country profile, canada.pdf
The country has implemented a new initiative under which tariffs on all manufacturing inputs will be reduced to
zero by 2015. The campaign is part of the government’s efforts to reduce the tax burden on businesses in
For the fiscal year ending March 2011, Canada's deficit was C$34.4bn ($33.85bn) due to lower government
expenditure and higher tax revenues. According to Datamonitor forecasts, the trade deficit is expected to
continue during the next fiscal year.
In 2010, the government announced that it would undertake reform of the Canada Pension Plan (CPP) through to
2016 that is expected to increase the amount received on pensions taken after age 65, and also increase the
number of years of zero or low earnings that are excluded when calculating average earnings under the CPP.
Unemployment is still high in the country, and increased from around 6% in 2008 to 8% in 2010. There was a rise
in part-time jobs and reduction in full-time jobs between 2008 and 2010, which is not a healthy development.
The growth of technology-intensive industries has created new opportunities in Canada. The country has
emerged as a competitor to India and Mexico in offshoring services.
The country’s low number of people holding advanced degrees like PhDs is the main reason for its poor
innovation ranking. In the How Canada Performs 2010 report, the country was ranked 14th out of 17 peers on
patents, and came in last in terms of the number of PhD graduates in the country.
Canada has one of the most flexible labor markets in the world, operating under liberal employment regulations
that enhance employment opportunities and productivity growth.
Despite having a lower rate of taxes, the multiplicity of business regulations across provinces acts as a deterrent
Canada’s new Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations are expected to
bring down greenhouse gas (GHG) emissions in the transport sector, which accounts for more than 25% of all
the GHG emissions in the country.
Safe disposal of spent nuclear fuel is a challenge the country currently faces. It is still searching for good sites to
create geological repositories for nuclear waste.
Country Analysis Report: Canada
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