Article Outline
Other significant manufacturing sectors include food processing, paper products, chemical products, primary metal processing, petroleum refining, electrical and electronic products, metal fabricating, and wood processing. Many of these manufactures rely on Canada’s vigorous resource industries. Unlike the motor vehicles and other consumer products industries, which are highly localized in the heartland, resource processing is much more widely distributed across the country.
U.S. involvement in Canadian manufacturing began in the late 19th century, notably in the 1880s after the Canadian government imposed higher trade tariffs. U.S.-owned firms built branch plants to serve the Canadian market and thereby avoid the tariffs involved in exporting their products to Canada. This process accelerated in the 20th century.
Concern over foreign ownership prompted the Canadian government to establish the Foreign Investment Review Agency (FIRA) in 1974. The agency was charged with scrutinizing investment from abroad and ensuring that it benefited Canada. FIRA never turned down an application, but did require modifications in many cases. U.S. interests continue to dominate foreign investment in Canada, making up about two-thirds of the total in the early 21st century.
As a large country rich in natural resources, Canada’s energy industry is one of the biggest in the world. Each year the country produces much more energy than it consumes, making it a significant exporter of this resource, especially to the United States. In 2003 Canada’s annual output of electricity was 566 billion kilowatt hours, of which 59 percent was provided by hydroelectric plants, 12 percent by nuclear power plants, and 27.28 percent by conventional thermal plants using fossil fuels. Wind-generated energy is the fastest-growing sector of the industry.
Endowed with many fast-flowing rivers, Canada is the world’s leading producer of hydroelectricity, the electrical energy produced by falling or running water. Most of the country’s hydroelectric output is generated in the provinces of Québec, Ontario, Newfoundland and Labrador, and British Columbia. One of the largest hydroelectric complexes in North America is located on La Grande Rivière, near James Bay in Québec. It has three hydroelectric stations, and is owned and operated by the public utility Hydro-Québec. Its total capacity is about 10 million kilowatts. The powerhouses on La Grande Rivière constitute the first phase of a larger planned hydroelectric project (see James Bay Project). Churchill Falls, in the Labrador region of Newfoundland, is another major Canadian hydroelectric facility.
Since the early 1950s Canada has sought to use its abundant resources of natural uranium to generate electricity through nuclear reactions. The first nuclear power plant, a demonstration station at Rolphton, Ontario, was completed in 1962. A large nuclear energy plant was opened at Pickering, Ontario, in the early 1970s. In addition, a large complex of nuclear facilities on the Bruce Peninsula, in Ontario, is owned and operated by Ontario Power Generation. In 2006 Canada had 18 nuclear facilities; the majority of nuclear generation occurs in Ontario. The proper disposal of spent fuel is a research priority in Canada.
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