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Trading between Russia and Canada

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Автор(ы): Иванова Анна Владимировна
Рубрика: Экономические науки
Журнал: «Евразийский Научный Журнал №8 2017»  (август, 2017)
Количество просмотров статьи: 1622
Показать PDF версию Trading between Russia and Canada

Иванова Анна Владимировна
ученица гимназии №4
г. Курск

The first contact of Canadians with Russians was in 1918 when, at the

suggestion of Britain, Canada sent its forces to Russia to participate

in foreign intervention. The intervention of Canadian troops in

Russian affairs during the civil war, the subsequent intensification of

the actions of the Communist Party of Canada and the persecution of

religion in Russia did not contribute to the development of

communications. They began to develop only in 1920 Canada was

interested in Russia as a promising economic partner. On the other

hand, Russia, devastated by civil war and foreign intervention,

needed industrial equipment, agricultural machinery and, especially,

food. Russia has realized its interests in the elimination of diplomatic

isolation of the country, as well as in the field of foreign trade. For

Canada, opened a huge Russian market.

But the relationship between Canada and the Soviet Union was

unstable. In 1927 Canada followed Britain and severed its relations

with the USSR. For the next fifteen years, the countries did not have

trade with each other. In 1931, the Canadian government

established a ban on the importation of coal and other goods from

the USSR. Moscow quickly took retaliatory measures, imposing an

embargo on all Canadian imports. Canada and the USSR could not

get closer and establish diplomatic relations until the outbreak of

World War II. Obviously, the Canadian government, in the general

interest of fighting fascist Germany, supported the USSR.

The official signing of the agreement on the establishment of

consular relations took place on February 5, 1942 in London.

Russia exports to Canada
Mineral fuel, oil and products of their distillation 39.5%
Ferrous metals 27.9%
Rubber 17.4%
Products of inorganic chemistry 6.4%

Russia imports from Canada
Nuclear reactors 56.0%
Vehicles and their parts 5.8%
Electric machines and equipment 4.5%

Russia and Canada are not in any common trading

blocs. But in the last couple of years, Canada, like

many countries in North America and Europe, has

imposed sanctions against Russia. So in the near future the volume of trade between these countries may decrease, although over the past few years it has only increased

· Absolute advantage

Canada and Russia have an

absolute advantage in the export

of fuel raw materials. These

countries are rich in natural

resources and have large oil

deposits, which are so necessary

for the whole world. Canada and

Russia have the required

knowledge and equipment for the

extraction and export of oil and

they border with their consumers.

Canada exports fuel resources to

America, and Russia supplies

them to Europe.

· Comparative advantage

Canada and Russia have a

comparative advantage in

many branches of the

agrarian industry. Despite the

fact that these countries are

rich in land, national

conditions do not allow to

grow many varieties of plants

throughout the year. So it’s

much more profitable not to

spend huge amounts on

greenhouses and fertilizers,

but to import finished

products from other countries.

Canada and Russia are very similar countries, but nevertheless they have an absolute advantage in different industries. Therefore, it is very important for them not to stop trading among themselves.