'irmed that Canada's social rograms
reresent an imortant cometiti&e edge 'or Canadian !usinesses as well$
#or e/amle, emloyer-aid health insurance remiums in Canada amount to
only 1 ercent o' gross ay, comared with 7$2 ercent in the Hnited 4tates$
Aocument 0A)
56
Canada : A Profile
CHAPT!R 3
!CONOMIC TR!NDS AND OUTLOOC
2he Canadian economy slowed to 2$( ercent in 199<, a'ter growing !y a si/-
year high o' F$1 ercent in 199F$ */orts o' goods and ser&ices remained
strong, while the domestic economy was weak$
Consumer sending was cut in hal' in 199<, articularly 'or automo!iles,
household goods and clothing$ Aemand 'or new and e/isting homes droed
su!stantially, and residential in&estment 'ell 1<$1 ercent$ :s a result,
household !orrowing 'or !oth consumer credit and mortgages declined$ %ne
o' se&eral 'actors accounting 'or sluggish sending was the aggregate le&el o'
Canadian household de!t$ 2he ratio o' consumer credit and mortgage de!t
to ersonal income -- on the rise 'or 11 consecuti&e years -- reached a
historic high o' 9( ercent at the end o' 199<$ %n-going emloyment worries
and small wage gains also continue to restrain sending$ 9usiness
in&estment in lant and e1uiment decelerated 'rom a 9$F ercent gain in
199F to <$2 ercent in 199<$ 2he slowdown came 'rom a <$6 ercent dro in
non-residential construction, as in&estment in machinery and e1uiment rose
10$9 ercent$ : 12 ercent gain in e/orts in 199< was largely concentrated
in high-tech manu'actured roducts, !ut did not hel are down in&entories,
which rose !y CM1$9 !illion (aro/imately H4M1$F !illion) to CM<$6 !illion
(aro/imately H4MF$1 !illion) in 199<$ 2his in&entory o&erhang could a''ect
industrial emloyment in the short-term$
0n the 'irst 1uarter o' 1996, the Canadian economy grew !y an annuali>ed
rate o' 1$2 ercent$ 0n contrast to re&ious 1uarters, e/ternal trade was a
drag on the economy, while domestic demand re!ounded$ 2he latter was the
result o' so'tening credit conditions, low in'lation and higher than normal
go&ernment trans'ers to -estern grain 'armers$ 2he *conomic 4ection's
'orecast o' the Canadian economy in 1996 calls 'or weak domestic demand
on a&erage, although some imro&ement is roGected in line with ongoing low
interest rates and an utick in housing starts !oosting the sale o' !ig-ticket
items such as household 'urniture and aliances$ : slowdown in e/orts is
'orecast in line with slower growth in key e/ort markets$ 2he *conomic
4ection 'orecasts Canadian outut at around 1$7 ercent 'or all o' 1996,
rising to 2$< ercent in 1997$ Canada@s unemloyment rate, which stood at
9$F ercent in ;ay 1996, is unlikely to decline as any rise in emloyment will
most likely increase the articiation rate$ 0n'lation, 1$F ercent in ;ay 1996,
57
Canada : A Profile
is 'orecast to remain in the lower end o' the 9ank o' Canada@s one to three
ercent target !and$
Principal 0ro/t# Sectors
?rowth is e/ected in se&eral sectors, including wheat e/orts,
etrochemicals, oil and gas, high-technology, !iotechnology and geology$ 0n
addition, machinery and e1uiment in&estment should remain strong as
ongoing ugrading o' Canadian manu'acturing lants and e1uiment
continues$ 4er&ices are e/ected to continue to grow in relati&e terms, with
articular emhasis on tourism and transortation and storage$
0overnment Role in t#e !conom(
Canada is the world's se&enth-largest market economy$ @roduction and
ser&ices are redominantly ri&ately owned and oerated$ .owe&er, the
'ederal and ro&incial go&ernments are signi'icantly in&ol&ed in the economy$
2hey ro&ide a !road regulatory 'ramework and engage in redistri!ution o'
wealth 'rom high-income indi&iduals and regions, to lower-income ersons
and ro&inces$ #ederal go&ernment economic olicies since the mid-1970s
ha&e emhasi>ed the reduction o' u!lic sector inter'erence in the economy
and the romotion o' ri&ate sector initiati&e and cometition$ 9oth 'ederal
and ro&incial go&ernments also ri&ati>ed selected Crown cororations$
=e&ertheless, 'ederal go&ernment regulatory regimes a''ect 'oreign
in&estment and also H$4$ 'irms in the telecommunications, u!lishing, and
'inancial ser&ices sector$
-alance o) Pa(ments Sit'ation
0n recent years, Canada has run a large current account de'icit e&en though
its merchandise trade is in surlus$ :s a traditional imorter o' ser&ices
(esecially tourism), Canada also hosts a &ery large amount o' 'oreign
in&estment on which di&idends are aid, and has had to ser&ice a large
'oreign de!t$ 2he growth in its trade surlus has, howe&er, !rought down the
current account de'icit$ 0n 199<, Canada@s current account de'icit droed to
CM11$2 !illion (aro/imately H4M7$2 !illion) 'rom CM22$2 !illion
(aro/imately H4M16$( !illion) in 199F, and was CM7$7 !illion (aro/imately
H4M<$7 !illion) at a seasonally adGusted annual rate in the 'irst 1uarter o'
1996$ :t the same time, Canada@s glo!al merchandise trade surlus was
CM27$F !illion (aro/imately H4M20$9 !illion) in 199< and CM27 !illion
(aro/imately H4M20$6 !illion) at a seasonally adGusted annual rate in the
'irst 1uarter o' 1996$ : slowdown in domestic in&estment (!ut not sa&ings),
sta!ili>ation o' out'lows 'or de!t ser&ice, and the growth o' the merchandise
58
Canada : A Profile
trade !alance could roduce a current account surlus in 1997$ 2his
turnaround is remarka!le, considering that in 199( the current account de'icit
e1ualed 'our ercent o' ?A@$
2he !ulk o' Canada@s current account transactions is with the Hnited 4tates$
Canada traditionally records a merchandise trade surlus with the Hnited
4tates, !ut generally has an o''setting non-merchandise trade de'icit$
Canada@s !ilateral in&estment income account, which is comosed o' interest
and di&idends, holds the single largest de'icit within the non-merchandise
trade comonent$ Canada@s large and growing e/ternal de!t, much o' which
is held !y H$4$ residents, gi&es rise to an outward 'low o' de!t ser&ice
(interest) ayments$ :t the same time, there is a large amount o' H$4$ 'oreign
direct in&estment in Canada that results in high di&idend ayments !y
Canadian su!sidiaries to their H$4$ arents$
IN$RASTRUCTUR! SITUATION
12 Transportation In)rastr'ct're
Canada@s transortation systems are highly de&eloed$ Canada@s most
imortant means o' transortation 'or 'reight and !ulk goods is its railways+
howe&er, long distance trucks now carry a su!stantial share o' all
merchandise$
=a> Rail/a(s
2he two great transcontinental systems, the Canadian =ational "ailway and
the Canadian @aci'ic "ailway Comany, ro&ide most o' the rail
transortation$ 9oth systems ha&e e/tensi&e sulementary 'acilities 'or
highway and waterway transort, telecommunications, and storage$ "egional
lines sulement the transcontinental lines$
="> Motor $rei%#t
:ided !y an e/anding network o' a&ed highways and deregulation, truck
transort is generally cometiti&e with rail transort$ 2he ro&inces ha&e
Gurisdiction o&er highways in Canada$ Common carriers are re1uired to
o!tain a license 'rom the Aeartment o' .ighways and 2ransort o' the
ro&ince in which tra&el occurs$
59
Canada : A Profile
0n 5anuary 1977, the ;otor ,ehicle 2ransort :ct went into e''ect, easing
entry into the Canadian market 'or H$4$ 'irms$ 2ruckers who wish to cross
ro&incial and international !orders no longer must ro&e that their ser&ice is
consistent with u!lic con&enience and necessity$ Hntil 199(, e/isting
trucking comanies could !lock new entrants$ 9eginning in 199(, new 'irms
may enter the market or e/isting 'irms may e/and i' they are 'it, willing, a!le,
and meet !asic insurance and sa'ety re1uirements$
H$4$ 'irms may shi goods o' their own manu'acture to destinations in Canada
in their own trucks$ .owe&er, they may not carry other goods, !ack-haul to
the Hnited 4tates, or act in any way as a common carrier$ .owe&er, some
states ha&e recirocal arrangements with some Canadian ro&inces to do so$
2o determine what arrangements are in e''ect, contact the local o''ice o' the
H$4$ 0nterstate Commerce Commission (0CC) or the aroriate Canadian
ro&incial deartment or ;inistry o' 2ransortation$ -here no arrangement is
in e''ect, the trucker will !e re1uired to urchase a one-tri license at the 'irst
weigh station a'ter crossing the !order$
=c> .ater Transport
:lthough seasonally restricted !y 'ro>en waterways, watertransort is widely
used as a conse1uence o' Canada@s uni1ue geograhical osition$ Canada
is !ordered !y the :tlantic and the @aci'ic %ceans$ 2he 4t$ Bawrence
4eaway e/tends inward 'or more than 2,000 miles along its southern !order$
H$4$ 'irms carry a!out 2< ercent o' all Canadian water-transorted e/orts
and a!out hal' o' its water-transorted imorts$
Canada has 2< large dee-water orts and a!out 6<0 smaller orts and
multiurose go&ernment whar&es on the east and west coasts, along the 4t$
Bawrence 4eaway and ?reat Bakes, in the :rctic, and on inland lakes and
ri&ers$ Current go&ernment lans call 'or the commerciali>ation o' u!lic
orts$ @orts considered &ital to domestic and international trade will !e
managed !y Canada @ort :uthorities made u o' reresentati&es 'rom
industry, la!or and go&ernment$ "egionalJlocal orts will !e trans'erred to
ro&incialJmunicial go&ernments, community organi>ations, ri&ate interests
or other grous$ 0mlementing legislation was introduced in the Canadian
@arliament on 5une 11, 1996$
2he leading Canadian orts, listed in aro/imate order o' tons o' cargo
loaded and unloaded, are) ,ancou&er, 9ritish Colum!ia+ 4et-0les-@ointe-
=oire, 3ue!ec+ @ort Cartier, 3ue!ec+ 4aint 5ohn, =ew 9runswick+ ;ontreal,
3ue!ec+ 3ue!ec City, 3ue!ec+ .ali'a/, =o&a 4cotia+ .amilton, %ntario+
60
Canada : A Profile
@rince "uert, 9ritish Colum!ia+ @ort .awkes!ury, =o&a 4cotia+ and 2hunder
9ay, %ntario$ Container tra''ic can !e handled at a num!er o' these orts,
including ;ontreal, .ali'a/, 4t$ 5ohn, and ,ancou&er$
=d> Aviation
:ir connections !etween the Hnited 4tates and Canada are e/tensi&e, with
well-de&eloed 'acilities 'or 'reight and assenger tra''ic$ :ir transort on
H$4$ carriers 'rom the Hnited 4tates and Canada is ro&ided !y se&eral
comanies$ Aomestic ser&ice is o''ered !y a num!er o' airlines$
%n #e!ruary 2F, 199< a new !ilateral :ir 2ransort :greement was signed
with Canada$ 2he new accord immediately eliminated most restrictions on air
ser&ice !etween the two countries and will &irtually deregulate the trans!order
market o&er the ne/t three years$ -hile the :greement gi&es Canadian
airlines a head start at 2oronto, ;ontreal and ,ancou&er o' u t o three years
to ut the Canadian airline industry in a !etter osition to meet the 'ull 'orce
o' H$4$ airline cometition, maGor new oortunities are granted H$4$ carriers
during this hase-in eriod$ :'ter the three-year hase-in eriod, any H$4$ or
Canadian airline can ser&e any cross-!order route$
Hnder a !ilateral agreement signed in 197F, H$4$ insection agencies
(Customs and 0=4) oerate reclearance 'acilities at si/ airorts in Canada
(2oronto, ,ancou&er, ;ontreal, Calgary, *dmonton and -innieg)$
32 T!L!COMMUNICATIONS IN$RASTRUCTUR!
Communications are highly sohisticated in Canada, comara!le with those
o' the Hnited 4tates$ Canada is integrated with the H$4$ direct long-distance
dialing system (dial 1, area code and num!er)$ :ll 'orms o' communication
are ossi!le (including &oice, te/t, data, and &ideo), and worldwide
telegrahic ser&ices are a&aila!le$ Cellular and satellite communications are
also ossi!le in Canada$
2 IN9!STM!NT CLIMAT!
-ith 'ew e/cetions, Canada o''ers 'oreign in&estors 'ull national treatment
within the conte/t o' a de&eloed oen market economy oerating with
democratic rinciles and institutions$ Canada is, howe&er, one o' the 'ew
%*CA countries that still has a 'ormal in&estment re&iew rocess, and 'oreign
in&estment is rohi!ited or restricted in se&eral sectors o' the economy$
61
Canada : A Profile
Canada@s economic de&eloment has deended a great deal on 'oreign
in&estment in'lows$ #our 'oreign-owned 'irms rank among the to ten 'irms in
Canada in terms o' re&enue, and the Canadian go&ernment estimates that
'oreign in&estors control a!out one-1uarter o' total Canadian non-'inancial
cororate assets$ 2he stock o' 'oreign direct in&estment in Canada in 199F
was e1ui&alent to 20 ercent o' ?A@$ =et 'oreign direct in'lows in 199F
amounted to roughly one ercent o' ?A@$
Canada has no restriction on outward 'oreign in&estment, and Canadian
'irms ha&e a signi'icant resence in the Hnited 4tates
4ince the !eginning o' 199F, in&estment relations !etween the Hnited 4tates
and Canada ha&e !een go&erned !y the =:#2: negotiated !y the Hnited
4tates, Canada and ;e/ico$ 2he #2:, which entered into 'orce at the
!eginning o' 1979, has !een susended as long as the two countries remain
arties to the =:#2:$ 2he =:#2: !uilds on the in&estment relationshi
created in the #2:$ 0n the #2:, the Hnited 4tates and Canada agreed on
imortant 'oreign in&estment rinciles, including right o' esta!lishment and
national treatment$ 2he #2: recogni>ed that a hosita!le and secure
in&estment climate was indisensa!le i' the two countries were to achie&e the
'ull !ene'its o' reducing !arriers to trade in goods and ser&ices$
2he #2: esta!lished a mutually !ene'icial 'ramework o' in&estment rinciles
sensiti&e to the national interests o' !oth countries, with the o!Gecti&e o'
assuring that in&estment 'lowed 'reely !etween the two countries and that
in&estors were treated in a 'air and redicta!le manner$
2he #2: ro&ided higher re&iew thresholds 'or H$4$ in&estment in Canada
than 'or other 'oreign in&estors, !ut it did not e/emt all H$4$ in&estment 'rom
re&iew nor did it o&erride seci'ic 'oreign in&estment rohi!itions, nota!ly in
the cultural area$ 2he =:#2: incororates the gains made in the #2:,
e/ands the co&erage o' the 0n&estment Chater to se&eral new areas and
!roadens the de'inition o' in&estors with rights under the :greement, and
creates the right to !inding in&estor-4tate disute settlement ar!itration under
limited circumstances$
%@*==*44 2% #%"*0?= 0=,*42;*=2
12 0eneral Attit'de
Canada has long !een considered a sta!le and remunerati&e en&ironment 'or
'oreign in&estment, and its economic rogress has !een made ossi!le to a
62
Canada : A Profile
large e/tent !y a sustained in'low o' 'oreign caital$ 4ince 197<, 'oreign
in&estment olicy in Canada has !een guided !y the 0n&estment Canada :ct
which relaced the more restricti&e #oreign 0n&estment "e&iew :ct$ 2he
0n&estment Canada :ct li!erali>ed Canadian olicy on 'oreign in&estment !y
recogni>ing that in&estment is central to economic growth and new
emloyment oortunities and is the key to technological ad&ancement$ :t
the same time, it ro&ided 'or a re&iew o' large ac1uisitions in Canada !y
non-Canadians and imosed a re1uirement
that they !e o' net !ene'it to Canada$ #or the &ast maGority o' small
ac1uisitions and the esta!lishment o' new !usinesses, non-Canadian
in&estors need only noti'y the Canadian go&ernment o' their in&estment$
-hile the 0n&estment Canada :ct ro&ides the !asic legal 'ramework 'or
'oreign in&estment in Canada, 'oreign in&estment in seci'ic sectors may !e
co&ered !y secial legislation$ #or e/amle, 'oreign in&estment in the
'inancial sector is go&erned !y laws administered !y the 'ederal Aeartment
o' #inance, and the 9roadcast :ct go&erns 'oreign in&estment in radio and
tele&ision !roadcasting$ Hnder ro&isions o' Canada@s new
2elecommunications :ct, 'oreign ownershi o' transmission 'acilities is limited
to 20 ercent, while in the case o' holding comanies that wish to in&est in
Canadian carriers, two-thirds o' the holding comany's e1uity must !e owned
and controlled !y Canadians$
Canada@s 'ederal system o' go&ernment su!Gects in&estment to ro&incial as
well as national Gurisdiction$ @ro&incial restrictions on 'oreign in&estment
di''er !y ro&ince, !ut are largely con'ined to the urchase o' land and to
certain tyes o' ro&incially regulated 'inancial ser&ices$ 0n addition,
@ro&incia l go&ernment olicies in the areas o' la!or relations and
en&ironmental rotection, 'or e/amle, can ha&e an imortant imact on
'oreign in&estors$
2 Investment Canada Act
Hnder the 0n&estment Canada :ct, the ;inister o' 0ndustry is resonsi!le 'or
encouraging and 'acilitating in&estment and assuring that 'oreign in&estment
is o' net !ene'it to Canada$ 2o this end, the 'ederal deartment known as
0ndustry Canada manages the 'oreign in&estment noti'ication and re&iew
rocess to ensure con'ormity with the legislation$
-hat is re&iewa!leU
63
Canada : A Profile
-here control o' a 'oreign in&estor ultimately rests in a country that is a
mem!er o' the -2%, the direct ac1uisition o' control o' a Canadian !usiness
that has assets o' CM160 million (aro/imately H4M117 million) or more is a
re&iewa!le transaction$ -here control o' the 'oreign in&estor is ultimately in a
country that is not a -2% mem!er, the direct ac1uisition o' control o' a
Canadian !usiness that has assets greater than CM< million (aro/imately
H4M($6 million) is re&iewa!le, and the indirect ac1uisition o' control o' a
Canadian !usiness with assets greater than CM<0 million (aro/imately
H4M(6$7 million) is re&iewa!le$ :s a result o' Canada@s imlementation o' its
Hruguay "ound commitments, =:#2: treatment was e/tended to all -2%
in&estors in all sectors e/cet those e/cluded under the =:#2:$
:c1uisitions in cultural industries (i$e$, u!lication and distri!ution o' !ooks,
maga>ines, &ideos, music recordings, etc$) !elow the thresholds listed a!o&e
and the esta!lishment o' new !usinesses in these cultural industries may !e
re&iewa!le i' the 'ederal go&ernment so decides$ :c1uisitions in which the
Canadian !usiness is in one o' three other sectors ('inancial ser&ices other
than insurance, transortation ser&ices and uranium roduction) are su!Gect
to the lower thresholds regardless o' the nationality o' the in&estor$
0' the transaction is not re&iewa!le, does the go&ernment re1uire anything
'rom the 0n&estorU
6es, in the case o' a direct ac1uisition o' a Canadian !usiness with assets
under CM160 million (aro/imately H4M117 million) !y a -2% in&estor, or
under CM< million (aro/imately H4M($6 million) in the case o' a 'oreign,
non--2% in&estor, the in&estment is noti'ia!le$ :ll indirect ac1uisitions !y
-2% in&estors are noti'ia!le as are indirect ac1uisitions !y non--2%
in&estors where the Canadian assets to !e ac1uired are less than CM<0
million (aro/imately H4M(6$7 million)$
:lso noti'ia!le is the esta!lishment o' a new !usiness in Canada !y an
in&estor making its 'irst in&estment in Canada or the esta!lishment o' a new
!usiness !y an e/isting in&estor where the new !usiness is unrelated to any
e/isting !usiness in Canada$ 0n these cases, the in&estor must noti'y 0ndustry
Canada and ro&ide some details o' the in&estment$ #or con&enience,
in&estors can use a two-age =oti'ication #orm$
-hat is not re&iewa!le or noti'ia!leU
64
Canada : A Profile
2here are many tyes o' in&estments to which the 0n&estment Canada :ct
does not aly$ #or e/amle, urchases o' Canadian !onds, stocks or other
in&estment instruments that do not in&ol&e the ac1uisition o' control are not
re&iewa!le or noti'ia!le, nor is the ac1uisition o' assets that do not constitute
a !usiness$ 0n&estments in related !usinesses are neither re&iewa!le nor
noti'ia!le$ 2hus, 'or e/amle, a manu'acturing !usiness can e/and a lant
or a mining comany can oen a new mine, without either re&iew or
noti'ication$ #or greater certainty, in&estors and others should consult
4ection 10 o' the 0n&estment Canada :ct$
.ow are the thresholds setU
#or -2% in&estors, the re&iew threshold is adGusted annually to re'lect
economic growth and in'lation in Canada$ #or non--2% in&estors, the
re&iew thresholds are 'i/ed$
%n what !asis are in&estments re&iewedU
"e&iewa!le in&estments are allowed to roceed i' they are likely to !e o' net
!ene'it to Canada$ 4et out !elow are the si/ 'actors o' net !ene'it)
(a) the e''ect o' the in&estment on the le&el and nature o' economic
acti&ity in Canada, including the e''ect on emloyment+ resource rocessing+
the utili>ation o' arts, comonents and ser&ices roduced in Canada+ and
on e/orts 'rom Canada+
(!) the degree and signi'icance o' articiation !y Canadians in the
Canadian !usiness and in any industry in Canada o' which it 'orms a art+
(c) the e''ect o' the in&estment on roducti&ity, industrial e''iciency,
technological de&eloment, roduct inno&ation and roduct &ariety in
Canada+
(d) the e''ect o' the in&estment on cometition within any industry or
industries in Canada+
(e) the comati!ility o' the in&estment with national and ro&incial
industrial, economic and cultural olicies+ and,
65
Canada : A Profile
(') the contri!ution o' the in&estment to Canada@s a!ility to comete in
world markets$
-ho makes the decision on whether an in&estment can roceedU
0ndustry Canada makes a recommendation to the ;inister o' 0ndustry, who in
turn, makes the 'inal decision$ 4ince the assage o' the 0n&estment Canada
:ct in 197<, the Canadian ?o&ernment has not 'ormally reGected any
re&iewa!le 'oreign in&estment roosal$ %n se&eral occasions, the
go&ernment re1uired the 'oreign in&estor to re-work the roosal to meet
0n&estment Canada@s net !ene'it test$ 2he mere e/istence o' a re&iew
rocess, as well as sectoral restrictions, resuma!ly discourages some
'oreign in&estors$
.ow long does the re&iew rocess takeU
2he legislation gi&es the ;inister an initial F< days to make a decision$ ;ost
cases are decided within this time 'rame$ .owe&er, there are ro&isions in the
legislation to e/tend the re&iew eriod$

66
Canada : A Profile
SP!CIAL TR!ATM!NT $OR U2S2 IN9!STM!NT
H$4$ 'oreign in&estment in Canada is su!Gect to the 0n&estment Canada :ct,
!ut the =:#2: 'urther de'ines the in&estment relationshi !etween the two
countries and adots the rincile o' national treatment$
2he !asic o!ligation assumed !y the two countries in Chater *le&en o' the
=:#2: is to ensure that 'uture regulation o' Canadian in&estors in the Hnited
4tates and o' H$4$ in&estors in Canada results in treatment no di''erent than
that e/tended to domestic in&estors within each country -- Enational
treatment$E 9oth go&ernments are comletely 'ree to regulate the ongoing
oeration o' !usiness enterrises in their resecti&e Gurisdictions under, 'or
e/amle, anti-trust law, ro&ided they do not discriminate$ 2his !asic
rincile is 1uali'ied on the !asis o' e/isting ractice and is translated into the
'ollowing seci'ic undertakings$
Canada retains the right to re&iew the ac1uisition o' 'irms in Canada !y H$4$
in&estors, !ut agreed to hase in higher threshold le&els 'or H$4$ in&estors$
#or 1992 and therea'ter (adGusted 'or in'lation), the re&iew threshold 'or direct
ac1uisitions is CM1<0 million (aro/imately H4M110$( million)+ the re&iew
threshold 'or indirect ac1uisitions was hased out entirely !eginning in 1992$
Canada agreed to e/tend these re&iew thresholds 'or the ac1uisition o'
ser&ice-sector 'irms to all signatories o' the ?eneral :greement on 2rade in
4er&ices$
2hese undertakings are rosecti&e+ 'or e/amle, they aly to 'uture
changes in laws and regulations only$ */isting laws, olicies and ractices
are Egrand'athered,E e/cet where seci'ic changes are re1uired$ 2he
ractical e''ect o' this was to 'ree>e the &arious e/cetions to national
treatment ro&ided in Canadian and H$4$ law (such as restrictions on 'oreign
ownershi in the communications and transortation industries)$ :dditionally,
!oth go&ernments remain 'ree to ta/ 'oreign-owned 'irms on a di''erent !asis
than domestic 'irms, ro&ided this does not result in ar!itrary or unGusti'ia!le
discrimination, and to e/emt the sale o' Crown (go&ernment-owned)
cororations 'rom any national treatment o!ligations$ #inally, the two
go&ernments retain some 'le/i!ility in the alication o' the national treatment
o!ligations$ 2hey need not e/tend identical treatment, as long as the
treatment is Ee1ui&alent$E 2he =:#2: also deals more seci'ically with the
'inancial ser&ices sector$ Chater #ourteen o' the =:#2: outlining 'inancial
ser&ices eliminates discriminatory asset and caital restrictions on H$4$ !ank
67
Canada : A Profile
su!sidiaries in Canada$ 0t also e/emts H$4$ 'irms and in&estors 'rom the
'ederal E10J2<E rule such that they will !e treated the same as Canadians$
2he rule continues to re&ent any single non-H$4$ non-resident 'rom ac1uiring
more than ten ercent o' the shares, and all such non-residents in the
aggregate 'rom ac1uiring more than 2< ercent o' the shares o' a 'ederally
regulated Canadian-controlled 'inancial institution$ 9oth the ten ercent and
the 2< ercent limitation were eliminated 'or H$4$ in&estors as regards
ac1uisitions o' 'ederally chartered non-!ank 'inancial institutions$ 4e&eral
ro&inces, howe&er, including %ntario and 3ue!ec, ha&e similar E10J2<E rules
'or ro&incially chartered trust and insurance comanies which were not
wai&ed under the #2:$ 2he ten ercent limitation on any indi&idual
shareholder -- whether Canadian or 'oreign -- will continue to aly to
in&estments in Canadian !anks$ 9ilateral ser&ices trade is largely 'ree o'
restrictions$ 2he =:#2: ensures that restrictions will not !e alied in the
'uture+ howe&er, e/isting restrictions were not a''ected !y the =:#2:$ 2he
ser&ices :greement is rimarily a code o' rinciles which esta!lishes
national treatment, right o' esta!lishment, right o' commercial resence, and
transarency 'or a num!er o' ser&ice sectors seci'ically enumerated in
:nne/es to the =:#2:$ 2he =:#2: also ledges !oth arties to e/and the
list o' co&ered ser&ice sectors$
2he =:#2: grants H$4$ 'irms oerating 'rom the Hnited 4tates national
treatment 'or most Canadian 'ederal rocurement oortunities$ .owe&er,
interro&incial trade !arriers e/ist which o'ten e/clude H$4$ 'irms esta!lished
in one Canadian ro&ince 'rom !idding on another ro&ince's rocurement
oortunities$ .owe&er, as a 'irst ste in the ongoing and di''icult rocess o'
reducing trade !arriers within Canada, the 'ederal, ro&incial and territorial
go&ernments negotiated an 0nternal 2rade :greement in 199F that came into
e''ect on 5uly 1, 199<$ 2he :greement ro&ides a 'ramework 'or dealing with
trade in ten seci'ic sectors and esta!lishes a 'ormal rocess 'or resol&ing
trade disutes$ 2he structure o' the :greement was insired !y the models
ro&ided !y the ?:22, the #2: and the =:#2:$
9esides the areas descri!ed re&iously, the =:#2: includes ro&isions that
enhance the a!ility o' H$4$ in&estors to en'orce their rights through
international ar!itration+ rohi!it a !roader range o' er'ormance
re1uirements, including 'orced technology trans'er+ and e/and co&erage o'
the in&estment chater to include ort'olio and intangi!le in&estments as well
as direct in&estment$
O.N!RSHIP R!STRICTIONS -, S!CTOR
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Canada : A Profile
:lthough most sectors o' the Canadian economy are oen to 'oreign
in&estment, there are se&eral sectors where 'oreign in&estment is limited or
rohi!ited$ 0n addition, there are se&eral sectors where ri&ate in&estment is
not ermitted at all$ 2wo sectors su!Gect to secial in&estment rules o'
articular concern to H$4$ in&estors are cultural industries and 'inancial
ser&ices$
(a) Cultural 0ndustries
Canada@s 'ear that its own cultural identity will !e o&erwhelmed !y
neigh!oring and ower'ul H$4$ cultural in'luences has resulted in restrictions
on 'oreign in&estment in Canadian cultural industries$ :t Canada@s
insistence, cultural industries were e/emted 'rom the ro&isions o' the #2:,
!ut the Hnited 4tates also o!tained the right to take measures o' Ee1ui&alent
commercial e''ectE against measures which would ha&e !een inconsistent
with the #2: e/cet 'or the cultural e/emtion$ 9oth o' these 'eatures were
retained in the =:#2:$
9ook u!lishing and distri!ution) 4ince 197<, 'oreign in&estment in the !ook
u!lishing and distri!ution sector has !een go&erned !y the E9aie ComeauE
olicy$ Hnder this olicy, direct 'oreign ac1uisitions o' Canadian-owned 'irms
in this sector were 'or!idden, new 'oreign in&estment was limited to a minority
osition, and 'oreign in&estors who ac1uired Canadian 'irms in the sector
through an indirect ac1uisition were re1uired to di&est the Canadian
oeration to Canadian ownershi within two years$
0n 5anuary 1992, the ?o&ernment o' Canada modi'ied the 9aie Comeau
olicy$ =ow, indirectly ac1uired Canadian 'irms in the sector will not
necessarily ha&e to !e sun o'' to Canadian ownershi+ the 'oreign owner
was gi&en the otion o' negotiating a transaction that is o' Enet !ene'itE to
Canada, such as a commitment to u!lish Canadian authors$ 0n addition, the
olicy now ermits direct 'oreign ac1uisition o' a Canadian 'irm in the sector,
ro&ided the 'irm is in 'inancial distress and no Canadian !uyers can !e
'ound$ #inally, the go&ernment announced its intention to esta!lish rules to
assure that when indirectly ac1uired 'irms are di&ested as a result o' the 9aie
Comeau olicy, Canadians assume de 'acto control o' the enterrise$
=ewsaers and eriodicals) :ll in&estments in this sector, regardless o'
si>e, are re&iewa!le !y 0n&estment Canada$ Canadian income ta/ laws do
not ermit Canadian ad&ertisers to claim a deduction 'or ad&ertising laced in
u!lications that do not ha&e 7< ercent Canadian ownershi and 7< ercent
Canadian content$ 0n 199(, the Canadian go&ernment ruled that any new
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Canada : A Profile
'oreign maga>ine title u!lished in Canada would !e re&iewa!le as a new
in&estment$ Hnder current olicy guidelines, aro&al would !e denied$ 0n
199<, the Canadian arliament assed legislation to lace a rohi!iti&e ta/
on ad&ertising in maga>ines u!lished in Canada with Canadian ad&ertising
!ut little Canadian editorial content -- Eslit-runE editions$
2ele&ision and "adio 9roadcasting) Bicenses will not !e granted or renewed
to 'irms that do not ha&e at least 70 ercent Canadian control, reresented
!oth !y shareholding and !y reresentation on the 9oard o' Airectors$ 2his
re1uirement alies retroacti&ely$
Ca!le 2ele&ision and %ther 9roadcast 4er&ices) Hnder current olicy, in
cases where a Canadian ser&ice is licensed in a 'ormat cometiti&e with that
o' an authori>ed non-Canadian ser&ice, the C"2C can dro the non-
Canadian ser&ice, i' the new Canadian alicant re1uests it to do so$ 0n
5une 199F, the C"2C de-listed a H$4$ country music ca!le-2, ser&ice when it
licensed a new Canadian secialty country music channel$ -hile this
articular case was resol&ed when the arties in&ol&ed agreed to a
commercial settlement, the H$4$ go&ernment remains e/tremely concerned
that the C"2C's cometiti&e ser&ices olicy remains in lace$
4ound "ecording) :ll in&estments are re&iewa!le$ #ilm and ,ideo) :ll
in&estments are re&iewa!le+ new in&estments may !e su!Gect to er'ormance
re1uirements$
$INANCIAL S!CTOR
2he !anking industry in Canada is go&erned !y the 'ederal 9ank :ct, which
imoses a num!er o' limitations on 'oreign direct in&estment in this sector$
2he 9ank :ct esta!lishes two categories o' !anks) 4chedule 0 !anks, in
which no single in&estor can own more than ten ercent o' the shares, thus
e/cluding the ossi!ility o' a 'oreign ac1uisition+ and 4chedule 00 !anks, 'or
which the ten ercent restriction does not aly$ : 'oreign !ank wishing to
conduct !usiness in the Canadian !anking industry must esta!lish as a
su!sidiary (4chedule 00 !ank)+ it cannot enter as a direct !ranch$ 2he 9ank
:ct also re1uires that any 4chedule 00 !ank in Canada with more than CM7<0
million (aro/imately H4M<<0 million) in caital must !e Ewidely-heldE,
there'ore, at least (< ercent o' its shares must !e u!licly traded on
Canadian stock e/changes$ 2he go&ernment could grant an e/cetion to
'oreign-owned !anks which e/ceed the ceiling due to internal growth$ #inally,
the 9ank :ct imoses se&eral restrictions on in&estments !y non-H$4$ 'oreign
!anks, including an indi&idual caital ceiling and a 12 ercent market-share
1uota on assets$
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Canada : A Profile
#oreign insurance comanies, unlike !anks, may oerate in Canada as
!ranches$
Ot#er Sectors
Commercial :&iation) #oreigners are limited to 2< ercent ownershi o'
Canadian air carriers$ *nergy and ;ining) #oreigners cannot !e maGority
owners o' uranium mines$
2elecommunications) Hnder ro&isions o' Canada@s new
2elecommunications :ct, 'oreign ownershi o' 2ye 0 carriers
(ownersJoerators o' transmission 'acilities) is limited to 20 ercent$
%wnershi and control rules are more 'le/i!le 'or holding comanies that wish
to in&est in Canadian carriers, !ecause o' the o'ten international nature o'
their oerations and sources o' caital$ Hnder these rules, two-thirds o' the
holding comany's e1uity must !e owned and controlled !y Canadians$
#ishing) #oreigners can only own F9 ercent o' comanies that hold
Canadian commercial 'ishing licenses$ *lectric *nergy ?eneration and
Aistri!ution) 0n all ro&inces e/cet :l!erta and =o&a 4cotia, this is a
ro&incial monooly$ */cetions are !eing oened in some ro&inces to allow
'or ri&ate electric energy roduction, either through co-generation or non-
utility ower generation$
.ealth 4er&ices).ositals in Canada are integral arts o' a u!lic-health
system administered !y the ro&inces$ @ri&ate hositals would not !e eligi!le
to recei&e ayments 'rom ro&incial health insurance 'unds, and there'ore
would not !e 'inancially &ia!le in most cases$
"eal *state)@rince *dward 0sland and 4askatchewan limit real estate sales
to out-o'-ro&ince arties$ @ri&ati>ation) *ach seci'ic ri&ati>ation (at the
'ederal and ro&incial le&els o' go&ernment) is considered on a case-!y-case
!asis and there is no o&erall limitations olicy with regard to 'oreign
ownershi$ :s an e/amle, the 'ederal ;inister o' 2ransortation has stated
he does not intend to imose any limitations in the ri&ati>ation o' Canadian
=ational (C=) railway$
IN9!STM!NT INC!NTI9!S
9oth 'ederal and ro&incial go&ernments in Canada o''er a wide array o'
incenti&es (municialities are legally rohi!ited 'rom o''ering ta/ incenti&es)$
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Canada : A Profile
=one o' the 'ederal incenti&es, howe&er, is seci'ically aimed at romoting or
discouraging 'oreign in&estment in Canada$ "ather, the incenti&es are
designed to accomlish !roader olicy goals, such as research and
de&eloment, in&estment in machinery and e1uiment, and romotion o'
regional economies$ 2hey are a&aila!le to any 1uali'ied in&estor, Canadian
or 'oreign, who agrees to use the 'unds 'or the stated urose$
@ro&incial incenti&es tend to !e more in&estor-seci'ic and are conditioned
on alying the 'unds to an in&estment in the granting ro&ince$ @ro&incial
incenti&es may also !e restricted to 'irms esta!lished in the ro&ince or who
agree to esta!lish in the ro&ince$
0ncenti&es 'or in&estment in cultural industries, at !oth the 'ederal and
ro&incial le&el, are generally only a&aila!le to Canadian-controlled 'irms$
0ncenti&es may take the 'orm o' grants, loans, loan guarantees, &enture
caital, or ta/ credits$ 0ncenti&e rograms in Canada generally are not
oriented toward the romotion o' e/orts$
2 !+portDImport Policies
2here is no discrimination against 'oreign in&estors in any asect o' imort or
e/ort trade$ #oreigners can engage in all imort and e/ort acti&ities
ermitted to a Canadian national$ .owe&er, ermits are re1uired 'or the
imort or e/ort o' certain commodities, including armaments and strategic
goods, some agricultural roducts, most te/tile and clothing items, and oil and
gas$
9$ Con&ersion and 2rans'er @olicies 2he Canadian dollar is 'ully
con&erti!le$ Canada has no restrictions on the mo&ement o' 'unds into or out
o' the country$ 9anks, cororations and indi&iduals are a!le to deal in
'oreign'unds or arrange ayments in any currency they choose$ :n in&estor
may li1uidate his Canadian in&estment at any time and trans'er the roceeds
'rom Canada in whate&er currency desired$ Auring the li'e o' the in&estment,
ro'its, di&idends and royalties may !e remitted at will$
C2 !+propriation and Compensation
Canadian 'ederal and ro&incial laws recogni>e !oth the right o' a
go&ernment to e/roriate ri&ate roerty 'or a u!lic urose, and the
o!ligation to ay comensation$ 2he 'ederal go&ernment has not nationali>ed
any 'oreign 'irm since the nationali>ation o' the :/is roerty during -orld
-ar 00$ 9oth the 'ederal and ro&incial go&ernments ha&e also assumed
72
Canada : A Profile
control o' ri&ate 'irms -- usually 'inancially distressed ones -- a'ter reaching
agreement with the 'ormer owners$
D2 Disp'te Settlement
Canada is a mem!er o' the =ew 6ork Con&ention o' 19<7 on the "ecognition
and *n'orcement o' #oreign :r!itral :wards$ 2he Canadian go&ernment has
made a decision in rincile to !ecome a mem!er o' the 0nternational Center
'or the 4ettlement o' 0n&estment Aisutes (0C40A)$ .owe&er, since the legal
en'orcement mechanism 'or 0C40A would !e the ro&incial court system, the
'ederal go&ernment must also get agreement 'rom all the ro&inces that they
will resect 0C40A decisions$ 0t is unlikely that this will haen in the
'oreseea!le 'uture$
Canada accets !inding ar!itration o' in&estment disutes to which it is a
arty only when it has seci'ically agreed to do so through a !ilateral or
multilateral agreement such as a #oreign 0n&estment @rotection :greement$
2he resolution o' in&estment disutes !etween the Hnited 4tates and Canada
is guided !y the ro&isions o' Chater 11 o' the =:#2:$
2he =:#2: encourages arties to settle disutes through consultation or
negotiation, !ut the =:#2: also esta!lishes secial ar!itration rocedures 'or
in&estment disutes searate 'rom the =:#2:'s general disute settlement
ro&isions (Chater 20)$ Hnder the =:#2:, a narrow range o' disutes
!etween an in&estor 'rom a =:#2: country and a =:#2: go&ernment (those
dealing with go&ernment monoolies and e/roriation) may !e settled, at the
in&estor's otion, !y !inding international ar!itration$ :n in&estor who seeks
!inding ar!itration in a disute with a =:#2: arty gi&es u his right to seek
redress through the court system o' the =:#2: arty$
!2 Political 9iolence
@olitical &iolence is almost non-e/istent in Canada$ 2here has !een no
&iolence directed at 'oreign in&estment in recent memory$ 2here ha&e !een
some &iolent incidents related to en&ironmental disutes, !ut these were
directed against Canadian-owned natural resource comanies or against the
Canadian go&ernment$
$2 Per)ormance Re<'irementsDIncentives
Canada does not e/licitly negotiate er'ormance re1uirements with 'oreign
in&estors$ #or in&estments su!Gect to re&iew, howe&er, the in&estor's
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Canada : A Profile
intentions regarding emloyment, resource rocessing, domestic content,
e/orts, and technology de&eloment or trans'er can !e e/amined !y the
Canadian ?o&ernment$ : secial duty remission scheme e/ists 'or the
automoti&e sector that makes certain !ene'its contingent on trade
er'ormance$ 2he #2: rohi!its the Hnited 4tates or Canada 'rom imosing
e/ort or domestic content er'ormance re1uirements$
?o&ernment o''icials at !oth the 'ederal and ro&incial le&els e/ect in&estors
who recei&e in&estment incenti&es to use them 'or the agreed urose, !ut no
mechanism e/ists 'or en'orcing any statement made !y the in&estor during the
re&iew rocess$
02 Ri%#t to Private O/ners#ip a nd !sta"lis#ment
*/cet as noted, Canadians and 'oreigners ha&e the right to esta!lish, own
and disose o' !usiness enterrises and engage in all 'orms o' remunerati&e
acti&ity$ 0n those sectors where ri&ate enterrise co-e/ists with u!lic
enterrise ('or e/amle, etroleum), the 'irms comete on a generally e1ual
!asis$ 2he maGor e/cetion is that u!lic enterrises do not ha&e to rely
solely on sel'-generated 'unds or 'unds raised in the caital markets+ they
also ha&e access to trans'ers 'rom go&ernment !udgets$
H2 Protection o) Propert( Ri%#ts
@ri&ate roerty rights are 'ully rotected !y Canada@s legal system$
#oreigners ha&e 'ull and 'air access to Canada@s legal system$ @roerty
rights are limited only !y the rights o' go&ernments to esta!lish monoolies
and to e/roriate 'or a u!lic urose$
0$ "egulatory 4ystem) Baws and @rocedures Canada@s regulatory system is
similar to that o' the Hnited 4tates in terms o' its transarency and
comrehensi&eness, as well as in the array o' institutions in&ol&ed$ @roosed
laws are su!Gect to arliamentary de!ate and u!lic hearings$ "egulations
are issued in dra't 'orm 'or u!lic comment rior to imlementation$ 2he
allocation o' 'inancial and real resources is generally accomlished !y market
'orces rather than regulation$ -hile 'ederal andJor ro&incial licenses or
ermits may !e needed to engage in economic acti&ities, this kind o'
regulation is generally 'or rudential, statistical or ta/ comliance reasons
rather than 'or resource allocation$ ?o&ernments enter into the allocation o'
74
Canada : A Profile
resources only in those sectors where resources are located in the u!lic
domain, such as logging on u!lic land or commercial 'ishing$
Canada has an anti-trust law and an agency, the 9ureau o' Cometition
@olicy, to en'orce it$ 2he Cometition 2ri!unal, a 1uasi-Gudicial !ody, rules on
anti-trust cases$
E2 -ilateral Investment A%reements
-hile the terms o' the #2: and the =:#2: guide in&estment relations
!etween the Hnited 4tates and Canada, Canada has two kinds o'
international in&estment agreements with non-=:#2: arties, #oreign
0n&estment @rotection :greements (#0@:s) and #oreign 0n&estment 0nsurance
:greements (#00:s)$ : #0@: is a comrehensi&e !ilateral in&estment
romotion and rotection agreement containing, inter alia, the !road
rinciles that should guide in&estment !etween the two artners$ Canada
negotiated 'i&e #0@:s under a 1977 model, with @oland, C>echoslo&akia,
.ungary,
H44", and :rgentina$ -hile these agreements continue in 'orce ('or "ussia
only in the case o' the 'ormer 4o&iet Hnion), the model was re&ised in 199F to
!ring it into con'ormity with the =:#2:$ :greements under the new model
ha&e !een signed with Hkraine and Bat&ia, and agreement has !een reached
with se&eral additional countries on new #0@:s under the 199F model,
although they ha&e not yet !een signed$
#00: is essentially an agreement that allows the */ort Ae&eloment
Cororation (*AC) to ursue any claims arising 'rom a Canadian in&estment
insured !y the *AC$ Canada has signed F2 #00:s, and others are awaiting
'inal con'irmation$ Canada also has ta/ agreements with << countries,
including the Hnited 4tates$
C2 OPIC and Ot#er Investment Ins'rance Pro%rams
%&erseas @ri&ate 0n&estment Cororation (%@0C) rograms are not a&aila!le
'or H$4$ in&estors in Canada$ Canada is a signatory to the -orld 9ank's
;ultilateral 0n&estment ?uarantee :gency (;0?:)$ 2he H$4$ */ort-0mort
9ank is not o''-co&er 'or Canada$
L2 La"or
75
Canada : A Profile
Ba!or, at all skill le&els, is generall a&aila!le in Canada$ 2here are occasional
reorts o' sot shortages o' certain categories o' la!or$ Canadian wage and
!ene'it le&els 'or most non-e/ecuti&e Go! categories are roughly e1ui&alent to
le&els aid in the Hnited 4tates$ Currently, ro&incial hourly minimum wages
in Canada range 'rom a high o' CM6$70 (aro/imately H4M<) in %ntario to a
low o' CMF$7< (aro/imately H4M($<) in =ew'oundland and @rince *dward
0sland$ 2he minimum wage 'or emloyees under 'ederal Gurisdiction (!anking,
shiing, air transort, !roadcasting, railways, grain ele&ators and ielines)
has remained unchanged at CMF (aro/imately H4M() since 1976$
:s a ercentage o' the ci&ilian la!or 'orce, union mem!ershi has remained
'airly constant since 197< when it stood at 29$7 ercent$ 2he 'igure 'or 199( is
29$< ercent, signi'icantly higher than the comara!le H$4$ 'igure o' 1<$7
ercent, due in large art to higher unioni>ation le&els in the Canadian u!lic
sector$
Ba!or is strongly critical o' some Canadian go&ernment olicies and has
'ocused most strongly on the #2: and the =:#2:, alleging that these
:greements Geoardi>e Canadian Go!s and threaten the country's social
rograms$ 2he la!or mo&ement in Canada is closely associated with the =ew
Aemocratic @arty (=A@)$ 2he =A@ currently controls ro&incial go&ernments
in 9ritish Colum!ia and 4askatchewan$
M2 $orei%n Trade onesD$ree Ports
Aetailed in'ormation regarding 'oreign trade >onesJ'ree orts can !e 'ound in
Chater ,0, 4ection 5$
N2 Capital O't)lo/ Polic(
:s discussed in the E2rans'er @olicyE section, the Canadian dollar is 'ully
con&erti!le$ 2he Canadian ?o&ernment ro&ides some incenti&es 'or
Canadian in&estment in de&eloing countries through Canadian 0nternational
Ae&eloment :gency rograms$ Canada@s o''icial e/ort credit agency, the
*AC ro&ides %@0C-like insurance co&erage 'or Canadian 'oreign
in&estment$
O2 MaFor $orei%n Investors =Private Companies>
76
Canada : A Profile
("anked !y 199F re&enues in !illions o' Canadian dollars)
":=I =:;* =:20%=:B026 "*,*=H*
1 ?eneral ;otors o' Canada H$4$ 2<$0
2 Chrysler Canada H$4$ 1<$7
( 09; Canada H$4$ 7$F
F Canada 4a'eway H$4$ F$6
< :moco Canada @etroleum Co$ H$4$ F$F
6 ;itsui T Comany 5aanese 2$7
7 .onda Canada 5aaneseJH$4$ 2$6
7 Cargill Btd$ H$4$ 2$6
9 ?reat :T@ 2ea Co$ H$4$ 2$<
10 -al-;art Canada 0nc$ H$4$ 2$1
11 ;o!il %il (Canada) H$4$ 2$1
12 @rice Costco Canada H$4$ 2$0
1( ;edis .ealth T @harmaceutical H$4$ 1$9
1F Ira't ?eneral #oods (Canada) H$4$ 1$7
1< Canada Hltramar H$4$ 1$7
16 ?eneral *lectric H$4$ 1$7
17 ?* @lastics H$4$ 1$6
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Canada : A Profile
17 ;cAonalds "estaurants H$4$ 1$6
19 2oyota Canada 5aanese 1$6
20 @rocter T ?am!le H$4$ 1$6
4ource) E"eort %n 9usiness 2o 1000 ComaniesQ u!lished 5uly, 199<
78
Canada : A Profile
CHAPT!R 4
TRAD! R!0ULATIONS AND STANDARDS
:$ 2rade 9arriers (0ncluding 2ari'' 9arriers, =on-2ari'' 9arriers and
0mort 2a/es)
12 0eneral Trade -arriers
:s a result o' the #2:, many Canadian tari''s on H$4$ roducts ha&e !een, or
will soon !e, eliminated$ 2he =:#2: remo&es some remaining !arriers and
e/ands seci'ic ro&isions o' the #2:$ .owe&er, non-tari'' !arriers at !oth
the 'ederal and ro&incial le&els continue to imede access o' H$4$ goods and
ser&ices to Canada or retard otential e/ort growth$ 2he issues identi'ied
!elow constitute a artial list o' areas which will !e addressed !y &arious
o''ices in the *m!assy in %ttawa and Aeartments in -ashington, as well as
with other -ashington agencies$
(a> Standards
2he #2: ro&ided that testing 'acilities, insection agencies and certi'ication
!odies o' each country ha&e access to the accreditation systems o' the other
country without o!ligation to esta!lish 'acilities in the other country$ -hile
ro&incial ractices do not 'all under the #2: disciline, H$4$ go&ernment
agencies at the *m!assy in %ttawa and in -ashington will closely monitor
ro&incial re1uirements and ress 'or 'air treatment o' H$4$ organi>ations$
="> 0overnment Proc'rement
2he =:#2: ro&ides e&en greater access to the Canadian ?o&ernment
rocurement market through e/ansion o' co&erage to Canada@s remaining
'ederal deartments, some go&ernment-owned enterrises (Crown
cororations) and selected ser&ices and construction contracts$ Co&erage o'
go&ernment-owned enterrises and ser&ices and construction under the
=:#2: reresents the 'irst time that such rocurement will !e su!Gect to
international rules o' oen and cometiti&e !idding$ #inally, under the =:#2:
all three arties ha&e agreed to 'urther negotiations !e'ore the end o' 1997 to
e/and the co&erage o' the agreement$ 2his will include co&erage at the su!-
'ederal le&els$
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Canada : A Profile
=c> Provincial Li<'or -oards
Canadian ro&incial go&ernment li1uor !oards ha&e e/clusi&e control o&er
Canada@s alcoholic !e&erage retail ricing, listing, distri!ution and sales$ 2he
#2: re1uires Canadian ro&inces to accord national treatment to H$4$ wines
and sirits in their listing olicies and, with certain well-de'ined e/cetions,
their distri!ution ractices$ 2he Hnited 4tates has 1uestioned se&eral
ro&inces' imlementation o' these o!ligations$
=d> Services
*/orts o' ser&ices constitute the 'astest growing comonent o' the H$4$-
Canada !ilateral trade relationshi, roducing a H4M1<$( !illion e/ort
surlus in 199F$
2he =:#2: co&ers all ser&ice sectors unless seci'ically e/cluded, and
alies guiding rinciles to trade in ser&ices$ : arty can retain an e/isting
law, measure, or ractice that does not con'orm to the :greement's rinciles
!y 'ormally lodging an e/cetion or reser&ation 'or the measure$ :ll 'ederal
go&ernment reser&ations were listed during negotiations and cannot !e
amended$ .owe&er, states and ro&inces must list noncon'orming measures
within two years a'ter the =:#2:'s entry into 'orce$ 9oth the Canadian and
H$4$ go&ernments will !e working closely with their resecti&e su!-'ederal
go&ernments to identi'y noncon'orming measures$ 2his E!arrier in&entoryE
e/ercise ro&ides an oortunity to ress 'or 'urther li!erali>ation in ser&ices$
=:#2: arties must also remo&e citi>enshi re1uirements a''ecting the
licensing and ractice o' ro'essionals within two years o' entry into 'orce o'
the :greement$ 0' a state or ro&ince 'ails to remo&e citi>enshi re1uirements
within the allotted time 'rame, the other countries ha&e the right to maintain
e1ui&alent restrictions in their own countries$
=e> AC'lt'ral ind'striesA
Canada maintains some restrictions on 'oreign in&estment and content in the
so-called Ecultural industriesE and related sectors, including !ook and
maga>ine u!lishing, !roadcasting, and telecommunications$ 2he Hnited
4tates o!Gects to some o' these restrictions+ 'or e/amle, it has comlained to
the -2% a!out Canadian olicies which rohi!it Eslit-runE editions o' H$4$-
!ased maga>ines$ 9oth the #2: and =:#2: contain a Ecultural e/emtionE
clause$ 2he Hnited 4tates closely monitors new laws and regulations
80
Canada : A Profile
a''ecting these sectors$ 4ee 4ection :$ 2 (!) o' this Chater 'or more
in'ormation on in&estment restrictions$
32 Investment -arriers
Hnder the 0n&estment Canada :ct and related Canadian regulations, Canada
maintains laws and olicies which restrict new or e/anded 'oreign
in&estment in the energy, u!lishing, telecommunications, transortation, 'ilm,
music, !roadcasting, and ca!le tele&ision sectors$
(a) 0n&estment Canada :ct
2he 0n&estment Canada :ct re1uires the 'ederal go&ernment to re&iew
roosed ac1uisitions !y H$4$ and other 'oreign in&estors to ensure Enet
!ene'it to Canada$E 2he :ct e/emts 'rom rior go&ernment aro&al 'oreign
in&estments in new (Egreen'ieldE) !usinesses and smaller ac1uisitions -- worth
less than CM< million (aro/imately H4M($6 million) 'or direct ac1uisitions
and CM<0 million (aro/imately H4M(6$7 million) 'or indirect ac1uisitions$
Hnder the #2:, Canada raised the threshold le&el 'or re&iew o' direct
ac1uisitions !y H$4$ in&estors to CM1<0 million (aro/imately H4M110$(
million) on 5anuary 1, 1992, with the threshold le&el to !e inde/ed 'or in'lation
in su!se1uent years$ Hnder =:#2:, this threshold is 'urther increased in line
with real economic growth$ 4creening o' indirect ac1uisitions !y H$4$
in&estors was hased out altogether in 1992$ 2he thresholds 'or re&iewing
in&estors' ac1uisitions also aly to sales !y H$4$ in&estors o' their Canadian
in&estments to third-country nationals$
="> Investments in AC'lt'ral Ind'striesA
2he e/emtion 'rom re&iew does not aly to 'oreign in&estments to esta!lish
new !usinesses or ac1uire e/isting ones in Eculturally sensiti&e sectorsE such
as newsaers, maga>ines, eriodical and !ook u!lishing and distri!ution,
'ilm and &ideo, audio music recordings, and music in rint or machine-
reada!le 'orm$ :s a result, 'oreign in&estment in these sectors is otentially
su!Gect to re&iew regardless o' si>e or whether the in&estment is new or
through direct or indirect ac1uisition$ 2his rotection 'or Ecultural industriesE
will continue to !e an issue 'or H$4$ in&estors$
0n 5anuary 1992, Canada announced roosals to amend its !ook u!lishing
and distri!ution olicies$ Hnder the new guidelines, Canadian 'irms that 'all
into 'oreign hands as a result o' indirect ac1uisitions will not ha&e to !e
81
Canada : A Profile
di&ested to Canadian control, !ut the 'oreign in&estor will ha&e to negotiate
seci'ic commitments to romote Canadian u!lishing i' it wishes to maintain
control$ #oreign in&estors will !e a!le to directly ac1uire Canadian !ook
u!lishing and distri!ution 'irms under limited circumstances that also in&ol&e
ro&iding guarantees o' !ene'its to Canada$
2he 0n&estment Canada :ct also ermits secial olicies on 'oreign
in&estment in the 'ilm distri!ution sector$ Canadian olicies ro&ide that)
akeo&ers o' Canadian-owned and controlled distri!ution 'irms will not !e
allowed+ in&estment to esta!lish new distri!ution 'irms in Canada will only !e
allowed 'or imortation and distri!ution acti&ities related to rorietary
roducts+ and indirect or direct takeo&ers o' 'oreign distri!ution 'irms
oerating in Canada will !e allowed only i' the in&estor undertakes to rein&est
a ortion o' its Canadian earnings in accordance with national and cultural
olicies$
2he 9roadcasting :ct sets out the !roadcasting olicy 'or Canada, which lists
among its o!Gecti&es, ser&e to sa'eguard, enrich and strengthen the cultural,
olitical, social and economic 'a!ric o' Canada$ 2he 'ederal regulator, the
Canadian "adio-tele&ision and 2elecommunications Commission (C"2C), is
charged with imlementing the !roadcasting olicy$ Hnder current C"2C
olicy, in cases where a Canadian ser&ice is licensed in a 'ormat cometiti&e
with that o' an authori>ed non-Canadian ser&ice, the Commission can dro
the non-Canadian ser&ice, i' the new Canadian alicant re1uests it to do so$
0n 5une 199F, the C"2C de-listed a H$4$ country music ca!le-tele&ision
ser&ice when it licensed a new Canadian secialty country music channel$
-hile this articular case was resol&ed when the arties in&ol&ed agreed to a
commercial settlement, the H$4$ ?o&ernment remains e/tremely concerned
that the C"2C's cometiti&e ser&ices olicy remains in lace$
-2 C'stoms 9al'ation
Canada has acceded to the -2% Customs ,aluation Code which ro&ides
that the customs &alue o' imorted goods shall !e the transaction &alue -- the
rice actually aid or aya!le 'or the goods$ Hnder the transaction &alue
system, the &alue 'or duty is the total ayment 'or the goods made !y the
!uyer to the seller$ 2he transaction &alue generally will !e acceted !y
Canada Customs i' the goods are sold 'or e/ort to Canada and i' the rice
aid or aya!le 'or the goods can !e determined$ Hnder the transaction
&alue system, the &alue 'or duty o' imorted goods will normally !e
determined 'rom data su!mitted !y the imorter$ .owe&er, rearation o'
roer documentation !y the e/orter signi'icantly contri!utes to e/editious
entry$
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Canada : A Profile
C2 Import Licenses
2here are no general licenses re1uired 'or imorting goods into Canada$
2here are, howe&er, ro&isions related to a &ariety o' rohi!ited, controlled
and restricted goods$ :dditional in'ormation regarding restrictions on the
imortation o' these tyes o' goods is ro&ided in section (.) o' this chater$
D2 !+port Controls
2his section was reared !y the *conomic 4ection o' the H$4$ *m!assy in
%ttawa using Aeartment o' 4tate resources$ Canada controls e/orts under
authori>ation o' the */ort and 0mort @ermits :ct (*0@:), the */ort Control
Bist (*CB) and the :rea Control Bist (:CB)$ 2he *CB is an itemi>ed list o'
goods su!Gect to e/ort control$ 2he :CB is a list o' seci'ic countries which
re1uire e/ort ermits 'or all goods (whether or not they are on the *CB)$
2he *0@: utili>es these lists in order to e/ercise e/ort controls o&er natural
resources to encourage 'urther rocessing in Canada+ to limit the e/ort o'
goods in circumstances o' surlus suly or deressed rices+ to restrict the
e/ort o' unrocessed so'twood lum!er+ to ensure that there is an ade1uate
suly and distri!ution o' any article, and to enact intergo &ernmental
arrangements or commitments$
;ilitary e/ort ermits are normally denied to countries or destinations
reresenting a strategic threat to Canada or its allies, countries in&ol&ed in or
under imminent threat o' hostilities, countries under Hnited =ations sanction,
or countries whose go&ernments ha&e a ersistent record o' serious human
rights &iolations, unless there is no reasona!le risk that the goods might !e
used against the ci&ilian oulation$
Hnder a series o' de'ense sharing agreements with the Hnited 4tates, the
re1uirement 'or an e/ort ermit to the Hnited 4tates is wai&ed 'or all goods
included in the *CB e/cet 'or goods in ?rous ( and F, as well as some
goods in ?rou <$ H$4$-origin goods are controlled 'or re-e/ort 'rom Canada
under 0tem <F00 o' ?rou <$ :ll H$4$-origin e/orted goods re1uire ermits$
#or 'urther in'ormation see the annual E?uide to Canada@s */ort ControlsE
u!lished !y the Aeartment o' #oreign :''airs and 0nternational 2rade$ 2he
*/ort Controls Ai&ision can !e reached !y hone at (61() 996-2(77 or !y
'a/ at (61() 996-99((, or !y mail at the address listed in :endi/ *, with the
addition o' */ort Controls Ai&ision (*@*) C-F$
83
Canada : A Profile
!2 ImportD!+port Doc'mentation
: roerly comleted Canada Customs 0n&oice or its e1ui&alent is re1uired
'or all commercial shiments &alued at more than CM1,200 (aro/imately
H4M770) e/orted to Canada$ 0n addition to the Canada Customs 0n&oice,
shiments must !e accomanied !y a comleted e/orters Certi'icate o'
%rigin which is re1uired in order to o!tain seciali>ed tari'' treatment under
the ro&isions o' the =:#2:$ #or details regarding documentation
re1uirements or to o!tain s amle in&oices and other 'orms, contact "e&enue
Canada (see :endi/ * 'or contact in'ormation)$
$2 Temporar( !ntr(
"e&enue Canada has made seci'ic ro&isions 'or the temorary entry o'
certain goods into Canada 'or &arious uroses, such as testing,
demonstration, and dislay$ 4uch goods may enter under an :2: (:dmission
2emoraire -- 2emorary :dmission) Carnet or under a 2emorary :dmission
@ermit ("e&enue Canada, Customs and */cise #orm *299) and may re1uire
either a re'unda!le deosit or a roortional duty deosit, deending on the
aroriate classi'ication determined !y Canadian customs regulations$
#irms wishing to !ring machinery and e1uiment, dislay e1uiment, and
other items co&ered under Canadian temorary imortation regulations are
ad&ised to contact "e&enue Canada well in ad&ance o' shiment or arri&al in
Canada$
02 La"elin%G Markin% Re<'irements
2he main ieces o' legislation which regulate almost all roduct la!eling and
marking in Canada include) the Consumer @ackaging and Ba!eling :ct+ the
-eights and ;easures :ct+ the 2e/tiles Ba!eling and :d&ertising :ct+ the
@recious ;etals ;arking and Ba!eling :ct+ and the Canadian :gricultural
@roducts :ct$ Canada re1uires !ilingual la!eling (*nglish and #rench) 'or
most roducts$ 9ilingual designation o' the generic name on most
reackaged consumer roducts is re1uired !y the 'ederal Consumer
@ackaging and Ba!eling :ct$ Hnder this :ct, the 'ollowing in'ormation must
aear on the ackageJla!el o' a reackaged consumer good sold in
Canada)
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Canada : A Profile
@roduct 0dentity Aeclaration -- descri!es a roduct's common or generic
name, or its 'unction$ 2he declaration must !e in !oth *nglish and
#rench$
=et 3uantity Aeclaration -- should !e e/ressed in metric units o'
&olume, when the roduct is a li1uid, or a gas, or is &iscous+ or in
metric units o' weight, when the roduct is solid+ or !y numerical count$
=et 1uantity may !e e/ressed in other esta!lished trade terms$
Aealer's =ame and @rincial @lace o' 9usiness -- where the
reackaged roduct was manu'actured or roduced 'or resale$ 0n
general, a name and address su''icient 'or ostal deli&ery is acceta!le$
2his in'ormation can !e in either *nglish or #rench$
2he agency resonsi!le 'or insection o' imorts into Canada, Canada
Customs, also re1uires an indication o' the country o' origin, such as E;ade in
the H4:E on se&eral classes o' imorted goods and on all rinted matter$
?oods not roerly marked cannot !e released 'rom Canada Customs until
suita!ly marked$ 2he goods can !e marked, at the imorter's e/ense, either
on Canada Customs' remises or on the imorter's own remises under the
suer&ision o' Canada Customs o''icials$ ;oreo&er, Canadian regulations
re1uire that declarations o' net content o' all ackaged consumer goods !e
stated in metric units in !oth *nglish and #rench, although imerial units may
also !e shown$ ;ost roducts may !e ackaged in imerial-measure
containers with the metric e1ui&alents e/ressed on the la!el$ .owe&er,
seci'ied metrically dimensioned ackaging is re1uired 'or some roducts,
mainly 'oods, ersonal care roducts, and detergents$ 2he ro&ince o'
3ue!ec re1uires that all roducts sold in that ro&ince !e la!eled in #rench
and that the use o' #rench must !e gi&en e1ual rominence with other
languages on any ackages or containers sold in 3ue!ec stores$ 2he
Charter o' the #rench Banguage re1uires the use o' #rench on roduct
la!eling, warranty certi'icates, dire ctions 'or use, u!lic signs and written
ad&ertising$ #urther in'ormation on #rench la!eling re1uirements is a&aila!le
'rom the %''ice de la Bangue #rancaise (%''ice o' the #rench Banguage, see
:endi/ * 'or contact in'ormation)$
#inally, with resect to the use o' en&ironmental claims, industry is charged
with ensuring that any en&ironmental claims are accurate and in comliance
with rele&ant legislation$ 0n general, en&ironmental claims that are
am!iguous, &ague, incomlete, misleading, or irrele&ant, and that cannot !e
su!stantiated through credi!le in'ormation andJor test methods, should not !e
used$ 0n all cases, en&ironmental claims should indicate whether they are
related to the roduct itsel' or to the roduct's ackaging materials$
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Canada : A Profile
H2 Pro#i"ited Imports
2he maGority o' H$4$ roducts shied to Canada enter the market 'ree 'rom
any imort restrictions$ .owe&er, under the ro&isions o' the Canadian
Customs 2ari'' regulations, certain commodities, such as rerints o'
Canadian coyrighted work, and some game !irds, cannot !e imorted$
%ther goods are controlled, regulated, or rohi!ited under legislation 'alling
within the Gurisdiction o' other go&ernment deartments$ */amles o'
regulated goods include) certain 'ood roducts+ clothing+ drug and medical
de&ices+ ha>ardous roducts+ some o''ensi&e weaons and 'irearms+
endangered secies+ and motor &ehicles$
%ther items are regulated under the */ort and 0mort @ermits :ct and
re1uire an imort ermit or certi'icate to !e eligi!le 'or imortation into
Canada$ 2he :ct lists &arious agricultural roducts, a num!er o' clothing and
te/tile items, and certain steel roducts$ ?oods originating in certain
countries may not 1uali'y 'or imortation into Canada$
I2 Standards
Canada@s standards are not identical to those in the Hnited 4tates$ 2his does
not mean that Canadian standards are more or less stringent than those in
the Hnited 4tates, merely that they are di''erent$ Bike the H$4$ go&ernment,
the Canadian go&ernment is concerned with rotecting its citi>ens 'rom 'aulty
or unsa'e roducts$ .owe&er, in delineating the recise technical seci'icati
ons that are re1uired to ensure sa'ety, !oth countries o'ten use slightly
di''erent standards$
Hnder the aegis o' the 4tandards Council o' Canada (4CC), se&eral ri&ate
standards-writing organi>ations administer technical codes and standards 'or
areas ranging 'rom electrical and lum!ing roducts to health-care
technology$ 2hese organi>ations include)
o 2he Canadian 4tandards :ssociation (C4:)
o Hnderwriters Ba!oratories o' Canada (HB)
o 2he Canadian ?eneral 4tandards 9oard
o 2he Canadian ?as :ssociation
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Canada : A Profile
2he Canadian 'ederal go&ernment also has numerous commodity standards
to sa'eguard u!lic wel'are$ 2he standards organi>ations try to a&oid
dulication o' resonsi!ility, !ut there is some o&erla$ H$4$ manu'acturers
and e/orters should determine what standards are alica!le to their
roducts$ 0' certi'ication is re1uired, it generally must !e o!tained !e'ore the
goods are imorted into Canada$ 2he rocess can !e time-consuming,
there'ore certi'ication should !e one o' the 'irst stes taken to esta!lish an
e/ort market in Canada$
0n'ormation on which standards or organi>ation(s) administer(s) standards
alica!le to the 'irm's roduct can !e o!tained 'rom the 4CC (see :endi/
* 'or contact in'ormation)$
4tandards and the =:#2:) 2he !asic =:#2: rule is simle -- standards
must not create unnecessary !arriers to trade$ 2o reduce such !arriers, the
=:#2: alies !asic rinciles to !ilateral trade)
testing 'acilities and certi'ication !odies are treated in a
nondiscriminatory manner+
'ederal standards-related measures will !e harmoni>ed to the greatest
e/tent ossi!le+ and,
greater oenness will !e ro&ided in the regulatory rocess$ ?reater
standards comati!ility remo&es structural !arriers to Canadian and H$4$
markets and increases the cometiti&eness o' H$4$ and Canadian
manu'acturers$ 4igni'icant rogress toward greater comati!ility !etween
H$4$ and Canadian technical standards is taking lace under the =:#2:$
4tandards organi>ations in the Hnited 4tates and Canada continue to work
cooerati&ely in the de&eloment o' Goint standards and ha&e made rogress
in se&eral areas$ #or e/amle, the :ir Conditioning and "e'rigeration
0nstitute and the C4: ha&e harmoni>ed er'ormance standards 'or air
conditioners and heat ums, ackaged water chillers, and water-source heat
ums$ HB and C4: ha&e esta!lished common electrical sa'ety standards 'or
air conditioners, heat ums, and re'rigerant motor-comressors$
4ince 1992, se&eral H$4$ testing and certi'ication organi>ations, most nota!ly
HB and the :merican @lywood :ssociation, ha&e recei&ed accreditation in
Canada$ 2he C4: has also o''icially !een recogni>ed !y the H$4$
%ccuational 4a'ety and .ealth :dministration (%4.:) as a =ationally
"ecogni>ed 2esting Ba!oratory$ 4CC and %4.: accreditations mean H$4$
87
Canada : A Profile
manu'acturers can gain roduct aro&al 'or !oth the Hnited 4tates and
Canada 'rom one source, there!y eliminating the time and e/ense o'
ursuing searate certi'ication 'or each market$ =umerous other H$4$ testing
and certi'ication organi>ations ha&e since recei&ed accreditation aro&al
'rom the 4CC$
2he =:#2: strengthens #2: technical standards o!ligations, e/ands
co&erage to include ;e/ico, sets u a committee on standards-related
measures, esta!lishes an :utomoti&e 4tandards Council, identi'ies seci'ic
roducts 'or standards harmoni>ation e''orts through the creation o'
su!committees on land transortation and telecommunications standards,
and on la!eling o' te/tiles and aarel goods$
E2 $ree Trade onesD.are#o'ses
?oods may !e cleared at customs orts on the !order or, i' intended 'or
inland destinations, may !e 'orwarded in !onded carriers to the ort city
nearest the destination at which customs e/amination may !e made and
duties and ta/es aid$ -ith the e/cetion o' one secial trade >one at the
4ydort 0ndustrial @ark in Cae 9reton, =o&a 4cotia, Canada has no 'ree
orts or 'ree trade >ones$ :t resent, there are no 'ederal or ro&incial laws
seci'ically go&erning the esta!lishment and oeration o' such >ones$
4u''erance warehouses under ri&ate ownershi ha&e !een esta!lished 'or
the storage and deosit o' all imorts recei&ed !y &arious transortation
modes, ending customs e/amination and clearance$ :n entry 'or
consumtion or into !onded warehouse must !e resented to Canada
Customs within (0 days$ ?oods may !e entered into a Canada Customs
!onded warehous e without the ayment o' duty, !ut must !e cleared either
'or e/ort or Canadian consumtion within two years$ */tended eriods are
allowed, !y regulation, 'or certain goods$
?oods taken 'rom !onded warehouses 'or consumtion are dutia!le at rates
o' the Customs 2ari'' in e''ect at the time, and the &alue 'or duty uroses is
the &alue at the time o' entry 'or warehousing$ ?oods e/orted 'rom !onded
warehouses to third countries are su!Gect to Canadian e/ort regulations$
"eacking and sorting can !e carried out in Canada Customs' !onded
warehouses with the ermission o' Canada Customs, !ut assem!ly or other
industrial acti&ity is rohi!ited$
C2 Special Import Provisions
Canada@s secial imort ro&isions deal with the temorary imortation o'
goods, as descri!ed re&iously in this Chater, in 4ection #$
88
Canada : A Profile
L2 Mem"ers#ip in $ree Trade Arran%ements
2his section was reared !y the *conomic 4ection o' the H$4$ *m!assy in
%ttawa using Aeartment o' 4tate resources$
2he #2:, imlemented in 1979, created &ast oortunities 'or H$4$ e/orters
and in&estors in Canada$ :s a result o' the #2:, trade !arriers ha&e come
down, in&estment rules ha&e !een li!erali>ed, and !ilateral cooeration on a
wide range o' issues has !een e/anded$ 2he #2: has since !een
enhanced 'urther through the imlementation o' the =:#2: which took e''ect
5anuary 1, 199F$ 2his historic :greement !rings ;e/ico into the =orth
:merican 'ree trade area and e/ands the scoe o' the #2: in some key
areas$
#or e/amle, the =:#2: contains ro&isions relating to intellectual roerty,
land transortation and the en&ironment, which were not ro&ided 'or in the
#2:$ ;any o' the imro&ements to the #2:, now re'lected in the =:#2:, are
the direct result o' e/erience gained !y the Hnited 4tates and Canada in
imlementing that !ilateral accord$ 4ince the #2: has ser&ed as the model
'or the =:#2:, many H$4$ 'irms who are already 'amiliar with the #2: are
well-ositioned to rea early !ene'its 'rom the =:#2:$
Bike the Hnited 4tates, Canada is a mem!er o' the -2% and was a 'ounding
mem!er o' its redecessor, the ?eneral :greement on 2ari''s and 2rade
(?:22)$

89
Canada : A Profile
CHAPT!R 5
IMPORTS AND EXPORTS
Decem"er 1HHH
MAJOR CANADIAN EXPORTS TO INDIA
($'OOOs)
Co
de
1997 1998 Jan-Sep 1999
47 Pulp of wood/of other fibrous cellulosic mat waste etc! 56"882 68"665 57"621
48 Paper # paperboard 95"613 37"374 53"876
07 $dible %e&etables # certai' roots # tubers 21"422 55"329 41"161
25 (alt sulphur earth # sto'e plasteri'& mat lime # ceme't 33"736 30"188 25"310
31 )ertili*ers 2"960 7"864 24"635
84 +achi'er," boilers" mecha'ical applia'ces" e'&i'es" pts 86"072 22"901 15"502
85 $lectrical mch, e-uip parts thereof sou'd recorder etc! 14"935 21"089 11"925
90 .ptical" photo" ci'e" meas" chec/i'&" precisio'" etc! 12"056 12"581 11"728
72 0ro' a'd steel 11"259 9"276 11"179
40 1ubber a'd articles thereof 7"540 14"493 9"762
99 (pecial 2ra'sactio' - 2rade 6"847 8"441 6"281
74 3opper a'd articles thereof 5"878 4"240 4"078
90
Canada : A Profile
63 .ther made up te4tile articles sets wor' clothi'&" etc! 4"276 3"186 1"834
39 Plastics a'd articles thereof 8"623 2"115 1"803
26 .res" sla& # ash 861 992 1"518
30 Pharmaceutical products 2"089 2"675 1"389
44 5ood # articles of wood wood charcoal 2"570 2"875 1"251
29 .r&a'ic chemicals 4"521 7"682 1"196
28 0'or&' chem compds of prec met" radioact eleme'ts etc! 2"181 3"840 1"118
98 (pecial 3lassificatio' Pro%isio's 4"718 2"631 1"090
62 6rt of apparel # clothi'& access" 'ot /'itted/crocheted 543 54 884
38 +iscella'eous chemical products 1"181 1"949 880
55 +a'-made staple fibres 901 1"026 556
86 1ailwa,/tramwa, locomoti%es rolli'&-stoc/ # parts etc! -- 4"153 495
73 6rticles of iro' or steel 8"166 3"558 323
88 6ircraft" spacecraft" a'd parts thereof 681 2"471 298
87 7ehicles o/t railw/tramw roll-stoc/" pts # accessories 447 1"254 240
59 0mpre&'ated" coated" co%er/lami'ated te4tile fabric 1"038 476 235
76 6lumi'ium a'd articles thereof 3"514 1"227 226
49 Pri'ted boo/s" 'ewspapers" pictures # other product etc! 2"780 9"206 79
15 6'imal/%e& fats # oils # their clea%a&e products etc! 5"405 12"257 63
91
Canada : A Profile
10 3ereals 60"244 5"059 19
27 +i'eral fuels" oils # product of their distillatio' etc! 30 17"184 ---
37 Photo&raphic or ci'emato&raphic &oods 1"756 5"258 ---
(ub-total
468"56
2
383"56
9
288"565
2otal
!7"#1!
"
$89#!$
"
%9$#1!$
92
Canada : A Profile
8ecember 1999
MAJOR CANADIAN IMPORTS &ROM INDIA
($'OOOs)
Co
de
1997 1998 Jan-Sep 1999
61 6rt of apparel # clothi'& access" /'itted or crocheted 97"642
126"56
8
131"729
62 6rt of apparel # clothi'& access" 'ot /'itted/crocheted
120"13
8
136"21
0
122"886
71 9atural/cultured pearls" prec sto'es # metals" coi'" etc! 42"533 56"891 56"608
52 3otto' 54"248 67"489 54"498
72 0ro' a'd steel 4"419 20"272 33"081
29 .r&a'ic chemicals 36"309 57"337 32"830
09 3offee" tea" mat: a'd spices 28"247 39"322 30"068
63 .ther made up te4tile articles sets wor' clothi'&" etc! 27"797 30"682 28"058
84 +achi'er," boilers" mecha'ical applia'ces" e'&i'es" pts 47"715 28"917 19"974
03 )ish a'd crustacea'" mollusc a'd other a-uatic i'%ertebrate 13"913 20"327 19"131
57 3arpets a'd other te4tile floor co%eri'&s 22"725 25"421 18"942
73 6rticles of iro' or steel 23"174 28"015 18"296
42 6rticles of leather saddler,/har'ess tra%el &oods etc! 23"242 24"440 18"219
85 $lectrical mch, e-pt parts thereof sou'd recorder etc! 18"967 25"026 17"251
93
Canada : A Profile
64 )ootwear" &aiters a'd the li/e parts of such articles 19"868 17"720 14"798
10 3ereals 13"643 16"611 11"379
08 $dible fruit a'd 'uts peel of citrus fruit or melo's 7"130 5"004 11"193
94 )ur'iture beddi'&" mattress" matt support" cushio' etc! 7"425 12109 8"741
87 7ehicles o/t railw/tramw roll-stoc/" pts a'd accessories 7"411 9"930 7"771
32 2a''i'&/d,ei'& e4tract ta''i's a'd deri%s 8"245 9"847 7"503
51 5ool" fi'e/coarse a'imal hair" horsehair ,ar' a'd fabric 11"155 12"381 7"229
68 6rt of sto'e" plaster" ceme't" asbestos" mica/sim mat 6"797 7"635 6"388
55 +a'-made staple fibres 4"804 5"623 5"737
50 (il/ 6"656 8"504 5"342
07 $dible %e&etables a'd certai' roots a'd tubers 5"430 5"291 5"317
20 Prep of %e&etable" fruit" 'uts or other parts of pla'ts 3"939 6"755 5"297
12 .il seed" olea&i fruits miscell &rai'" seed" fruit etc! 2"888 5"826 4"785
26 .res" sla& a'd ash 1 1 4"579
74 3opper a'd articles thereof 3"418 5"223 4"408
46 +a'ufactures of straw" esparto/other plaiti'& mat etc! 1"078 2"877 4"238
39 Plastics a'd articles thereof 2"013 2"233 4"015
21 +iscella'eous edible preparatio's 4"161 5"646 3"834
30 Pharmaceutical products 1"546 4"407 3"792
94
Canada : A Profile
95 2o,s" &ames a'd sports re-uisites parts a'd access thereof 1"941 3"014 3"347
13 ;ac &ums" resi's a'd other %e&etable saps a'd e4tracts 2"877 4"494 3"319
33 $sse'tial oils a'd resi'oids perf" cosmetic/toilet prep 3"580 4"613 3"255
83 +iscella'eous articles of base metal 4"921 4"761 3"183
82 2ool" impleme't" cutler," spoo' a'd for/" of base met etc! 3"139 4"134 3"029
53 .ther %e&etable te4tile fibres paper ,ar' a'd wo%e' fab 5"247 3"531 2"555
90 .ptical" photo" ci'e" meas" chec/i'&" precisio'" etc! 1"343 1"865 2"283
40 1ubber a'd articles thereof 1"646 3"532 2"211
44 5ood a'd articles of wood wood charcoal 3"773 2"473 2"187
25 (alt sulphur earth # sto' plasteri'& mat lime # cem 881 3"873 1"700
34 (oap" or&a'ic surface-acti%e a&e'ts" washi'& prep" etc! 1"000 1"139 1"663
54 +a'-made filame'ts 1"939 2"180 1"632
15 6'imal/%e& fats # oil a'd their clea%a&e products etc! 691 1"297 1"620
76 6lumi'ium a'd articles thereof 1"012 2"556 1"465
70 <lass a'd &lassware 1"215 1"853 1"430
96 +iscella'eous ma'ufactured articles 1"325 1"995 1"387
98 (pecial 3lassificatio' Pro%isio's 1"106 548 1"354
41 1aw hides a'd s/i's =other tha' furs/i's> a'd leather 2"581 1"743 1"262
95
Canada : A Profile
28 0'or& chem compds of prec met" radioact eleme'ts etc! 690 2"004 1"180
69 3eramic products 1"205 712 910
38 +iscella'eous chemical products 30 846 815
49 Pri'ted boo/s" 'ewspapers" pictures # other product etc! 735 1"310 777
19 Prep of cereal" flour" starch/mil/ pastr,coo/s prod 1"109 965 753
24 2obacco a'd ma'ufactured tobacco substitutes 7"099 4"697 132
(ub-total
730"82
0
890"65
3
771"366
2otal
7!'#(7
1
898#7!
(
778#'!7
CANADA -USIN!SS TRA9!LG !TIIU!TT! J
PROTOCOL TRA9!L
96
Canada : A Profile
CONSID!RATIONS PassportD9isa Re<'irements @ersons who are not
Canadian citi>ens or ermanent residents o' Canada may re1uire a &isa to
enter Canada$ 2he re1uirement 'or a &isa also alies to &isitors who are in
transit through Canada$ :s the list o' which 'oreign nationals re1uire &isas is
su!Gect to change, lease contact local Canadian consular authorities 'or
more in'ormation$ ;any tra&elers do not re1uire a &isa to &isit Canada$ 2hese
include)
@ersons law'ully admitted to the Hnited 4tates 'or ermanent residence who
are in ossession o' their alien registration card (?reen card) or can ro&ide
other e&idence o' ermanent residence+
9ritish citi>ens and 9ritish %&erseas Citi>ens who are re-admissi!le to the
Hnited Iingdom+
Citi>ens o' 9ritish deendent territories who deri&e their citi>enshi through
!irth, descent, registration or naturali>ation in one o' the 9ritish deendent
territories+
Citi>ens o' certain countries tra&elling on a dilomatic assort+ and
@ersons holding assorts or tra&el documents issued !y the .oly 4ee$ (,isa
in'ormation ro&ided !y Citi>enshi and 0mmigration Canada) :nyone with a
criminal record (including a dri&ing-while-into/icated charge) should also
contact the nearest Canadian em!assy or consulate !e'ore tra&el$ @lease
note that due to international concern o&er child a!duction, single arents,
grandarents or guardians tra&eling with children o'ten need roo' o' custody
or notari>ed letters 'rom the other arent authori>ing tra&el$ :nyone under
age 17 and tra&eling alone should carry a letter 'rom hisJher arent or
guardian authori>ing the tri$
Healt# =o &accination certi'icates are re1uired unless arri&ing 'rom an
in'ected area$ Canada has no secial health risks$ 4tandards o' community
health and sanitation are comara!le to those in the Hnited 4tates$
Cometent doctors, dentists, and secialists o' all tyes are a&aila!le$
Aoctors and hositals may e/ect immediate ayment in cash 'or health
ser&ices$ ;edical insurance is not always &alid outside a tra&elerOs home
country+ &isitors ha&e 'ound that, in some cases, sulemental medical
insurance with seci'ic o&erseas co&erage has ro&en to !e use'ul$ .ealth
care ro'essionals in 3ue!ec may only seak #rench$ :s recommended
&accinations, 'ood and water recautions, and geograhic seci'ic diseases,
are su!Gect to change, check with the -orld .ealth %rgani>ation (-.%) or
the 0nternational 2ra&elers .otline o' the H$4$ Center 'or Aisease Control and
97
Canada : A Profile
@re&ention (CAC@) 'or the most u to date in'ormation$ : &isit to your doctor,
who should also !e a!le to ad&ise you on &accinations, is recommended rior
to tra&elling$
C'rrenc(D$orei%n !+c#an%e 2ra&elers may enter or lea&e Canada with any
amount o' Canadian notes and coins, and any amount o' 'oreign currency,
tra&eler's checks, letters o' credit or any other negotia!le instruments$ ;aGor
credit cards (:merican */ress, ,isa, ;asterCard, and AinerOs Clu!) are
widely acceted in Canada$ */change and !anking 'acilities are readily
a&aila!le in Canada$ ;oney con&ersion rocedures are simle, and some
esta!lishments in Canada will accet H$4$ currency$ Con&erting maGor world
currencies is a simle rocess at most !anks$ ClimateDPackin% )or t#e Trip
Canada has a climate that can generally !e descri!ed as cool temerate$
2emeratures in this &ast country &ary 'rom 'rigid to mild, with long and
e/tremely cold winters in the arctic north, moderate seasons in the
mountainous southwest, and rolonged cold winters in the remainder o' the
country$ :&erage 5anuary temeratures in ur!ani>ed ortions o' Canada &ary
'rom (7 degrees #ahrenheit in ,ancou&er to 12 degrees in 3ue!ec and
%ttawa$ 5uly temeratures range 'rom an a&erage o' 70 degrees in 2oronto to
62 in Calgary$ 9usiness tra&elers arri&ing in Canada during the harsh winter
months should come reared with a hea&y o&ercoat, glo&es and !oots$
Auring summer months, &isitors should !ring lightweight and medium-weight
'all clothing, as cool days are not uncommon e&en during the warmest months
o' the year$ "ain gear is also a necessity in Canada, articularly in ,ancou&er
and other arts o' 9ritish Colum!ia$ : conser&ati&e !usiness wardro!e is
er'ectly acceta!le in Canada$ 2he electric current in Canada is the same as
in the Hnited 4tates -- 110&, 60 cycle, three-hase :C$
Lan%'a%e Canada has two o''icial languages, *nglish and #rench$ */cet 'or
some arts o' 3ue!ec and the ;aritime @ro&inces, *nglish is the dominant
language$
Time one Canada has se&en time >ones)
@aci'ic 2ime is ( hours !ehind *astern 4tandard 2ime$
98
Canada : A Profile
;ountain 2ime is 2 hours !ehind *astern 4tandard 2ime$
Central 2ime ("egina) is the same as *astern 4tandard 2ime throughout
the year$
Central 2ime (-innieg) is 1 hour !ehind *astern 4tandard 2ime$
*astern 2ime is the same as H$4$ *astern 4tandard 2ime$
:tlantic 2ime is 1 hour ahead o' *astern 4tandard 2ime$
=ew'oundland 2ime is 1V hours ahead o' *astern 4tandard 2ime$
Aaylight 4a&ings 2ime is 'rom :ril F to %cto!er (0$
TRANSPORTATION J CUSTOMS
2ransortation - */cet in remote northern regions, Canada ossesses an
ad&anced air transortation system with e/tensi&e connections to the world's
maGor tra''ic oints, well ser&ed !y maGor international air carriers$ Customs -
,isitors to Canada may !ring certain ersonal goods into Canada duty and
ta/-'ree, ro&ided that all such items are declared to Canada Customs uon
arri&al and are not su!Gect to restriction$ @eole entering Canada must
declare what they are !ringing in !eyond allowa!le limits and, uon re1uest,
oen acking cases or !aggage and take out items 'or insection !y customs$
2he imort o' 'oreign currency is unrestricted and the amounts declared uon
entry may !e re-e/orted$ 0t is an o''ence to take alcohol across a ro&incial
!oundary$ "e&enue Canada has made seci'ic ro&isions 'or the temorary
entry o' certain goods into Canada 'or &arious uroses, such as testing,
demonstration, and dislay$ 4uch goods may enter under an :2: (:dmission
2emoraire -- 2emorary :dmission) Carnet or under a 2emorary :dmission
@ermit ("e&enue Canada, Customs and */cise #orm *299) and may re1uire
either a re'unda!le deosit or a roortional duty deosit, deending on the
aroriate classi'ication determined !y Canadian customs regulations$ #irms
wishing to !ring machinery and e1uiment, dislay e1uiment, and other
items co&ered under Canadian temorary imortation regulations are ad&ised
to contact "e&enue Canada well in ad&ance o' shiment or arri&al in Canada$
Accommodations .otels in Canada are comara!le to those in the Hnited
4tates in terms o' 1uality, reser&ation rocedures and ser&ice+ many o' the
99
Canada : A Profile
larger international hotel chains are well esta!lished in Canada and are
connected to H$4$ and international reser&ation systems$
:ccommodation 2a/es - :ccommodation is su!Gect to the national goods and
ser&ices ta/ (?42) o' 7 ercent lus the alica!le ro&incial sales ta/ (@42),
which &aries, in those ro&inces which ta/ accommodation+ in =o&a 4cotia,
=ew'oundlandJBa!rador and =ew 9runswick, a com!ined 1< ercent
harmoni>ed sales ta/ (.42) is le&ied on accommodation$ ,isitors to Canada
who stay less than one month in any articular hotel (or other aid
accommodation) may !e eligi!le 'or a re'und o' the ?42 and @42 (or .42)$
*ach receit 'or accommodation must total a minimum o' CM<0 !e'ore ta/es,
and total re-ta/ accommodation lus e/orted urchases must reach CM200
to o!tain a ta/ re!ate$ 2he receit must also indicate how many nights were
sent at each location$ 4ome hotel ser&ices (telehone calls, room ser&ice,
etc$) are not eligi!le 'or a re!ate, !ut under some ackages (room lus meals,
'or e/amle) the ta/ on the 'ull ackage rice is re!ata!le$ "ental o' a
camsite, house!oat, tent or tra&el trailer does not 1uali'y 'or a re!ate, nor do
time-share urchases$
0ettin% Aro'nd Aomestic air'ares er mile in Canada are generally higher
than H$4$ 'ares, and distances !etween oulation centers are considera!ly
greater$ Bikewise, a good highway system (with somewhat less emhasis on
interstate roads) e/ists within 200 miles o' the H$4$ !order and suorts
e/tensi&e truck, !us and automo!ile tra''ic$ Canada also has an e/tensi&e
railway system connecting the country 'rom east to west$ :ll large cities ha&e
a u!lic transit system, generally !uses$ 2he oeration o' u!lic transort is
're1uently su!sidi>ed !y ro&incial and local go&ernments, making most 'ares
reasona!le$ 0n site o' e/tensi&e u!lic transort arrangements, Canada is
as much an automo!ile society as is the Hnited 4tates$ Be't-hand-dri&e
&ehicles are standard+ tra''ic mo&es on the right side o' the road$ 0nternational
highway sym!ols are used in Canada, and distances are in the metric (or
metric and miles) system$ 4eat !elts and in'antJchild seat restraints are
mandatory in all Canadian ro&inces$ #ines are imosed 'or non-use o' seat
!elts and child restraints$ 4ome 'oreign dri&er's licenses are &alid in Canada,
though roo' o' auto insurance is also re1uired$ Ari&ing under the in'luence o'
alcohol (A-0) is a serious o''ense$ @enalties are hea&y, and any rior
con&iction (no matter how long ago or how minor the in'raction) is grounds 'or
e/clusion 'rom Canada$ : wai&er o' e/clusion may !e o!tained 'rom
Canadian Consulates, !ut re1uires se&eral weeks$ 0t is illegal to take
automo!ile radar detectors into 3ue!ec, %ntario, ;anito!a or the 6ukon and
=orthwest 2erritories$ 2he olice will con'iscate radar detectors, whether in
use or not, and imose 'ines u to H4M1000$ -inter tra&el can !e dangerous
due to hea&y snow'alls that make road conditions di''icult$ .oliday eriods
can also !e dangerous !ecause o' increased tra''ic$ 2ra&elers should !e
cautious o' deer and elk when dri&ing at night in rural areas$
100
Canada : A Profile
Comm'nications Canada is integrated with the H$4$ direct-dial long-
distance telehone system (they share the same country code and toll calls
are treated in many ways as national long-distance calls rather than as
international calls)$ :ll 'orms o' communication and transmission are ossi!le,
including &oice, te/t, data, and &ideo, and worldwide telecommunications
ser&ices are a&aila!le$ ;ail ser&ice within and 'rom Canada is generally good,
!ut can !e slow$ :ll 'irst-class mail in Canada is airmail within the country,
and is ro&ided at no e/tra cost$ :dditional ostal ser&ices are a&aila!le in
Canada, including riority mail and ri&ate courier ser&ices$
In)ormation So'rces 2he Canadian 9roadcasting Cororation (C9C)
oerates two national tele&ision networks, one in *nglish !roadcasting on two
channels (regular rogramming and all news on ca!le) and one in #rench
also !roadcasting on two channels (regular rogramming and all news on
ca!le)$ : second national tele&ision network (C2,) is ri&ate and oerates
two *nglish channels (regular rogramming and all news on ca!le)$ : third
ri&ate network (?lo!al 2ele&ision) oerates in the hea&ily oulated area o'
4outhern %ntario and some areas o' -estern Canada, some areas o' :tlantic
Canada and in 3ue!ec$ 2here are 'i'teen indeendent tele&ision stations in
Canada$
Ca!le tele&ision use in Canada is highly de&eloed with o&er 90 ercent o'
the country's oulation hooked into a ca!le tele&ision system$ 2he Canadian
"adio-tele&ision and 2elecommunications Commission (C"2C) regulates
!roadcasting and ca!le tele&ision$
2he ro&ince o' 3ue!ec maintains its own 2, and radio !roadcasting ser&ice,
o''ering news, educational rogramming and entertainment in #rench$ #rench
language rogramming can !e 'ound throughout Canada, including in the
maGority o' *nglish seaking regions$
0n the area o' rint media, there are more than 107 daily newsaers
u!lished in Canada$ %&er 7< ercent are *nglish and aro/imately ten
ercent are #rench$ : 'ew daily newsaers are u!lished in languages other
than *nglish or #rench$ Canada's two largest daily national !usiness
newsaers are the ;lobe and Mail and he &inancial Post$
-ANCIN0 J -USIN!SS HOURS
9anks are oen 9)(0 :; to <)00 @;, ;onday through 2hursday+ 9)(0 :; to
6)00 @; on #riday$ 4ome !anks are oen 4aturday 'rom 10)00 :; to ()00
@;$ 9usiness hours are generally 'rom 9)00 :; to <)00 @;$
101
Canada : A Profile
SHOPPIN0
,isitors to Canada may recei&e re!ates 'or the ?42 and @42 (or the .42 i'
alica!le) aid on goods urchased i' they are taken out o' the country
within 60 days o' their deli&ery to the urchaser$ : 'orm (?42 176 *) must !e
'iled with "e&enue Canada to recei&e the re!ate$ #or details, contact
"e&enue Canada and ask a!out the ,isitor "e!ate @rogram+ e/lanatory
!ooklets (which include the re1uired 'orm) are a&aila!le at !order crossings,
airorts and &isitorJtourist !ureaus$
2he total sale amount on each receit 'or eligi!le e/orted goods that &isitors
su!mit to claim a ?42 re!ate must !e at least CM<0 !e'ore ta/es+ the re-ta/
sum o' all urchases (including accommodation) must reach at least CM200$
2here are also duty-'ree shos in ro&inces which !order the H$4$+ those
shos not located in airorts can rocess a re'und e&en i' the urchase was
made elsewhere, as long as the original receits and the goods are !oth
a&aila!le 'or e/amination+ i' the goods ha&e already !een e/orted, roo' o'
e/ort is re1uired$ : hoto identi'ication is also necessary$ H to CM<00 can
!e claimed !ack in ?42, .42 and @42$
2he 'ollowing are not eligi!le 'or sales ta/ re!ates)
K ;eals and !e&erages, including alcoholic !e&erages
K 2o!acco
K 2ransortation, including automo!ile rental, reairs, 'uel and arking
'ees
K @ersonal ser&ices) dry cleaning, entertainment, etc$
K @ro'essional ser&ices) weddingJ'uneral arrangements, etc$
Dinin% J !ntertainment 2he larger Canadian cities o''er a wide range o'
restaurants and cuisines$ 2here is a more ronounced #rench in'luence in
3ue!ec, and the @aci'ic coast city o' ,ancou&er is now home to :sian
immigrants o' many countries who ha&e !rought their nati&e cuisines with
them$
102
Canada : A Profile
-USIN!SS !TIIU!TT! J PROTOCOL
2he Canadian economy is highly de&eloed, gi&ing Canadians one o' the
highest standards o' li&ing in the world$ ;anu'acturing is concentrated in
transortation and communications e1uiment, engineering, steel, and
consumer goods$ ;ost manu'acturing is concentrated in %ntario and 3ue!ec$
@rimary industries !uilt on Canada's a!undant natural resources remain an
imortant art o' the economy and a maGor source o' e/orts$ 2he Canadian
economy is closely linked !y trade and in&estment with other countries,
esecially the Hnited 4tates$ 9usiness customs in Canada closely mirror
those o' the Hnited 4tates$ 2his is not to say, howe&er, that doing !usiness in
Canada is e/actly the same as doing !usiness in the Hnited 4tates$ 9usiness
tra&elers to Canada should !e sensiti&e to cultural and language di''erences
and allow ade1uate time 'or the de&eloment o' ersonal contacts in !usiness
dealings$ Canada is a !ilingual country with two o''icial languages, *nglish
and #rench$ *nglish is the language soken in the geograhical maGority o'
the country$ 0t is also the generally acceted language o' !usiness$ #rench is
soken rimarily in 3ue!ec and is the o''icial language o' that ro&ince$ 2he
ro&ince o' =ew 9runswick is a !ilingual ro&ince with the largest #rench
seaking oulation outside o' 3ue!ec$ Canadian !usinessmen, in general,
tend to !e more 'ormal and conser&ati&e than their :merican counterarts$
4ome sociologists ha&e traced this henomenon to the historical origins o'
the two countries+ whereas the Hnited 4tates was !orn o' settlers who 'ought
'or and won their indeendence 'rom ?reat 9ritain, Canada was largely
oulated !y Crown Boyalists$ 2o this day, the theorists contend, the
Canadian !usiness culture thus tends to !e more hierarchical, less oen to
entrereneurshi and risk-taking, and less dri&en !y short-term achie&ement$
9usiness ractices in the country, while similar to those in the Hnited 4tates
(with the nota!le e/cetion o' the ro&ince o' 3ue!ec), are ro!a!ly more like
those o' the 9ritish) conser&ati&e, understated attire+ strict adherence to
rotocol (e$g$, use o' titles in all corresondence, unctuality, letters o'
introductionJuse o' intermediaries)+ conducting all !usiness a''airs -- including
negotiations -- with a certain reser&e are all ad&isa!le 'or the 'oreign &isitor$
9elow are some suggested rules o' eti1uette and rotocol to !e o!ser&ed)
:&oid con&eying an attitude that suggests that Canadians are Gust like
:mericans$ -hile it is 'air to say that there are more similarities than
di''erences !etween the two, remem!er that Canadians are roud o' their
country and their distinct heritage$ :ssuming that Canadians are EGust like
:mericansE is not only erroneous, !ut can !e a signi'icant irritant to Canadian
citi>ens$
0n con&ersation, kee in mind that the word *skimo is o''ensi&e to some+ use
the term E0nuitE instead$ Bikewise, a!original Canadians are usually re'erred to
103
Canada : A Profile
as a!originals or as #irst =ations$ "elations !etween #irst =ation grous and
'ederal and ro&incial go&ernments ha&e !een strained in the 1990s, and
se&eral &iolent (though in're1uent) con'rontations ha&e eruted$
:lso, do not re'er to #rench-seaking Canadians as #rench-Canadians$ 0' the
su!Gect o' searatism or artition o' 3ue!ec comes u, try not to take sides$
104
Canada : A Profile
CHAPT!R 6
CANADA
DIR!CT MARC!TIN0
O9!R9I!.
2he Canadian mail-order industry consists o' aro/imately 660 'irms, which,
com!ined, satis'y 7($F ercent o' Canada's total market demand$ Canadian
mail-order consumers e/hi!it similar re'erences to the mail-order customers
in the Hnited 4tates$ :s a result, comanies with a good H$4$ client !ase can
e/ect to do well in the Canadian market$ -hile the 'igures in this reort are
!ased on actual sales and imorted goods, many o' the roducts listed 'or
sale in Canadian mail-order catalogs are H$4$-made roducts$ 2hese
roducts are imorted !y mail-order catalog houses 'or shiment to their
Canadian clients$
-hile the 'igures in this reort are conser&ati&e, and track closely with ro&en
growth rates o&er the last se&eral years, some industry secialists redict that
the market si>e o' this industry will trile !y the end o' the 1990s to H4M6$6
!illion$
PRODUCT D!SCRIPTION
2his analysis e/amines the market 'or mail-order sales in Canada$ 0t includes
the sale o' a 'ull range o' consumer roducts, 'rom aarel to household
aliances to ho!!y sulies$
@B*:4* =%2*) 0n'ormation contained in this reort relies hea&ily on sources
that may or may not include &arious Canadian go&ernment agencies, oinions
o' industry e/erts and uno''icial H$4$ *m!assy estimates$
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Canada : A Profile
MARC!T HI0HLI0HTS J -!ST PROSP!CTS
Market Pro)ile
?rowth in Canadian demand 'or mail-order urchases can !e attri!uted to a
rise in consumer con'idence and ower'ul secular trends, such as
demograhic and work lace shi'ts$ -ith technology !roadening the reach
and increasing the oerating e''iciencies o' mail-order 'irms, the con&enience
o' mail order catalog shoing has !ecome a leasant and roducti&e
e/erience comared to a hectic retail !uying e/erience$
:lso in'luencing the growth in Canadian demand 'or mail-order urchases is
the num!er o' smaller catalog comanies entering the market$ Hntil recently,
only large national Canadian catalogs ha&e !een the maGor layers in the
industry$ "ecently, smaller, roduct-seci'ic comanies ha&e made headway
into the Canadian market$
-est Sales Prospects 2he 'ollowing section descri!es roducts which
reresent the !est sales rosects 'or mail-order sales to Canada$ 2hese
roducts ha&e e/erienced steady growth since 199F, and this growth is
e/ected to continue during the 'orecast eriod)
-omen's aarel
;en's aarel
Comuters and comuter sulies
CAs
2aes and !ooks
Collecti!les
%utdoor T recreation e1uiment
:rt work
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Canada : A Profile
4eeds and lants 2he success o' mail-order sales o' women's and men's
aarel is due to their status as 'ashion items$ Canadian consumers are
willing to ay more 'or the 1uality and &ariety o' garments a''orded
through mail-order catalogs, esecially i' the garments are distinct or
uni1ue and sold under a renowned la!el$ 4ince 'le/i!le return olicies and
seedy deli&ery times ha&e artially sol&ed the ro!lem o' getting a
correctly 'itted garment, growth in mail-order aarel sales has !een
'acilitated$ Comuter hardware and so'tware sales through mail-order
catalogs ha&e !ene'ited 'rom the e/loding array o' roducts that are
sometimes only a&aila!le &ia catalogs$ :dditionally, the imro&ing
accetance and e''ecti&eness o' toll-'ree roduct suort lines -- !oth
&oice and on-line -- are making urchases o' comuters and comuter
sulies !y mail-order much more 'easi!le$ 9est rosect roducts 'or
mail-order sales growth ossess one or more o' the 'ollowing
*asy to ut through the mail (either small enough or light enough)+
?ood remote roduct suort+
Hna&aila!ility or lack o' &ariety o' roduct through traditional retail outlets+
#ashion or uni1ue items where la!els add high ercentage to roduct's
&alue+ andJor
Cheaer than comara!le roducts a&aila!le through e/isting channels$ $
COMP!TITI9! ANAL,SIS: Domestic Prod'ction
Canadian-!ased mail-order comanies suly the !ulk o' mail-order sales in
Canada$ 0ndustry sources redict Canadian mail-order catalog 'irms will
continue to maintain at least an 70 ercent share o' domestic market demand
through 1997-1999$
Canada - Airect ;arketing =ationwide, Canada has an estimated 660
mail-order 'irms which can !e di&ided into the 'ollowing three segments)
4mall Consumer -- Catalog 'irms that mail to 'ewer than 100,000
households er year, rimarily to consumers$
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Canada : A Profile
Barge Consumer -- Catalog 'irms that mail to 100,000 households or more
annually, rimarily to consumers$
9usiness-to-9usiness -- Catalog 'irms that rimarily target !usiness
customers$ 2he Canadian mail-order market has historically !een
dominated !y large, national Canadian consumer catalog 'irms$ U2S2
Market Position and S#are H$4$ comanies suly the maGority o' mail-
order imorts to the Canadian market, and :merican mail-order catalog
comanies are e/ected to increase their market share at a real annual
rate o' 'i&e ercent through the late 1990s$ H$4$ mail-order 'irms ha&e
done e/tremely well in sulying the Canadian market in the aarel
roducts sector, where 'ew Canadian 'irms comete$ H$4$ 'irms such as
Bands' *nd, B$B$ 9ean, 5$ Crew and others ha&e an ad&antage o&er
Canadian 'irms, which are tyically smaller, not as technologically
ad&anced, and not as well marketed$ 2he success o' large H$4$ aarel
mail-order 'irms has encouraged a num!er o' other secialty mail-order
catalog 'irms to enter the market$ :mong recent H$4$ entrants to the
Canadian market are those seciali>ing in comuters and comuter
sulies, general merchandise, gi'ts, and 'urniture$ H$4$ mail-order 'irms
suly under 2< ercent o' Canadian market demand 'or mail-order items,
!ut they are well ositioned to increase their market share$ H$4$ mail-
order 'irms oerate highly automated in&entory management, list
management, and order takingJrocessing systems$ 4uch technological
intensity allows H$4$ 'irms to maintain low o&erhead e/enses,
cometiti&e rices, and high roduct sales and turno&er rates$ 2hese and
other 'actors, including geograhic ro/imity and cultural similarities make
H$4$ mail-order 'irms strong cometitors not only 'or Canadian mail-order
'irms, !ut also 'or other 'orms o' retailers in Canada$ H$4$ 'irms ha&e the
otential to achie&e signi'icant market share through their technological
edge and other ad&antages that ensure 1uality, timely deli&ery, low costs,
and imro&ed customer ser&ice$ H$4$ mail-order 'irms will continue to !e in
a cometiti&e osition, selling to Canadian consumers !ecause o' the
=orth :merican #ree 2rade :greement (=:#2:)$ Ot#er Imports
Canadian consumers recei&e mail-order catalogs 'rom around the world,
!ut mail-order catalogs 'rom !usinesses outside Canada or the H$4$
account 'or less than three ercent o' the total market$ 2he largest source
o' third-country mail-order catalogs is the Hnited Iingdom with two
ercent o' the market, 'ollowed !y .ong Iong with 0$< ercent$ .owe&er,
the share o' Canada's imort market held !y third-country cometitors is
growing$
Competitive $actors 2he Canadian mail-order industry is raidly !ecoming
more customer-oriented$ Canadian mail-order 'irms use !etter, more accurate
mailing lists, and reduce the si>e andJor num!er o' ages in catalogs in
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Canada : A Profile
resonse to consumers' en&ironmental concerns$ :dditionally, most mail-
order 'irms (92 ercent) now o''er toll-'ree num!ers 'or customer orders$
Central to the cometiti&eness o' H$4$ 'irms in Canada is their a!ility to
recogni>e and address the 'act that Canadian consumers demand high-
1uality roducts and ser&ices$ -hen sur&eyed, Canadian consumers cited
high-1uality roducts, toll-'ree num!ers, seedy deli&ery, and easy-to-
comlete 'orms as &ery imortant when urchasing 'rom mail-order 'irms$ 0t is
also critical that H$4$ 'irms clearly understand Canada Customs re1uirements,
the Canadian ta/ structure and the Canadian ostal system$ 2he Canadian
Airect ;arketing :ssociation reorts that Canadians do not want to deal with
customs and duty hassles, hidden deli&ery charges, or long waits 'or
merchandise deli&ery$ #urther, when Canadians need to return an item, they
want the rocess to !e as simle as ossi!le$ ?i&en the relati&ely under-
de&eloed nature o' the Canadian mail-order market, the close ro/imity o'
the Hnited 4tates to Canada, consumer similarities !etween Canada and the
Hnited 4tates, the a!ility o' H$4$ 'irms to use technology to o''er 1uality goods
at cometiti&e rices and =:#2: !ene'its, H$4$ mail-order 'irms are well
ositioned to increase their share o' mail-order sales to Canada$ !ND-US!R
ANAL,SIS ;ail-order acti&ity in Canada ranges 'rom rural communities to
ur!an centers and 'rom the smallest households to the !iggest cororate
o''ices$ 2he rimary end-users o' mail-order catalogs in Canada, howe&er,
are rural and ur!an households$ :ccording to industry e/erts, 'ewer mail-
order catalogs enter a tyical Canadian household than H$4$ household, !ut
Canadians resond to mail order catalogs at rates e/ceeding those o' their
H$4$ counterarts$ #igures 'rom Iu!as Consultants indicate that FF ercent o'
Canadian consumers ha&e ordered goods 'rom a mail-order catalog at least
once$ ;ore women (<( ercent) than men ((< ercent) use mail-order
catalogs, while younger Canadians are more likely to use mail-order catalogs
than older consumers$ .ouseholds, with large incomes !etween CM(0,000
and CM<0,000 are more likely than households with smaller incomes to use
mail-order catalogs$ :ro/imately F0 ercent o' Canada's oulation is o'
#rench, 9ritish or 0rish ancestry$ 2wenty ercent o' the oulation is de'ined
as !eing o' Emultile originE$ 2he remaining F0 ercent o' the oulation is
mainly o' ?erman, 0talian, Hkrainian, Chinese, Autch, nati&e =orth :merican,
@olish or 4candina&ian descent$ 9ecause Canadian ethnicity is so di&erse,
direct marketing strategies should re'lect multi cultural asect o' Canadian li'e
in order to ma/imi>e otential sales oortunities$ 0ndustry sources reort that
aarel catalogs are the most well-recei&ed mail-order catalog$ H$4$ mail-
order aarel catalogs ha&e a strong resence in middle to uer-income
Canadian homes !ecause domestic cometition is minimal 'rom Canadian
mail-order comanies$ Comuters and comuter sulies, urchased through
mail-order catalogs, are raidly gaining oularity as an increasing num!er o'
Canadians !uy new comuters or ugrade their current systems$ Canada
@ost reorts that although Canadians are hea&ily e/osed to, and in'luenced
!y, H$4$ media, Canadians continue to show distinct re'erences$ Canadians
consumers are much more conser&ati&e and cautious !uyers than their
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Canada : A Profile
counterarts in the Hnited 4tates$ 0n the ast, mail order shoing has !een
the su!Gect o' considera!le sketicism among Canadians$ 2his attitude is
changing as a result o' in'omercials 'rom H$4$ tele&ision which are succeeding
in making Canadians more com'orta!le with mail order shoing$ :dditionally,
Canadians lace high riorities on rice and roduct 1uality$ Canadians are
loyal reeat customers once their trust is gained !y a mail-order 'irm$
MARC!T ACC!SS J R!0ULATIONS
Ta+es ;ost roducts entering Canada are su!Gect to the 'ederal ?oods and
4er&ices 2a/ (?42), a &alue-added ta/ le&ied at e&ery stage o' roduction
and sales$ Airect marketing 'irms that conduct more than CM(0,000 er
annum in sales must register with "e&enue Canada$ "e&enue Canada issues
a ?42 num!er which is used to collect the ta/ 'rom customers (the ?42
num!er must !e included on all in&oices)$ -ith 'ew e/cetions, CanadaOs
ro&inces also aly @ro&incial 4ales 2a/es (@42)$ Comanies can aly 'or
a &endor ermit and collect the @42 'rom the consumer directly$ 0n some
cases, a single .armoni>ed 4ales 2a/ (.42) is aid+ the .42 is in e''ect a
merger o' the ?42 and aroriate @42 'or the ro&ince which su!scri!e to
the .42 system$ ;ost goods shied to Canada are su!Gect to duties and
?42$ :n e/emtion 'rom duties and ta/es e/ists 'or any ackage &alued at
less than CM20$ :ny goods &alued at more than CM20 that arri&e in Canada
will undergo customs clearance rocedures$ : CM< handling 'ee is assessed
on arcels mailed to Canadian customers &ia arcel ost, and when duties
and ta/es are not collected in ad&ance !y suliers$ 0' non-resident mail-order
suliers use ri&ate courier 'irms, or !ulk shiing !y 'reight 'orwarders, the
'ee is not alied$ 0n such cases, the cost o' clearing the goods through
Canada Customs will continue to !e the resonsi!ility o' the mail-order 'irm
shiing the merchandise$
La"elin% and Packa%in% 2he main laws regulating most roduct la!eling and
marking in Canada include)2he Consumer @ackaging and Ba!eling :ct+ 2he
-eights and ;easures :ct+2he 2e/tiles Ba!eling and :d&ertising :ct+ 2he
@recious ;etals ;arking and Ba!eling :ct+ and2he Canadian :gricultural
@roducts :ct$ Canada re1uires !ilingual la!eling (*nglish and #rench) 'or
most roducts$ 9ilingual designation o' the generic name on most
reackaged consumer roducts is re1uired !y the 'ederal Consumer
@ackaging and Ba!eling :ct$ Hnder this :ct, the 'ollowing in'ormation must
aear on the ackageJla!el o' a reackaged consumer good sold in
Canada)
@roduct 0dentity Aeclaration - Aescri!es a roduct's common or generic
name, or its 'unction$ 2he declaration must !e in !oth *nglish and #rench$
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Canada : A Profile
=et 3uantity Aeclaration - 4hould !e e/ressed in metric units o' &olume,
when the roduct is a li1uid, a gas, or is &iscous+ or in metric units o' weight,
when the roduct is solid+ or !y numerical count$ =et 1uantity may !e
e/ressed in other esta!lished trade terms$ Aealer's =ame and @rincial
@lace o' 9usiness - -here the reackaged roduct was manu'actured or
roduced 'or resale$ 0n general, a name and address su''icient 'or ostal
deli&ery is acceta!le$ 2his in'ormation can !e in either *nglish or #rench$
Country o' %rigin - 2he agency resonsi!le 'or insection o' imorts into
Canada, Canada Customs, also re1uires an indication o' the country o' origin,
such as E;ade in WWWWE, on se&eral classes o' imorted goods and on all
rinted matter$ ?oods not roerly marked cannot !e released 'rom Canada
Customs until suita!ly marked$ 2he goods can !e marked, at the imorter's
e/ense, either on Canada Customs' remises or on the imorter's own
remises under the suer&ision o' Canada Customs o''icials$ ;oreo&er,
Canadian regulations re1uire that declarations o' net content o' all ackaged
consumer goods !e stated in metric units in !oth *nglish and #rench,
although imerial units may also !e shown$ ;ost roducts may !e ackaged
in imerial-measure containers with the metric e1ui&alents e/ressed on the
la!el$
Distri"'tionD-'siness Practices Barge Canadian mail-order 'irms use their
own warehouses and distri!ution centers to 'ill orders, while most smaller
'irms use their e/isting o''iceJretail sites as distri!ution centers$ Bess than 'i&e
ercent o' small Canadian mail-order 'irms use outside oerations 'or
distri!ution uroses$ ;ost Canadian catalog 'irms shi &ia Canada @ost's
sur'ace deli&ery method$ 2he second-most common means o' shiing is
sur'ace deli&ery using a ri&ate courier$ Canadian mail-order 'irms rimarily
charge 'or shiing and handling !ased on the &alue o' the total order$
0ndi&idual charges er item is another method used !y mail-order 'irms$ #ew
Canadian mail-order 'irms Edro-shiE merchandise to consumers directly
'rom manu'acturers$ Aistri!ution Hnder =:#2: - 2he imlementation o' the
=:#2: has greatly increased trade acti&ity !etween Canada and the Hnited
4tates$ *conomic and geograhic !arriers to trade are disaearing at a raid
rate$ 0n the Hnited 4tates, intense cometition and deregulation o' the
communications and transortation industries has led to lower distri!ution and
transortation costs 'or H$4$ suliers$ Mailin% Lists Canada has
aro/imately 2,000 commercial lists a&aila!le to mail order 'irms$
Commercial lists can !e either consumer or !usiness lists$ 2he a&erage
consumer list consists o' <0,000 names, and the a&erage !usiness list
contains (0,000 names$ 2he &ast maGority o' lists are a&aila!le on a rental
!asis$ Bists can !e EcutE into &arious sections$ 2hese can include such
&aria!les as gender, geograhy, language, or urchasing atterns$
CANADA POST CORPORATION
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Canada : A Profile
2he Canada @ost Cororation is the countryOs ostal ser&ice$ 2he cororation
o''ers a wide-range o' ser&ices 'or the deli&ery o' en&eloe mail and
ackages within Canada$ #or more in'ormation on the ser&ices o''ered !y the
Canada @ost Cororation, contact them directly$
0n Canada, the @ostal Code alternates !etween alha!etic and numeric
characters$ 2he 'irst character o' the @ostal Code is a letter which identi'ies a
ro&ince or region within a ro&ince, the second digit is always a num!er and
indicates whether the mail is destined 'or an ur!an or rural location$ 2he third
character seci'ies the location e&en more recisely, and the last three
characters ro&ide the most seci'ic destination identi'ication$
2he Canadian @ostal Code system 'acilitates the use o' census-!ased
targeting rograms$ @ostal Codes can !e correlated to census data and
seci'ic !eha&ior in'ormation and ;ail-order comanies can use this
in'ormation to correlate urchasing data and consumer !eha&ior$
SP!CIAL CONSID!RATIONS IN MARC!TIN0 TO
CHILDR!N
2he largest marketing association in Canada recently announced new
directi&es, which took e''ect in :ril 1999, 'or its mem!ers who engage in
marketing to children$ 2he Canadian ;arketing :ssociation (C;:) has
amended its mandatory Code o' *thics to !etter guide its mem!ers and
rotect the interests o' children, who are !eginning to enter relationshis with
in'ormation-!ased marketers through the internet and other interacti&e
technologies$
2he Canadian ;arketing :ssociation is the largest association in Canada 'or
in'ormation-!ased marketers$ 0ts 7<0 cororate mem!ers are resonsi!le 'or
aro/imately H4M9 !illion in sales through in'ormation-!ased marketing
each year$ ;em!ers include Canada's maGor 'inancial institutions, u!lishers,
cataloguers, music, !ook and &ideo clu!s, charita!le organi>ation,
relationshi marketers and those engaged in electronic commerce and
multimedia marketing$ 2hese amendments were de&eloed a'ter the C;:
consulted with many mem!er comanies, international artners and ad&ocacy
grous who ha&e e/ertise in children's issues$
$INANCIN0
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Canada : A Profile
2he maGority o' goods urchased through mail order ha&e !een aid 'or !y
credit card$ 2he use o' credit cards 'acilitates immediate urchase and
deli&ery o' goods across the Canadian !order$
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Canada : A Profile
CHAPT!R 7
CANADA TRAD! O9!R9I!. Canada is the world's se&enth-largest market
economy, and is ositioned to lead the %rgani>ation 'or *conomic
Cooeration and Ae&eloment (%*CA) in economic outut in 1999, with
roGected growth o' a!out three ercent$ @rices 'or most goods and ser&ices
are esta!lished !y the market$ 2he most imortant e/cetions are go&ernment
ser&ices, ser&ices ro&ided !y regulated u!lic ser&ice monoolies, most
medical ser&ices, and suly-managed agricultural roducts (eggs, oultry
and dairy roducts)$ 9usiness oortunities in Canada 'all within &irtually the
'ull sectrum o' industry and agricultural sectors, and in &irtually e&ery
!usiness acti&ity$ ;ore seci'ically, howe&er, the 'i&e to !est rosect
sectors 'or the near term include the 'ollowing) comuters and eriherals+
comuter so'tware+ telecommunications e1uiment+ automoti&e arts and
ser&ice e1uiment+ and !uilding roducts$ 2here is also strong demand 'or
&alue-added 'ood roducts$ Beading imorts in the late 1990s ha&e included
motor &ehicles and arts, industrial machinery, crude etroleum, chemicals,
agricultural machinery$ ?enerally, Canadians ha&e strong national ride, and
will o'ten 'a&or Canadian roducts, esecially i' they o''er similar 'eatures at a
similar cost$ 2his is articularly true 'or any go&ernment rocurement, local or
'ederal, where not co&ered under the rules o' either -orld 2rade
%rgani>ation (-2%) or !ilateralJmultilateral 'ree trade agreements$
=e&ertheless, cometition in Canada is generally 'air$ Trade /it# t#e United
States 2he H$4$-Canada trading relationshi is the largest in the world$
:ro/imately 70 ercent o' Canada's merchandise e/orts are destined 'or
the Hnited 4tates, while merchandise imorts 'rom the H$4$ comrise 77
ercent o' the total+ other maGor e/orters to Canada are 'rom the *uroean
Hnion (*H+ 7$7 ercent) and 5aan (($1 ercent)$ 4ince the imlementation o'
the =orth :merican #ree 2rade :greement (=:#2:) in 199F, H$4$ e/orts to
Canada ha&e increased !y o&er F0 ercent$ :lmost one-third o' H$4$-
Canadian trade is in the automoti&e sector$ Hnder the 196< H$4$-Canada
:utomoti&e :greement (:uto @act), which ro&ided 'or 'ree trade in cars,
trucks, and auto arts, two-way trade in automoti&e roducts rose 'rom
H4M71< million in 196F to H4M10F$6 !illion in 1996$
sector$ Hnder the 196< H$4$-Canada :utomoti&e :greement (:uto @act),
which ro&ided 'or 'ree trade in cars, trucks, and auto arts, two-way trade in
automoti&e roducts rose 'rom H4M71< million in 196F to H4M10F$6 !illion in
1996$
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Canada : A Profile
TRAD! A0R!!M!NTS Canada assed imlementing legislation 'or the
Hruguay "ound agreement under the ?eneral :greement on 2ari''s and
2rade (?:22), and Goined the -orld 2rade %rgani>ation as a 'ounding
mem!er$ Canada is also e/anding its economic ties across the @aci'ic
through mem!ershi in the :sia-@aci'ic *conomic Cooeration (:@*C) 'orum$
Canada has !een e/loring the ossi!ility o' a 'ree trade agreement with the
4outh :merican trading !loc ;ercosur (:rgentina, 9ra>il, @araguay and
Hruguay), whether or not the H$4$ decides to articiate as well$ 2his
incremental aroach may !e a 'all-!ack osition in case negotiations 'or a
#ree 2rade :rea o' the :mericas (#2::) takes longer to create than
e/ected$ Nort# America $ree Trade A%reement 2he 1979 !ilateral H$4$-
Canada #ree 2rade :greement (#2:) has since !een enhanced and
e/anded through the imlementation o' the =orth :merica #ree 2rade
:greement (=:#2:), which took e''ect in 199F$ 2his historic agreement
!rought ;e/ico into the 'ree trade area and e/ands the scoe o' the #2: in
some key 'unctional areas+ 'or e/amle, the =:#2: contains ro&isions
relating to intellectual roerty, land transortation, and the en&ironment,
which were not ro&ided 'or in the #2:$ In)ormation Tec#nolo%(
A%reement 2he 1997 0n'ormation 2echnology :greement (02:) ro&ides 'or
the elimination o' tari''s on in'ormation technology roducts !y the year 2000$
%&er (< countries will stage the o&erwhelming maGority o' their tari''
reductions to >ero !y 2000, and in &ery limited circumstances, e/tended
staging o' commitments u to 200< was agreed 'or a 'ew countries$ 2he
:greement also ro&ides 'or a re&iew o' roduct co&erage and a continuing
oortunity to ursue non-tari'' measures that imede market access 'or
in'ormation technology roducts$
TRAD! $INANC!
-ankin% S(stem
Canada has an e/tensi&e and dee !anking industry with o&er 7,000 !ank
!ranches$ 2he sector continues to !e dominated !y the si/ largest 4chedule 0
!anks (widely held Canadian-owned institutions with assets in e/cess o'
CM1$2 trillion), which control a!out 90 ercent o' total !anking assets$
$orei%n !+c#an%e Controls
2he Canadian dollar is 'ully con&erti!le$ Canada has no restrictions on the
mo&ement o' 'unds into or out o' the country$ 9anks, cororations and
indi&iduals are a!le to deal in 'oreign 'unds or arrange ayments in any
currency they choose$
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Canada : A Profile
Trade Accord "et/een Canadian and U2S2 Native Peoples
2wenty-si/ #irst =ations in =orthern ;anito!a are rekindling trade ties with
nati&e eole across the !order in the Hnited 4tates$ 0n :ugust 1999 the
;anito!a !ands signed se&eral trade agreements with tri!es in Cali'ornia+
they hoe the agreements will hel them de&elo untaed natural resources,
including 'ish, lum!er and mineral deosits$
-hile the 'irst shiment o' goods is still a long way o'', many nati&e leaders
are &ery e/ited a!out the trade ossi!ilities$ 2he !ands say they will use
historic rights to circum&ent 'ederal and ro&incial restrictions on resource
de&eloment and trade$ (C9C =ewsworld, 2< :ugust 1999)
Credit In)ormation
Credit in'ormation on Canadian 'irms is readily a&aila!le 'rom a num!er o'
ri&ate sector credit re'erence comanies$
Met#ods o) Pa(ment
:lthough terms &ary 'rom one industry to another and among trading
channels, manu'acturers e/orting to Canada generally gi&e a discount 'or
cash urchases o' one or two ercent o' the in&oice i' aid within ten days$
#irms e/orting to deartment stores tend to o''er 7$< ercent to ten ercent
cash discounts 'or settlement within ten days$ =ormal recautions in dealing
with a 'irst-time customer should !e e/ercised, and sa'eguards instituted
where&er ossi!le, at least until a satis'actory relationshi has !een
esta!lished$
2he disosition o' charges on e/ort collections or letters o' credit through
normal !anking channels should !e resol&ed !etween the e/orter and the
!uyer at the time o' sale$ Canadian !uyers will o'ten accet these charges,
!ut an une/ected !ill may cause irritation and, i' there has !een no rior
consent to the charge, the 'oreign !uyer has the right to re'use to ay$ -hen
this haens, !anks are entitled to deduct the collection charges 'rom the
remittance under the terms o' the Hni'orm "ules 'or the Collection o'
Commercial @aer de&eloed !y the 0nternational Cham!er o' Commerce$
Consumer #inancing - Consumer credit is used e/tensi&ely, and se&eral
systems 'acilitate consumer !orrowing in Canada$ "e&ol&ing charge lans are
issued on aro/imately the same terms as in the Hnited 4tates, and maGor
credit card comanies are acti&e in Canada$ Canadian !anks ha&e !ecome
116
Canada : A Profile
sensiti&e to the growing 'inancial needs o' 'ranchised oerations, with &arious
loan and reayment lans 'or 'ranchise oerations now o''ered$
$OR!I0N !;CHAN0! PROC!SS
#oreign e/change turno&er is dominated !y the maGor, 'ree-'loating
currencies) the H$4$ dollar, the ?erman deutschmark (e&entually, the euro)
and the 5aanese "en$ 9asic economic relationshis hel determine rate
mo&ements when trading !etween artners with 'ree 'loating e/change rate
systems) rate o' in'lation, interest rates and the 'orward remium or discount
on each currency, !ased on e/ectations o' economic growth$ 9ecause not all
trading artners ha&e the a!ility to ta a domestic currency which is 'ully
con&erti!le, glo!al trade largely tends to rely on the maGor currencies 'or
international commerce, heling to mitigate risks 'or the largest trading
countries$
2hus, e/orters will likely !e aid !y the 'oreign recei&er o' goods or ser&ices
either in H$4$ dollars or another maGor 'oreign currency$ 0' ayment is made in
a 'oreign currency, it will !e wired directly to the e/orter's !ank account$ 0'
the e/orter does not ha&e an account that can accet a 'oreign currency, the
'unds will ha&e to !e e/changed to the re-determined maGor currency and
then deosited into the comany's !ank account$
&orei$n ?ires' 0' a comany (imorter) wants to ay a e/orter &ia wire, the
imorter can wire the 'oreign 'unds to a currency e/change comany's 'oreign
account to !e con&erted to a maGor currency, which will then !e 'orwarded to
the e/orter's !ank account$
2he #oreign */change ;arket - -hen doing !usiness internationally, there is
always a risk o' e/osure due to otential rate 'luctuations !etween domestic
currency and the 'oreign 'unds$ (i$e$ 'or 5aanese the &alue o' the 'oreign
currency 'luctuates relati&e to the yen)$ %'ten deals are made well in ad&ance
o' the deli&ery o' goods, increasing the risk o' rate mo&ement$ 0' the rate
'luctuates uward against the domestic currency, the ayment will also
increase !ecause it will cost more in domestic 'unds to 'inance the 'oreign
ayment$
2he market 'or 'oreign e/change can !e !roken down into three comonents)
S.ot radin$' 0mmediate settlement o' 'oreign e/change within two !usiness
days$ 2his contract comrises aro/imately F( ercent o' annual, glo!al
'oreign e/change$ &orward Contracts' : 'orward contract is a 'le/i!le roduct
117
Canada : A Profile
that will hel manage 'oreign e/change risk on !oth aya!les and
recei&a!les$ 0t is an agreement to urchase or sell a 'oreign currency (hard)
against a domestic currency (hard) 'or a 'i/ed amount, at a 'i/ed rate, at an
agreed uon 'uture date+ these contracts are used as a method o' hedging
commercial risks against rate 'luctuation$ 2here'ore, a 'orward contract may
not !e used 'or seculati&e uroses$ 2hese contracts consist o' !oth the
traditional XoutrightO 'orward contract and the 'utures contract ('utures will !e
discussed later)$ 2he tyical 'orward contract is esta!lished at the time o' the
agreement 'or ayment and deli&ery at maturity o' the contract$ 2yically,
'orward contracts can !e made o' one, two, three, si/ or twel&e months$
@ayment occurs on the second !usiness day a'ter the e&en month o' the
trade$ 0n dollar terms, the minimum urchase o' a 'orward contract is
H4M10,000$00 and a small ercent deosit is re1uired at the time the contract
is !ooked$ 2he remaining !alance is due uon the maturity date$ -hen the
!alance is aid, settlement o' the 'orward contract is made !y wire trans'er,
!ased uon the client's indi&idual instructions$ 2here are also situations
where an e/orter may wish to sell a 'orward contract$ :n e/amle would !e
when a comany !ids on a Go! that will ay in a 'oreign currency$ -hen the
!id is awarded, the !idder knows the e/act 'oreign amount that will !e
recei&ed at a seci'ic 'uture date$ 2he !idder can sell the 'orward contract to
con&ert the 'oreign currency into domestic currency$ &orei$n E=chan$e Swa.'
-ithin a swa, a dealer will !uy a currency on the sot market, while
simultaneously selling the same amount !ack into the 'orward market$ 2his
has the e''ect o' creating a single transaction with one counterarty$ 2his
alle&iates une/ected 'oreign e/change risk$ 2he di''erence in the !uying and
selling rice is seen as the interest rate di''erential !etween the two countries$
2hus, a swa is simly !orrowing another currency on a collaterali>ed !asis$
#oreign Currency %tions - : currency otion is a contract where!y the !uyer
urchases the right, !ut not the o!ligation to !uy or sell a gi&en amount o'
'oreign e/change at a seci'ied eriod o' time until the e/iration date$ 2he
only risk incurred is what rice or remium is laced on the instrument
urchased$ %ne may either urchase a call otion to !uy 'oreign e/change or
a ut otion to sell 'oreign e/change$ -hile the market 'or otions is
constantly e&ol&ing through inno&ati&e new techni1ues, there are two kinds o'
otions which are imortant to note in de'inition$ American Currenc" O.tions'
2hese instruments allow the urchaser to e/ercise the otion at anytime
during the course o' the contract$ Euro.ean Currenc" O.tions' 2hese
instruments allow the urchaser to e/ercise the otion only at the e/iration
date and not !e'ore$
;arkets 'or Currency %tions Over the Counter @OC2' ;any multinational
!anks o''er tailor-made otions 'or transactions o' H4M1 million or more$
2hese are growing in imortance as currency otions ha&e 'ar outaced the
demand 'or commodity otions in the last 1uarter o' the century$ 9anks see
118
Canada : A Profile
the &alue in o''ering otions to their clients$ O.tions Sold on E=chan$es'
9eginning less than twenty years ago, otions !egan to !e traded on
e/changes and ha&e 'ound homes on e/changes now worldwide$ 2hese are
the reasona!le alternati&e to the 'irms which donOt ha&e access to the %2C
otions$ -hen !uying through an e/change, !uyers and sellers do not
interact with each other !ut rely on a clearinghouse to act as the counterarty$
2he clearinghouse guarantees 'ul'illment o' the order at the end o' the
contract$ ;any &arieties o' otions are o''ered in the maGor currencies$
Ins'rance Iss'es Relatin% to Terms o) Sale #or e/orters shiing #%9
('ree on !oard), #:4 ('ree alongside shi) or CT# (cost and 'reight) where
ayment terms are %en :ccount, Collection !y Ara't, or any other method
which re1uires ayment a'ter release o' goods, the e/orter is e/osed
'inancially i') 9uyer neglects to insure$9uyer's insurance has limited co&erage
and an uninsured loss occurs$9uyer does ha&e insurance when a loss occurs,
!ut recei&es claim ayment 'rom their insurer in local currency, e/osing the
e/orter to a otential loss 'rom 'luctuations in e/change rates$9uyer reGects
goods as not !eing in sound condition, !ut hysically no damage occurred
during shiing$ 2his would lea&e the e/orter with a 'inancial interest in
unclaimed goods located thousands o' miles away$ #or these reasons, it is in
the e/orter's !est interest to shi C0# (cost, insurance, and 'reight)$ 4hiing
C0# will allow the e/orter to)2ailor the insurance rogram to meet the
e/orter's seci'ic needs$ 2he e/orter can not always rely on the o&erseas
customer to hold the e/orter's !est interest at heart$*nsure all shiments are
automatically co&ered su!Gect to the terms o' the e/orter's contract$ *nsure
rates are cometiti&e !ased on the e/orter's shiing e/erience, not the
!uyer's$ *nsure claim ayments are in H$4$ dollars, and that negotiating and
settling claims can !e accomlished locally with an insurance agent o' choice$
0' it is o!ligatory that the !uyer insures imorts domestically, contingency
co&erage can o'ten !e ro&ided !y the e/orter's local insurance carrier to
ay 'or losses should the !uyer's olicy not co&er them$ $
$R!! TRAD! ON!S
-ith the e/cetion o' one secial trade >one at the 4ydort 0ndustrial @ark in
Cae 9reton, =o&a 4cotia, Canada has no 'ree orts or 'ree trade >ones$ :t
resent, there are no 'ederal or ro&incial laws seci'ically go&erning the
esta!lishment and oeration o' such >ones$
4u''erance warehouses under ri&ate ownershi ha&e !een esta!lished 'or
the storage and deosit o' all imorts recei&ed !y &arious transortation
119
Canada : A Profile
modes, ending customs e/amination and clearance$ :n entry 'or
consumtion or into !onded warehouse must !e resented to Canada
Customs within (0 days$ ?oods may !e entered into a Canada Customs
!onded warehouse without the ayment o' duty, !ut must !e cleared either 'or
e/ort or Canadian consumtion within two years$ */tended eriods are
allowed, !y regulation, 'or certain goods$
?oods taken 'rom !onded warehouses 'or consumtion are dutia!le at rates
o' the Customs 2ari'' in e''ect at the time, and the &alue 'or duty uroses is
the &alue at the time o' entry 'or warehousing$ ?oods e/orted 'rom !onded
warehouses to third countries are su!Gect to Canadian e/ort regulations$
"eacking and sorting can !e carried out in Canada Customs' !onded
warehouses with the ermission o' Canada Customs, !ut assem!ly or other
industrial acti&ity is rohi!ited$
INT!LL!CTUAL PROP!RT, RI0HTS
PROT!CTION
Mem"ers#ip in Or%ani*ations Concerned /it# Intellect'al Propert(
Canada is a mem!er o' the -orld 0ntellectual @roerty %rgani>ation (-0@%)$
Canada acceded to the 9erne Con&ention 'or the @rotection o' Biterary and
:rtistic -orks at the "ome (1927) re&ision le&el and is !ound !y the
Hni&ersal Coyright Con&ention (HCC) 19<2 te/t$ 0n 1997 the Canadian
go&ernment committed to sign two new international treaties dealing with
120
Canada : A Profile
coyrights and rotection 'or er'ormers and honogram roducers$ 2he
-0@% Coyright 2reaty and the -0@% @er'ormances and @honograms 2reaty
are designed to esta!lish international minimum standards in the area o'
coyright and related rights$
@aris Con&ention 'or the @rotection o' 0ndustrial @roerty A Canada !elongs to
the @aris Con&ention 'or the @rotection o' 0ndustrial @roerty$ 2his
con&ention, adhered to !y o&er 1(0 countries, re1uires that each country
guarantee to the citi>ens o' other countries the same rights in atent and
trademark matters that it gi&es to its own citi>ens (national treatment)$
2he Con&ention also ro&ides 'or the right o' riority in the case o' atents,
trademarks and industrial design atents$ 2his right dictates that, on the !asis
o' a regular 'irst alication 'iled in one o' the mem!er countries, the alicant
may, within a certain eriod o' time, aly 'or rotection in all the other
mem!er countries$ 2his rincile is commonly re'erred to as Econ&ention
riorityE$ 2he eriod o' time within which su!se1uent alications may !e 'iled
in the other countries is 12 months in the case o' atents, and 6 months in the
case o' industrial designs and trademarks$
2he later alications will then !e treated as i' they had !een 'iled on the
same day as the 'irst alication and will ha&e riority o&er alications 'or
the same in&ention which may ha&e !een 'iled, during the same eriod o'
time, !y others$ ;oreo&er, later alications will not !e in&alidated !y any
acts undertaken in the time eriod !etween the 'iling o' the initial alication
and su!se1uent alications$ 4uch acts include u!lication or e/loitation o'
the in&ention, the sale o' coies o' the design, or use o' the trademark$
@atent Cooeration 2reaty - 2he @atent Cooeration 2reaty (@C2) is
administered !y the -orld 0ntellectual @roerty %rgani>ation (-0@%) in
?ene&a$ 2his treaty ro&ides a standardi>ed international 'iling rocedure
shared !y many industriali>ed countries$ Hnder the @C2, a arty may 'ile 'or a
atent in as many as 79 mem!er countries through a single alication 'iled
in one o' the mem!er countries$ 2his rocedure is 'ar simler than 'iling
searate alications$ 0nstead o' 'iling in the language o' each country and
aying, within a year o' 'irst 'iling, all translation, 'iling and agent's 'ees, one
can 'ile in one language and ha&e u to (0 months to ay some o' these 'ees$
#urthermore, when a arty 'iles under the @C2, it recei&es an 0nternational
4earch "eort which checks its alication against other alications and
atents, and a reliminary e/amination with an oinion on the atenta!ility o'
the in&ention$ 2his can ser&e as a relati&ely relia!le indicator o' whether it is
worthwhile to seek multile atents in 'oreign countries !e'ore 'ees are
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Canada : A Profile
due#urthermore, when a arty 'iles under the @C2, it recei&es an
0nternational 4earch "eort which checks its alication against other
alications and atents, and a reliminary e/amination with an oinion on
the atenta!ility o' the in&ention$ 2his can ser&e as a relati&ely relia!le
indicator o' whether it is worthwhile to seek multile atents in 'oreign
countries !e'ore 'ees are due
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Canada : A Profile
CHAPT!R 8
CANADA : INT!RNATIONAL -USIN!SS
STRAT!0I!S
TH! A0RI-$OOD INDUSTR, !NCOMPASS!S PRIMAR, COMMODITI!SG
SUCH AS LI9!STOCC AND 0RAINSK S!MI-PROC!SS!D PRODUCTSG
SUCH AS $LOURK AND $URTH!R 9ALU!-ADD!D 0OODSG SUCH AS
!NTRL!SG CON$!CTION!R,G CANN!D 0OODS AND -!9!RA0!S2 NOT
INCLUD!D AR! A0RICULTURAL MACHIN!R,G !IUIPM!NT AND
S!R9IC!S2
CANADIAN POSITION
2he agri-'ood industry is an imortant comonent not only o' the economy o'
Canada !ut also o' the economies o' all the ro&inces$ 0t accounts 'or 7$<
ercent o' Canada's ?ross Aomestic @roduct (?A@) and emloys close to
1$7< million eole (i$e$ one in e&ery se&en working Canadians is emloyed in
the agriculture and agri-'ood sector)$
STRAT!0IC DIR!CTION
Canada is a trading nation$ 2his has always !een true, !ut today, 'i'ty cents o'
e&ery dollar at the 'arm gate comes 'rom trade$ 2rends o&er the last 'ew years
oint to a strong Canadian agriculture and agri-'ood sector with an en&ia!le
a!ility to comete on the world stage$ 0n 1997, e/orts reached M22$F !illion,
reresenting a ($2 ercent share o' glo!al agri-'ood trade$ @reliminary 'igures
'or 1997 are M22$6 !illion, well a!o&e e/ected le&els considering the serious
economic ro!lems that ha&e disruted glo!al markets$
-orld trade in agriculture and agri-'ood roducts is e/ected to grow to
!etween H4 M62< !illion and H4 M7F< !illion !y 200<$ Canada must continue
to aim at 'oreign markets !ecause they are larger and growing 'aster than our
own$ -orld trade in agriculture and agri-'ood roducts has more than dou!led
!etween 197< and 1996, growing to H4 MF6F !illion$
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Canada : A Profile
Canada's agriculture and agri-'ood industry has an aggressi&e agenda to
gra! a greater share o' this e/anding trade$ 2he Canadian :gri-#ood
;arketing Council, which is made u o' leaders 'rom across the agri-'ood
sector, wants to increase our current share o' world trade o' agri-'ood
roducts to 'our ercent !y 200<$ (0' current trends continue, this could mean
that Canada will ha&e to dou!le our record-setting e/ort sales o' 1996$)
:chie&ing this am!itious target will mean re&ersing the current ratio o' !ulk
commodity e/orts to rocessed agricultural e/orts 'rom 60)F0 in 1996 to
F0)60 !y 200<$ 4uccess won't come easily, !ut reaching our goals will create
an estimated (2,000 new agricultural Go!s, and, thanks to increasing
emhasis on &alue-added rocessing, 77,000 new Go!s in the 'ood and
!e&erages sector$
2hrough Canada's 0nternational 9usiness 4trategy 'or :griculture, #ood and
9e&erages, the #ederal-@ro&incial ;arket Ae&eloment Council aims to
ensure that !oth le&els o' go&ernment can 'ocus and !etter coordinate their
market de&eloment e''orts in these markets$ #or Canada to !ecome more
cometiti&e in the increasingly glo!ali>ed world economy, it needs a more
'ocussed, streamlined e''ort, coordinated among industry, 'ederal and
ro&incial go&ernments, in suort o' industry's e/ort dri&e and initiati&es to
attract international in&estment and technology$
Canada continues to target eight riority markets around the world (the Hnited
4tates, 5aan, the *uroean Hnion, ChinaJ.ong Iong, 4outh Iorea, 2aiwan,
;e/ico and 9ra>il - where we sell aro/imately 70 ercent o' our e/orts)
and 'our emerging markets (4ingaore, the @hiliines, "ussia and
Colom!ia)$ #or each o' these markets, core teams were assem!led and
assigned the task o' de&eloing strategic goals and directions 'or that market$
"eresented on these teams were the ro&incial go&ernments, o''icers at
osts, and 'ederal o''icials 'rom :griculture and :gri-#ood Canada (::#C)
and the Aeartment o' #oreign :''airs and 0nternational 2rade .ead1uarters$
:n imortant comonent o' this strategic lanning rocess was also the
consultati&e rocess with &arious industry and e/orter associations, and
indi&idual agri-'ood comanies$
2he key elements 'rom each o' the e/ort market de&eloment strategies that
ha&e !een 'ormulated 'or each o' these markets ha&e !een incororated into
this document$ =umerous oortunities and challenges to increasing e/orts
and attracting in&estment ha&e !een highlighted, as well as the strategic
directions !eing taken to achie&e our goals$ 2o hel comanies take
ad&antage o' these oortunities, go&ernments, in cooeration with industry,
will 'ocus e''orts on three key areas)
124
Canada : A Profile
12 MARC!T ACC!SS
caitali>ing on and u!lici>ing oortunities resulting 'rom imro&ed
access 'or Canadian roducts emerging 'rom -orld 2rade
%rgani>ation (-2%) and =orth :merican #ree 2rade :greement
(=:#2:) agreements, and !ilateral agreements
working toward greater harmoni>ation and recognition o' e1ui&alence
o' standards across go&ernments, in line with e/isting Canadian
industry re1uirements
managing !ilateral trade issues with maGor trading artners, including
negotiating resolution or challenging un'air trade ractices, !ilaterally
or through disute settlement under the -2% and =:#2:
negotiating agricultural elements under new accessions to the -2%
and the =:#2: and monitoring commitments under new !ilateral 'ree
trade agreements (e$g$, Canada-Chile #ree 2rade :greement)
analysing the trade imlications o' 'oreign agricultural olicies (e$g$,
H$4$ #arm 9ill, *uroean Hnion accessions and Common :gricultural
@olicy re'orm, regional trade arrangements) in suort o' trade olicy,
domestic olicy and e/ort market de&eloment acti&ities$
@A list of selected a$riAfood trade .olic" to.ics is attached as Anne= *12
32 MARC!T D!9!LOPM!NT
Helpin% Canadian Companies -ecome !+port Read( "(:
de&eloing customi>ed agri-'ood trade training such as :g#022, and
other rograms such as =ew */orters to 9order 4tates, =ew
*/orters to %&erseas and @"%#02 (%ntario)
de&eloing initiati&es to romote an e/ort culture among senior
managers o' small- and medium-si>ed (4;*) agri!usinesses
125
Canada : A Profile
encouraging 4;*s to 'orm !usiness networks or alliances, including
international alliances with 'oreign 'irms, gi&ing them !etter access to
glo!al markets, new technologies and caital
!n#ancin% Trade Per)ormance "(:
encouraging Canadian comanies' articiation in the world's maGor
agri-'ood trade 'airs (e$g$, 40:B, :=H?:, #%%A*W, #;0)
encouraging more industry grous, esecially those roducing &alue-
added roducts, to articiate in the :gri-'ood 0ndustry ;arket
4trategies rocess 'or the urose o' increasing e/orts through long-
term strategic lanning
organi>ing &isits o' targetedJ1uali'ied 'oreign !uyers to Canada,
e''ecti&ely matching 'oreign oortunities with Canada's suly
caa!ilities
encouraging the agri-'ood industry to articiate in trade missions
Disseminatin% Market In)ormation and Intelli%ence "(:
maintaining a high-1uality data!ase o' Canadian agri-'ood e/orters
(i$e$ -0= */orts)
ro&iding 1uali'ied agri!usiness leads a!road to interested and
caa!le Canadian suliers in a timely and accurate manner
ro&iding e''ecti&e !usiness in'ormation 0nternet sites (e$g$ 4trategis,
#ood=et and */ort 4ource) to hel agri!usinesses with their
e/orting in'ormation needs
42 IN9!STM!NT
!n#ancin% t#e investment environment "(:
roducing in&estment marketing u!lications and other tools to in'orm
otential in&estors o' the oortunities in Canada's agri-'ood industry
126
Canada : A Profile
Implementin% t#e $ederal-Provincial A%ri-$ood Investment Strate%(
/#ic# )oc'ses on:
myth !usting
a 'oreign outreach rogram
addressing knowledge gas
Ta"le 1 - Overvie/ o) t#e A%ric'lt'reG $ood and
-evera%es Sector in CanadaG 1HH8 =M "illions>
#arm 0nuts
@rimary :griculture
#ood and 9e&erage @rocessingY
#ood "etailing and 4er&ice
:gri-#ood */orts
:gri-#ood 0morts
1F$F
27$2
<2$(
91$(
22$(
1F$9
Y does not include 'ish roducts or to!acco
4tatistics comiled !y) @olicy 9ranch, ::#C
Ta"le 3 - Total 9al'e o) Canadian A%ri-$ood !+ports
Priorit( Markets: !+port Tar%ets =Mmillions>
,ear
Co'ntr( 1HH8 1HHN 3OOOP
Hnited 4tates
5aan
*uroean Hnion
ChinaJ.ong Iong
;e/ico
9ra>il
4outh Iorea
2aiwan
%ther ;arkets
2otal
11 F(1
2 F77
1 <26
9(2
F<0
270
F<0
1F9
F 701
22 F76
12 710
2 009
1 <<2
1 2<0
<79
177
177
1(<
( 9<7
22 6F7
1( 000
2 600
1 7F0
1 720
600
<00
<00
169
F <9F
2< <2(
127
Canada : A Profile
Y @roGections 'rom @riority ;arkets :ction @lans
4ource) Canadian :gri-#ood 2rade 4ystem
Ta"le 4 - Canada@s Total Market S#areG A%ri-$ood
Priorit( Markets: !+port Tar%ets =Q>
,ear
Co'ntr( 1HHN 3OOOP 3OO6P
Hnited 4tates
;e/ico
5aan
9ra>il
ChinaJ.ong Iong
4outh Iorea
*uroean Hnion
2aiwan
21$00
7$00
<$70
F$F0
F$20
2$9<
2$<0
1$00
20$00
7$00
6$00
<$00
F$<0
($00
2$60
2$00
22$00
10$00
7$00
<$70
F$70
($<0
($00
($00
Y roGected in 1997
4ource) 2rade and *&aluation Ai&ision, ::#C
INT!RNATIONAL !N9IRONM!NT
-orld trade in agriculture and agri-'ood roducts has more than dou!led
!etween 197< and 1996 reaching H4 MF6F !illion$ 2remendous e/ort
oortunities e/ist 'or the Canadian agri-'ood sector$ ,alue-added roducts,
such as rocessed meats, !aked goods and canned and 'ro>en 'ruits and
&egeta!les, constitute the 'astest-growing and most ro'ita!le art o' the
world's agri-'ood trade$ 2o hel the Canadian industry achie&e its new 'our
ercent target !y 200<, a su!stantial increase in e/orts o' &alue-added,
consumer-ready roducts is needed to comlement e/orts o' !ulk
commodities$
Aesite Canada's 'ocus on the e/isting eight riority markets, we will not
o&erlook the remaining markets which account 'or nearly 20 ercent o' our
128
Canada : A Profile
e/orts and o''er e/cellent oortunities to ad&ance our e/orts o' &alue-
added roducts$ 0n the medium term, more attention will !e gi&en to those
considered as emerging markets$
PRIORIT, MARC!TS
INDIA
COUNTR, O9!R9I!.
2he 0=A0: is one o' the world's 9iggest consumers, roducers and imorters
o' 'oods and !e&erages$ 2he 0ndian 'ood market is enormous$
2he 0=A0: remains Canada's most imortant agri-'ood trade and in&estment
artner, accounting 'or <( ercent o' all agri-'ood e/orts, 60 ercent o'
rocessed 'ood e/orts $ ;ore than hal' o' the M12$7 !illion in Canadian agri-
'ood e/orts to the 0=A0: in 1997 were high-&alue consumer roducts, which
contri!uted to a healthy M2$7 !illion trade surlus$ 4ince 199F, e/orts ha&e
increased on a&erage !y M1$2 !illion er year$ 2his growth should continue in
the near 'uture due to current 'a&oura!le e/change rates and recent
economic trou!les in other e/ort markets which ha&e re'ocused Canada's
attention on the 0ndia $
OPPORTUNITI!S AND CONSTRAINTS
Opport'nities
A large accessi!le e"port mar#et for $anadian foods and
!everages 9ecause o' its ro/imity, oen access, large consumer
!ase and wealth, 0=A0: o''ers oortunities 'or 'oods and !e&erages in
&irtually e&ery roduct category$ Aemand is strong 'rom retail, 'ood
ser&ice and industrial accounts 'or distincti&e, high-1uality roducts at
cometiti&e rices$ ?ood otential e/ists 'or ri&ate-la!el goods,
secialty 'oods, natural roducts, nutraceuticals, ethnic 'oods and
home meal relacement items$
A spring!oard to other e"port mar#ets 4ome Canadian roducts are
transshied through oints in the 0ndian and :sian ;arkets$ Canadian
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Canada : A Profile
roducts are also re-e/orted to the Hnited 4tates to the cruise line
industry$
An introductory mar#et for %first&time% e"porters
A source of investment capital technology and mar#eting
e"pertise world's multinational 'ood rocessors are located in the
three-1uarters o' these ha&e oerations in Canada$ ;uch o' Canada's
rocessed 'ood trade is determined on the !asis o' these rocessors'
roduct mandates and licensing arrangements$ :s well, Canadian 'ood
roduction, distri!ution and e/orts are a''ected !y the in&estment and
strategic alliance decisions made !y these comanies$
Constraints
!normo's market si*eG comple+it( and re%ional diversit( #ood
distri!utors are concentrated regionally and 'ew ha&e national
co&erage$ 4till, most layers are e/tremely large, !y Canadian
standards, and 'ew e/orters ha&e the suly caacity 'or national
distri!ution
Po/er)'l distri"'tion ind'str( "ecent mergers, ac1uisitions and
other amalgamations in the 'ood industry ha&e increased the si>e and
!uying ower o' large distri!utors and reduced the num!er o' smaller
layers in the marketlace$ ;any 'ood distri!utors ha&e streamlined
their roduct mi/es, increasing cometition 'or shel' sace$
$ierce competition 2he 0ndian 'ood market is e/tremely cometiti&e
with hundreds o' domestic and 'oreign suliers &ying 'or market
share$ 0ntroducing a new roduct usually means dislacing an
esta!lished one$ 2his cometition gi&es distri!utors and retailers
tremendous !argaining ower$
Hi%# market entr( costs 0n addition to the costs o' adating roducts
to :merican consumer demands and technical regulations, Canadian
e/orters must tyically suort their roducts with aggressi&e
marketing rograms which include he'ty slotting 'ees, romotional
allowances, demonstrations and other incenti&es$ 0n general, these
marketing costs are lower in 'ood ser&ice and ri&ate-la!el markets$
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Canada : A Profile
STRAT!0IC 0OALS AND DIR!CTIONS
0oal: Increase Canadian e+ports o) #i%#-val'e a%ri-)ood prod'cts
Directions:
#ocus on the ri&ate la!el, secialty 'ood, 'ood ser&ice and home meal
relacement market segments+
0ntroduce 'irst-time e/orters to the 0=A0: and hel acti&e e/orters
e/and into new regions, market segments and niches+
@romote Canadian 'ood roducts and suliers to key 0ndian
distri!utors and !rokers through the use o' incoming missions, trade
shows, u!lic relations and matchmaking initiati&es+ and
*ncourage in&estments, artnershis and strategic alliances which
imro&e Canadian suly and e/ort caacity$
0oal: Simpli)( and e+pedite cross-"order commerce in a%ri-)ood
prod'cts
Directions:
;anage trade relations, resol&e trade irritants and &igorously de'end
Canadian access to the 0ndian market+
@reare new e/orters !e'ore they enter the market with training and
in'ormation on market oortunities, imort re1uirements and
rocedures, marketing ractices, distri!utors and cometitors+ and
9uild relationshis with key 0ndian 'ood rocessors, distri!utors and
other organi>ations to ad&ocate and ad&ance Canada's trade interests$
0oal: Position Canadian a%ri-)ood e+porters in t#e appropriate market
se%ment or re%ion Directions:
Create an in'ormation !ase o' the oortunities and layers in key
regions, segments and niches+
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Canada : A Profile
@ro&ide 'irst-time and new-to-territory e/orters with market
in'ormation, cometiti&e intelligence, education, matchmaking and
romotional oortunities+ and
.el Canadian small- and medium-si>ed !usinesses 'orm strategic
alliances, where needed, to enter and comete e''ecti&ely in the
marketlace$
0oal: Use t#e United States as t#e la'nc#pad )or )irst-time e+porters
Directions:
@ro&ide new e/orters with e/ort readiness, in'ormation and
intelligence, matchmaking and romotional oortunities in near!y
regional markets, segments and niches+ and
Coordinate the deli&ery o' e/ort readiness acti&ities !etween all le&els
o' go&ernment and industry$
0oal: Attract ne/ investment in t#e Canadian a%ri-)ood ind'str(
Directions:
@romote awareness o' Canada's in&estment ad&antages among
:merican multinational enterrises+ and
.el address the access and regulatory issues a''ecting the
in&estment climate$
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Canada : A Profile
CANADIAN INT!RNATIONAL -USIN!SS
STRAT!0I!S
Canada@s International -'siness Strate%( )or -io-Ind'stries 1HHH - 3OOO
2he Canadian !iotechnology sector has grown !oth domestically and
internationally o&er the last two decades$ Canada now ranks second only to
the Hnited 4tates in terms o' the num!er o' comanies using !iotechnology
alications, the num!er o' eole emloyed in the !iotechnology sector, and
annual re&enues generated !y the industry$
9ecause it is !ased on an increased understanding o' the structure and
'unction o' the !uilding !locks o' li'e, !iotechnology has a wide range o' uses$
0t has led to the de&eloment o' new health care roducts, hardier cros,
healthier animals, new 'oods, and new methods 'or en&ironmental
management, to name only a 'ew alications$
Canada's high international standing in the 'ield is a re'lection o' leading-edge
research, an entrereneurial aroach in&ol&ing artnershis among
!iotechnology comanies, a strong 'inancing and &enture caital !ase 'or the
industry, and suorti&e go&ernment olicies$ 2he Canadian go&ernment has
'ostered growth in the industry !y maintaining a ragmatic, science-!ased
aroach to regulation and !y de&eloing a suorti&e 'inancial in'rastructure
'or Canadian !iotechnology comanies to thri&e$
'ndustry Si(e and Structure
?lo!al world !iotechnology sales ha&e grown remarka!ly in the ast F years
and will continue along this trend into the ne/t millenium$ 2he H4 remains the
worldOs largest !iotech market$ H4 !iotechnology sales 'or 1999 is
aro/imated at M1<H4 !illion with an e/ected annual growth o' 128 'rom
1999 to 2009$ 2here are more than 1,F00 !iotech comanies resently
oerating in the H4$ Canada, -estern *uroe, 5aan and :ustralia are the
Hnited 4tatesO largest cometitors in the !iotechnology 'ield$ Canada ranks
second in terms o' the num!er o' !iotechnology comanies according to the
recent 4tatistics Canada sur&ey$ 2he Canadian !iotech sector in&ested M70C
million in 1997 in !iotech "TA$ 2he 0rish !iotechnology industry is ser&ed !y
o&er 1F ri&ate and u!lic esta!lishments$ -ith a gross domestic roduct
estimated at o&er M92C !illion in 1997 and a growth roGected at 78 'or 1999,
0reland is one o' the 'astest -growing industrali>ed nations in the world$ 2he
:ustralia !iotechnology industry is a!out hal' the si>e o' the Canadian
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Canada : A Profile
industry with 170 comanies which are small to medium si>ed$ 0n 5aan, the
current &alue o' the entire !iotechnology industry is estimated at M1(C !illion$
2heir !iotechnology market is 'orcasted to !e M(F0C !illion !y 2010$
Health&care )iotechnology
2here are aro/imately 700 dedicated !ioharmaceutical 'irms in *uroe
and =orth :merica emloying 60,000 workers with o&er 2J( o' these 'irms in
the H4$ 2here is also a signi'icant !ase o' 'irms in 5aan, :ustralia and 0srael$
-orldwide sales o' !ioharmaceuticals ha&e grown more than se&en-'old
o&er the ast decade to M1<H4 !illion in 1997$ :lthough !ioharmaceuticals
comrise only <8 o' world rescrition drug sales, they are e/ected to
account 'or 1<8 o' world rescrition drug sales 200<$
2he H$4$ is the maGor market 'or !ioharmaceuticals, accounting 'or almost
F<8 o' estimated worldwide sales o' M1<H4 !illion (9ioharma 4C#)$ <F
!ioharmaceuticals ha&e !een aro&ed 'or marketing in the H4 and another
(<0 are at the clinical de&eloment stage$ 2he !ioharmaceutical sector
reresents the largest and most raidly growing market in the H4, which
currently accounts 'or nearly F(8 o' !ioharmaceutical sales, comared to
(68 'or rescrition harmaceuticals$ 0n the Hnited 4tates alone, more than
1,100 comanies ha&e made su!stantial in&estments in !iotechnology, with
more than M2$(H4 !illion sent annually on !iotechnology related research
and de&eloment$ 2he worldwide human &accine market si>e is M($6H4 !illion
and is growing at 128 annually$ 2he market is highly concentrated, with 'our
large harmaceutical comanies accounting 'or more than 7<8 o' sales$ 2he
!est rosects 'or the H4 market as a whole include rotease inhi!itors
(:0A4J.0, theray), A=: testing materials and diagnostics$ 2heraeutics is
e/eriencing a raid growth, reresenting the maGority o' H4 sales in
!iotechnology$ 0n 1999, a &accine 'or Byme Aisease has !een aro&ed !y
the #A: 'or use and is now on the market$ 4ome o' the industryOs area o'
'ocus include cloning, angiogenesis, harmacogenomics, aids &accines, and
recom!inant A=:$ Canadian !ioharmaceutical 'irms rimarily seek atent
and regulatory aro&al in the H$4$ market 'irst, gi&en its market otential$
CanadaOs resent share o' world-wide !ioharmaceutical sales is &ery low$
:ccording to the ;"C, 'i'teen Canadian !ioharmaceutical roducts ha&e
recei&ed regulatory aro&al as o' 5anuary 1999$ 2he #A: renewed the
@rescrition Arug Hser #ee :ct (@AH#:) announcing now there will !e a
more e''icient drug aro&al rocess and 'aster market access$ */losi&e
de&eloments in three areas, such as+ genomics, com!inatorial chemistry and
high-throughut screening, are altering the science and economics o' drug
disco&ery$ 0t is estimated that o&er the ne/t decade, genomics will increase
the num!er o' drug targets 'rom <00 to somewhere !etween (000 and 10000$
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Canada : A Profile
*uroe and 5aan are the ne/t most imortant markets accounting 'or (18
and 208 o' total sales resecti&ely$ 0n *uroe, the num!er o' !iotech drugs
on the market is e/ected to rise dramatically in the ne/t <-10 years and the
maGority o' !iotech drugs in de&eloment address cancer and related
conditions$ 0n 1999, ;ede&aOs .etagene &accine is !eing assessed 'or its
otential 'or treating atients with chronic heatitis 9 and is currently
undergoing registration$ 2he riority market in the healthcare !iotechnology
sector 'or the HI is redominantly !ioharmaceuticals, &accines, and
diagnostics research$ 0n 5aan, the total go&ernment sending on
!iotechnology research 'or 1999 is an increment o' 12$(8 more than in 1997,
&alued at M($7C !illion$ :s o' march 1999, 5aanese arliament has 'ormed
li'e science committees and anelists to increase !iotechnology and genomic
research$
0enomics
2here is a maGor international race in&ol&ing many o' the worldOs largest ;=*s
(;onsanto, =o&artis, Auont, 4umitomo etc$) to stake out intellectual roerty
in the genomics 'ield (human, lant, animal), and in related technology areas
(A=: chi array !iosensors, high throughut se1uencing and screening, etc)$
;assi&e in&estments are !eing made esecially in human health related
genomics !y 'oreign comanies and go&ernments (in 1997, u!lic
e/enditures er caita on genomics were M2$<0C 'or Canada, M7C 'or
5aan, M9C 'or #rance, M1FC 'or the HI and M1<C 'or the H4 )$ -hile the
recent in&estment in genomics in the Canadian 9udget 1999 will imro&e the
situation (taking Canada to a!out MF$<0 er caita in u!lic e/enditures),
this is mainly at the go&ernmentJuni&ersity research end and will not hel
reduce the resourcing disad&antage o' Canadian comanies$ Aue to the
num!er o' roducts in the de&eloment ieline, and enhanced e''orts in the
genomics area (#e! 99 9udget, ?enome Canada), Canada is in a good
osition to !e a!le to cature a signi'icant roortion o' world
!ioharmaceuticals sales which is e/ected to e/ceed M17H4 !illion !y 200($
Agri&Food )iotechnology
:griculture and agri-'ood is one o' CanadaOs to 'i&e industries, accounting 'or
1F$7 ercent o' emloyment and 7 ercent o' ?A@$ ?rowth in the Canadian
sector is generally e/ort dri&en$ */orts are resently growing at 20 ercent
er year and surassing M27C !illion !y the end o' 1999$ :gricultural inuts
include the use o' !acteria, 'ungi and yeast to roduce 'eed additi&es, !io-
'ertili>ers and !io-esticides$
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Canada : A Profile
9y 2010, the glo!al oulation will reach 7 !illion while ara!le land will
continue to decline su!stantially$ 2hus roGected glo!al sales o' transgenic
cros are e/ected to grow 'rom the 1996 le&el o' M<00 H4 million to
aro/imately M6 !illion H4 !y the year 200<$ Canadian e/ort growth 'or
total agriculture roducts is estimated to dou!le to MF0 !illion !y 200<$ 0t is
e/ected that !iotechnology will lay a signi'icant art in achie&ing this goal$
Canada grew 108 o' the worldOs transgenetic cros in 1997, third a'ter the H4
and :rgentina$ :lready, <08 o' the canola grown in Canada is genetically
modi'ied$ ;ost o' the CanadaOs e/orts include oil seed, cereals, li&estock
'eed and canola !eing the largest agricultural e/ort &alued at M760C million
in 1997$ =ow, canola has !een trans'ormed to roduce oil used to make
en&ironmentally- 'riendly 'ood ingredients+ de&eloed with increased
nutritional &alue+ modi'ied to roduce an oil !io-lastic+ and consists o' insect
resistant roerties$ (#ood =ews 99)
0n 5aan, some areas o' 'ocus 'or the near 'uture include iron rich rice,
genetically enhanced otatoes, melons, tomatoes, straw!erries, cucum!ers,
to!acco, and mushrooms$ 5aan has e/anded their agriculture research !y
aro&ing 22 new cros containing genetically modi'ied 'ood organisms
including canola, soy, cheese made 'rom rA=: chymosin, corn, cotton, and
rice$ 5aan is the worldOs largest 'ood imorter o&er M77C !illion$ Canola is
the largest agricultural e/ort to 5aan with shiment &alued at M760C million
in 1997 and the 'irst Canadian grown genetically engineered cro to !e
aro&ed 'or sale !y 5aan$ :'ter the success o' Aolly in the HI, at least
se&en research grous !egan to reroduce cattle$ 0n 1997, M($(C million was
awarded to (0 ri&ate and u!lic research centers in 5aan 'or cattle cloning$
Aue to market demand on high 1uality !ee' cattle in 5aan, researchers
continue to 'ocus on cattle cloning and the amount is e/ected to increase in
2000$
:g-!io is the 'astest growing sector o' !iotechnology in the H4$ 0n 1997, (08
o' H4 lanted soy!ean was o' genetically engineered &arieties$ :creage
using genetically engineered cros has increased 'rom a!out 7 million acres
in sur&eyed states in 1996 to more than <0 million acres in 1997$ ?enetically
engineered cotton containing the 9t gene rotects cotton 'rom the !udworm,
!ollworm, and ink !ollworm$ 9t cotton !ecame a&aila!le to 'armers in 199<
and its use e/anded raidly, reaching 1< ercent o' cotton acreage in 1996
and a!out 17 ercent in 1997$ H$4$ acreage using genetically engineered
cros has increased 'rom a!out 7 million acres in 1996 to more than <0
million acres in 1997, in maGor states where data ha&e !een collected$
$i%'re 12 T#e estimated percenta%e o) a%-"io applications 'sed on
vario's crops )or 1HHH in t#e United States2
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Canada : A Profile
A%--io applications !stimated Percenta%e Used in 1HHH
:rgronomic @roerties HQ
.er!icide @roerties 1HQ
9acterial "esistance 1Q
0nsect "esistance 34Q
@roduct 3uality 18Q
#ungal "esistance 7Q
;arker ?ene 5Q
,irus "esistance 18Q
%ther 5Q
Cotton is the only genetically engineered cro grown in :ustralia$ .owe&er in
2001, genetically modi'ied canola will !e trialed, 'ollowed !y corn, otatoes,
and sugar!eet$ 2he :ustralian !iotechnology industry is much like its
Canadian counterart in terms o' 'ocus, !ut is somewhat less ad&anced$ :n
area where Canadian !iotechnology can 'ind oortunities in :ustralia is
agricultural !iotechnology+ (8 o' the ?A@ comes 'rom agriculture, as
comared to 2$98 in Canada$ 2he :ustralia =ew Nealand #ood :uthority and
the :ustralia =ew Nealand 4tandards Council are currently re&iewing
alications 'or 20 genetically engineered cros including, corn, soy!eans,
canola, otatoes, sugar!eet, and cotton$ 2he :ustralian aroach to
genetically modi'ied 'ood regulation is similar to that 'ound in Canada$ 2he
:merican aroach to ?;(genetically modi'ied) 'ood regulation has !een to
rely on sel' regulation to ensure that genetically modi'ied 'oods are sa'e$ :s o'
1999, :ustralians intend to ha&e mandatory la!eling re1uirements on ?;
'oods !e'ore issuing on the market$ :ustralians want the choice o' whether to
eat ?; 'oods or not, similar oinions ac1uired 'rom Canadians, and
articularly *uroeans$
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Canada : A Profile
*uroe is 'ar more sensiti&e to ethical issues such as the regulation o'
genetically modi'ied cros than is the H4$ 0n 1999, transgenic cros a&aila!le
in the HI include rae seed, mai>e, otato, and cotton$ 2he industry is 'ar
!ehind others nations as the u!licOs oinion make it di''icult 'or oliticians to
make changes to the regulations$ =early 608 o' all rocessed 'oods contain
soy!eans or soy roducts, imorted 'rom =orth :merica with no distinction
!eing made !etween modi'ied and con&entional soy!eans$ 2his means that
the ingredients deri&ed 'rom the technology will !e directly in the 'ood chain$
#ood camaigners are arguing that the two should !e searated$ 0n 1999, the
*uroean @arliament &oted 'or an amendment which would introduce a new
12 year time limit eriod 'or roduct market aro&al, si/ years longer than
the current one$
N'trace'ticals
2he sale o' her!al Jlant roducts in the H4 was aro/imately M1$6H4 !illion
in1996 (growing at aro/imately 7 -108 er year) and sales o' nutraceutical-
containing 'oods were aro/imately MFH4 !illion that year (growing at <-78
annually)$ 2he 'ocus today is on antio/idants and anticarcinogens+
nutraceuticals containing cartenoids, 'la&enoids, &itamins C and *$ 2he most
highly consumed sulement is ,itamin * (which had sales o' M1<0H4 million
in 1996), &itamin C (sales o' M1(<H4 million), and 9-carotene (sales o' M6<H4
million)$ 2aiwan and .ong Iong are maGor centers 'or e/orting !otanicals
and e/tracts to the rest o' the world$ 2he market 'or these roducts in 1996
was aro/imately M2$(H4 !illion in 5aan and aro/imately M2$<H4 !illion
in the rest o' :sia$ 2he market 'or -estern *uroe was aro/imately M6$7H4
million in 1996 and sales in ?ermany accounted 'or more than hal' this
amount (M($<H4 million)$ 2he H4 nutraceutical market could total MF$6H4
!illion !y 200( which includes sales o' dietary sulements, 'i!er enriched
'oods, &egeta!les, 'at-'ree meats, sugar su!stitutes, &egeta!les, skim milk,
and low calorie 'oods$ 2ogether these roducts account 'or <08 o' the
general 'ood market$ 4ales 'or the *uroean market could total M1$6H4 !illion
!y 200($ :nalysts estimate that the glo!al market 'or nutritionally enhanced
'ood will grow 'rom MF7H4 !illion in 1997 to M<6H4 !illion in 2000 - an annual
growth rate o' 78$
A*uaculture )iotechnology
2he #:% calculates that the annual demand 'or sea'ood will outstri the
a!ility o' the wild 'ishery to suly it !y some << million tonnes !y the year
202<$ :1uaculture roduction will ha&e to increase !y (<08 to comensate
'or this short'all$ 2he ma/imum annual outut o' the cature 'isheries has
remained sta!le in the ast two decades, at a!out 90-100 million tons$ 0n
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Canada : A Profile
1999, glo!al 'ish 'arm roduction is estimated at 17 million tonnes annually,
sulying 208 o' world 'isheries re1uirements$
2he world trade in sea'ood is huge, estimated at H4M100 !illion er year, and
the main markets ( the H4:, *H and 5aan) imort more than <08 o' their
re1uirements$ #or 1999, aro/imately 920,000 tons o' shrim, <7,000 tons o'
'resh water rawns, 710,000 tons o' trout and salmon, and 1,012,000 tons o'
oystersJmollusks are roduced annually$ :sia leads with 10 million tons, 0ndia
with 1$6 million, and 5aan with 700,000 tons 768 , *uroe (#rance leads
with 270,000 tons) 78, =orth :merica (<70,000 tons) (8, and 4outh :merica$
((<0,000 tons) 1$<8$ 678 is 'rom inland 'reshwater a1uaculture, ((8 is 'rom
marine a1uaculture 'arming$
Canadian a1uaculture roduction (0$( ercent o' the &olume o' world 'ish-
'armed roduction), in eight years (197F-92), it rose in rank 'rom <0th among
77 nations to 29th among 1<F nations$ 2he 'arm gate &alue o' a1uaculture
roduction in Canada has increased dramatically 'rom M6; in 197F to M(<0;
in 1996 and estimated that this &alue will dou!le to M1 !illion !y 200($ :1uatic
roduct and ser&ices sales reached MF(C million in 1997, M17 million o' which
were e/ort sales rimarily to the H4, HI, and Chile$ */orts are 'orecasted
to increase !y 1<8 Jy$
:ustraliaOs a1uaculture !iotechnology was &alued at MF<0C million in 1997-97
and e/ected to dou!le to almost M1C !illion !y 2010, an annual increase o'
aro/imately F8$ 2he market 'or a1uaculture is redominantly a!alone and
rawns at 17 million in e/orts$ 0n 1999, current research roGects in the 'ield
o' a1uaculture include genetically engineering ya!!ies (:ust$ e1ui&alent to
lo!ster) with emhasis on 'aster growth, larger si>e, and !righter colours$
Current H$4$ e/enditures 'or all esticides amount to MF7 !illion annually+ !y
the year 2000, !ioesticides 'rom marine and other sources are e/ected to
cature an estimated 10 ercent o' this market$
Environmental )iotechnology
2he en&ironmental !iotechnology industry can !e di&ided into se&eral grous
including remediation, a!atement, !iomass, !iocatalysts, !iosensors, cleaner
roduction and renewa!le 'eedstocks$ 2he glo!al market 'or site remediation
!iotechnologies is estimated at M600-1000C;Jy with a total lia!ility in the
&icinity o' M100C 9$ 0t is e/ected to grow slowly to M2-(C9 !y 200<$ 2he
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Canada : A Profile
cleaner roduction market 'or !iotechnologies was estimated at M(0-<0C 9Jy
in 1996 !y the %*CA$ 2he glo!al enetration o' rele&ant sectors !y
!iotechnology 'or cleaner roduction was estimated as 'ollows)
chemicals(Z18), ul T aer ((-78), te/tiles(Z18), ('ood T 'eed 1-28),
energy (Z18)$ 2he cleaner rocesses and renewa!le 'eedstock su!sector is
e/ected to grow slowly as chemical cororations e/lore other ossi!ilities
'or site cleanu$ 2he remediation market in Canada is deendant on
go&ernment 'unding a&aila!ility$ 0n 1999, this amounts to M<0- 100C;Jy$ 2he
slow de&eloment o' the market in Canada has resulted in some 'irms mainly
e/orting their roducts and ser&ices to the H4, Batin :merica, :sia and
*uroe$
2he :ustralian en&ironmental technology market is worth o&er M7$(C !illion
annually and M1$<C !illion is !iotechnology-related alications$ 2he num!er
o' comanies in&ol&ed in en&ironmental !iotechnology remains small$ 2he
otential 'or de&eloment in this industry is low as comanies are una!le to
'und their research rograms$
+ther
2he 'orest !iotechnology industry includes roducts and ser&ices such as
molecular markers 'or identi'ying genetically suerior trees, genetic
engineering 'or tree imro&ement, em!ryogenesis 'or tree roagation and
insect &iruses 'or use against a range o' ests$ Canadian 'orest !iotechnology
'irms reresent aro/imately 78 o' 272 core !iotechnology comanies 'ound
in Canada$ 0n 1999, Canadian comanies ha&ing a 'orest !iotechnology
comonent sent MF2C million annually on "TA with re&enues o' around
M1<0C million$ ;ost o' the re&enues earned !y Canadian 'orest-sector
!iotechnology 'irms ha&e !een generated in 'oreign markets, esecially in the
H4:$ :s o' 1999, inade1uate a&aila!ility o' 'oreign and domestic statistical
data on the 'orest !iotechnology sector remains an issue$
0n 1997, worldwide sales o' industrial en>ymes total a!out M1$6C !illion and is
roGected to reach M(C !illion !y 2007 and a growing rate o' 6 8 er year$
:ccording to #:%, international demand 'or wood has grown (68 in the ast
2< years and is now a H4MF00 !illion !usiness$ 0n 1999, the #:% has
estimated that the world demand 'or wood will increase !y <08 !y the year
2010 and dou!le !y the year 2020 'rom resent le&els$
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Canada : A Profile
2rade 2eam Canada 9io-0ndustries
$ompany ,istri!ution
:ccording to the 4tatistics Canada 9iotechnology #irm 4ur&ey conducted in
1997, the Canadian !iotechnology industry consists o' 272 'irms, 2<8 o'
which are u!licly traded$ 2he sector is characteri>ed !y a mi/ture o'
comanies dedicated to !iotechnology as an industry in itsel' and comanies
using !iotechnology as a tool in the de&eloment o' other roducts and
ser&ices$
2he maGority (728) o' these 'irms are growing comanies emloying 'ewer
than <0 eole$ 2he greatest concentration o' these 'irms can !e 'ound in the
health care sector, 'ollowed !y the agriculture and en&ironmental sectors,
resecti&ely [#ig$1\$
Figure -. $ompany ,istri!ution !y Sector /01
0n terms o' geograhic concentration, 3ue!ec has the highest num!er o'
!iotechnology 'irms, 'ollowed closely !y %ntario and 9ritish Colum!ia, then !y
the three @rairie ro&inces and the :tlantic region [#ig$2\$
)iotechnology Sales and E"ports
4ales o' Canadian !iotechnology roducts and ser&ices e/ceeded M1 !illion
in 1997, with the highest re&enues emanating 'rom the health care 'ield,
'ollowed closely !y those in the com!ined agri-'ood sector$ %&er all, re&enues
are e/ected to grow raidly o&er the ne/t 'i&e years as more roducts mo&e
through the research ieline and the regulatory rocess$
*/orts accounted 'or F08 o' Canadian !iotechnology sales in 1997, with the
health care and agri-'ood sectors leading the way$
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Canada : A Profile
Employment
0n 1997, the Canadian !iotechnology industry emloyed Gust under 10,000
eole$ 2wenty er cent o' ositions remain un'illed in se&eral 'unctional
areas$ *mloyment is e/ected to grow at a rate o' 108 annually until 2001,
dou!ling the num!er o' Go!s in the 'ield comared with 199< 'igures$ 2his
growth will !e 'elt across the sector in all arts o' the country, with ro&inces
such as 9ritish Colum!ia and =o&a 4cotia e/eriencing tremendous
increases in the ercentage o' !iotechnology-related emloyment [#ig$F\$
Employment !y 2egion
2he &ast maGority o' !iotechnology Go!s 'all under "TA, 'ollowed !y
manu'acturing and marketing [#ig$<\$
Employment !y )usiness Function
Strategic Alliances
4trategic alliances in the !iotechnology sector are di&ided into "TA
artnershis and later-stage alliances related to manu'acturing, distri!ution
and marketing$ ;any 'irms across all sectors ha&e more than one alliance,
and the &ast maGority o' agriculture and health care comanies articiate in
at least one strategic alliance$ C*%s rated the 'orging o' strategic alliances as
their third most critical !usiness decision in 1997, u 'rom 'ourth osition in
1997$
4i/ty-nine er cent o' all 'irms in&ol&ed in !iotechnology ha&e esta!lished an
"TA artnershi, with <28 o' this grou choosing a Canadian artner, 268 a
H$4$ artner, and 178 an *H artner$
2he most 're1uently cited "TA artner 'or a 'irm was a uni&ersity, 'ollowed !y
a research centre or another !iotechnology comany$ #ederal la!oratories
and the =etworks o' Centres o' */cellence were each named as a artner in
128 o' cases$ 4e&enty-three er cent o' health care 'irms and 768 o'
agriculture 'irms ha&e a research artner, with such artnershis widely
considered an imortant means o' e/anding a comany's technology !ase
and ro&iding access to new ideas$
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Canada : A Profile
:s roducts rogress through the de&eloment cycle, later-stage
manu'acturing, distri!ution and marketing, 'inancing, and regulatory a''airs
alliances !ecome imortant$ 0ndeed, o&er hal' o' Canadian comanies acti&e
in the !iotechnology 'ield ha&e esta!lished such alliances$ Bater-stage
alliances allow Canadian !iotechnology comanies to e/and their markets
and to mo&e more easily to commerciali>ation$ ;ost o' these alliances are
with Canadian or :merican comanies, each o' which reresent
aro/imately 278 o' the total num!er$ 2o a lesser e/tent, alliance artners
'or Canadian comanies are also 'ound in the *H (208) and :sia (1(8)$
;any later-stage alliances (F98) are marketing-related, 'ollowed !y those
esta!lished 'or manu'acturing, 'inancing and regulatory uroses [#ig$6\$
Later&Stage Alliances
2esearch and ,evelopment
2he continued growth and increasing strength o' the Canadian !iotechnology
industry stem in large art 'rom a !road and 'ruit'ul research e''ort sustained
o&er the ast se&eral decades$ Canada has a long history o' leading world-
class research in a num!er o' scienti'ic discilines that suort the
!iotechnology industry$
0n 1997, the Canadian !iotechnology industry in&ested M<7< million in "TA$
2his in&estment was made across all sectors o' the industry, with 9F8 o' 'irms
ha&ing conducted !iotechnology-seci'ic "TA$ 2he health care sector alone
claimed 778 o' !iotechnology "TA in Canada in 1997, !y 'ar the highest
concentration among the sectors in&ol&ed [#ig$7\$
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Canada : A Profile
23, )4 SE$T+2
H'5H&52+6TH TE$H7+L+5'ES
%nly a small num!er o' Canadian !iotechnology comanies are in&ol&ed in
high-growth technologies such as !iosensors, gene theray, !io-in'ormatics
and genomics$ .owe&er, anticiated raid growth in these Elat'ormE
technologies will assist Canada in retaining a osition o' international
leadershi in !iotechnology in the coming years [#ig$7\
Anticipated 'ncrease in 8se of Platform Technologies /01
Health $are )iotechnology
2he Canadian 9iotechnology industry consists o' 272 'irms o' which F6 8
reresent the healthcare sector (1997 statistics)$ .ealthcare !iotechnology
comanies emloy aro/imately 6,700 eole (678 o' all !iotech in
Canada)$ Canada reresents the second world class leader in molecular
!iology research, medical genetics, and seci'ically roduct de&eloment$
,accines, with an estimated &alue o' M2<0C million, account 'or the !ulk o'
domestic !iotechnology roduction$ 2he healthcare sector is e/ected to
remain the rincile !iotechnology alication as the world oulation grows$
2here are aro/imately F7 !ioharmaceutical comanies in Canada
emloying (600 workers with o&er (00 new roducts in de&eloment and 270
are health- related$ Canada's lack o' suort 'rom inno&ati&e comanies, low
dollar &alue, and deressed stock rices delayed the de&eloment o' the
harmaceutical industry here in Canada$ Aesite this, Canada has !een
ranked second in the world in 1999 and the de&eloment o' new drugs is
e/ected to rise dramatically in the ne/t < to10 years$ 2he harmaceutical
industry in&ested o&er M72<C million in "TA and is estimated to reach M1C
!illion dollars !y the year 2000$ %ntario accounts 'or F(8 o' the total industry
'ollowed !y 3ue!ec at (F8$ 0n 1999, the 'ederal go&ernment announced a
M<<0C million increase in 'unding 'or health research o&er the ne/t ( years, o'
which 628 is granted to the ;edical "esearch Council and (< 8 to the
=ational "esearch Council !oth o' which will undertake seci'ied healthcare
!iotechnology research$ Canadian strengths are in research related to gene
theray, rotein engineering, &accine de&eloment, and cancer theraeutics$
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Canada : A Profile
Canada's &i!rant health sciences research community consists o' (0,000
in&estigators and technical ersonnel, 16 medical schools, o&er 100 teaching
hositals and research institutes, the international and domestic
harmaceutical comanies, and large and small !iotechnology comanies$
Collecti&ely they make Canada a world class center 'or clinical trials$
Canada's healthcare industry has de&eloed diagnostic testing in&ol&ing
anti!odyJantigen reactions and A=: technology seci'ically in the
immunodiagnostic segment (cancer markers, drug monitoring, autoimmune
diseases, allergies, in'ectious diseases)$ 0n 1999, :!!ott Ba!oratories and
=a@ro 9iotheraeutics signed a de&eloment agreement 'or the cancer
comound @acilta/el 'or the treatment o' a &ariety o' cancer indications$
:lthough making u (8 o' the industry, !ioin'ormatics reresents the newest
trend with an e/ected increase as the management and e&aluation o' data
grows$ 2he !ioin'ormatic suercomuting center at the Hni&ersity o' 2oronto
has isolated 1,700 clones 'rom this chromosome 7-seci'ic li!rary, each with
an a&erage insert si>e o' <20k! and with the roortion o' chimeric clones
!eing less than 108$ 2he goal o' the human genome roGect is to identi'y and
understand all genes in the human genome 'or normal 'unction as well as
disease conditions$
Ag&!iotchnology
2he agri-'ood industry is an imortant comonent to the economy o' Canada$
0t accounts 'or 7$< 8 o' Canada's ?ross Aomestic @roduct (?A@) and
emloys close to 1$7< million eole in all areas$ 2otal agri-'ood e/orts 'or
1997 was estimated at M22C !illion with total imorts estimated at M16$<C
!illion$ */orts are resently growing at 208 er year and in 1999 are
surassing M27C !illion$ 2he main commodities e/orted !y Canada are
grains and grain roducts ((<8 o' total agri-'ood e/orts), red meats
including li&e animals (208), and oilseeds and oilseed roducts (12$78)$ :g-
!iotech is one o' the 'astest growing sectors in !iotechnology$ :g-!iotech is
Canada's second largest !iotech sector a'ter healthcare$ 0t comrises 228 o'
!iotech comanies, <8 o' the total !iotech "TA, 178 o' emloyment and
M1(1C million in sales$ 9iotechnology research includes cro roducti&ity,
alication o' !io'ertili>ers, growth roduction, animal health, imro&ed animal
'eed and roducts$ -ith these challenges, the agricultural !iotechnology
sector in =orth :merica will e/erience <<8 annual growth rates to the year
200F$ 0n 1997, 71 Canadian comanies already de&oted to agricultural
alications o' !iotechnology emloy 7<0 eole and draw re&enues o'
M116C million$
2he largest concentration o' ag-!iotech research and de&eloment is in
4askatoon, where 700 scientists are working on ag-!iotech in (0 ri&ate
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Canada : A Profile
comanies, as well in go&ernment and a''iliated uni&ersities$ 0t reresents
F08 o' Canada's agricultural !iotechnology industry and one o' the to
agricultural research centers in the world$ Comanies 'rom *uroe and the
Hnited 4tates ha&e Goined 'orces with :g -est 9iotech in 4askatoon to in&est
in one o' the most success'ul research and de&eloment arks in =orth
:merica$ 0t is widely recogni>ed as a leading center 'or Canada's ag-!iotech
industry and world recogni>ed 'or oilseed research$ 4askatoon's !iotech
sector has e/erienced a 2768 growth rate since 1991$ 0n 1997,
4askatchewan :griculture and #ood committed to ro&iding M1$1 million in
'unding to :g--est 9iotech 'or the ne/t 'our years$
Canada's agricultural !iotechnology sector concentrates on genetic
engineering in cros (mainly canola) and em!ryo technology (mainly !ee' and
dairy cattle)$ 0n 1999, the &alue o' canola cro is second to wheat, the maGor
cro in the rairies$ Canola roduction was estimated at 7 to 7 million tonnes
in 1997$ .orticultural lants and cros are one o' the most acti&e areas o'
research using genetic engineering (recom!inant) methods$ 9io'ertili>ers
such as (92) 9acillus thuringiensis is used to kill insects !y means o'
introducing new genes into host lants$ 4ynthetic !o&ine hormone inGections
are a&aila!le commercially which enhance milk roduction !y 10-1<8$
"esearchers are now looking at the comlete entity o' genes that a''ect
growth and roduction within the animal or lant$ ,eterinary &accines are
used to stimulate animals' immune systems to roduce essential anti!odies$
0n 1999, Co!e1uid Bi'e 4ciences in %ntario signed an agreement with
9raasch 9iotech 0nc$ o' 4outh Aakota 'or atents issued 'or A=: &accines
against rota&iruses in all 'arm and comanion animals$ "ota&iruses are one o'
the most common aetiological agents that cause neonatal diarrheas in
li&estock and comanion animals$ 2he world market 'or a &eterinary rota&irus
&accine has !een estimated to !e &alued at M<0;H4$
Canada's e/orts o' genetically engineered canola seed and oil continue to
increase$ 4ome o' the estimated ercentage o' Canadian cros genetically
engineered in 1999 include canola (<08), corn (1<8), soy!eans ((08), and
otatoes (208)$ 2otal canola e/orts 'or the end o' 1997 was M2C !illion and
total sales o' genetically modi'ied canola was aro/imately M7<0C million$
Canada has one o' the !est 'ood insection systems in the world and
currently more than (0 new roducts ha&e !een aro&ed !y the 'ederal
go&ernment (Canadian #ood 0nsection :gency)$ Aesite Canada's e''orts,
H4 consumers are more acceting o' genetically modi'ied !iotech roducts
than Canadians$ @resently, 908 o' Canadians !elie&e genetically engineered
'oods should !e la!eled and 778 !elie&e they are unsa'e to consume$ 2he
4ierra Clu! and the Council o' Canadians in %ttawa are calling on the
Canadian #ederal ?o&ernment to work 1uickly to esta!lish mandatory
la!eling rules$ 0n 1999, Canadian ag-!io e/orts are rimarily genetically
modi'ied canola$ ?enetically modi'ied soy!ean, corn, and wheat soon will
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Canada : A Profile
contri!ute signi'icantly to the e/ort total$ .owe&er, there will !e an
increasing emhasis on genetically modi'ied canola 'or the ne/t century$
Nutraceuticals
=utraceuticals and the 'unctional 'ood market is estimated to !e M<6H4 !illion
glo!ally !y the year 2000 with an annual growth rate o' 78$ 2his reresents a
higher growth rate than the 'ood industry as a whole$ 0n Canada, the
nutraceuticals and 'unctional 'ood industry has 'ocused mainly on sulying
e/ort markets, due to domestic regulations alied to the market$ 2here are
100 Canadian !usinesses located in e&ery art o' the country that roduce
nutraceuticals and 'unctional 'oods$ 2he 4askatchewan =utraceutical =etwork
is recogni>ed internationally 'or its roduction o' natural health roducts$
4ome 'unctional 'oods a&aila!le include se&eral cereal roducts and modi'ied
'atty acid &egeta!le oils$ :s well, dermaceuticals are readily a&aila!le some o'
which are !orage , hem oil, and medicinal lants$
,evelopment of 7ovel Technology and 5ermplasm
2he Canadian market 'or her!al remedies grew at a rate o' a!out 178 in
1996$ :t the resent time, 1<8 o' the oulation has tried these alternati&e
aroaches$ 2he market only reresents 28 o' the M9$2C !illion rescrition
and nonrescrition drug market in Canada, howe&er drug stores are
e/anding their lines o' her!al medicines$ 0n the last century, culti&ated
ginseng in =orth :merica has !een a growing cro with !est culti&ation areas
redominantly in 4outhern %ntario, and 9ritish Colum!ia$ Canada is now the
world's largest roducer o' @$ 1uin1ue'olium (:merican ?inseng)$ %ntario
ginseng is one o' the most imortant cash cros a'ter soy!ean, corn, to!acco,
and wheat$ 0n 1996, the har&ested cro in Canada was a!out one million
kilograms with a &alue aro/imately o' M70C million$ =ew microroagated
translants may allow 'or e/ansion and increased e''iciency and ro'ita!ility
to the industry$ Current research in&ol&es disease management, micro-
roagation, multile shoot roduction, and somatic em!ryogenesis$
A*uaculture )iotechnology
E:1uatic !iotechnologyEgrous together !iotechnologies that rimarily ser&e
a1uaculture industries, such as 'ish 'arming and shell'ish culture in the near
term, !ut in the longer term will include a wide range o' otential industrial
oututs, such as a1uatic !ioremediation ser&ices, !io-rocessing o' a1uatic
materials, marine harmaceuticals, a1uatic lant roduction and other
alications$
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Canada : A Profile
2he 'arm-gate &alue o' a1uaculture roduction in Canada has increased
dramatically (nearly <0- 'old) 'rom M6C; in 197F to M (<0C ; in 1996,
reresenting roduction o' o&er 70,000 tonnes and a!out 2F8 o' the total
landed &alue o' the Canadian 'isheries sector$ 0t is estimated that this &alue
can !e more than dou!le to M1 !illion !y 200(, through the alication o'
a1uatic !iotechnology, and !y addressing the institutional !arriers and
!iological and other ro!lems 'acing the sector$ 2he a1uaculture industry
currently emloys more than <,000 eole in !oth the roduction and ser&ice
su!sectors$ =inety ercent o' those emloyed are located in rural
communities$
:1uatic !iotechnology is small relati&e to outut o' the a1uaculture industry,
!ut it is essential to its &ia!ility and growth$ :1uatic !iotechnology roduct
and ser&ice sales reached MF(C million in 1997, M17C million o' which were
e/ort sales (4tats Can reort) rimarily to markets in the Hnited 4tates,
Chile, and HI$ */orts are 'orecasted to increase !y 1<8 $a to meet the
growing 'ood re1uirements and to alle&iate the decline o' the wild 'isheries$
9ut this increase is unlikely to occur unless a1uaculture, as a recetor
industry, increases su!stantially towards it 'ull otential$ 2wenty 'i&e ercent
o' a1uatic !iotech 'irms are large, and o&er 908 are ri&ately held$ #orty
ercent o' the a1uatic !iotech 'irms are located on the east coast, (08
located on the west coast and the remainder in central Canada$
@resently, a1uatic !iotechnology includes research in areas such as 'ish
health (&accines and diagnostics), !roodstock de&eloment, en&ironmental
ser&ices, shell'ish roduction, marine lant rocessing technologies and
marine !ased nutraceuticals$ 2he Canadian a1uatic !iotechnology industry is
world-reknowned 'or !roodstock de&eloment, health management,
en&ironmental management, 1uality control, and research T de&eloment$
:dditional research in secies and serotye-seci'ic &accines are !eing
de&eloed against arasites that commonly a''ect marine organisms using
techni1ues o' modern !iotechnology$ Canadian roduction o' &accines 'or
1997 is aro/imately M<C million and is estimated to increase consistently
'or the ne/t 'ew years$ 2he micro inGection o' growth hormone genes into
'ertili>ed salmon eggs has ro&en e''ecti&e in accelerating growth !y (0-608$
2he market &alue o' transgenic salmon is estimated 2000 tonnes 'or 2001$
@resently the market &alue 'or transgenic 'ish in general is aro/imately
se&eral thousand tonnes$ 0t is estimated at a &alue o' M<00 thousand 'or 2001
with a raid increase in the 'ollowing 'ew years$ 0n addition, scientists at A#%
-est ,ancou&er la!oratory de&eloed a A=: ro!e to determine the genetic
se/ o' salmon without killing them$ ;icrotek has atented and is licensing this
ro!e to Chinook 4almon 'armers in Canada and a!road$
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Canada : A Profile
Environmental )iotechnology
Canadian annual growth 'rom 1996 to 2000 in en&ironmental markets is
estimated at a (8 - <8 growth rate $a $ :lthough the H4 remains the most
accessi!le market 'or Canada and reresents a destination 'or 708 o' the
industry's e/orts, there is a growing demand to 'oreign countries such as
;e/ico with seci'ic interest to incinerators, and 'iltering machineries 'or
water and gas$ 2he demand re1uires technology ad&ancements in areas such
as water treatment (remo&al o' hea&y metals), air control (reduction o'
ollutants), soil !ioremediation, recycling, climate control and treatment o'
solid wastes$ 9ioremediation in&ol&es the use o' li&ing organisms to reduce or
eliminate en&ironmental ha>ards in soil and water resulting 'rom the
accumulation o' to/ic chemicals$ 2he remediation market is largely de'ined !y
the amount the resource go&ernments are reared to de&ote to cleanu o'
contaminated sites$ 0n 1999, this amounts to M<0-100;Jy and will remain
static 'or the ne/t 'ew years$ 2he maGority o' 'irms dealing with the
!ioremediation o' hydrocar!on-contaminated soils are located on -estern
Canada situated near!y etrochemical comanies, and wastewater treatment
'irms are located mainly in 3ue!ec and %ntario$ 0n 1997, 2roGan 0nc$ located
in %ntario was ranked the world's leading sulier o' ultra&iolet systems
uri'ying e''luents in wastewater treatment lants with gross sales totaling
M<1$1 million in 1997$ %ntario comanies account 'or a!out F< 8 o' the
industry re&enues$
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Canada : A Profile
+THE2
2he 'orest !iotechnology sector reresents 78 o' the 272 core !iotechnology
comanies$ 0n general, Canadian comanies ha&ing a 'orest !iotechnology
comonent sent MF2C million annually on "TA with re&enues o' around
M1<0C million$ @ro&inces and markets are increasingly limiting the use o'
tradional chemicals due to health, sa'ety, and en&ironmental concerns$
9acillus thuriengensus, a !ioesticide, is the maGor !ioesticide used in
Canadian 'orests with annual sales estimated at MF0C million er year in
=orth :merica$ 2his reresents less than 18 o' M<C !illion otential market
worldwide$
"ecent alications include tissue culture, molecular genetics, athology, and
ecohysiology assessment$ 2he #orest 9iotechnology Center in 9ritish
Colom!ia is de&eloing clonal roagation systems 'or coni'ers using somatic
em!ryogenesis$ 2o date, greater than <,000 lines reresenting 1< coni'er
secies (sruce, ine and Aouglas-'ir) ha&e !een stored &ia cryoreser&ation$
:s well, techni1ues to identi'y imro&ed genetic sources, otimal nursery
culture rotocol and enhanced 'orest regeneration ractices are ad&ancing
the de&eloment o' suerior lants and trees !y genetically enhancing lant
cell comosition and structure$ 2his makes ossi!le genetically enhanced
trees and lants with 1ualities such as ul density, 'i!re strength, cellulose
content, and lignin content$ $
0n the mining sector, !iotechnology has alications in leaching metals 'rom
low grade deosits o' gold, sil&er and coer$ 2his e/traction method is called
!io-o/idation$ 9io-o/idation has otential in Canada to e/loit low grade
resources in an en&ironmental sensiti&e way$ -ith technology ad&ancements,
as many as 10 new mineral deosits could !e e/loited !y this method within
the ne/t 10 years$
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Canada : A Profile
INTRODUCTION
O9!R9I!. O$ TH! H!ALTH S!CTOR
2he glo!al market 'or health roducts and ser&ices is enormous - estimated at
more than M2 trillion dollars annually, and Canadian suliers are working to
cature a larger share$ -e measure our international health industries
!usiness oortunities in three sectors) ;edical Ae&ices, @harmaceuticals
and .ealth 4er&ices$ 0n all three areas, Canadian healthcare managers are
working hard to make their systems more e''ecti&e, less costly, less
institutional and more community !ased$ 2here are increasing glo!al
rosects 'or new and inno&ati&e ri&ate sector initiati&es that hel
Canadians and oulations worldwide to stay healthy$ 2he raidly emerging
Canadian health industries are dynamic, rogressi&e and knowledge !ased,
roducing e/orta!le rocesses, roducts, ser&ices and e/ertise that are
ready 'or the international marketlace$
A 0RO.IN0 0LO-AL MARC!T
4igni'icant new 'actors are shaing health keeing and health care at home
and a!road)
Aemograhic 'actors include increases in oulation and ur!ani>ation
in de&eloing countries, an emerging middle class in newly-
industriali>ed countries, and aging oulations in de&eloed countries$
Aisease atterns are changing !ecause o' ad&erse en&ironmental
imacts, longer li'e sans, and the resence o' new, &irulent and drug-
resistant diseases$
0ndi&iduals, health insurance comanies, and go&ernments are lacing
growing emhasis on XwellnessO models, re&enti&e medicine, health
education and sel'-managed health regimes$
Cost containment in industriali>ed countries re1uires new tools,
systems and methods 'or health care deli&ery$
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Canada : A Profile
0ncreasingly, ad&anced in'ormation and communication technologies
are rominent in the research, de&eloment and deli&ery o' health
roducts and ser&ices$
4ome health research and de&eloment areas, esecially in genetics,
!iotechnology and in'ormation systems, resent great domestic and
e/ort oortunities 'or Canadian industries, which already occuy an
en&ia!le osition in the glo!al marketlace$
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Canada : A Profile
CANADIAN PRI9AT! S!CTOR STR!N0THS
T#e Medical Device Ind'str(
2he Canadian medical de&ices sector is made u o' 'irms that ro&ide a wide
range o' roducts used 'or diagnosis and treatment o' ailments, including)
medical, surgical, and dental e1uiment+ 'urniture+ sulies and consuma!les+
orthoaedic aliances+ rosthetics+ electromedical e1uiment+ as well as
diagnostic kits, reagents and e1uiment$
2he @harmaceuticals 0ndustry
2he Canadian harmaceutical industry is comrised o' three key segments)
the su!sidiaries o' multinational !rand-name drug roducers, many with
research and roduct mandates, as well as Canadian-owned generic drug
comanies+ a dynamic and growing small and medium-si>ed
!ioharmaceutical industry+ and, contract research organi>ations, Canadian
uni&ersities and academic centres which lay a i&otal role in the research
acti&ities o' the industry$
2he .ealth 4er&ices 0ndustry
2he Canadian health ser&ices sector is comosed rimarily o' 4;*s
ro&iding ser&ices in Canada and a!road and can !e !roken down into eight
general categories as 'ollows) telehealthJhealth telematicsJhealth in'ormatics+
contract research organi>ations+ health administration and consultants+
institution and 'acilities management+ continuing medical, nursing and allied
health education and training+ architectural and design ser&ices+ clinical
ser&ices, and health insurance$
SUPPORTIN0 PRI9AT! S!CTOR INITIATI9!S
.ealth industries is a key knowledge-!ased sector that is a strategic dri&er in
the glo!al economy$ Caturing its market otential - and ro'iting 'rom it - is
rimarily the resonsi!ility o' ri&ate comanies$ 9ut go&ernments ha&e an
imortant role to lay in creating a 'a&oura!le !usiness climate at home, in
managing the Canadian regulatory regime, and in suorting international
!usiness de&eloment$ 2he 'ederal go&ernment's role in health care also
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Canada : A Profile
in&ol&es the setting and administering o' national rinciles or standards 'or
the health care system (Canada .ealth :ct), health rotection, disease
re&ention, and oulation health romotion$
#inancial and olicy suort ro&ided !y go&ernments is critical to the growth
o' CanadaOs health industries$ 4uort mechanisms include the 'unding o'
!asic research, ensuring a steady suly o' highly trained human resources,
and ro&iding 'inancial assistance 'or research in'rastructure, start-us and
inno&ation$ ?o&ernmentsO sharing o' risk is esecially imortant where market
entry is di''icult and costly, as it is in the highly-regulated health industries
sector$
0mro&ing access to world markets is an imortant role 'or the 'ederal
go&ernment$ 2he imlementation o' the =orth :merican #ree 2rade
:greement and agreements under the -orld 2rade %rgani>ation, as well as
the #ree 2rade :greement o' the :mericas under negotiation, ha&e
contri!uted to signi'icant reductions in tari''s$ .owe&er many non-tari''
!arriers still e/ist$ #actors that imact on market access include atent olicy,
regulatory re&iew rocesses, ;utual "ecognition :greements (;":s), and
the use o' Emanaged careE instruments such as 'ormularies, rocurement and
utili>ation olicies !y health care managers in the u!lic and ri&ate sectors$
Canada currently chairs the ?lo!al .armoni>ation 2ask #orce which is
working toward the international harmoni>ation o' regulatory systems 'or
medical de&ices$ 2he 2ask #orce is resently comrised o' go&ernment
reresentati&es 'rom Canada, the Hnited 4tates, the *uroean Hnion, 5aan
and :ustralia$ ?lo!al harmoni>ation will ser&e to suort the e&entual
de&eloment o' ;":s !etween mem!er countries to increase glo!al trade
cooeration, and hel Canadian medical de&ice comanies to sell more
cometiti&ely in the international marketlace without su''ering the 'inancial
losses associated with long delays 'or regulatory aro&al$
2he 'ederal go&ernment is a leader in !ringing together sectoral stakeholders
to 'ocus international !usiness de&eloment e''orts in this key economic
segment$ :s resources are reduced, there is a growing need to coordinate the
e''orts o' all arties in&ol&ed in trade de&eloment, including 0ndustry Canada,
Aet$ o' #oreign :''airs and 0nternational 2rade, .ealth Canada, :griculture
and :gri-#ood Canada, ro&incial go&ernments (!oth health and industrial
de&eloment deartments), industry associations and comanies$
*/amles o' 'ederal go&ernment in&ol&ement in trade de&eloment and
romotion include)
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Canada : A Profile
suorting Canadian su!sidiaries in the harmaceutical industry who
seek world roduct mandates and access to world-scale distri!ution
systems+
identi'ying oortunities 'or generic drug manu'acturers to er'orm
contract manu'acturing+
assisting small and medium-si>ed Canadian medical de&ice and
ser&ices comanies, as well as generic drug manu'acturers, to de&elo
international marketing skills and artnershisJalliances that will
imro&e their a!ility to enetrate 'oreign markets+
ro&iding 'irms with u-to-date in'ormation on the oortunities and
challenges that e/ist in e/ternal markets$
2he 'ederal go&ernment also lays a &ery imortant role !y ursuing the
harmoni>ation o' regulations, since these imact directly on the international
cometiti&eness o' CanadaOs health industries$ Canada is currently
negotiating with 5aan, *uroe, :ustralia and the Hnited 4tates on a common
set o' regulatory standards 'or medical e1uiment$ ?lo!al harmoni>ation will
ser&e to suort the e&entual de&eloment o' ;utual "ecognition :greements
!etween mem!er countries which will 'acilitate market access and increase
glo!al trade cooeration$ :s a result Canadian medical de&ice comanies will
!etter !e a!le to comete in the international marketlace without su''ering
the 'inancial losses associated with long delays 'or regulatory aro&al$
@ro&incial go&ernments also ha&e an imortant role to lay in international
!usiness de&eloment in the health industries sector$ 2heir rocurement
olicies o'ten determine P'irst marketQ or P'irst useQ o' new roducts and
ser&ices$ ;any ro&incial go&ernments ha&e acti&e research and
de&eloment rograms, and suort research in'rastructure$ @ro&incial
industrial de&eloment rograms ha&e !een used to romote PclustersQ o'
health industries acti&ities, e$g$ !ioharmaceuticals in 3ue!ec$ ;any
ro&incial go&ernments (e$g$ %ntario, ;anito!a and =o&a 4cotia) are strong
suorters o' e/ort initiati&es$ :ll ro&incial go&ernments are reresented on
2rade 2eam Canada .ealth 0ndustries$
A 9ISION $OR TH! N!;T MILL!NNIUM
155
Canada : A Profile
Canadian !ased health industries comanies !ring uni1ue comarati&e
ad&antages and cometiti&e &alues to the international marketlace$
@romoting these comanies as glo!al healthkeeers, which are ositioned to
meet the challenges o' the 21st century, is the underlying theme that dri&es
this international !usiness strategy$
3uality health care is now the num!er one concern o' Canadians$ .ealth care
is regarded as a !asic right and the health system is &alued highly$
Canadians identi'y strongly with our health system !ecause it e/emli'ies
many o' the shared &alues o' modern Canadian society, such as e1uity,
'airness, comassion, and resect 'or the 'undamental dignity o' all$
: strong Canadian health sector contri!utes to the health and well-!eing o'
Canadians, as well as health consumers around the world$ :t the same time,
the de&eloment o' the Canadian health sector as a knowledge-!ased
industry is creating Go!s and growth in the Canadian economy$ 2he Canadian
ri&ate sector lays an imortant role in the day-to-day deli&ery and
maintenance o' our world-class health care system$
2he 1999 4eech 'rom the 2hrone emhasised a renewed commitment !y the
'ederal go&ernment to imro&e CanadaOs knowledge in'rastructure !y
introducing the legislation necessary to create the Canadian 0nstitutes o'
.ealth "esearch$ 2o 'urther imro&e the otential 'or ad&anced research in
Canada, ?ranting Councils will recei&e more suort, and international
research colla!oration will !e 'ostered in uni&ersities and institutes to e/and
Canadian e/ertise in articular areas, such as genomics$
2he 4eech also includes measures to increase trade romotion in strategic
sectors with high e/ort otential, which include !iotechnology and health$
-ith its artners, the 'ederal go&ernment will suort the testing o'
inno&ations in integrated ser&ice deli&ery, in areas such as home care and
harmacare$
156