Canada and the World Political Economy

Staples Theory

  • Definition: Canada’s regions have evolved differently based on the export of natural resources.

  • Key Concepts:

    • Raw materials are produced in rural areas known as the "hinterland" and are subsequently exported or "exploited" by urban areas called the "heartland."

    • The concept of "local staples" creates distinct regional economies, which are heavily influenced by the types of natural resources each region possesses.

Global Trade

  • Tariff: A tax imposed on imported goods and services.

    • Historically favored by conservative politicians.

    • Over time, the partisan views regarding tariffs have flipped and converged.

    • Membership in global organizations like the WTO (World Trade Organization) and APEC (Asia-Pacific Economic Cooperation) has aided Canada in reducing tariffs on trade.

Canada’s Trade Partners

  • Exports: 74% of Canada’s exports are directed to the USA.

  • Imports: 64% of Canada’s imports come from the USA.

Free Trade

  • Definition: The elimination of regulatory barriers to ensure unrestricted access to the market.

  • CUSMA (Canadian United States-Mexico Agreement): A revised version of NAFTA (North American Free Trade Agreement) that provides tariff-free access among the three participant countries while imposing certain restrictions.

Inter-Provincial Trade

  • The complexity of inter-provincial trade exceeds that of international trade, despite formal tariffs being declared unconstitutional.

  • Industries protected by provinces through alternative means include:

    1. Business registration requirements.

    2. Provincial procurement policies.

    3. Worker qualification standards.

  • R v. Comeau (2018): This case addressed constitutional issues regarding trade barriers between provinces.

  • CFTA (Canadian Free Trade Agreement): This agreement has been implemented to ameliorate certain inter-provincial trade challenges.

Foreign Investment

  • Canadian politicians frequently engage in trade missions aimed at promoting foreign investment and securing business deals.

Global Economic Dependence

  • The Canadian economy is significantly reliant on international businesses, predominantly from the USA, Europe, and Asia.

  • The federal government evaluates potential foreign investments to ensure they are beneficial and do not pose a threat to Canada’s national interests.

Multilateralism

  • Arctic Council: An international forum involving eight Arctic states and indigenous peoples of the Arctic region.

  • The Commonwealth: An association of nations with historical ties to the United Kingdom.

  • La Francophonie: Comprising countries that share French language and cultural connections.

  • Group of Seven (G7): An annual meeting of leaders from seven major advanced economies.

  • G20: A parallel group of major economies.

  • Other Important Organizations:

    • OECD (Organisation for Economic Co-operation and Development)

    • World Bank

    • IMF (International Monetary Fund)

Global Affairs

  • Canada sends ambassadors and high commissioners to represent the nation abroad, solidifying its presence in international relations.

  • Strong participatory role in the United Nations.

International Development

  • Canada ranks as one of the wealthiest nations globally, yet displays a reluctance (deemed "stingy") to provide substantial foreign aid.

  • Aid Priorities: $ funds are often allocated to local food banks, youth development, and economic growth initiatives, ensuring alignment with foreign policy objectives, such as:

    1. Promotion of democracy and accountability.

National Defense

  • Historically, Canada has relied on the protective influence of Britain and the USA.

  • Conscription: A contentious issue during both World Wars; led to significant societal discussions and divisions.

  • Current Personnel: Canada maintains approximately:

    • 68,000 active military personnel.

    • 27,000 reservists, which equates to 2.8 active personnel per 1,000 Canadians.

  • Ongoing issues within the forces include concerns regarding sexual harassment and white supremacy.

Diplomacy and Peacekeeping

  • Canada is characterized as a middle-power, fulfilling the role of an intermediary rather than a leader in international relations.

  • Contribution to Peacekeeping:

    • Instrumental in establishing UN peacekeeping forces.

    • Participated in peacekeeping operations during significant events such as the Suez Canal crisis, Mali, and Cyprus.

Conscription & Draft

  • Definition: A government-mandated compulsory military draft to recruit soldiers.

  • Historical Context:

    • World War I saw the introduction of the Conscription Act and the Military Service Act.

    • World War II featured a non-binding referendum; Quebec opposed, while Anglo-Canada supported conscription.

    • Strategic Ambivalence: The government expressed the need for conscription while maintaining flexibility regarding its implementation.

Defense Organizations

  • NATO (North Atlantic Treaty Organization): Founded post-World War II in response to the Cold War, characterized by:

    • Article 5: States that an armed attack against one or more NATO members is considered an attack against all members.

  • NORAD (North American Air Defense Command): A bi-national combat command headquartered in the United States for aerospace warning and control.

Counter Terrorism Infrastructure

  • CSIS (Canadian Security Intelligence Service): Canada’s primary spy agency focusing primarily on human intelligence.

  • CSE (Communications Security Establishment): Responsible for monitoring electronic communications.

    • Conducts extensive high-level surveillance.

Oversight Mechanisms

  • Who watches the watcher:

    • CSIS is required to report to the federal minister, which exempts it from direct Parliamentary scrutiny.

    • Operates under the executive branch, overseen by the Prime Minister’s Office (PMO).

    • Civilian oversight is provided by the Security Intelligence Review Committee (SIRC) and the National Security and Intelligence Review Agency (NSIRA).

  • Budget Growth:

    • CSIS's budget is three times greater now than in the 1990s.

    • CSE’s budget has increased five-fold in that same time span.

    • A substantial portion of defense spending is directed to these intelligence agencies.

Five Eyes

  • Definition: An international intelligence-sharing alliance comprising Canada, Australia, New Zealand, the United Kingdom, and the United States.

    • Trust and shared standards enable cooperation.

    • Policy Restriction: These agencies are not permitted to spy on each other’s citizens.

    • Oversight concerns are raised by the SIRC regarding operations.

Information Sharing Implications

  • Information gathered by Canadian agencies and shared with international partners can be utilized against Canadians abroad, raising ethical concerns regarding privacy and national security.

Immigration Facts

  • Profile of Newcomers to Canada:

    • 58% of newcomers are classified as economic migrants.

    • The growth of the labor force is almost entirely attributed to immigration.

    • Composition of skilled professions among temporary residents includes:

    • 36% of physicians.

    • 33% of business owners.

    • 41% of engineers.

    • Other categories include:

    • 24% family class immigrants.

    • 18% refugees.

  • Top Source Countries for Recent Immigrants:

    • India, China, and the Philippines.

Climate Change

  • International Accords: Efforts by various nations to address climate change include the Kyoto Accord and the Paris Accord.

  • Environmental Statistics: Canada emits three times more greenhouse gases compared to other signatories of these accords, excluding emissions from exported energy.