Coasting Trade refers to any commercial marine activity within Canadian waters. Above the continental shelf of Canada, these activities must be related to the transport, exploration or exploitation of the minerals and non-living natural resources of the continental shelf.

The Coasting Trade Act supports Canadian marine interests by reserving the coasting trade of Canada to Canadian registered duty paid vessels, with limited exemptions. The legislation provides a process to temporarily import a foreign or non-duty paid vessel under a coasting trade licence when a suitable Canadian-registered duty paid vessel is not available. Coasting trade licences are issued by the Minister of Public Safety to Canadian residents who have applied for permission to bring a foreign flagged vessel into Canadian waters to perform a service or activity over a specified period of time.

A coasting trade licence is issued when there are no suitable Canadian vessels available to perform the service or activity. While priority is given to these vessels, there are provisions for the temporary entry of foreign or non-duty paid vessels. This is provided there are no Canadian-registered vessels available or capable to perform the required scope of work.