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The main difference in any country is mission. The "Navy" is a branch of the government in questioned who uses military built ships as weapons. The Merchant Marines or Merchant deal in Sealift or moving materials from one place to another. The Merchant Marine may also defend the Merchant ship he or she is on but the ship is not necessarily used by the military. Now in the US Navy we have MSC or Military Sealift Command. MSC moves materials around the world for the military but is more of a merchant Navy. Also the merchant navy may have military sailors stationed on them such as many of the US Navy's oilers.

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Q: Distinguish commercial navy and merchant navy?
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