Canada’s World Trade

You might be surprised to know that Canada is locked in a continual struggle with other global powers. It isn’t a military battle – it is more like a constant strategic game.

Like most countries, Canada competes to win export sales contracts. Government officials work hard to arrange trade agreements with other nations. Some countries win and some countries lose in these economic battles.

What is Balance of Trade? Trade ItemCanada, 2006 ($US) U.S.A., 2006 ($US) Value of Exports (sales) billion1024 billion Value of Imports (purchases) billion1869 billion Trade Balance 51.8 billion845 billion Trade Surplus or Deficit Surplus +$51.8 billion Deficit -$845 billion Like people, some countries have growing debts because they spend more than they earn. Their balance of trade is negative because they sell (export) fewer goods than they buy (import). This is called a trade deficit, and it must be made up by cash payments and loans. Meanwhile, other countries have a trade surplus by exporting more than they import.

International Carriers Products move between countries and the transportation chosen depends upon the locations of the trade partners and the material being moved. Neighbours can use trucks and pipelines but trade across oceans is different. Supertankers, cargo ships and even planes which can carry limited, high- value goods are used on a daily basis.

Supertankers Supertankers are the largest ships ever built. They are sometimes longer than four football fields. They are used to transport oil across oceans. However, terrible environmental damage occurs when they run aground. In 1989, the Exxon Valdez spilled more than 40 million litres of oil on the Alaskan coast, causing great loss of fish and wildlife.

Container Freight Canada has major container ports on both coasts. Standard-sized metal containers are widely used for shipping goods. They are easily transferred from ships to flatbed trucks or rail cars. Containers can be tracked by (GPS) and loss is minimized. However, since they are stacked high on ships, containers occasionally break loose during storms.

Electric Power Lines Energy is an important part of international trade. Oil and gas flow through pipelines, but electricity can also cross borders. Ontario and Quebec sell surplus power to some American states. Their systems are connected as a single power grid. In 2003, a power failure in Ohio caused a massive blackout across northeastern North America. It continued for several days.

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