Canada's Performance Report 2005 - Annex 3 - Indicators and Additional Information

3. Canada's Place in the World

Government of Canada outcome: A strong and mutually beneficial North American partnership

• Merchandise trade
• Canada's ties with the U.S. (supplemental indicator)

Merchandise trade

Current performance and trends

In 2004, Canadian merchandise imports from the U.S. totalled $208.9 billion or 58.8 per cent of all imports. Imports from the U.S. rose steadily through the 1990s ($137.3 billion in 1994), peaking at $229.7 billion in 2000. Merchandise imports from Mexico in 2004 totalled $13.4 billion or 3.8 per cent of all imports, up $1.3 billion from 2000 and $8.9 billion since 1994. (Statistics Canada, 2005)

In 2004, Canadian merchandise exports to the U.S, totalled $348.1 billion or 84.5 per cent of all exports. Exports to the U.S. also increased through the 1990s ($183.3 billion in 1994), peaking in 2000 at $359.3 billion. Merchandise exports to Mexico in 2004 totalled $3.0 billion or 0.7 per cent of all exports, up nearly $1.0 billion since 2000, and up $1.9 billion since 1994. (Statistics Canada, 2005)

Canada's ties with the U.S. (supplemental indicator)

Current performance and trends

According to Portraits of Canada 2004, an opinion poll conducted by the CRIC in 2004, 34.0 per cent of Canadians stated that they thought Canada should have closer ties with the U.S., up 1.0 per cent from 2001; 41.0 per cent wanted ties to remain the same, down 12.0 per cent from 2001; and 24.0 per cent of Canadians thought Canada should have more distant ties to the U.S., up 11.0 per cent from 2001.

With regard to establishing a common border security policy, in September 2004, 62.0 per cent of Canadians felt this was a good idea, while 36.0 per cent thought it was a bad idea. In April 2002, 66.0 per cent of Canadians thought a common border security policy was a good idea, while 31.0 per cent thought it was a bad idea. (CRIC,Portraits of Canada 2004, 2005)

Government of Canada outcome: A prosperous global economy that benefits Canadians and the world

• 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 $445.1 billion in 2004-a 10.3-per-cent increase from 2003. This is up from $161.2 billion in 1995 and $356.5 billion in 2000. (Statistics Canada, 2005)

Similar to Canada's trading pattern, North America-notably the U.S.-receives the majority of this investment. In 2004, countries classified as North American for investment purposes (the U.S., Mexico, and the Caribbean) received $259.0 billion of CDIA, $193.9 billion-or 43.6 per cent of total CDIA-of which went to the U.S. These figures nearly quadruple the totals since 1990 when Canadian investment in other North American countries was at $66.1 billion-$60.0 billion of which went to the U.S. (Statistics Canada, 2005)

The United Kingdom was the second most popular destination for CDIA at $44.0 billion, up $3.0 billion from 2003. Countries in the European Union accounted for 26.5 per cent of CDIA in 2004, up from 19.3 per cent share since 1989.

Most CDIA is in other industrialized countries (principally in the U.S., the European Union, and Japan), but CDIA in developing countries and emerging markets accounts for about a quarter of the total. In 2004, holdings of Canadian investment abroad were concentrated in the finance and insurance sector (44.5 per cent), followed by energy and metallic minerals (21.6 per cent). (International Trade Canada and Statistics Canada,
State of Trade 2005)

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 180 per cent, from $130.9 billion to $365.7 billion in 2004.

As in the case with international trade and Canadian direct investment abroad, FDI in Canada comes primarily from North America. In 2004, the North American countries invested a total of $242.4 billion in Canada, up $45.6 billion since 2000 and up $156.6 billion since 1990. U.S. investment in Canada has grown by 183.2 per cent since 1990 going from $84.1 billion to $238.2 billion in 2004.

Since 1990, the U.S. remains the number one investor in Canada, followed by the United Kingdom, France, the Netherlands, and Japan. Combined, these five countries held just over 87.7 per cent of FDI in Canada in 2004.

Despite the fact that FDI has tripled in Canada since 1990, the bulk of foreign investment continues to come from the U.S. and Western Europe. (Statistics Canada, 2005)

Additional information: More on CDIA

In addition to the United Kingdom, four other European countries were in the top 10 for CDIA: Ireland, the Netherlands, France, and Hungary. Between 1997 and 2004, CDIA grew the fastest, percentage-based, in Hungary. It went from $188.0 million to $10.0 billion at the end of 2004. CDIA to South Korea was the 9th fastest growing destination with an almost 300-per-cent increase. The stock of CDIA in the United Kingdom and Ireland, however, grew by more in absolute terms. ( International Trade Canada, 2005)

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 2004, this net investment position increased to $79.4 billion-the highest ever-up from $49.0 billion in 2003.

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 have never been positive. (Statistics Canada, 2005)

Additional information: Trend for Canadian trade

Import and export major commodity groups and principal trading areas

(Statistics Canada, 2005)

Trade with non-NAFTA partners (supplemental indicator)

Current performance and trends

Canada's merchandise exports to the European Union and China increased between 1999 and 2004. In 2004, 1.6 per cent of Canada's merchandise exports were shipped to China, up from 0.8 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 6.8 per cent and 11.8 per cent in 2004, which in the latter case was second only to the 58.8 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, 2005)

Government of Canada outcome: A safe and secure world

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

Armed conflicts

Current performance and trends

In 2003, there were 36 armed conflicts in 28 countries-down from 37 armed conflicts in 29 countries in 2002. These figures represent a general decline in armed conflicts since 1995, when the number worldwide was at 44. In addition, they represent the fewest number of states hosting conflicts since 1987. (Project Ploughshares, Armed Conflicts Report 2004)

In terms of geographic distribution, in 2003, Africa and Asia suffered 30 of
the 36 armed conflicts (15 each) or 84.0 per cent of the world's conflicts, up from 29 conflicts in 1996. The Middle East experienced 3 conflicts or 8.0 per cent of the total, down from the 1996 level of 7 armed conflicts. Europe and the Americas had 3 armed conflicts (2 and 1 respectively) or 8.0 per cent of the total, down from 4 armed conflicts in 1996. (Project Ploughshares, Armed Conflicts Report 2004)

Perceptions of security

Current performance and trends

According to the 2003 Voice of the People Survey conducted by Gallup International, only 22.0 per cent of people from 51 countries thought their country was safer now than it was 10 years ago, while 57.0 per cent believed it was less safe. A total of 42.0 per cent of Canadians and 53.0 per cent of Americans thought their country was less safe today than it was 10 years ago.

In terms of perceptions of national security,

• 35.0 per cent of Canadians and 40.0 per cent of Americans thought that national security was good; and
• 25.0 per cent of all North Americans thought national security was poor.

In terms of perceptions of international security,

• 43.0 per cent of Canadians thought international security was poor and only 18.0 per cent rated it as good; and
• 38.0 per cent of Americans believed international security was poor, while 24.0 per cent thought it was good.

(Gallup International, Voice of the People Survey, 2003)

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 its 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 2004, the U.S. ranked first in terms of defence expenditures (over U.S.$462 billion). When measured as a percentage of GDP, the U.S. are also first with a ratio of 3.9 per cent, in front of Turkey at 3.5 per cent and Greece at 2.9 per cent. (NATO, 2005)

Government of Canada outcome: Global poverty reduction through sustainable development

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

ODA as a percentage of gross national income

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 2004, Canada contributed 0.26 per cent (or about $3.3 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 2003, when Canada contributed 0.24 per cent of its GNI to ODA. Among G-7 countries in 2004, Canada ranked 4th behind France, the United Kingdom, and Germany, but ahead of Japan, the U.S., and Italy. (OECD, 2005)

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. (Canadian International Development Agency, Statistical Report on Official Development Assistance 2003-04)

In support of Canada's long-term commitment to the internationally agreed target of devoting 0.7 per cent of GNI to ODA, the government has committed, in its International Policy Statement, to ongoing increases beyond 2010 and to accelerate the projected rate of growth in international assistance as Canada's fiscal position continues to improve.

Additional information on Canada's place in the world

Canadian diplomatic representation in the U.S. (Since the Enhanced Representation Initiative)

(Source: Foreign Affairs Canada, 2005)

Progress in the Smart Border Discussions

• The joint NEXUS program expedites the flow of pre-approved, low-risk travellers. In addition to the NEXUS land-border program, NEXUS Air-a bi-national pilot project of the Canada Border Services Agency and U.S. Customs and Border Protection (CBP)-facilitated the efficient and secure entry of pre-approved, low-risk air travellers into Canada and the U.S. A NEXUS Marine pilot was also implemented.
• The Free and Secure Trade (FAST) program takes the same approach to low-risk, pre-approved commercial goods and truck drivers. FAST is now in place at the 12 border crossings that account for 80.0 per cent of commercial traffic between Canada and the U.S.
• The Canada-United States Safe Third Country Agreement has been signed and implemented, permitting both countries to better manage the flow of refugee claimants across their common land border.
• Integrated border enforcement teams have been expanded along the border. These multidisciplinary teams deal with potential terrorist and criminal activity between
  ports of entry. A total of 23 teams now operate in 15 areas.
• The Canada Border Services Agency created the National Risk Assessment Centre to
  improve information sharing about high-risk individuals and cargo with the U.S. This is increasing the capacity of the two countries to detect and stop high-risk travellers and cargo destined for either country.
• Infrastructure Canada's Border Infrastructure Fund has supported improvements at
  Fort Erie, Windsor, North Portal, and Vancouver. (Canada Border Services Agency and Infrastructure Canada, 2005)

Pension mobility and trade in services

Pension mobility is crucial to trade in services-it is an important plank in Canada's trade agenda. The Government of Canada negotiates and administers social security agreements that co-ordinate the Canada Pension Plan and Old Age Security programs with comparable pension programs in other nations. Social security agreements help ensure the economic competitiveness of Canadian firms with global reach by maintaining Canada Pension Plan coverage for Canadian workers in these firms. They also provide protection for immigrants who are not covered by domestic social security legislation. (Social Development Canada, 2005)

Canadian Forces International Peace Support Missions in 2004

1. Europe

NATO Stabilization Force (SFOR)-Operation PALLADIUM

• Bosnia-Herzegovina

European Union Force (EUFOR)-Operation BOREAS
NATO Headquarters Sarajevo-Operation BRONZE

• Bosnia-Herzegovina

NATO Support to the Athens Olympics-Operation GLAUCUS

• Canada's contribution to the NATO security mission supporting the XXVII Olympiad and Paralympics in Athens, Greece

2. Middle East

United Nations Truce Supervision Organization (UNTSO)-Operation JADE

• To observe and maintain the cease-fire between Israel, Egypt, Lebanon, Jordan, and Syria

United Nations Disengagement Observer Force (UNDOF)-Operation DANACA

• Golan Heights

Multinational Force and Observers (MFO)-Operation CALUMET

• Sinai

3. Africa

United Nations Standby High Readiness Brigade (SHIRBRIG)-Operation SAFARI

• Sudan (not Darfur)

African Union-Darfur Integrated Task Force (DITF) -Operation AUGURAL

• Darfur, Sudan

International Military Advisory and Training Team (IMATT) Sierra Leone-Operation SCULPTURE

• Sierra Leone

United NationsObserver Mission in the Democratic Republic of the Congo (MONUC)-Operation CROCODILE

• Kinshasa and Kisangani, Congo

4. Central America and the Caribbean

United Nations Multi-National Interim Force (MIF) in Haiti-Operation HALO

• Haiti

5. Persian (Arabian) Gulf and Southwest Asia

International Security Assistance Force (ISAF)-Operation ATHENA

• Kabul, Afghanistan

International Campaign Against Terrorism-Operation FOUNDATION

• United States Central Command (CENTCOM) in Tampa, Florida

International Campaign Against Terrorism-Operation ALTAIR

• Persian (Arabian) Gulf

International Campaign Against Terrorism-Operation ARCHER

• Kandahar, Kabul and Bagram, Afghanistan

International Campaign Against Terrorism-Operation ACTIVE ENDEAVOUR

• Mediterranean Sea

International Campaign Against Terrorism-Operation SIRIUS

• Sigonella

6. Humanitarian Assistance

Tsunami Disaster Relief-Operation STRUCTURE

• Colombo, Sri Lanka

7. Arms-control verification operations

The Treaty on Conventional Forces in Europe-Operation VERIFY

• Kazakhstan, Russia, Ukraine, Moldova, and Georgia

The Vienna Document 1999-Operation QUESTION

• Malta, Kazakhstan, Armenia, Moldova, Greece and Austria

Dayton Peace Accord-Operation MENTOR

• Republic Srpska

The 1992 Treaty on Open Skies-Operation ACTIVE SKIES andOperation PASSIVE SKIES

• Russia, Ukraine, and Croatia

(National Defence, 2005)

To consult a list and a map of current Canadian Forces operations, go to http://www.forces.gc.ca/site/operations/current_ops_e.asp.

Canadian Police Peacekeeping Missions in 2004

1. Afghanistan (2003-present*)

United Nations Assistance Mission in Afghanistan (UNAMA)

2. Bosnia Herzegovina (2000-present*)

Office of the High Representative (HRO)

3. Bosnia Herzegovina (2003-present*)

European Union Police Mission (EUPM)

4. East Timor (2000-04)

United Nations Assistance Mission in East Timor (UNAMET)
United Nations Transitional Administration in East Timor (UNTAET)
United Nations Mission in Support of East Timor (UNMISET)

5. Guinea (2003-04)

United Nations High Commission for Refugees (UNHCR)

6. Haiti (2004-present*)

United Nations Stabilization Mission in Haiti (MINUSTAH)

7. Iraq (2004-present*)

Iraqi Ministry of the Interior-Police Adviser Group

8. Ivory Coast (2004-present*)

United Nations Mission in Côte D'Ivoire (UNOCI)

9. Jordan (2004-present*)

Jordan International Police Training Center (JIPTC)

10. Kosovo (2000-04)

United Nations Mission in Kosovo (UNMIK)

11. Sierra Leone (1998 and 2001-04)

United Nations Assistance Mission in Sierra Leone (UNAMSIL)

12. Sierra Leone Special Court (2001-present*)

United Nations Special Court for Sierra Leone (UNSCSL)

* Indicates missions that were active as of June 2005

(Royal Canadian Mounted Police, 2005)

More on the Human Security Program and Peacebuilding Fund

Human security is an approach to foreign policy that puts people-their rights, their safety, and their lives-first. The Government of Canada's objective is to build a world where universal humanitarian standards and the rule of law protect all people, where those who violate these standards are held accountable, and where international institutions are equipped to defend and enforce those standards. Through both the Human Security Program (HSP) and Canada's multilateral and bilateral partnerships, the government will continue to work to strengthen the international community's ability to respond to threats to human security and support peaceful governance. (Foreign Affairs Canada, 2005)

The Peacebuilding Fund was established in response to Canada's commitment to global security and sustainable development. It was designed to provide a mechanism to finance emergency conflict prevention and post-conflict peacebuilding activities in countries entering, experiencing, or emerging from conflict. The Peacebuilding Fund has worked within clear parameters: it has given grant funding for short-term activities and not for core support, it has supported projects only within countries eligible for ODA, and it has worked in complement to peacebuilding programs established in the Canadian International Development Agency's bilateral programs.
It has also established a strong history of consultation and co-operation with its sister fund in Foreign Affairs Canada's HSP. (Canadian International Development Agency, 2005)

Good governance-The launching of Canada Corps

Promotion of democratic development makes an important contribution to creating a more safe and secure world. In 2004, the Government of Canada launched the Canada Corps to develop partnerships across all sectors of Canadian society to support good governance and institution building in developing countries, transition countries, and fragile states as part of its effort to strengthen Canada's contribution to human rights, democracy, and good governance internationally. The official launch of Canada Corps was in December 2004 with the Canadian Observers Mission to Ukraine. This inaugural Canada Corps mission sent 463 election observers to Ukraine for the repeat second round of presidential elections on December 26, 2004. It also provided the occasion to publicly announce the launch of the Canada Corps. (Canadian International Development Agency, 2005)

The Proliferation Security Initiative

The Proliferation Security Initiative is a global statement of purpose whereby participants from over 60 different countries share a common objective: to prevent the proliferation of weapons of mass destruction, their delivery systems, and related materials in order to enhance international security. (National Defence, 2004)

Millennium Development Goals-Targets for 2015

1. Reduce extreme poverty and hunger by half;

2. Ensure universal access to primary education, for all boys and girls;

3. Promote gender equality and empower women, by notably eliminating gender disparity at all levels of education;

4. Reduce child mortality by two thirds;

5. Reduce maternal mortality by three quarters;

6. Halt and reverse the spread of HIV/AIDS and the incidence of malaria and other major diseases;

7. Integrate environmental sustainability, reverse the loss of resources, reduce by half the number of people without access to safe water; and

8. Build a new partnership for development through trade reform, market access, debt relief and sustainability, increased aid, productive work for youth, access to affordable medicines, and new technologies.

Canada and untied aid

Since its creation in 1961, the OECD DAC has discussed ways to improve the effectiveness of its members' aid efforts. One major issue has been whether aid should be freely available to buy goods and services from all countries (that is, "untied aid") or whether aid should be restricted to the procurement of goods and services from the donor country (that is, "tied aid").(OECD, 2005)

In keeping with its commitments in the 2001 DAC Recommendation on Untying Aid, Canada is gradually untying its aid program. In 2001, 31.7 per cent of Canadian aid was untied. In 2003, untied aid made up 52.0 per cent of Canadian development assistance. (Canadian International Development Agency, 2005)

Canadian debt relief for developing countries

• Canada has supported the Heavily Indebted Poor Countries Initiative (HIPC) proposed by
  the World Bank and the International Monetary Fund since its inception in 1996. Canada has provided $312.0 million to the HIPC Initiative to help reduce the multilateral debts of the world's poorest, most indebted countries, many of them in Africa.

• In 1999, the Government of Canada established the Canadian Debt Initiative, which placed a moratorium to debt payments owed by eligible HIPC countries to Canada and 100-per-cent debt cancellation for these countries upon completion of the HIPC process. Canada has provided $590.0 million in debt relief to African countries and will climb to over $1 billion once more HIPC countries complete the process. (Department of Finance Canada, 2005)