Opening Canada’s North: A Study of Trade Costs in the Territories ...

• Main Authors: Fellows, G. Kent, Tombe, Trevor
• Format: Article in Journal/Newspaper
• Language: English
• Published: The School of Public Policy Publications 2018
• Subjects: Nunavut; Yukon; Northwest Territories; Canada
• Online Access: https://dx.doi.org/10.11575/sppp.v11i0.43290.g40494; https://journalhosting.ucalgary.ca/index.php/sppp/article/view/43290/40494

Challenged by remote locations, small populations, rugged terrain and (at times) difficult climate conditions, Canada's territories rely heavily on imported goods to maintain their standards of living. At the same time, industries in the territories are highly reliant on access to export markets – especially the large and growing resource sectors of the region. But these trade flows face significant costs that improved infrastructure may help mitigate. A northern transportation corridor could help, and has recently gained prominence following recent reports and hearings by the Senate of Canada. The potential gains are large. This paper estimates trade costs in Canada's North. We find policy-relevant trade costs (those trade costs that policy changes may help lower) are substantial. The regulatory differences, time delays and lower infrastructure quality that inhibit trade add between 20 to 30 per cent to the cost of a delivered good for Yukon and Northwest Territories and over 60 per cent for Nunavut. ... : The School of Public Policy Publications, Vol 11 (2018) ...