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Canada's Performance Report 2006 - Annex 3 - Indicators and Additional Information

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3. International Affairs

Outcome area: A safe and secure world through international cooperation

  • Armed conflicts
  • Defence expenditures as a percentage of GDP (supplemental indicator)

Armed conflicts

Geographic Distribution of Armed Conflicts

Current performance and trends

In 2005, there were 32 armed conflicts in 27 countries—down from 36 armed conflicts in 28 countries in 2003. These figures represent a general decline in armed conflicts since 1996, when the number worldwide was at 40. The threshold of 1,000 direct deaths separates armed conflict from lower levels of violence. (Project Ploughshares, The Ploughshares Monitor, Summer 2006, volume 27, no.2)

In terms of geographic distribution, in 2005, Africa and Asia suffered 26 of the 32 armed conflicts (13 and 13 respectively) or 81.25 per cent of the world's conflicts, down from 29 conflicts in 1996. The Middle East experienced two conflicts or 6.25 per cent of the total, down from the 1996 level of seven armed conflicts. Europe and the Americas had four armed conflicts (two and two, respectively) or 12.5 per cent of the total, the same number as in 1996. (Project Ploughshares, The Ploughshares Monitor, Summer 2006, volume 27, no.2)

Analysts suggest that the general downward trend in armed conflicts since 1987 supports the value of increased multilateral efforts at peacemaking, peacekeeping, and peacebuilding to prevent the re-emergence of violent conflict. Despite the persistence of political, communal, and criminal violence across the globe, there is evidence that international efforts to reduce, end, and prevent armed conflicts are bearing fruit. (Project Ploughshares, Armed Conflicts Report 2005)

Defence expenditures as a percentage of GDP (supplemental indicator)

Current performance and trends

Canada increased its spending on national defence by about $700 million to $13.9 billion in 2004–05 over 2003–04. As a percentage of GDP, spending on defence remained at 1.2 per cent. Since the early 1980s, Canadian expenditures on defence as a percentage of GDP have gradually declined. In 1983 and 1984, the ratio was 1.9 per cent, but for the period from 1991 to 1993, the ratio had declined to 1.7 per cent. (National Defence, NATO, and Statistics Canada, 2005)

Defence spending among all NATO members has increased remarkably since 1980. Since defence spending has not kept pace with the growth of GDP in these countries, however, defence expenditures as a percentage of GDP have gradually declined.

Among NATO countries in 2005, the U.S. ranked first in terms of defence expenditures (over U.S.$472 billion). When measured as a percentage of GDP, the U.S. is also first with a ratio of 3.8 per cent, ahead of Turkey at 3.2 per cent and Greece at 3.1 per cent.[2] (NATO, 2005)

Outcome area: Global poverty reduction through sustainable development

  • Official Development Assistance (ODA) as a percentage of gross national income (GNI)

Net Official Development Assistance as a Percentage of Gross National Income (GNI), 2005

Official development assistance (ODA) as a percentage of gross national income (GNI)

Current performance and trends

In 1969, the Commission on International Development recommended that developed countries contribute 0.7 per cent of their gross national product (GNP) to their official aid budgets. In 1970, the United Nations General Assembly endorsed this standard. Recent comparative statistics, such as those compiled by the OECD, use a slightly different figure, gross national income (GNI does not include goods and services rendered by non-residents), against which to measure national governments' ODA expenditures.

In 2005, Canada contributed 0.34 per cent (or about U.S.$ 3.7 billion) of its GNI to ODA and ranked 14th among the OECD's 22 Development Assistance Committee (DAC) member countries.

This represents an improvement over 2004 and 2003, when Canada contributed 0.27 per cent and 0.24 per cent, respectively, of its GNI to ODA. In 2005, Canada thus increased its net ODA by 43.5 per cent (or more than U.S.$ 1.1 billion) from 2004, due to a combination of one-time contributions and currency gains. In 2004, Canada had given about U.S.$ 2.6 billion in ODA. Among G-7 countries in 2005, Canada ranked fourth behind the United Kingdom, France, and Germany, but ahead of Italy, Japan, and the U.S. (OECD, 2006)

Two decades ago, Canada's ODA-GNP ratio was 0.49 per cent, peaking at 0.50 per cent in 1986–87. Since then, the ratio has been on a downward trend at 0.42 per cent in 1994–95 and 0.27 per cent in 2001–02 but, as seen above, the situation is slowly improving. (Canadian International Development Agency, Statistical Report on Official Development Assistance 2003-04) Outcome area: A strong and mutually beneficial North American partnership

  • Merchandise trade

Merchandise trade

Current performance and trends

In 2005, Canadian merchandise imports from the U.S. totalled $215.1 billion or 56.5 per cent of all imports. Imports from the U.S. rose steadily through the 1990s and 2000s ($137.3 billion in 1994), peaking at $229.7 billion in 2000. Merchandise imports from Mexico in 2005 totalled $14.6 billion or 3.8 per cent of all imports, up $2.6 billion from 2000 and $10.1 billion since 1994. (World Trade Atlas, Statistics Canada, 2006)

In 2005, Canadian merchandise exports to the U.S. totalled $365.7 billion or 83.9 per cent of all exports. Exports to the U.S. also increased through the 1990s and 2000s ($183.3 billion in 1994), peaking in 2005 at $365.7 billion. Merchandise exports to Mexico in 2005 totalled $3.2 billion, or 0.8 per cent of all exports, up nearly $1.3 billion since 2000, and up $2.2 billion since 1994. (World Trade Atlas, Statistics Canada, 2006)

Merchandise Exports and Imports with Mexico, 1999-2005

Merchandise Exports and Imports with the U.S., 1999-2005

Outcome area: A prosperous Canada through global commerce

  • Canada's investment position
  • Trade with non-NAFTA partners (supplemental indicator)

Canada's investment position: Canadian direct investment abroad

Current performance and trends

Since the 1990 level of $98.4 billion, Canadian direct investment abroad (CDIA) has more than quadrupled, reaching $465.1 billion in 2005—a 3.0-per-cent increase from 2004. This increase is moderate, though, compared to 2004, which marked a 10.3-per-cent increase from 2003. Nonetheless, this is up from $161.2 billion in 1995 and $356.5 billion in 2000. (Statistics Canada, 2006)

Foreign Direct Investment Position, 1999-2005

Similar to Canada's trading pattern, North America—notably the U.S.—receives the majority of this investment. In 2005, countries classified as North American for investment purposes (the U.S., Mexico, and the Caribbean) received $286.7 billion of CDIA, $213.7 billion—or 46.0 per cent of total CDIA—of which went to the U.S. These figures more than quadruple the totals since 1990, when Canadian investment in North American countries was at $66.1 billion—$60.0 billion of which went to the U.S. (Statistics Canada, 2006)

The United Kingdom was the second most common destination for CDIA at $42.7 billion, although down $1.7 billion from 2004. Countries in the European Union accounted for 23.7 per cent of CDIA in 2005, down 9.0 per cent from 2004. The appreciation of the Canadian dollar against the euro and the British pound had a negative impact on CDIA in European countries and is the main reason explaining this decrease. (State of Trade 2006, Foreign Affairs and International Trade Canada, 2006)

Brazil was the newcomer among the top 10 destinations, with CDIA in that country increasing by 14.8 per cent to $8.0 billion, while Japan dropped from the 10 most common destinations for CDIA. In 2005, holdings of Canadian investment abroad were concentrated in the finance and insurance sector (44 per cent), followed by energy and metallic minerals (23 per cent). (State of Trade 2006, Foreign Affairs and International Trade Canada, 2006 and Statistics Canada, 2006)

Canada's investment position: Foreign direct investment

Current performance and trends

Since 1990, the level of foreign direct investment (FDI) in Canada has grown by almost 218 per cent, from $130.9 billion to $415.6 billion in 2005.

As is the case with international trade and Canadian direct investment abroad, FDI in Canada comes primarily from North America. In 2005, the North American countries invested a total of $270.8 billion in Canada, up $74.0 billion since 2000 and up $185.0 billion since 1990. U.S. investment in Canada has grown by more than 216 per cent since 1990, going from $84.1 billion to $266.5 billion in 2005.

In 2005, the U.S. was the number one investor in Canada, followed by the United Kingdom, France, the Netherlands, and Switzerland. Combined, these five countries held just over 86.4 per cent of FDI in Canada in 2005.

Despite the fact that FDI has more than tripled in Canada since 1990, the bulk of foreign investment continues to come from the U.S. and Western Europe. (State of Trade 2006, Foreign Affairs and International Trade Canada, 2006 and Statistics Canada, 2006)

Additional information: More on CDIA

In addition to the United Kingdom, three other European countries were in the top 10 for CDIA in 2005: Ireland, France, and the Netherlands. Other top 10 destinations were the tax-friendly jurisdictions of Barbados ($34.7 billion), Bermuda ($13.6 billion), and the Cayman Islands ($11.0 billion). These three small countries witnessed the highest average growth in CDIA over the period 1995–2005. (State of Trade 2006, Foreign Affairs and International Trade Canada, 2006 and Statistics Canada, 2006)

Additional information on Canada's net direct investment position

The difference between Canadian direct investment abroad and FDI in Canada is Canada's net direct investment position. In 2005, although still positive, this net direct investment position decreased to $49.5 billion. 2004 marked the highest ever, when the net direct investment position was $70.4 billion.

More than three quarters of the countries with CDIA or FDI in Canada have a positive net direct investment position—except for the U.S., France, the Netherlands, and Switzerland—whose net direct investment has never been positive. (Statistics Canada, 2006)

Additional information: Trend for Canadian trade

Import and export major commodity groups and principal trading areas[3]

Year

Imports,
total of all merchandise
($ million)

Exports,
total of all merchandise
($ million)

1990

140,999.9

152,055.5

1991

140,657.9

147,669.4

1992

154,429.6

163,463.5

1993

177,123.2

190,213.1

1994

207,872.5

228,167.1

1995

229,936.5

265,333.9

1996

237,688.6

280,079.3

1997

277,726.5

303,378.2

1998

303,398.6

327,161.5

1999

327,026.0

369,034.9

2000

362,336.7

429,372.2

2001

350,071.2

420,730.4

2002

356,727.1

414,038.5

2003

342,691.9

398,953.9

2004

363,638.5

429,120.9

2005

388,210.3

453,060.1

(Statistics Canada, 2006)

Trade with non-NAFTA partners (supplemental indicator)

Current performance and trends

Canada's merchandise exports[4] to the European Union and China increased between 1999 and 2005. In 2005, 1.6 per cent of Canada's merchandise exports were shipped to China, up from 0.7 per cent in 1999. Exports to the European Union now make up 5.6 per cent of Canada's merchandise exports, up from 4.8 per cent in 1999. The percentage of Canada's merchandise imports arriving from China and the European Union respectively reached 7.7 per cent and 12.0 per cent in 2005, which in the latter case was second only to the 56.4 per cent of merchandise imports that arrived from the U.S. In 1999, China's share of Canada's imports stood at 2.8 per cent, while the European Union's share was 10.1 per cent. (Statistics Canada, 2006)

Canada's Imports 1999-2005Canada's Exports 1999-2005

 

 

 

 

 

 

 

 

 

Crown corporations that received budgetary appropriations in 2005–06

*Note: The financial assistance to The Federal Bridge Corporation Limited went directly to its subsidiary, The Jacques Cartier and Champlain Bridges Incorporated.


[1].   COSEWIC uses the following status categories for assessments and reassessments of species at risk: extinct, extirpated, endangered, threatened, of special concern, and not at risk.

[2].   Figures for 2005 are estimated.

[3].   All numbers are calculated using Balance of Payment base concepts and definitions.

[4].   All numbers are calculated using Custom base concepts and definitions.

 

 
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