Economics Session 1: Saskatchewan EconomyMonday Aug 6, 2018

Dr. Joel BRUNEAU and Dr. Mobinul HUQ

Purpose: to provide an introduction to the Saskatchewan Economy and factors that influence it.

Outline

1 Introduction - maps

2 Geography and Climate of Saskatchewan

3 Canadian Federalism

4 Brief History of Saskatchewan

5 Overview of Economy

6 International Trade

7 (Huq) Demographics and Labour Force

http://catolico.info/map-of-saskatchewan-canada/map-of-saskatchewan-canada-map-of-canada-city-geography-400-x-340-pixels/

Saskatchewan

https://geology.com/canada/saskatchewan.shtml

1225 km

445 km

651,036 km2

Geography of Saskatchewan:

Three main ecological regions:

Grassland (part of the Great Plains) in the south,

• Dry-land Agriculture and livestock;

• oil and gas; non-metallic minerals (coal; potash)

• Most populated region: Regina, Saskatoon, Battlefords, Yorkton

Aspen Parkland in the center,

• Some lands converted to agriculture use;

• Forest products; oil and gas; non-metallic minerals

• Prince Albert

Forest (taiga) in the north, part of the Canadian Shield.

• No Agriculture

• Tourism;

• Fishing and forestry

• Uranium mining;

Saskatchewan Ecozones and Ecoregions

http://www.parc.ca/saskadapt/sk-climate/sk-climate-current.html#figure-2

1 https://www.youtube.com/watch?v=7sEOHkJm6cY

Climate of Saskatchewan:

Hot/warm summers and cold winters: annual temperature range can be up to 65 degrees C in a given year

• Aug 2: record high 37.8 C; record low 0.4 C

• All time: +41.5 to -50.0

All regions are semi-arid but winter snow accumulations support agriculture. Considered a continental climate:

• Saskatoon: average precipitation is 357 mm

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Avghigh

-10.1 -6.3 0.5 11.1 18.4 22.5 25.1 24.2 18.2 10.9 -0.6 -7.9

Avglow

-19.5 -15.7 -9.0 -0.5 6.1 10.7 13.1 11.8 6.2 0.1 -8.7 -16.8

http://www.parc.ca/saskadapt/sk-climate/sk-climate-current.html

Mean annual Precipitation

1961-90

Mean annual temperature

1961-90

Canadian Federalism: (https://www.thecanadianencyclopedia.ca/en/article/federalism/)

Def’n: Federalism is a political system in which government power and responsibility is divided between a federal legislature and a number of state or provincial legislatures.

In Canada, the federal government has jurisdiction over the entire country and each provincial government has jurisdiction over portions of the population.

National and regional jurisdictions may overlap but neither level’s power can be encroached upon by the other.

• In a unitary system, the national government can decide to remove any lower level of its power.

• The federal system has independent national and regional governments, each operating in its own discrete jurisdictional area.

• Our Provinces can act like separate countries within a union

Canadian Federalism: https://lop.parl.ca/About/Parliament/Education/ourcountryourparliament/html_booklet/three-levels-government-e.html

The federal level: This level of government deals with areas of law listed in the Constitution Act, 1867 and that generally affect the whole country.

Typically trans-provincial issues or international treaties/obligations

If not granted to Federal government, then must be provincial

The provincial level: The provincial government is responsible for areas listed in the Constitution Act, 1867, such as

education, health care,

some natural resources,

and road regulations.

Sometimes they share responsibility with the federal government.

The three territories have their own governments, with responsibilities that are given to them by the federal government.

The municipal level: Municipal governments are responsible for areas such as libraries, parks, community water systems, local police, roadways and parking. They receive authority for these areas from the provincial governments.

First Nations: (https://www.aadnc-aandc.gc.ca/eng/1307460755710/1307460872523#chp6)

Saskatoon is on land covered by Treaty Six

In 1983, in response to First Nations' demands for greater autonomy, parliament investigated Aboriginal self-government.

The right to self-government was inherent to all First Nations and should be entrenched in the Constitution alongside Aboriginal and treaty rights.

new self-government agreements would then be partnerships between Aboriginal peoples and the federal government to implement that right.

17 self-government agreements completed, many of which are part of larger Comprehensive Claims agreements.

Across the country there are also band councils, which govern First Nations communities. These elected councils make decisions that affect their local communities.

Each level of government has independent taxing authority

FEDERAL: Income and corporate taxes; Payroll taxes; consumption/excise taxes; international taxes (tariffs)

Collects provincial personal income taxes on behalf of all provinces except Quebec, through a system of unified tax returns.

Collects corporate taxes on behalf of all provinces except Quebec and Alberta.

That portion of the Harmonized Sales Tax that is in excess of the federal Goods and Services Tax (GST) rate, with respect to the provinces that have implemented it.

PROVINCIAL: Income and corporate taxes; payroll taxes; consumption/excise taxes; license fees

provincial taxes must fasten onto provincially located persons, property or transactions, or to extra-provincial persons conducting economic activity within the province

they may not be levied on goods destined for export

they must not impede the flow of inter-provincial trade

MUNICIPAL: user fees for services; property taxes

A Brief History of Saskatchewan Time https://www.worldatlas.com/webimage/countrys/namerica/province/skztimeln.htm -

1670 - Rupert's Land Act gave Hudson Bay Company trading monopoly over watershed of all rivers, streams flowing into Hudson Bay (included most of Saskatchewan)

1690 - Henry Kelsey first European to enter Saskatchewan - travelled up Saskatchewan River

1713 - Treaty of Utrecht signed - Hudson Bay granted to British, new boundary lines established for most of North America

1774 - First trading post established at Cumberland House

1783 - Treaty of Versailles established new boundary between U.S. and Canada

1805 - Louisiana Purchase transferred Saskatchewan from France to U.S.

1818 - Saskatchewan ceded to United Kingdom

1821 - North West Company, Hudson Bay Company merged

1840 - 1846 - Settlers came to Saskatchewan from Oregon

1882 - North West Territories divided into provisional territories

1885 - Northwest Rebellion Saskatchewan Rebellion - by Metis led by Louis Riel;

1905 - Saskatchewan became province; Walter Scott first premier

1906 - Regina declared capital of Saskatchewan; Treaty 10 signed with First Nations

1919 - Government decided to allow English only in public school system

1921 - 56% of school children infected with tuberculosis

1932 - Provincial income tax introduced

1944 - First socialist government in North America established with Premier Thomas C. Douglas as leader

1946 - First program of universal medicine introduced

1947 - Saskatchewan passed Canada's first human rights legislation

1960 - Treaty Indians given right to vote in federal and provincial elections;

1962 - Saskatchewan implemented Medical Care Insurance Act; doctors stopped services for 23 days in protest

1969 - Saskatchewan adopted provincial flag

1975 - Prescription drug plan introduced

1976 - First automated teller machine in Canada at Sherwood Credit Union in Regina; Saskatchewan passed legislation taking over the potash industry

1982 - Chiefs of Saskatchewan formed Federation of Saskatchewan Indian Nations;

1983 - Henry Taube became first Saskatchewan-born Nobel Prize winner

University of Saskatchewan History: A Brief Chronology https://library.usask.ca/archives/campus-history/history-chronology.php

1907 University of Saskatchewan created: University Act passed by the Legislative Assembly

1908 Walter Murray formally appointed President by the Board

1909 Saskatoon selected as site

1910 Sod turning ceremony for College [of Agriculture] Building;

1912 First class graduates and First buildings opened:

1934 Regina College becomes part of the University of Saskatchewan

1936 St. Thomas More College established

1946 College of Graduate Studies established

1965 First classes given in Western College of Veterinary Medicine

1967 Two-campus system formalized with appointment of Principal for Saskatoon campus.

1974 Regina campus becomes a separate university

Notable firsts

1948 U of S installs first betatron in Canada

1951 World's first calibrated cobalt-60 cancer therapy unit established

1964 Linear Accelerator Laboratory established

1971 Former University of Saskatchewan professor Gerhard Herzberg wins Nobel Prize in Chemistry

1973 Program of Legal Studies for Native People established

1976 Native Law Centre established--the first in Canada; Joint venture agreement reached between University and SEDCO to build Western Canada's first research park

1978 Regional Psychiatric Centre established--first in world to be affiliated with a university

1984 Centre for the Study of Cooperatives established--the first in Canada

2004 Canadian Light Source synchrotron officially opens

SASKATCHEWAN ECONOMIC STRUCTURE and GROWTH

Data source: CANSIM

1 Economic Structure

SERVICES 42.58%

GOODS 57.42%

Share of GOODs versus SERVICES, 2017

Agriculture, forestry, fishing and hunting ,

7.32

Mining, quarrying, and oil and gas

extraction, 18.16Utilities, 2.62

Construction, 7.21

Manufacturing, 7.26

GOODS SECTOR: percent shares

WHOLESALE and RETAIL,

10.05

Transportation and

warehousing , 5.37

Finance, Insurance, and

Real estate, 16.29Professional, management, Admin, 4.36

health and education,

11.47

other, 9.88

SERVICES percent shares

2 Economic Growth: approx. 2% real growth per annum

40,000

45,000

50,000

55,000

60,000

65,000

1997 2002 2007 2012 2017

REAL GDP GROWTH: $CAN Millions (2007 chained)

Income Growth: faster than average for Canada

20,000

25,000

30,000

35,000

40,000

45,000

2000 2002 2004 2006 2008 2010 2012 2014

Household income per capita ($CAN)

Canada Saskatchewan

International Trade patterns: volume and products

Canada

Saskatchewan

SAFTA

Canadian Data: Trade data online http://www.ic.gc.ca/eic/site/tdo-dcd.nsf/eng/home

International data: Observatory of Economic Complexity https://atlas.media.mit.edu/en/

CANADA-WORLD and SASK-WORLD TRADE:

$CAN millions all merchandise (no service trade)

CANADA SK SK share

IMPORTS EXPORTS IMPORTS EXPORTS

2010 403,701 374,015 8,116 23,614 2.0% 6.3%

2011 446,666 419,035 9,407 29,550 2.1% 7.1%

2012 462,072 428,049 11,070 31,676 2.4% 7.4%

2013 475,661 443,620 11,179 32,246 2.4% 7.3%

2014 512,200 493,332 12,138 35,313 2.4% 7.2%

2015 536,152 481,383 10,389 32,820 1.9% 6.8%

2016 533,194 469,266 8,990 26,640 1.7% 5.7%

2017 561,113 502,044 11,436 28,897 2.0% 5.8%

CANADA - SAFTA TRADE: 2016 ($CAN millions)

CANADA SASK

IMPORTS EXPORTS IMPORTS EXPORTSAfghanistan -- -- -- --

Bangladesh 1,621 772 0.3 441

Bhutan 0 0.1 -- --

India 4,038 3,983 45.6 1,454

Maldives 1 20 0.0 --

Nepal 14 9.8 0.0 6

Pakistan 364 1,078 0.2 548

Sri Lanka 349 273 18.3 151

Total SAFTA 6,388 6,136 64.5 2,601 Total All Countries 533,194 517,100 8,990 26,730

INTRA-SAFTA TRADE: 2016 (in $M US)

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Afghanistan 0.2 0.0 396.1 0.0 0.0 406.5 0.0 803 3 1,200

Bangladesh 1.4 0.0 657 3.0 0.0 46.2 29.0 737 1,224 37,763

Bhutan 0.0 0.0 122.3 0.0 0.0 0.1 0.0 122 0 134

India 507 5,667 372 291 4,519 1,688 4,363 17,408 2,991 261,681

Maldives 0.0 0.3 0.0 6.9 0.0 5.9 82.6 96 1 248

Nepal 0.0 0.0 0.0 376.7 0.0 1.0 0.2 378 11 696

Pakistan 1,681.7 656.1 0.0 461.4 7.4 0.8 321.3 3,129 275 24,163

Sri Lanka 1.4 118.8 0.0 800.8 139.1 1.2 77.1 1,139 260 11,465

All countries

9,010 41,200 455 340,000 2,330 6,510 48,100 19,700 389,000

Provincial Trade with Bangladesh: 2016 $CAN millions

Imports from Bangladesh

Exports to Bangladesh

British Columbia 502.2 12 Alberta 9.7 147 Saskatchewan 0.3 441 Manitoba 19.5 72 Ontario 607.4 73 Quebec 418.5 10 New Brunswick 0.1 0 Nova Scotia 63.5 16 Prince Edward Island -- --Newfoundland and Labrador -- --TOTAL BANGLADESH 1,621 772 Total All Countries 533,194 517,100

CAN - WORLD EXPORTS: 2017 by commodity $CAN millions

Total of all merchandise 502,044 share

Farm, fishing and intermediate food products 32,789 7%Energy products 102,552 20%

Metal ores and non-metallic minerals 18,819 4%

Metal and non-metallic mineral products 59,522 12%Basic and industrial chemical, plastic and rubber products 33,041 7%Forestry products and building and packaging materials 42,435 8%Industrial machinery, equipment and parts 26,799 5%

Electronic and electrical equipment and parts 17,682 4%Motor vehicles and parts 82,823 16%Aircraft and other transportation equipment and parts 18,385 4%Consumer goods 61,768 12%Special transactions trade 5,431 1%

SASK - WORLD EXPORTS:

shareShare of CANADA

Total of all merchandise 28,897 5.8%

Farm, fishing and food products 10,990 38% 33.5%Energy products 7,165 25% 7.0%

Metal ores and non-metallic minerals 5,894 20% 31.3%

Metal and non-metallic mineral products 356 1% 0.6%Basic and industrial chemical, plastic and rubber products 229 1% 0.7%Forestry products and building and packaging materials 846 3% 2.0%

Industrial machinery, equipment and parts 459 2% 1.7%

Electronic and electrical equipment and parts 129 0% 0.7%Motor vehicles and parts 107 0% 0.1%Aircraft and other transportation equipment and parts 8 0% 0.0%Consumer goods 2,638 9% 4.3%Special transactions trade 75 0% 1.4%

In 2017, Saskatchewan was a world leading exporter:

68 per cent of the world's canary seed

41 per cent of the world's lentil

36 per cent of the world's pea

33 per cent of the world's oat

33 per cent of the world's durum

21 per cent of the world's canola meal

22 per cent of the world's flaxseed

28 per cent of the world's mustard seed

24 per cent of the world's canola seed

21 per cent of the world's canola oil

4 per cent of the world’s chickpea

4 per cent of the world's rye

4 per cent of the world's non-durum wheat

3 per cent of the world's barley

https://www.saskatchewan.ca/business/agriculture-natural-resources-and-industry/agribusiness-farmers-and-ranchers/market-and-trade-statistics/international-trade-and-saskatchewan-agriculture/international-trade-partners

CANADA to BANGLADESH exports by product ($1000 CAN)

1001 - Wheat 325,491

0713 - Leguminous Vegetables - Dried and Shelled 261,774

1205 - Rape or Colza Seeds (Whether or Not Broken) 57,770

7210 - Flat Rolled Products of Iron/Non-Alloy Steel (Width >600Mm) - Clad, Plated or Coated

31,711

3104 - Mineral or Chemical Fertilizers, Potassic 30,935

7204 - Ferrous Waste and Scrap; Remelting Scrap Ingots of Iron or Steel 19,499

4703 - Chemical Woodpulp - Soda or Sulphate 5,228

8436 - Other Agricultural. Horticultural, Forestry, Poultry-Keeping or Bee-Keeping Machinery

4,114

8607 - Parts of Rail Vehicles 2,852

7209 - Flat Cold-Rolled Products of Iron/Non-Alloy Steel (Width >600Mm) - Not Clad, Plated or Coated

2,821

4407 - Lumber (Thickness >6Mm) 2,064

3206 - Inorganic Chemical Colouring Matter or Brightening Agents 2,001

7208 - Flat Hot-Rolled Products of Iron/Non-Alloy Steel (Width >600Mm) - Not Clad, Plated or Coated

1,944

2303 - Residues of Starch Manufacture and Other Waste of Sugar Manufacture 1,253

4801 - Newsprint - in Rolls or Sheets 1,253

Total (All Products) 771,710

CANADA from BANGLADESH imports by product (1000$ CAN)

6203 - Mens/Boys Suits, Ensembles, Jackets, Blazers, Pants and Shorts -Woven

242,541

6204 - Womens/Girls Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Pants and Shorts - Woven

208,039

6110 - Sweaters, Sweatshirts and Waist-Coats - Knitted 178,963

6109 - T-Shirts, Singlets and Other Vests - Knitted 156,475

6205 - Mens/Boys Shirts - Woven 123,956 6104 - Womens/Girls Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Pants and Shorts - Knitted

70,761

6302 - Linen 65,726 6108 - Womens/Girls Underwear,, Pyjamas, Nightwear, Bathrobes and Dressing Gowns, - Knitted

49,009

Total (All Products) 1,621,348

SASK to BANGLADESH exports by product ($1000 CAN)

0713 - Leguminous Vegetables - Dried and Shelled 254,906

1001 - Wheat 125,574

3104 - Mineral or Chemical Fertilizers, Potassic 30,935

1205 - Rape or Colza Seeds (Whether or Not Broken) 29,983

8471 - Adpm & Units,Magnetic/Optical Readers,Machine Transcribing Data To Media in Code & To Process, Nes

21

1302 - Vegetable Saps and Extracts; Pectic Substances; Agar-Agar and Other Derived from Vegetable Products

14

Others --

Total (All Products) 441,435

SASK from BANGLADESH imports by product ($CAN)

6210 - Raincoats, Snowsuits and Outerwear - Felt, Nonwoven or Coated Fabrics

115,319

4402 - Wood Charcoal (Including Shell or Nut Charcoal) 32,495

5310 - Woven Jute/Textile Bast Fibre Fabrics 27,102

9506 - Articles and Equipment For Sports, Gymnastics, Athletics and Outdoor Games; Swimming Pools

20,666

6205 - Mens/Boys Shirts - Woven 14,807

6110 - Sweaters, Sweatshirts and Waist-Coats - Knitted 11,521

6101 - Mens/Boys Overcoats, Ski and Wind Jackets - Knitted 8,618

6105 - Men's/Boys Shirts - Knitted 8,273

6109 - T-Shirts, Singlets and Other Vests - Knitted 7,856

4202 - Leather Trunks, Suitcases, Golf Bags, Handbags, Tool Bags and Other Similar Articles

7,408

6210 - Raincoats, Snowsuits and Outerwear - Felt, Nonwoven or Coated Fabrics

115,319

4402 - Wood Charcoal (Including Shell or Nut Charcoal) 32,495

5310 - Woven Jute/Textile Bast Fibre Fabrics 27,102

Total (All Products) 273,817

Wrap up:

Saskatchewan and Canada are highly integrated into world economy

Saskatchewan is more goods and trade-intensive than Canada in General

Canada is a larger market for Bangladeshi products than all of SAFTA

• But EU, USA, and China are more important

• Canada exports food and other commodities, Bangladesh exports clothing

Bangladesh is an important market for SK products but not an important import location

Thank You

JOEL BRUNEAU

Joel.Bruneau@usask.ca