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Canada has the eleventh (nominal) or 14th-largest (PPP) economy in the world (measured in US dollars at market exchange rates), is one of the world's wealthiest nations, and is a member of the Organization for Economic Co-operation and Development (OECD) and Group of Seven (G7). As with other developed nations, the Canadian economy is dominated by the service industry, which employs about three quarters of Canadians. Canada is unusual among developed countries in the importance of the primary sector, with the logging and oil industries being two of Canada's most important
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Canada has the eleventh (nominal) or 14th-largest (PPP) economy in the world (measured in US dollars at market exchange rates), is one of the world's wealthiest nations, and is a member of the Organization for Economic Co-operation and Development (OECD) and Group of Seven (G7). As with other developed nations, the Canadian economy is dominated by the service industry, which employs about three quarters of Canadians. Canada is unusual among developed countries in the importance of the primary sector, with the logging and oil industries being two of Canada's most important. Canada also has a sizable manufacturing sector, centered in Central Canada, with the automobile industry and aircraft industry especially important. With a long coastal line, Canada has the 8th largest commercial fishing and seafood industry in the world. Canada is one of the global leaders of the entertainment software industry.
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Today, maintaining a sense of community is one of the major problems in Canada because of differences among the provinces and territories. Many Canadians in western and eastern parts of the country feel that the federal government does not pay enough attention to their problems. 80% of Quebec's population are French Canadians. Many of them believe that their province should receive a special recognition in the Canadian constitution.[1]
Canada is one of the wealthiest states of the world, the gross domestic product (GDP) of Canada is about 1432,140 Billion. US dollars, so the state is GDP rank 14 worldwide. In purchasing power parity, Canada is up to 1265.838 billion dollars in 13th place.
Canada is considered a social market economy, but the economic margin for maneuver is very large, in the “Index of Economic Freedom,” of the Heritage Foundation Canada will be rated higher than most western European countries and slightly lower than the USA. As in other developed countries the Canadian economy is dominated by the services sector. The primary sector anyways is above average , which is due to the abundance of natural resources and their exploitation.[2]
Natural resources: iron ore, nickel, zinc, copper, gold, lead, rare earth elements, molybdenum, potash, diamonds, silver, fish, timber, wildlife, coal, petroleum, natural gas, hydropower.
The resources of the country have already been referred to in the chapter on general description. Their importance, however, demands a more extensive treatment. Though the area, the climate, and geographical position of Canada afford room for a large prospective population, yet this can only be fully understood when the great richness in natural resources is taken into consideration. Vast extent and genial sunshine is not everything, otherwise the Sahara Desert would be a valuable possession. The area and location, however, united with a suitable climate and rich natural resources, are the true secret of a country’s greatness and the basis of her hopes for the future. What is the extent of our resources? is, therefore, a question of supreme importance, and presumably, of deep interest to all who are interested in this country.
Natural resources may be fully classified under four general departments, namely: Agriculture, forests, minerals and fisheries; the product of all of which enters largely into the commerce of the world. All nations are not blessed with this fourfold source of natural wealth. Some nations, indeed, manage to maintain a dense population and a high state of prosperity with only one. Take the case of the Netherlands, or Denmark, for instance. The inhabitants of these countries are almost wholly occupied in the pursuit of agriculture, outside of commercial centres. This is the one great national industry, and yet they are densely populated, prosperous and independent.
The resources of some other countries are chiefly confined to mining, and yet others to lumber or fish. It goes without saying, therefore, that the more varied the character of nature’s supply, the larger the degree of prosperity ought to, be. The country which has various forms of nature’s products certainly ought to have many advantages over the country confined to one or two. It is not necessary to say that Canada’s resources cover the whole scope as generalized above. So far as variety is concerned, then, Canada takes a foremost place. But what of the extent, distribution and richness of these various sources of national wealth? This also is a question of vital importance, and one to which we will now give our attention.[3]
Canada is the second largest exporter of primary forest products in the world, after the U.S. Canada’s forest sector is among the top five contributors to the nation's net trade.
The forest industry is an important employer in many regions of Canada, particularly in rural and remote communities. Major forest products include softwood lumber, structural panels, newsprint, pulp and various paper products. The development and production of many new and innovative products is also underway in the sector. These products range from bioenergy and bioplastics to new building systems.
A sector in transition
In recent years, Canada’s forest industry has been refocusing its business model to help the sector adapt to new challenges. Recent challenges include: a worldwide economic downturn; strengthening of the Canadian dollar against the currencies of our key competitors; a structural decline in North American newsprint demand; and increased competition from other forest product suppliers.
Recovering from these difficult circumstances has required Canada’s forest sector to work hard to transform in ways that will open new opportunities for the future. For instance:
A focus on product and process innovation is leading to improvements that will strengthen the sector’s competitiveness for the long term. Non-traditional products and services are the focus of intensive research and development. Of particular note are those products and services derived from forest biomass (for example, bioenergy, bioproducts and biochemicals). Increased production of bioproducts is expected to give the industry a significant boost in the highly competitive global marketplace.
New market opportunities are being targeted. Work is underway to identify both new end use markets and new markets for Canada’s traditional products.
The importance of environmental sustainability and legality throughout the forest sector has been recognized by government, industry and other players. Sustainable forest management practices at every stage of production demonstrate responsible resource stewardship and respond to the expectations of environmentally responsible forest practices in today’s global marketplace.[4]
Agriculture in Canada is among the most sophisticated and technologically advanced in the world. Farmers use scientific crop and soil analysis as well as state-of-the-art equipment. By 1996, more than one-quarter of all Canadian farmers used a computer in the management of their crops and livestock. In 2000, there were 7,100 square kilometers (2,741 square miles) of irrigated land. While it produces substantial quantities of food for domestic consumers and for export, Canada also imports a significant amount of agricultural products. Total agricultural imports in 1999 amounted to US$10.8 billion. The United States supplies Canada with roughly two-thirds of its total agricultural imports. Conversely, the United States is Canada's main market for agricultural goods. In 1999, the United States was the destination for one-third of Canada's exports of crops, livestock, and fish.
While the overall number of Canadian farms continues to decline, the decline has slowed in recent years and several provinces are in fact adding or gaining new farms. The decline in farms has slowed to under 1 percent per year, the lowest level of decline since 1941. Since 1991, British Columbia has increased its number of farms by 12.6 percent, Alberta by 3 percent, Nova Scotia by 1 percent, and Newfoundland by 0.8 percent. Ontario continues to have the largest overall number of farms—over 68,000—followed by Alberta with 58,000, and Saskatchewan with 56,000. The total number of farms in Canada is approximately 275,000. The average size of a Canadian farm is 608 acres. Contrary to the trends in the rest of the country, British Columbia has experienced dramatic growth in the number of its small farms. About half of all new farms in the province have gross profits of US$10,000 or less. The number of new small farms in British Columbia has increased by 14.7 percent since 1991.
The nation's main crops are wheat, barley, corn, potatoes, soybeans, rice, and sugar beets. The dominant crop is wheat. In 1998 Canada produced 24,076,300 tons of wheat. However, there is less wheat under cultivation in Canada than at any time in the 20th century. This is the result of increased diversification and low worldwide wheat prices. The number-two crop was barley and the country harvested some 12,708,700 tons of it. Total crop output in 1998 was 53,701,500 tons. The primary livestock products are beef, chicken, duck, turkey, goose, and pork. Beef production is concentrated in the western areas of the nation while poultry production is concentrated in the east. About two-thirds of all poultry farms were in eastern Canada. Most livestock is consumed domestically. For instance, in 2000 beef production was valued at US$1.5 billion. Of this, US$70 million worth of beef was exported while the rest was consumed in Canada. The country also imported US$140 million of beef, almost all of it supplied by the United States. One out of every 4 farms in Canada raised beef.
One of the fastest growing segments of Canadian agriculture is organic products (food grown naturally and without pesticides, and sold without preservatives or additives). The organic food industry has been growing at a rate of 20 percent per year. There are now about 1,500 registered organic food producers in Canada. Organic production is strongest in the western areas of the country. There are also a growing number of specialty farms. For instance, there are now 1,593 farms whose main output is Christmas trees. In addition, the number of bison raised on farms for buffalo meat has tripled since the early 1990s, and the total number of head are around 45,000. There are also a number of exotic species, including llama and elk, being raised for sale in specialty markets. For instance, elk and deer antlers are sold to Asian nations for use in food products and tea. Specialized crop products include various herbs and spices such as garlic, ginseng, and coriander, cut flowers such as roses or lilies, and tobacco.
While fishing remains a prominent part of the economy of some provinces, depletion of fish stocks caused by over-fishing have led to significant declines in fish production. Fishing now accounts for only about 0.1 percent of the nation's GDP or US$3.2 billion per year. Since the early 1990s, fishing's share of the nation's GDP has declined at an average of 2 percent per year.
Environmental problems have created concerns for Canadian agriculture. One of the major problems is that of animal waste and fertilizer runoff contaminating waterways. In 1996, there were 61 million acres that were treated with some form of chemical fertilizer and 57 million acres treated with herbicides. This represents a 15 percent increase in fertilizer use since 1991, and a 7 percent increase in herbicide use. A second major problem is that of soil erosion caused by overproduction.[5]
Canada is the 10th largest exporter and 12th largest importer in the world. Although Canada is heavily involved in international trade, the US is by far its largest and most important trade partner. In 2009, 75.02 percent of Canadian exports were directed to the US, while 51.1 percent of imports came from the US.
Bilateral trade between Canada and the US increased by 52 percent between 1989 (when the US-Canada Free Trade Agreement (FTA) came into effect) and 1994 (when the North American Free Trade Agreement (NAFTA) was implemented). Although NAFTA dramatically improved US-Canada trade relations, disputes still remain that pertain to intellectual property rights, softwood lumber, beef, tomatoes and other agricultural products.
Commodities dominate trade between the US and Canada. In agriculture, both countries are its counterpart’s largest export market – the US imports more than half of Canada’s food products while Canada imports nearly 20 percent of the US’s food product.
The energy trade is another critical element in US-Canada trade. Canada is the US’s largest oil supplier, accounting for 16 percent of US oil imports and 14 percent of US’s natural gas consumption. Besides sharing hydropower facilities on the western borders, national electricity grids for both countries are also linked to each other.
Canada’s Import and Export Indicators and Statistics at a Glance (2010)
Total value of exports: US$406.8 billion
Primary exports - commodities: motor vehicles and parts, industrial machinery, aircraft, telecommunications equipment; chemicals, plastics, fertilizers; wood pulp, timber, crude petroleum, natural gas, electricity, aluminum
Primary exports partners: US (75.02 percent), UK (3.37 percent), China (3.09 percent)
Total value of imports: US$406.4 billion
Primary imports - commodities: machinery and equipment, motor vehicles and parts, crude oil, chemicals, electricity, durable consumer goods
Primary imports partners: US (51.1 percent), China (10.88 percent), Mexico (4.56 percent)[6]
1. http://www.english-globe.ru
2. http://canadianweb.org/state/
3. http://canada.yodelout.com/
4. http://www.nrcan.gc.ca/
5. http://www.
6. http://www.economywatch.com