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Canada's Economic Prosperity

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Fact File: Canada's Economic Prosperity

Canada’s economy, environment and social fabric are inextricably linked with the oceans and their resources, yet many Canadians remain largely unaware of the maritime nature of their county. Canada’s vast continental expanse and the fact that so many Canadians live away from the ocean coasts has generated what has been described by some as “sea blindness”. Yet bounded by the Arctic, Atlantic and Pacific Oceans, and the Great Lakes, and having direct maritime boundaries with four countries (the US, Russia in the Arctic, Denmark through its sovereignty over Greenland, and France through its possession of the islands of St. Pierre and Miquelon) Canada is one of the foremost maritime states on the planet. Our coast line is the longest in the world amounting to 25% of the world’s coastlines. Our sea surface area out to the limits of our economic exclusion zone is equivalent to about 2/3 of our land mass, and could expand by over 30% as a result of our ratification of the United Nations Convention on the Law of the Sea.

Coastline – 244,000 km
Ocean area – 5.9 million sq km
Cdns living in coastal areas – 7 million
Ocean sector businesses – 11,000
Cdns employed in ocean related industries – over 145,000
Cdns employed in marine transportation – 32,000
Non-US exports moved by sea – 97% by volume
Non-US imports moved by sea – 71% by volume
Trade with US moved by sea – 20% by volume

Approximately 7 million Canadians live in coastal areas, where many depend upon the ocean for their livelihood. In 1998 there were approximately 11,000 businesses in the ocean sector, including fish processing, aquaculture, offshore oil and gas, transportation, coastal tourism, construction and technologies, ocean services, hydrography and engineering. These ocean industries directly employed almost 145,000 Canadians and generated $19 billion of output. In the future these valuable resources may be threatened by pollution, or exploitation by foreigners who have exhausted their own marine resources. The protection of these resources is the direct responsibility of a variety of government departments, but the Navy, through its ships, aircraft, surveillance stations, and data gathering and analysis capabilities assists other government departments in the gathering of information and often in the enforcement of Canadian maritime laws.

In addition to the importance of our own ocean areas and marine resources to our economic well-being, the oceans are our highways to the world's market places. They are the backbone of the global transportation system, and as such, safe and secure navigable waters are critical to the effective functioning of Canada's national economy. However, the importance of the global economic system and the world’s distant oceans to our economic prosperity is perhaps not fully understood by many Canadians, despite the essential contribution of the sea to the economic well-being and security of Canada. Canada is a major trading nation with approximately three-quarters of its Gross Domestic Product (GDP) derived from international trade. And while it is true that about 80% of Canada’s trade by value is with the United States, only 20% of US trade is with Canada. The 80% of US trade with the rest of the world depends to a large extent upon the “freedom of the seas” and secure passage of shipborne trade, as does 95% of our trade by weight, and 65-85% by value with countries other than the US. The ocean trade routes penetrate to the very heart of our continent via the St. Lawrence Seaway and our three largest cities are major seaports.

World Trade Data (2002):
World Trade Carried By Sea – 90 % by volume
Tonnage Carried – 5.88 billion
World Shipping Earnings – $ 288 billion ($240 b trade / $48 b passengers)
World Trading Fleet – 30,228 ships over 1,000 gross registered tons

The greater interdependence of economies resulting from globalisation means that great harm can be inflicted upon the economy and people of Canada by even low-level warfare or asymmetric threats virtually anywhere in the world. Disruptions of the international economic system in general, and to US trade with the world in particular, cannot but have a direct and substantial impact on the Canadian economy and the health and well-being of Canadians. It is therefore in the best interests of Canada to assist in ensuring the free flow of goods and the creation and maintenance of an environment free of disruptions and threats not only to us but also to our trading partners.

Therefore, in addition to improving our domestic security, Canada must retain the ability to act in a manner to prevent actions against our shores and interests by acting elsewhere, before potential enemies can come to us, or disrupt the global economic system to our detriment. One of the most effective ways for Canada to contribute to global, and Canadian, economic security is through the continued existence, and use, of the capable and globally deployable navy we have today.

Cdn Trade Data (2002):
Cdn GDP - $977 billion
Cdn international trade - $766 billion
Non-US exports moved by sea – 97% by volume
Non-US imports moved by sea – 71% by volume
CanUS trade moved by sea – 20% by volume
Cdn ports – 546
Cdn commercial ports –113
Cargo handled in Cdn ports – 393 million tons
Cargo moved between CanUS – 120 million tons
Ferry or boat visitors – 900,000
Cruise ship passenger visits – 1.45 million

This is simply because navies in general provide a number of enduring attributes, which make them an effective and efficient tool in helping to prevent or reduce the effect of disruption of peace and security around the globe. Navies have mobility, endurance, the ability to apply graduated levels of influence and force proportionate to the situation, do not rely on permission to get into position and can remain for long periods outside a country’s territorial waters, making resolve apparent to both potential adversaries and friends alike, and for the most part, navies are ready to sail at very short notice.

The inherent flexibility of naval forces means that they can undertake a variety of roles, often simultaneously, during the same deployment. This means that they can change their employment from the most benign of activities to offensive action with virtually no warning. Given that 70% of the world’s surface is covered by the seas, 80% of states have coastlines and 50% of the worlds population lives within 80 km of the shore (this is predicted to rise to 75% by 2030), the ability to interact with and influence a large portion of world’s population will be greatly enhance by an ability to make use of the oceans as a global highway. The Canadian Navy possess these attributes and its existence allows the Canadian government to engage any where in the world, that can be reached by sea, at the time and place of its choosing, to the level of commitment it desires.

The Canadian Navy directly contributes to economic prosperity of Canadians by allowing Canada to act to preserve the integrity and effectiveness of the international economic system by projecting and protecting Canada’s interests ashore in distant places, protecting the passage of trade upon the seas, participating in the monitoring of Canada’s ocean areas, and assisting other government departments in the enforcement of Canadian maritime laws.

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