A Desk In The Sun

Full Country Name: Canada

• Area: 9,970,610 million sq km
• Population: Estimated population) is 32.5 million (July 2006)
• Capital City: Ottawa
• People: Canada is a multicultural country with people from all over the world who have now made Canada their home. Ethnic Groups (wholly or partly): North American Origin 40%, British Origin 33%, French Origin 16%, Other European 29%, Aboriginal peoples 4%, South, East & South-East Asian 9%, Other (mostly Caribbean, Arab, African, Latin/Central/South American and West Asian) 6%. The total comes to more than 100% because many Canadians (approximately 38%) have a mixed background.
• Languages: Canada has two official languages, English (61%) and French (22%). 17% of the population have another language as their ‘mother tongue’. (source: Statistics Canada – 2001 Census.)
• Religion: Roman Catholic 43%; Protestant 29%. (source: Statistics Canada – 2001 Census)
• Currency: Canadian Dollar: 1 Dollar is made up of 100 cents.

Major Political Parties: The main political parties at federal (i.e. national) Level are: Conservative Party, Liberal Party, Bloc Quebecois (in Quebec Province only) and New Democratic Party (NDP). The Liberals and NDP are also represented at provincial Level. There are also some notable provincial parties, e.g. the Progressive Conservative Party, the Parti Quebecois in Quebec, the Saskatchewan Party and the Yukon Party.

• Government: Canada is a constitutional monarchy and a federal state with a democratic system of government.
• Head of State: Queen Elizabeth II (since 6 February 1952), represented by Governor General Michaelle Jean (since 27 September 2005).
• Head of Government: Prime Minister Stephen Harper (6 February 2006)
• Foreign Minister: Peter Mackay (6 February 2006)
• Membership of international groupings/organisations: Member of the Commonwealth; North America Free Trade Assocation (NAFTA); North Atlantic Treaty Organisation (NATO); Organisation of American States (OAS); G8; World Trade Organisation (WTO); La Francophonie.

GEOGRAPHY

• Location: Northern North America, bordering the North Atlantic Ocean and North Pacific Ocean, north of the conterminous US
• Area: total - 9,970,610 sq km; land – 9,093,507 sq km; water - 891,163 sq km. Canada is the second-largest country in world (after Russia) with a strategic location between Russia and US via north polar route. It is slightly larger than the US. Approximately 85% of the population is concentrated within 300 km of the US/Canada border.
• Land boundaries: total - 8,893 km; border countries - US 8,893 km (includes 2,477 km with Alaska).
• Coastline: 243,791 km
• Climate: varies from temperate in south to sub-arctic and arctic in north.
• Terrain: mostly plains with mountains in west and lowlands in south-east.
• Elevation extremes: lowest point - Atlantic Ocean 0 m; highest point - Mount Logan 5,959 m
• Natural hazards: continuous permafrost in the north is a serious obstacle to development. Cyclonic storms form east of the Rocky Mountains, a result of the mixing of air masses from the Arctic, Pacific, and North American interior, and produce most of the country’s rain and snow.

HISTORY

People migrating from Asia, probably crossing the Bering Strait first settled the North American continent. They formed a number of tribes that can be distinguished by language. The largest group was the Algonquian, often migratory, who inhabited the eastern sub-arctic and maritime areas but by the 18th century had spread into the prairies and plains of the mid-west. The Iriquioian speaking tribes lived mostly in the St Lawrence Valley and around Lakes Ontario and Erie. The Salishan, Athabascan and other linguistic groups lived along the rivers and coastline of British Columbia. Small, isolated Inuit bands developed a unique culture in the harsh environment of the Arctic.

The first Europeans to reach North America were probably from Greenland in about AD 1000. But the firm knowledge of the existence of land was not established until around 1480 to 1500 AD. John Cabot, a Venetian working in the service of the English sailed to Newfoundland in 1497. This and later explorations formed the basis of the English claim to Canada. The Frenchman Jacques Cartier undertook a series of explorations, mainly along the route of the St Lawrence River during the 1530s and 1540s and he claimed the land for France.

Hunting and trading was the principal interest of the European settlers in Canada and rival companies, including the Hudson’s Bay Company, dominated economic activity. But the rivalries in Europe spilled over into North America and a number of conflicts were fought leading up to the truce agreed in the Treaty of Utrecht in 1713. The peace was short-lived however and the period from about 1745 to 1760 was one of Anglo-French conflict leading to the surrender of Montreal to the British.

The 1763 Treaty of Paris brought British rule to the area known as British North America. Tensions between the French and English speaking communities continued to affect the Colony although in the War of 1812 against the Americans most Canadians sided with the British army in the defence of what was known as Upper and Lower Canada.

Partly arising from concern about developments in the USA (the American Civil War of 1861-1865) came a movement for the unification of the colonies of British North America. A new nation, called the Dominion of Canada, was created by the British North America Act of 1867 and proclaimed in Canada on 1 July 1867. The federation included Nova Scotia, New Brunswick, Quebec and Ontario. Prince Edward Island and Newfoundland refused to join. The Province of Manitoba was created in 1870 and with the North West Territories joined the confederation. British Columbia joined the confederation in 1871. Prince Edward Island agreed to join in 1873. The District of Saskatchewan was created in 1882. The Yukon Territory joined Canada in 1898. In 1905 Saskatchewan and Alberta joined the Dominion. Newfoundland joined in 1949. In 1999 Nunavut was created.

POLITICS

Bicameral Parliament consists of the House of Commons (308 seats) and the Senate (normally limited to 105 senators). The House of Commons is elected by direct popular vote to serve five-year terms. The Senate members are appointed to serve until reaching 75 years of age by the governor general and selected on the advice of the Prime Minister.

Recent Political Developments

The General Election on 23 January 2006 was won by the Conservative Party, led by Stephen Harper, but only with sufficient votes to form a minority government and dependent on others’ support in Parliament. The Conservatives won 125 seats, the Liberals won 102, the Bloc Quebecois (representing constituencies in Quebec Province only) 51 and the New Democratic Party (NDP) 29 seats with an independent winning the remaining seat. The Conservatives received just over 36 percent of the votes cast whilst the Liberals received 30 per cent. This is the first Conservative government in 13 years.

Stephen Harper and his Cabinet were sworn in on 6 February 2006. Nearly a year in office, Stephen Harper’s priorities for 2007 will focus on more action to protest the environment and the health of Canadians; fiscal discipline; lowering taxes; and resolving ‘fiscal imbalance’; safer communities (i.e. tougher on crime); and making Canada’s institutions more democratic and more accountable. Stephen Harper has also pledged to work with international allies on matters of global and mutual importance. Stephane Dion became leader of the Liberal Party in December 2005.

ECONOMY

Basic Economic Facts

• Nominal GDP: £693 billion/C$1,417.3 billion (1st Quarter 2006)
• GDP per head: £21,363/C$43,713 (1st Quarter 2006)
• Annual GDP growth: 3.8%(First Quarter 2006)
• Inflation: 2.8 % (May 2006)
• Labour Force: 16.5 million (May 2006)
• Unemployment: 6.1% (May 2006)
• Major Industries: Automobile manufacturing, pulp and paper, iron and steel work, machinery and equipment manufacturing, mining, extraction of fossil fuels, forestry and agriculture.
• Major Trading Partners: United States, Japan, UK and China.
• Exports: £231,067 million/C$435,834 million (2005)
• Exports - commodities: Automobile vehicles and parts, machinery and equipment, high-technology products, oil, natural gas, metals, and forest and farm products.
• Imports: £186,042/C$380,691 million (2005)
• Imports - commodities: machinery, electric machinery and equipment, motor vehicles and parts, minerals fuels and oils, plastics.
• Debt – External: £361,931 million/C$738,336 million (1st Quarter 2006)
• Government Debt (% of GDP): 38.7% (2004/05)
• Government Fiscal Balance (% of GDP): 1% Surplus (2005)
• Exchange rate: £1 = C$2.30 (February 2007)

INTERNATIONAL RELATIONS

Canadian Relations with its Neighbours

Canada has particularly close relations with its immediate neighbour, the United States of America. There is a thriving economic relationship and the two countries, with Mexico, comprise the North America Free Trade Association (NAFTA). Canada and the US are both members of NATO. The United States remains Canada’s most important bilateral relationship, which includes joint Canadian and US membership of the NORAD defence alliance.

Canadian Relations with the International Community

Canada is a strong supporter of the World Trade Organisation and of expanded free trade areas. The other strand in foreign policy includes the promotion of international peace/security through multilateral bodies and of respect for human rights/human security (e.g. on landmines, where the Canadians were instrumental, strongly supported by UK, in concluding the Landmines Treaty in 1997).

Canada has made a substantial contribution to the war on terrorism. Canadian Naval Forces have been engaged in maritime duties in the Arabian Gulf as have Canadian transport and Aurora aircraft. The most high profile commitment is the Canadian contribution in Afghanistan. Canada commanded ISAF V until August 2004 and their current contribution to ISAF numbers around 600 troops. On 17 May 2006, the Canadian Parliament voted to extend the Canadian deployment to Afghanistan by two years until 2009.

Since March 2003 Canada has committed C$300 million (£136m approx.) to meet humanitarian and reconstruction needs in Iraq. Canada also played an important role in pulling together the International Mission for Iraqi Elections (IMIE) which is headed by the Chief Canadian Electoral Commissioner.

Canadian Relations with the United Kingdom

The UK/Canada bilateral relationship is strong. Both countries work together across a wide range of bilateral and international initiatives.

Trade and Investment with the UK

Canada is an important trade and investment partner for British companies of all sizes and across the spectrum of business activity. Canada is one of the world’s richest and most developed countries, ranks among the top ten industrial powers and is recognised as having one of the highest standards of living in the world. With low inflation and steady economic growth, Canada offers good trade and investment opportunities for British companies in many sectors e.g. energy, food and drink, aerospace and biotechnology.

A recent study comparing business costs in Canada, Europe and the USA placed Canada ahead of other G7 countries across a broad range of business operating costs. Canada’s market economy has maintained a varied structure with both small companies and multinational giants playing important parts.

Natural resources remain a major factor, but the growth of hi-tech industries often involving small dynamic enterprises, is of ever increasing significance. The Canadian Government announced plans in 2002 to invest $108m into the Canadian digital content industry. Service industries too have increased greatly in recent years and along with the possible expansion of the privatisation programme by Federal and Provincial governments, opportunities are expected to continue to present themselves over a number of sectors.

The proximity of the huge US market to much of Canada’s industrial activity (based largely in Ontario and Quebec), Canada’s close relationship with the UK, its well-educated and skilled labour force help create a good business environment with opportunities for British companies in most sectors including services. There are also good opportunities for strategic business partnerships and technology transfers between UK and Canadian companies.

The market remains very receptive to British products and Canadian businesspeople are familiar with UK business practices. Neglecting business opportunities in Canada by failing to recognise its strategic role in tackling the wider NAFTA region - could prove costly for UK companies.

Trade In Goods

The value of UK goods exported to Canada totalled £5,088 million in 2005. UK imports from Canada in 2005 totalled £4.1 billion. The UK was Canada’s 5th largest supplier of imports (after US, Japan, China and Mexico) with a market share of 4.80% in 2005.The UK was Canada’s 3rd largest export market in 2005 ) with a 1.9% share of worldwide Canadian exports of £213,224 million.

Balance of Trade

As of 2001, the balance of trade lies in favour of Canada. The latest measurement (2005) showed a trade surplus of £26,980 million/C$55,143 million.

Trade In Services

Canada’s import of services from the UK in 2004 totalled £1.71 billion compared with 1999 figures, which totalled £1.36 billion. (Source: Office for National Statistics (ONS); H M Customs & Excise; OECD Series A.)

UK Trade & Investment Country Profile: Canada 

Investment

At year end 2004, UK ranked as the largest European investor in Canada and 2nd largest investor overall, just after the US. According to Statistic Canada, from 1990-1999, UK direct investment in Canada remained more or less steady at around $Cdn16 billion. Thereafter, the UK’s Foreign Direct Investment (FDI) in Canada rose sharply, from $Cdn15.3 billion in 1999 to $Cdn 29.5 billion in 2004.

In 2004, the highest concentration of UK FDI stock in Canada was finance and insurance (45.2%) and in energy and metallic minerals (21.6%). However, almost 25.8% of UK FDI was in other industries - a composite mix of medium-to high-technology intensive industries that include food, beverages and tobacco, chemicals and textiles, electrical & eletronics & related activities and communications. While all other industries’ share of UK total investment in Canada declined by 11.6% points over the last decade, finance and insurance and energy and metallic minerals increased by 2.3% and 13.1% points, respectively.

Cultural Relations with the UK

The British Council is the UK’s international organisation for educational and cultural relations. In its support of cultural relations between the UK and Canada, the British Council works closely with British diplomatic posts and trade promotion agencies. The focus is on education and the arts through the maintenance and development of networks of relationships within Canadian arts and education communities. More information is available on the British Council website.

Recent Visits

The Canadian Prime Minister, Stephen Harper visited Britain on 14 July 2006. The Canadian Foreign Minister, Peter Mackay visited Britain on 23 February 2006. The Prime Minister made his first visit to Canada (Ottawa) in February 2001.

Other high level visits to Canada within the past two years have included the Deputy Prime Minister, John Prescott, in June 2006, FCO Minister, Douglas Alexander, the Scottish First Minister, the Chancellor of the Exchequer, the Secretary of State DEFRA, and Secretary of State for Work and Pensions. The Former Canadian Deputy Prime Minister visited the UK in September 2005.

HUMAN RIGHTS

Core Human Rights Treaties Canada is a signatory to:

International Covenant on Economic, Social and Cultural Rights
International Covenant on Civil and Political Rights
Optional Protocol (allowing individual complaints)
Second Optional Protocol (aiming at abolishing the death penalty)
Convention on the Elimination of All Forms of Discrimination Against Women
Optional Protocol (permitting individual complaints) Convention on the Elimination of All Forms of Racial Discrimination
Convention Against Torture
Convention on the Rights of the Child
Optional Protocol (Children in armed conflict)
Amendment to Article 43(2)
Convention on the Prevention and Punishment of the Crime of Genocide

This information comes from the country profiles on the UK Foreign Office website