Developments in Canadian International Trade Policy The impact of an economic shift West and the role of provinces in Canadian trade policy

Abstract

Emerging economies, especially those in Asia-Pacific, are growing at a rapid pace and are demanding natural resources in greater quantities than ever before. As a leading resource exporter, Canada benefits from increased demand, which has boosted the national economy and has helped contribute to a westward shift in both population and economic power. These socio-economic developments continue to impact Canadian trade priorities, and have contributed to a regional shift and changing inter-provincial dynamics. Despite these changes, there has been little transformation regarding provincial inclusion in federal decision-making related to international trade. While many provinces have worked within their own jurisdiction to undertake trade missions and establish foreign trade offices, their involvement in trade negotiations or decisions regarding Canada’s trade agenda remains limited. Specifically, the federal government continues to maintain tight control over trade policy, despite the growing complexity of trade agreements and the importance of provincial involvement. While the future remains uncertain, evidence suggests that provincial inclusion in some aspects of Canada’s trade agenda may become the norm.