Canadian maritime trade to benefit from infrastructure expansion

The Canadian government is pursuing what federal transport minister Lisa Raitt called “an aggressive trade agenda” by strengthening marine transportation and in Canada’s infrastructure networks in general. Addressing the 56th annual conference (August 17-21) of the Association of Canadian Port Authorities, held at Belledune, New Brunswick, and the minister recalled that the Conservative government has concluded free trade agreements with 10 countries in less than seven years, including Korea, and is negotiating with 30 more. The remaining technical details of a Canada-European free trade agreement (expected to be ratified by 2016) were recently completed. Offering access to Canadian exporters to a market of more than 500 million consumers, Raitt said the Comprehensive Economic and Trade Agreement (CETA) was “broader in scope and deeper in ambition” than the 20-year-old North American Free Trade Agreement (NAFTA). “Once implemented, it will cover virtually all sectors and aspects of Canada-EU trade, including transportation.”

Following the launching in 2006 of the Asia-Pacific Gateway and Corridor Initiative in 2006, some $1.4 billion has been invested in various projects in partnership with all four western provinces municipalities and the private sector, Raitt said. Over the same period, the Canadian authorities have also announced 39 strategic infrastructure investments in nine provinces under the $2.1 billion Gateways and Border Crossings fund. The latter have included investments in the so-called Atlantic Gateway and Trade Corridor where an integrated multimodal system is being strengthened. “We have demonstrated the power of collaboration, engagement and public-private partnerships to achieve a common goal,” Raitt said, adding: “And we continue to help the economy by strengthening supply chains and making the most of trade opportunities in important international markets such as Asia, Europe, and North and South America.” Raitt underlined the need for “world-class infrastructure as the platform on which to base our country’s economic productivity.” In this regard, Charles McMillan, professor of international business at Toronto’s York University, suggested that Canada was performing better than the United States in maintaining infrastructure. “Because of gridlock in the United States, Canadian gateways can sometimes represent a viable alternative to the US for shippers trading with North America.” Other participants in the conference also noted that congestion or waterfront labor issues could result in some US-bound shipments being diverted to Canadian ports. In the latest example, cargo interests began diverting substantial volumes of US-bound containerized freight through the Canadian ports of Vancouver and Prince Rupert as a hedge against possible labor disruption associated with current union negotiations at US West Coast ports.