The Bruce Report

In its September “Report Card”, APEC declares that a massive hike in export revenues generated by Atlantic Canada’s energy sector is effectively masking the stagnant condition of virtually every other industrial segment in the region.

Specifically, while international sales of energy products from these shores – mostly oil and natural gas – has more than quadrupled to $12.3 billion (CDN) since 1999, the annual export value of unrelated merchandise goods has stalled at $12 billion in each of the past six years. Worse, says our leading economic think-tank, the situation is not likely to improve any time soon.

“Exporters have had to cope with a 40 per cent appreciation of the Canadian dollar since 2003, increasing competition from low-cost producers, high costs and weak demand in some sectors. . .Atlantic Canada’s non-energy exports were down nearly three per cent in the first six months of 2006 with growing concerns about a U.S. slowdown.”

As usual, of course, the venerable organization does its double-jointed best to downplay the urgency of the situation. “Boosted by energy exports,” it intones, “Atlantic Canada’s share of Canada’s international exports of goods and services has rebounded to its highest level in almost 20 years.” Still, even its best contortionists can’t dilute the cold, hard impact of its own research: “Atlantic non-energy exports, worth $6,000 per capita in 2005, are still only 70 per cent of the median for all Canadian provinces, equivalent to a loss in potential export revenues of more than $6 billion a year.”

To be clear, Atlantic Canada’s “non-energy” export sector involves everything from forestry and mining to fishing and agriculture. It comprises heavy and precision manufacturing, pharmaceuticals, plastics, textiles, software, consumer items, cultural goods, professional consulting services, and that junky yard art you mail to your mother every Christmas. In short, it’s about anything that doesn’t involve a drilling rig, refinery, or pipeline.

Within this context, APEC says, “two large traditional industries have seen significant losses in recent years. Exports of forest and seafood products totaled more than $7 billion in 2000, representing 27 per cent and 14 per cent of Atlantic Canada’s international exports, respectively. International revenues from the pulp and paper industry have fallen by more than 30 per cent, or $1 billion, since 2000. International revenues [from Atlantic fish exports] have declined for four straight years, down 13 per cent to $2.5 billion in 2005.”

Even so-called new economy segments are showing signs of premature aging. During the first half of the year, export sales of specialized wood products, for example, dropped by 10 per cent. Others, such as specialized consumer goods and textiles, continued to spiral downward into international obscurity.

To its credit, APEC does offer a few sage words of advice to the region’s private enterprises, provincial governments and assorted economic developers: “Building international competitiveness through technological innovation, product quality and superior service, whether in new or traditional sectors, will be the key challenge for all Atlantic firms over the next decade.”

That’s nothing I haven’t said before. It’s nothing that a growing legion of disaffected economic commentators in this province isn’t saying now. But some things are worth repeating. We can either learn to swim in the global economy, or we can be content to drown in its sparkling, blue waters.

The choice, as always, is ours to make.

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