Coasting Trade refers to commercial marine activities conducted within Canadian waters. In areas above Canada’s continental shelf, these activities must be related to the transportation, exploration, or extraction of minerals and non-living natural resources from the continental shelf.

The Coasting Trade Act is designed to support Canadian marine interests by reserving Canada’s coasting trade for vessels that are Canadian-registered and duty paid, with a few exceptions. The legislation allows for the temporary importation of foreign or non-duty paid vessels under a coasting trade licence when no suitable Canadian-registered vessel is available. These licences are issued by the Minister of Public Safety to Canadian residents who apply for permission to bring a foreign-flagged vessel into Canadian waters for a specific activity or service over a set period.

Coasting trade licences are issued only when no suitable Canadian vessel is available for the required service. While Canadian-registered vessels are given priority, there are provisions for temporarily allowing foreign or non-duty paid vessels to enter Canadian waters when necessary to meet the required scope of work.