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:
Business registration requirements.
Provincial procurement policies.
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:
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.