International Trade
The Future of Canadian Air Travel: Toll Booth or Spark Plug?
Date: 2012
Chair: Hon. Dennis Dawson (QC)
Deputy Chair: Hon. Stephen Greene (NS)
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Summary:
“In the US, they see their airports as economic spark plugs, and we see them as toll booths,” stated one witness. The Senate Committee on Transport and Communications examined the air travel industry in Canada, focusing on issues that are holding the country back from being internationally competitive. High Canadian airfares have discouraged passengers from flying on Canadian airlines, forcing them to fly from US airports instead. Passengers departing from Canadian airports pay 60 and 75% above the airline’s fare to cover taxes and charges compared to 10 and 18% in America. According to the World Economic Forum, Canada ranked 125th out of 139 countries for ticket taxes and airport charges in 2011.
The Committee urged the Government of Canada to adopt a new National Air Travel Strategy; to reduce or eliminate the rent it charges airports as well as limiting other taxes and user fees; to grant full transit visas for non-Canadian travelers who are connecting through Canadian airports; and to provide automatic transfer of luggage for connecting flights so travellers need pass through security and customs just the once.
Impact:
On June 9, 2012, the Globe and Mail agreed with the Senate Committee’s recommendation to eliminate government rents at airports, but claimed that increasing air traffic at Canadian airports would need much more effort than what was suggested in the report. The Spec also agreed that abolishing airport rents would be useful. However, it stressed a larger need to focus on competition in the Canadian air industry, asserting that Europe enjoys better airfares because airlines are allowed to carry passengers within each other’s borders, unlike their counterparts in North America. A similar view was taken by The Toronto Star on June 24, 2012.
In the meantime, the Committee’s report prompted a headline in The World, an American publication, that proclaimed “Small US Airports [are] Attracting Bargain-Hunting Canadians”. The manager of Bellingham’s airport, for example, said that "we've expanded the terminal three times now."
Intensifying Strategic Partnerships with the New Brazil
Date: 2012
Chair: Hon. Raynell Andreychuk (SK)
Deputy Chair: Hon. Percy Downe (PEI)
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Summary:
The Senate Committee on Foreign Affairs and International Trade observed that Brazil has come a long way from political and economic obstacles to being a dominant power and has even surpassed the United Kingdom as the sixth largest economy in the world. It concluded that Brazil’s success, coupled with its interest in exchanging knowledge in technology and science with Canada, calls for stronger ties between the two countries.
The Committee suggested taking a strategic approach based on “matching Canada’s expertise with Brazil’s immediate priorities”. The recommendations include focusing on science & technology, building strong foundations in education and sustaining it as a key driving force, and providing support for the “Science without Borders” program.
Impact:
The Association of Universities and Colleges of Canada applauded the Senate Committee in recognizing the important role education, science and technology plays in building a strong relation with Brazil.
Seizing Opportunities for Canadians: India's Growth and Canada's Future Prosperity
Date: 2010
Chair: Hon. Raynell Andreychuk (SK)
Deputy Chair: Hon. Peter A. Stollery (ON)
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Summary:
The committee concluded its three-year study on the rise of China, India and Russia with this report which particularly focused on India. Among eight strategic recommendations, it urges the federal government to develop a ‘Canada Brand’ that would highlight Canada’s expertise and innovation in areas where demand and opportunities in the three countries are particularly acute. The sectors that would benefit in particular from promoting such a brand include education, agriculture, mining and other extractive industries, energy, technology, financial services and infrastructure.
Impact:
As a long-standing supporter of bilateral trade and investment growth between Canada and India, the Canada-India Business Council featured the Senate report in its January 7, 2011 news post. CIBC World Markets Inc. extensively cited the report in Economic Insights (June 1, 2011), noting India’s tremendous growth potential and opportunities for Canada. In addition, Incanus Public Affairs acknowledged the report in its July 2011 newsletter.
A Workplan for Canada in the New Global Economy: Responding to the Rise of Russia, India and China
Date: 2010
Chair: Hon. Raynell Andreychuk (SK)
Deputy Chair: Hon. Peter A. Stollery (ON)
Downloads: Click here
Summary:
The second of three reports, the committee examined economic growth in Russia, India and China and the impact this will have on Canadian policy. It recommends that Canada strengthen its partnerships with Russia, India and China. Specifically, the committee urged the federal government to increase high profile visits, help develop greater commercial relations and promote Canada’s profile abroad to a greater extent.
Impact:
The Canadian International Council cited this report in The Dragon Returns: Canada in China’s Quest for Energy Security. The High Commissioner for India in Canada publicly described how Canada’s relationship with India improved following release of this report.
Canada and Russia: building on today’s successes for tomorrow’s potential
Date: 2010
Chair: Hon. Raynell Andreychuk (SK)
Deputy Chair: Hon. Peter Stollery (ON)
Downloads: Click here
Summary:
While Russia faces challenges that continue to impede the growth of its economy, its economic progress since the collapse of the Soviet Union cannot be denied. The Standing Senate Committee on Foreign Affairs and International Trade’s report concluded that there is a “positive future” in Canada’s economic relationship with Russia, in terms of both trade and investment.
A number of Canadian business sectors can be expected to succeed in Russia, including the Canadian innovation and technological businesses. In committee meetings it became clear that the natural resources sector is another particular area where Canadian trade has been and will continue to be warmly received. Other important sectors for Canada’s economic relationship with Russia include business in the green economy, infrastructure and transportation.
The Committee also discussed some of the problems that currently limit Canada’s relationship with Russia. Some of these concerns are limited to problems in the Russian economy, such as its protectionist tendencies, its frustrating bureaucratic processes and the extent of corruption. At the same time, Canada can help build this relationship in a number of ways, including making changes to Canada’s visa system to make it more professional and more efficient. The Committee also emphasized the importance of an increase in high-level Canadian federal and provincial visits to Russia. It was suggested that the current state of Canada’s visa system and the infrequency of Canadian visits to Russia sends the message that Russia does not matter to Canada; this impression needs to change in order to improve bilateral trade and investment.
Impact:
The Globe and Mail published an article written by Tye W. Burt, the CEO of a Canadian mining company, who called the Committee’s report “required reading for any Canadian…official seeking inside knowledge about doing business in Russia.” The report also got a brief mention on the website Modern Russia which summarized its conclusions. The Committee’s assertion that Canada has not done all it could to encourage trade with Russia was cited by a BC government report.
Time for a New National Vision: Opportunities and Constraints for Canada in the Global Movement of Goods
Date: 2008
Chair: Hon. Lise Bacon (QC)
Deputy Chair: Hon. Donald Oliver (NS)
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Summary:
Containerized freight transportation is expected to be the dominant method of international trade in the future. The Committee therefore studied Canada's system to determine what needs to be done to attract a greater share of North America's container traffic.
It particularly recommended establishing a National Gateway Council so private sector players and governments from across the country come together to improve regulatory efficiencies, deal with labour shortages and environmental issues, integrate more information technology into the system and market Canada’s transportation networks to the world.
Impact:
The Shipping Federation of Canada stated the Senate's report is "broader in scope than the report on the Pacific Gateway Initiative that was presented to International Trade Minister David Emerson earlier this year." It went on to express confidence that its recommendations "are likely to generate action from the government over the coming months.” The Canadian Trucking Alliance was also optimistic that “with this new support from the Senate … we may begin to see more action on some of these issues”.
The Rising Dollar: Explanation and Economic Impacts (Volume 2)
Date: 2003
Chair: Hon. Peter Stollery (ON)
Deputy Chair: Hon. Consiglio Di Nino (ON)
Downloads: Click here
Summary:
The Committee investigated observed trends in recent and historical movements of the Canadian dollar. The report explains determinants of these currency fluctuations over time, with consideration being given to both internal and external influences on the dollar’s recent appreciation. Economic impacts of the dollar’s rise are also assessed, with trade impacts being reviewed from both a general and a sectoral point of view. The report concludes with a discussion of whether the existing exchange rate regime in Canada is appropriate.
Impact:
The Library of Parliament’s 2004 analysis, The Effects of a Higher Dollar on the Canadian Economy, is largely based on the Senate’s report.
Our Shared Border: Facilitating the Movement of Goods and People in a Security Environment
Date: 2002 (Interim)
Chair: Hon. E. Leo Kolber (QC)
Deputy Chair: Hon. David Tkachuk (SK)
Downloads: Click here
Summary:
This report studies the economic effects of clogged borders on Canadian business and the economy after 9/11. It identifies economic – as distinct from security – issues and reviews various proposed solutions, concluding with a 30 point action plan.
Impact:
The government continues to focus on improvements at border crossings. Many action items recommended by the Committee have received attention. For example, the NEXUS pilot project, which the Committee recommended extending, is now a full fledged program for pre-approved, low-risk travelers.
