Here’s another major pipeline issue that Justin Trudeau’s federal Liberal government needs to resolve: goods flow. In Canada, it needs attention now if the country is to grow as a global trader. After all, international trade accounts for 60% of the country’s GDP.
But, as illustrated in the most recent review of the Canada Transportation Act (CTA), the challenge in a vast country with a relatively small population is creating a national road map to bypass regional myopia and maximize cargo efficiency. That requires national vision, of which Canada has a chronic shortage.
And that shortage inhibits development in energy and other key sectors that have strong regional interests but larger national opportunities.
The CTA review, tabled in Parliament last February, was the first since 2001. It details the state of the country’s transportation links and trade strategies.
Among the review’s overriding themes is the link between trade performance and transportation quality and the need to co-ordinate goods movement into, across and out of the country.
While much of Canada’s international trade continues to be north-south into the rich U.S. market, east-west trade from the Pacific Rim through Vancouver and Prince Rupert is becoming increasingly important.
Canada remains a relatively small player on the international trade stage. As the CTA review points out, while the dollar value of world merchandise trade exports was US$19 trillion in 2014, Canada’s share was a mere 5%.
The review pointed to five stakeholder fundamentals to increase that share. They include a renewed focus on trade gateways and corridors; creating a national transportation policy to support trade; long-term funding to build capacity and invest in transportation infrastructure; and collaboration on infrastructure and competitiveness investments with industry and all levels of government.
Federal leadership is fundamental to all of the above. It’s one pipeline fight Ottawa and the rest of the country can’t afford to lose.
