Northern Economist 2.0

Wednesday, 28 May 2025

Nation Building and Northern Ontario

 

Yesterday’s Throne Speech emphasized that the world has shifted and is more uncertain but that it is also a time of opportunity to reforge Canada’s economic and political relationships and embark on economic nation building that could be the largest transformation of the Canadian economy since WWII.  There was a commitment to major national infrastructure projects as well a movement to remove federal barriers to internal trade to enhance the Canadian economic union.  However, the details of what is going to be done remain a work in progress and that suggests that there are still opportunities to put forth new ideas.  If Canada is going to embark on a period of building a larger internal economy and putting in place national infrastructure projects, attention needs to be paid to the transportation links that knit the economy together - in particular, the road network.

The highway and road transport network in Canada has been key in facilitating our trade and commerce particularly with respect to the United States.  Truck transportation accounts for nearly half of the Canadian exports shipped to the United States and nearly 70 percent of the goods imported from the United States.  The east west dimension of Canadian internal trade should also not be underestimated when examining the role of road transport in facilitating the Canadian Economic Union.  For example, it has been noted that “$528 billions of goods and services moved across provincial and territorial borders in 2022—equal to 18.8% of Canada's gross domestic product. Furthermore, one-third of Canadian businesses participated in internal trade by buying or selling goods across provincial and territorial borders in 2023.”

If there is to be more east-west internal trade within Canada as trade barriers are removed, it stands to reason that much of this commerce will flow through the Highway 11-17 corridors in northern Ontario.  However, the roads here are already severely stressed by the post pandemic increases in transport trucks and associated accidents.  According to the OPP, 60 percent of fatal crashes in Northwestern Ontario alone (21 fatalities) in 2024 involved transport trucks.  This is not surprising given the increase in truck volume as well as the two-lane nature of much of the highway system in northern Ontario. While there are more passing lanes in place than 20 years ago, in many respects little has changed in what is a vital zone of national transit.  As noted in a much earlier pontification on this topic:

“Canada is the largest developed country in the world without a system of fully grade-separated roadways that allow uninterrupted traffic flow between its major urban centres. The key roadblocks include the two-lane stretches from the Manitoba border to Sudbury and much of the route between the Alberta border and Kamloops. Most importantly, the Trans- Canada is still a two-lane stretch through the vital zone of transit through northwestern Ontario connecting the East with the West from the Manitoba border to Sudbury, leaving the nation's east-west flow of personal and commercial traffic subject to the whims of an errant moose. The slow travel times and disruptions make cutting through the United States an attractive option for east-west travellers, despite the absence of an Interstate route along the border, but U.S. border crossing formalities have also made this more difficult and time-consuming.”

If U.S. border issues were a concern two decades ago, they are even more significant now.  In improving the east-west highway link through northern Ontario, there are definite challenges of cost rooted in both distance and geography but if the Europeans can tunnel through mountains to build their autobahns and autostradas, then surely, we can deal with rocks, trees and muskeg.  There are two key highways – Highway 11 which can be termed the northern route and Highway 17 which can be term the southern route though both come together as 11-17 from Nipigon to Shabaqua.  While a portion of the stretch between Nipigon and Thunder Bay is being four-laned, after nearly 20 years the four-lane project here is still not complete.  Moreover, it remains that there is a bottleneck at Nipigon given the national highway system comes to one choke point at the Nipigon Bridge which is subject to disruptions.

What should a national project to improve the Trans-Canada through northern Ontario look like?  Here is my suggestion. Highway 11 from North Bay to Nipigon should be four-laned. The 400 from Barrie to Sudbury is nearly completely four-laned.  After Sudbury, constructing four lanes on highway 17 is more problematic for several reasons but Highway 17 from Sudbury through to Sault Ste. Marie to Nipigon should be subject to 2+1 upgrading – essentially a three-lane highway with a centre passing lane that alternates every two to five kilometers. 

While the Ontario government is planning to do this on Highway 11 north of North Bay, the entire stretch of Highway 17 from Sudbury to Nipigon should be done this way.  Highway 11-17 from Nipigon to Shabaqua should be four-laned.  Highway 17 from Shabaqua to the Manitoba border should be four-laned.  And, if more resilience is desired given the potential bottleneck at the Nipigon bridge, thought should be given to an additional crossing over the Nipigon River between MacDiarmid and Nipigon that would consist of a 2+1 highway to Upsala.  There is also the issue of Highway 11 past Shabaqua that ends in a U.S. border crossing leaving only one major highway crossing between Manitoba and Ontario that may need to also be explored. However, a bottleneck on flat land is in somewhat of a different league than one over a water crossing.

Of course, the element of cost here is paramount.  Estimates of the cost per kilometer for 2016 for northern Ontario alone suggest a range between $350,000 and $550,000 per kilometre. One suspects that in the wake of the pandemic like everything else, costs have grown substantially. However, we have both a Prime Minister who wants to nation build as well as strengthen the Canadian economic union and facilitate more internal trade as well as an Ontario Premier who wants to invest in nation building projects that includes a tunnel under the 401 and a deep water port on James Bay – not exactly cheap projects.  The transport infrastructure for a stronger east-west commercial union is necessary and yet has been strangely missing from both the national and provincial discourse.  

Nevertheless, it is somewhat refreshing to have a government that seems ready to embark on aspects of  sovereign reconstruction (after a decade of what I suppose can then be termed sovereign deconstruction).   However, when to comes to sovereignty and enhancing our national economic space, words are not enough.   There will need to be action and that action will require investing in transportation infrastructure that enhances Canada’s economic space as an economic union.  Improved highway links through Northern Ontario are key to doing this and a start would be our northern Ontario federal and provincial MPs and MPPs recognizing this and making the case. 

 


 

 

Monday, 10 February 2025

Why Does Canada Exist?

 

Last evening in Paris, as Canada’s Prime Minister was exiting his vehicle and going into a building, a journalist shouted the question “Is Canada viable as a country” which really asks should Canada exist?  This question has emerged in the wake of the ongoing verbal onslaught from the President of the United States with respect to tariffs, annexation and talk of Canada becoming a “cherished” 51st State.  One wonders if this journalist was Canadian or American.  If American, not already knowing the answer to that question can be forgiven.  If the journalist was Canadian, well that is also disappointing indeed because that question was answered a long time ago by Canada’s great economic historian Harold Adams Innis. 

Whether or not Canada should exist as a separate entity distinct from the United States has long haunted Canadians – or at least English Canadians.  Before 1763, Canada was Quebec and Quebec has never had any doubts that they constituted a distinct people and nation within their North American environment.  English Canada was settled by refugees from the American Revolution – the United Empire Loyalists – and while they also constituted a distinct cultural group within North America, the similarity of language and culture with the United States has always led to questions of distinctiveness and identity.

These questions have been aggravated by the seemingly north-south geographic grain of the continent with only the Canadian Shield being apart from that grain.  The Atlantic region appears to be but an extension of the New England states, southern Ontario essentially juts into the US northeast, the prairies are an extension of the Great Plains while British Columbia and its mountains are an extension of the Pacific Northwest. The bulk of Canada’s population is clustered along an east-west corridor within a day’s drive of the U.S. border and therefore Canada as an east west construct has seemingly been constructed in defiance of North American geography.

And yet, in his Fur Trade in Canada, Innis argued that Canada was indeed a natural rather than unnatural construct because its east-west orientation was rooted in geography and economic relationships.  Canada became a country because of and not despite its geography and the fur Trade was instrumental in bringing that about. The fur trade waterways of the Great-Lakes-St. Lawrence system and the rivers of northern Ontario, the Prairies and British Columbia and even up to the Arctic provided the east-west canoe travel network of the fur trade first under the French, then under the traders of the Northwest Company of Montreal and finally those of the Hudson Bay Company. 

As the accompanying maps illustrate, the routes of the fur trade penetrating the Canadian Shield were the first network traversing Canada A Mari Usque Ad Mare. And given their links southward via the Mississippi system or into the Washington-Oregon area, one could make as much a case that these regions are but an extension of Canada’s east-west waterways.  Many of Canada’s towns and cities were originally fur trade posts on this east-west network and when the railway came decades later, it followed this east-west line.  This east-west alignment of the country was natural according to Innis and facilitated the east-west extension of Canadian sovereignty into the west during the 19th century.  

 


 


 

As the famous passage from Innis’s The Fur Trade in Canada goes:

The Northwest Company and its successor the Hudson’s Bay Company established a centralized organization which covered the northern half of North America from the Atlantic to the Pacific.  The importance of this organization was recognized in boundary disputes, and it played a large role in the numerous negotiations responsible for the location of the present boundaries.  It is no mere accident that the present Dominion coincide roughly with the fur-trading areas of northern North America.  The bases of supplies for the trade in Quebec, in western Ontario and British Columbia represent the agricultural areas of the present Dominion. The Northwest Company was the forerunner of the present confederation.” (Innis, The Fur Trade in Canada, 1930/1971, p.392)

In other words, Canada was the path dependent outcome of a natural east-west economic network.  Canada exists A Mari Usque Ad Mare for reasons that are rooted in its economic history and development and not as an artificial construct.  The border with the United States is there for a reason.