Global entrepreneurship: trends, challenges, and opportunities

Business

Canadian Trade: SWOT Analysis

The purpose of this work is to assess trade in Canada and for perform a SWOT analysis stating the strengths, weaknesses, opportunities and threats to Canadian Trade.

In a July 31, 2004 news release "DOHA Negotiations Back on Track" it was reported that framework for negotiations allowing the agenda of the DOHA Development Agenda to go forward had been implemented. The World Trade Organization inclusive of 147 members has developed a framework for global trade talks that are soon forthcoming. This is crucial for Canada since 40% of everything that is produced in Canada is exported as well as trade supporting one out of every four jobs that Canadians hold.

The Canadian agri-food sector needs a level playing field to compete on, and this framework allows us to keep working toward that goal," Canada obtained much of what we were seeking in the framework, and we will continue to work toward our objectives in the next stage of the negotiations. As we move forward, the federal government will continue to vigorously advocate the interests of all Canadian farmers." (Minister Mitchell)

Recent Developments and Initiatives:

In its present form the framework is a commitment on the part of the World Trade Organization members for elimination of agricultural export subsidies. This framework also leads to:

access for all agricultural products and substantially lower levels of trade-distorting domestic support by those countries that subsidize the most." (Federal Trade Commission Report 2004)

Other enhancements are the opening of global markets to services and goods of Canadians as well as improvement of the rules governing countervail actions and anti-dumping as well as enhancements to integration the developing countries into the system of global trade.

The first quarter report for Canadian Trade looks good with Import Goods and Services exports increasing by 2.6%. There was a 2.5% billion increase in commodity imports as well as a 2.8% billion expansion in service imports. Reported was a 15.9% billion quarter over quarter increase in merchandise exports with one-half of this being accounted for by increases in energy exports which were up 8.4 billion of 78.9% with the rebound of energy prices in the first quarter.

Expansion of machinery and equipment exports was up $4.6 billion or 23.9$, industrial goods exports were up $3.6 billion, or 22.9%, forest up $1.0 billion, or 11.9% and consumer goods up $0.2 billion, or 5.9%. Agricultural exports only slightly with automotive exports falling by $0.5 billion, or 1.9%.