Executive Summary

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The Department of Foreign Affairs and International trade invited Decima research to conduct a national survey to explore Canadians' impressions, attitudes, and priorities with regard to International Trade and related issues.

This research, conducted between March 15 and 25, 2007, involved the completion of a telephone survey 18 minutes in length, among a random sample of 1,202 Canadians. Outlined below are the key findings from this research.

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The Role and Impact of Trade on Canada

As a point of departure, the results of this study suggest that there is a nearly universal belief among Canadians that international trade is making an increasingly important contribution to Canada's economy. More than three in four Canadians (78%) believe that trade has become a more important contributor to the economy over the past decade, while only 6% believe that trade is making a less important contribution over that period.

Despite the nearly universal sentiment about the growing role and importance of international trade, the data reveals some notable differences about the extent to which various parts of the economy and society benefit from the advance of trade.

More than eight in ten (83%) believe that large companies have benefited greatly from expanded Canadian trade, and that the economy as a whole has similarly benefited (75%). However, views about the benefits of trade tend to be more muted for others in society. 44% perceive that small and medium sized companies have benefited significantly, and 36% believe that the advance of Canada's international trade has significantly benefited them and their families.

The gaps in perception about the benefits of trade accruing to larger companies versus other groups in society are most notable in Quebec and BC, where respondents in those provinces tend to be more likely to believe that larger businesses are benefiting greatly, and less likely to believe that smaller businesses and individual households are benefiting.

Looking at specific benefits, trade tends to be seen as a force that fosters Canadian competitiveness internationally, specifically the advance of research and development/innovation among Canadian companies. In addition, there is evidence in this research that many Canadians make a connection between trade and jobs, with 55% indicating that trade has had a positive impact in this area (compared to 25% that indicate that trade has had a negative impact on jobs).

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NAFTA and Globalization

Perhaps as a testament to the increase in the perceived impact of international trade on the Canadian economy, over eight in ten Canadians indicated that they knew of the NAFTA trade agreement, and recognized and could provide impressions of the term "globalization".

Impressions of the NAFTA agreement show a similar kind of divergence in perceived impact as found in the section of the study that touched on trade in general, but with a slightly more sharply negative view among some. About twice as many Canadians (46%) believe the NAFTA agreement has had a positive impact on Canada than those that say the agreement has yielded a negative impact (28%). However, opinion is quite polarized in terms of how they feel the NAFTA agreement has impacted individual Canadians: 37% say the impact has been positive, but 35% say it has been negative.

Residents of Alberta are the most likely to suggest the agreement has had a positive impact (on Canada as well as individual Canadians), but residents of BC are the least likely to believe this is the case. In BC, 41% of respondents indicated that they believe the NAFTA agreement has had a negative impact on individual Canadians, likely owing to fallout from the long trade dispute over softwood lumber.

Opinion is similarly polarized about whether Canada, the US, and Mexico ought to expand the NAFTA agreement. 36% indicate that the parties ought to expand the scope of the agreement, 22% believe it should remain as it is, and the plurality, 38%, are more of a view that the parties should act more independently in terms of trade, ostensibly with a view to diversifying trade relationships.

Indeed, other data in the study reveals concern about the level of dependence that the Canadian economy has on the US market. The data reveals a significant level of unease about the dependence that the Canadian economy has on the US market, and with it a view that Canadian government efforts should pursue diversification of trade markets at least as strongly as it pursues advancement of the Canada-US trade relationship.

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Impressions of DFAIT's Trade Activities

Opinion is decidedly mixed among Canadians on the extent to which the Department of Foreign Affairs and International Trade is serving Canada's trade interests well.

One in three Canadians (33%) indicate that they believe that DFAIT is doing a good job, whereas 27% hold the view that the department is not meeting expectations in this area. Underlying this view is the fact that 34% of Canadians believe that the government of Canada does not do enough to defend Canada's international trade interests, a number that correlates highly with awareness of the softwood lumber dispute and agreement.

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Trade Priorities

Looking toward the future, the study explored potential priority areas for the department of international trade, as well as potential countries/regions with which they believe the department should explore future trade agreements. The results revealed that all of the stated priorities garnered fairly high levels of support, and none engendered strong resistance.

The top priorities which Canadians assign to the department were as follows:

Negotiating free trade agreements with other countries ranked slightly lower than the other potential priority areas included in the study, but the difference was more a matter of degree of support than resistance. Two thirds (66%) indicated this should be a high priority area, whereas 16% viewed it as a lower priority.

The survey invited respondents to rate specific countries/regions that the department of international trade might pursue stronger trade ties with. The results suggest that the broadest interest (by a significant margin) is in pursuing further trade ties with Europe. Other countries which have been suggested by experts as potential trade partners, such as China and India, received some, if not overwhelming interest among Canadians.

One of the more challenging aspects of international trade regards the issue of balancing Canada's human rights goals with its international trade goals. The survey sought guidance from Canadians on how to balance these interests.

Respondents were given a description of four broad policy approaches that might be pursued in addressing these issues. Below are the four tested approaches, along with the overall results. The results suggest that while there is no universally held view, the idea of using trade sanctions to exert pressure is the most widely accepted approach, followed by the idea of using trade as a tool to foster openness and democratic reform. More extreme approaches tend not to be where most Canadians wish their government to be in addressing these questions.

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Foreign Investment

While Canadians appear to be broadly supportive of further advances in international trade, there are some notable findings that the survey reveals in terms of foreign investment into Canada, and investment into foreign countries by Canadian companies.

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