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1. Canada – Solid Reasons to Invest
Think Creative.
Think Competitive.
Think Bottom Line.
Think Canada.
March 2010
1
2. Canada – Solid Reasons to Invest
Table of
Contents Page
I Excellent Economic Fundamentals 3
II A Cost-Competitive Business Environment 12
III A Dynamic Workforce 25
IV A Solid Infrastructure 33
V Easy Access to Markets 39
VI An Excellent Place to Live 44
2
3. Canada – Solid Reasons to Invest
I Excellent Economic
Fundamentals
3
4. Canada has a Relatively Strong Economy
Despite the Global Slowdown
Consensus Economics
According to Consensus Economics, Canada has been a top performer among
the G7 in GDP growth over the 2006-09 period and is expected to remain so
through 2010-11.
Real GDP Growth and Projections (%)
4.0
3.1 3.1
2010-11
3.0
1.9 1.8
2.0 1.7
1.5
%
1.0
1.0 0.8 0.7 0.7
0.5
0.3
0.0
2006-09
-0.6 -0.5
-1.0
Italy
n
any
ada
ce
U.S.
U.K.
Japa
Fran
Germ
Can
Source: Consensus Forecasts, March 2010, Consensus Economics Inc.
4
5. Other Forecasts also Highlight Canada’s
Relatively Strong Economy
OECD
Similarly, recent OECD statistics rank Canada as a top performer among G7
countries in terms of GDP growth during the 2006-09 period and one of the
best during the 2010-11 forecast period.
Real GDP Growth and Projections (%)
4.0
2010-11
3.0 2.7
2.5
1.9
2.0 1.7 1.6 1.7
1.3
%
1.0 0.8 0.7 0.7
0.4 0.5
0.0 2006-09
-0.4
-0.6
-1.0
Italy
n
any
ada
U.S.
U.K.
ce
Japa
Fran
Germ
Can
Source: OECD Economic Outlook, No. 86, November 2009.
5
6. Canada also has Superior Employment
Growth…
Strong economic growth and rising demand for Canadian commodities over the last
decade, combined with provincial and federal policies to improve the flexibility and
adaptability to the changing workplace, have helped generate healthy gains in
employment.
Employment Growth (%)
1998-2008
Canada 2.0
France 1.4
Italy 1.2
U.S. 1.0
U.K. 1.0
Germany 0.6
Japan -0.2
-1 0 1 2 3
Source: U.S. Bureau of Labour Statistics, OECD Economic Outlook, No.86, November 2009
6
7. …a Sound Fiscal Advantage
Canada has enjoyed eleven consecutive annual federal budget surpluses ending in
2007-08; it has undertaken one of the largest stimulus packages among developed
economies in the current global economic downturn.
In Budget 2010, Canada has chosen to run short deficits to stimulate its economy
without putting long-term prosperity at risk and is expected to return to balanced
budgets in the medium term.
Over the coming years, Canada’s net debt-to-GDP ratio will remain the lowest in the
G7 by a wide margin with a return to a surplus predicted shortly following the 2014-
15 fiscal year.
Federal Government Budgetary Balance
2009-10* (% of GDP)
2010-11*
2011-12*
2012-13*
2013-14*
2014-15*
2008-09
0.0
-0.4 -0.1
-0.5
-1.0
-2.0 -1.6
-4.0 -3.1
-3.5
-4.2 -4.3 -4.2
-4.6
-6.0 -5.5
-8.0
-8.4
-10.0 Canada U.S.
-10.9
-12.0
* Forecasts for both countries
Source Canada: The Federal Budget, Finance Canada, March 4, 2010
Source United States: United States Congressional Budget Office, March 5, 2010.
7
8. …Leading Most Other G-7 Countries
Canada was the only G7 country to post a surplus in 2008. Despite being in
an overall deficit position during the 2009-2011 period, Canada will be in a
far better position than most G7 member countries.
Total Government Budget Balance 2008-11
(% of GDP)
(National Accounts Basis)
2.0
0.1 0.0
0.0
a
any
nce
an
.
.
y
U.K
U. S
nad
Ital
-2.0
Jap
rm
Fra
Ca
Ge
-2.7 -2.7
-4.0 -3.4
-4.4
-4.8
-6.0 -5.3 -5.3
-6.5
-8.0
2008 -8.3 -8.3
-10.0
-10.4
-12.0
-12.8
-14.0
2009-11
Source: OECD Economic Outlook, No.86, November 2009
8
9. …a Low Inflation Rate Regime…
A low inflation environment provides business certainty for investors. Canada’s
targeted inflation rate range between 1% and 3% has been extended until 2011.
Over the past five years, Canada has enjoyed relatively low inflation –
averaging 2.3% compared to 3.2% for the U.S. and 2.1% for the G7.
Inflation
(Year-Over-Year % Change)
4.0 3.8
3.4
3.5 3.2
2.9 3.0
3.0 2.8 2.7
2.4
2.5 2.3 2.2 2.1
1.9 1.9 1.9 2.0 1.9 1.9
2.0 1.8
1.5
1.0
0.5
0.0
2003 2004 2005 2006 2007 2008
Canada U.S. G-7
Source: OECD Economic Outlook, No. 86, November 2009
9
10. ….Low Interest Rates
Canada’s solid fiscal situation and low inflation has led to lower interest rates.
The sharp decline in interest rates in both Canada and the U.S. in early 2009 were a
consequence of the global economic downturn. Rates in the U.S. were lowered more
than in Canada because of the greater severity of the slump in the U.S. economy.
Daily Yields (%)
Long-Term Bond Yields (%)
4.0
5.5 U.S.
U.S.
5.0 3.8
4.5
3.6
4.0
3.5 3.4
Canada
3.0
3.2
2.5 Canada
2.0 3.0
9 09 9 09 1 0 10 10 0 0 10
1.5 v-0 o v- ec-0 e c- a n- an- an- eb -1 eb -1 ar-
No N D D J J J F F M
6- 20 - 4- 18 - 1- 15 - 29 - 12- 26 - 12 -
05 06 07 08 09 10
n- n- n- n- n- n-
Ja Ja Ja Ja Ja Ja
Source Canada: Government of Canada 10-Year Bond: March 12, 2010
Source U.S.: U.S. Treasury, Constant Maturity 10-Year Bond: March 12, 2010 10
11. …and Great Potential for Future Economic
Prosperity
According the Prosperity Potential Index*, Canada ranks 1st in the G7 and 6th among
30 developed countries in terms of the likelihood for economic prosperity in the
year 2020.
Prosperity Potential Index - Ranking of Top Ten
Countries
1st
2nd
3rd
4th
5th
Rank
6th
7th
8th
9th
10th
ds
nd
d
d
rg
ay
k
en
nd
da
lan
ar
lan
ou
lan
ala
rw
na
nla
ed
nm
Ice
er
mb
No
Sw
Ca
er
Ze
Fi
itz
De
th
xe
Sw
w
Ne
Lu
Ne
* The Prosperity Potential Index measures the likelihood of economic prosperity in the year 2020 for 30 developed
countries. The ranking is based on data from the OECD on areas that spark future economic development:
demographics, trade, energy, technology and education. Source: Canadian Business Magazine, October 26, 2009
11
12. Canada – Solid Reasons to Invest
II A Cost-Competitive
Business Environment
12
13. Canada’s Positive Business Climate…
Canada understands the importance of its business community and has created an
environment to encourage its success.
Canada is the best place for doing business among the G7 over the next five years
according to the Economist Intelligence Unit and it ranked fifth overall out of 82
countries in the Economist Intelligence Unit’s global business rankings for the
forecast period (2010-14), down slightly from third from the historical period (2005-
2009).
The country also ranks well for its infrastructure, market opportunities, low taxes,
and foreign trade and exchange controls.
Business Environment of Top Ten Countries,
Rank for Forecast Period 2010-2014
1st
2nd
3rd
4th
5th
Rank
6th
7th
8th
9th
10th
nd
d
k
ay
e
ng
a
nd
en
da
lan
ar
ali
or
ala
rw
Ko
na
nla
ed
nm
ap
str
er
No
Sw
Ca
Ze
Fi
ng
ng
Au
itz
De
Si
Sw
Ho
w
Ne
Source: The Economist Intelligence Unit, March 2010
13
14. …is a Safe Haven for Business Investment…
According to Dun & Bradstreet’s Global Risk Indicator (GRI)*, Canada is considered
one of the world’s safest countries to invest, due to the relatively mild slowdown
experienced as a result of the global credit crisis.
Despite being earmarked as having a deteriorating outlook, Canada ranks 1st in the
G7 and 2nd among the 131 countries evaluated in the GRI study.
Highest Ranked Countries in Terms of the Global Risk
Indicator*
1st
2nd
3rd
4th
5th
Rank
6th
7th
8th
9th
10th
ali
a
ad
a ay nd tri
a
an
d
nc
e
an
y rg ds
str rw rla us inl ou an
an No tze A Fra rm mb er
l
Au C
wi
F Ge xe th
S Lu Ne
•The Global Risk Indicator (GRI) assesses economic, commercial, external and political risk to provide risk ratings for 131 countries worldwide.
•Source: Dun & Bradstreet, August 2009
14
15. …Involving Relatively Few Steps in
Establishing a Business…
Regulations pertaining to the creation of new businesses are considerably more flexible
in Canada than those in the rest of the G7.
Canada ranks first among the G7 and OECD countries for the lowest number of
procedures required to establish a new business.
Number of Procedures*
10
9
9
8
8
7
5.7 6 6 6
6
5
5
4
3
2
1
1
0
Canada France OECD U.S. Italy U.K. Japan Germany
Average
Source: Doing Business in 2010 - The World Bank Group, 2009 * A "procedure" is defined as any interaction of the company founder
with external parties (government agencies, lawyers, auditors, notaries, etc). Interactions between company founders or company
officers and employees are not considered as separate procedures. For example, an inauguration meeting where shareholders elect
the directors and secretary of the company is not considered a procedure, as there are no outside parties involved.
15
16. …and Relatively Less Time
Canada ranks first among the G7 for the fewest number of days required for
establishing a new business.
Duration (days)
25 23
20 18
15 13 13
10
10
7
6
5
5
0
Canada U.S. France Italy U.K. OECD Germany Japan
Average
Source: Doing Business in 2010- The World Bank Group, 2009
16
17. Canada also has Low Business Costs…
For the seventh consecutive time, KPMG’s Competitive Alternatives study finds Canada
leads the G7 with the lowest business costs.
Canada is the lowest-cost G7 country in 11 of the 17 industries analyzed by KPMG’s
Competitive Alternatives 2008 report: aerospace, agri-food, chemicals, medical
devices, pharmaceuticals, precision manufacturing, telecommunications,
biotechnology, product testing, software design and Web and multimedia.
Percentage Cost Advantage (Disadvantage) Relative to
the United States
2 0.6
0.0
0
a
any
nce
an
.
.
y
U.K
U.S
-2
nad
Ital
Jap
rm
Fra
Ca
-4
Ge
-3.6
-6
-8 -7.1
-7.9
-10
-12
-14
-14.3
-16
-18 -16.8
Source: KPMG Competitive Alternatives 2008
17
18. …and Offers an Overall Tax Advantage for
Firms to Expand…
As a result of corporate income tax reductions introduced by the Government since
2006, Canada will have the lowest statutory corporate tax rate in the G7 by 2012.
Canada is on track to having the lowest overall tax rate on new business investment
(marginal effective tax rate (METR*)) in the G7 in 2010.
International Comparison of Statutory General Corporate Tax
Rates in 2012
45
39.5 39.1
40
34.4
35
30.2
30 28.0 27.5
%
25.0
25
20
15
10
Japan U.S. France Germany U.K. Italy Canada
Source: The Federal Budget, Finance Canada, March 4, 2010 and the OECD Tax Database.
* METR takes into account federal and provincial statutory corporate income tax rates, deductions and credits available in the corporate tax
system and other taxes paid by corporations, including provincial capital taxes and retail sales taxes on business inputs.
18
19. …with Quality R&D as its Major Benefit
Relative Generosity of
Canada offers one of the most R&D Tax Incentives*
favorable tax treatments for R&D (Index: Canada = 100.0)
among the G7.
Canada provides a system of
tax credits and accelerated tax France 123.9
deductions for a wide-variety
of R&D expenditures.
Canada 100.0
Eligible costs include: salaries,
overhead, capital equipment,
and materials. Japan 85.9
These tax-based incentives permit
firms to significantly reduce R&D U.K. 84.0
costs through direct investment or
sub-contracting in Canada. U.S. 80.6
Italy 77.0
Germany 76.1
50 60 70 80 90 100 110 120 130
Source: Warda, Jacek, Rating Measuring Canada's R&D Tax Incentives: May 22, 2009
Note: Relative generosity is determined by dividing the after tax cost of performing $1.00 of R&D by 1 less the corporate tax rate.
Results are indexed to the relative generosity of Canada's system of tax-based support for R&D. The higher the ratio the more competitive the tax system.
* Calculations based on large firms
19
20. Canada Offers Competitive and Affordable
Business Telephone Charges…
Canada’s business telephone charges are relatively low among G7 countries.
Annual Business* Telephone Charges
(US$ PPP**, Price per line)
Germany 495
U.S. 550
Canada 723
France 811
Italy 896
Japan 990
U.K. 1243
0 200 400 600 800 1000 1200 1400
* Business (small and medium-sized enterprises) basket of telephone charges include fixed access and 84,000 calls broken down according to
distance, destination (fixed, mobile and international), time of day over a one-year period.
**PPP = Purchasing Power Parity (equalization of purchasing power of different countries in their home countries for a given basket of goods)
Source: OECD Communications Outlook 2009
20
21. …and Low Residential Telephone Charges
Canada has the lowest residential telephone charges among the G7 and
OECD countries.
Annual Residential* Telephone Charges
(US$ PPP)
Canada 391
U.S. 579
U.K. 705
Germany 742
France 909
Italy 910
Japan 982
0 200 400 600 800 1000 1200
* High usage basket of residential telephone charges include fixed access and 2,400 calls broken down according to distance, destination
(fixed, mobile and international), time of day over a one-year period.
** PPP = Purchasing Power Parity (equalization of purchasing power of different countries in their home countries for a given basket of goods)
Source: OECD Communications Outlook 2009
21
22. Canada has Sound Financial Institutions…
With the world in the midst of the current financial crisis, investors can take comfort
in the fact that Canada has the soundest banking system in the G7.
Five of the 50 safest banks are in Canada, according to a recent study: Royal Bank of
Canada (10th), Toronto Dominion Bank (14th), Scotiabank (22nd), Bank of Montreal
(31st) and CIBC (37th).**
Soundness of Banks* World Rank
1st
2nd
3rd
4th
5th
Rank
6th
7th
8th
9th
10th
ile
il
bia
nd
a
a
da
e
ma
ng
az
ali
ri c
or
Ch
ala
na
Ko
mi
na
Br
ap
str
Af
Ca
Na
Ze
Pa
ng
Au
ng
uth
Si
Ho
w
So
Ne
*Standing among 133 countries. Ranking based on the degree of soundness of financial institutions. Source: Global Competitiveness Report, 2009-2010
** Standing among 500 world banks based on total assets and long-term credit ratings. Source: Global Finance Magazine , October 2009
22
23. …Easy Access to Capital…
Canada was able to weather the storm as world credit markets collapsed in 2008 due
to the stability of its equity markets and strength of its economic policy. In 2008, the
Milken Institute ranked Canada 1st in its Capital Access Index.
Capital Access Index (Maximum = 10)
Top 10 Regions/Countries 2008
8 7.90
7.82
7.76
7.70
7.64
7.56
7.5
7.28 7.27 7.26
7.21
7
ng
ds
e
d
a
ay
da
d
K.
S.
lan
or
ali
an
lan
Ko
rw
U.
U.
na
ap
str
nl
er
No
Ca
er
ng
ng
Fi
Au
itz
th
Si
Ho
Sw
Ne
*Standing among 117 countries. Milken Institute, July 2009
23
24. … and Stands Among Leaders in IT
Industry Competitiveness
Canada ranks second behind the U.S. among the G7 and fourth in a 66-country review
of the countries best suited to provide an optimally competitive environment for
information technology (IT) firms.
IT Industry Competitiveness Index* World Rank
1st
2nd
3rd
4th
5th
Rank
6th
7th
8th
9th
10th
S. d n a ds K. lia ar
k re ay
U. lan de ad an U. stra po rw
Fi
n e
Ca
n
er
l nm a
No
Sw th Au De ing
Ne S
*Standing among 66 countries. Index based on the following six categories of quantitative and qualitative indicators: overall business
environment; IT infrastructure; human capital; legal environment; R&D environment; and support for IT industry development.
Source: Economist Intelligence Unit, September 2009.
24
25. Canada – Solid Reasons to Invest
III A Dynamic
Workforce
25
26. Canada has one of the World’s Best-
Educated Workforces…
The overall skill level of Canada’s workforce ranks high among competing
countries.
Canada has the highest percentage of individuals achieving at least college or
university education, among OECD member countries.
Higher Education Achievement Among All Countries
60
56.7
55.0 54.0
55 53.0
51.2
50.0
50
44.0
45
%
42.0 42.0 42.0
41.0 41.0 40.5
40
35
30
k
e
ng
a
nd
ce
De y
um
da
uth n
d
an
l
Ne srae
a
ar
re
or
pa
lan
rw
a la
an
Ko
na
iw
nm
ap
lgi
Ko
Ja
Ire
Ta
No
Fr
I
Ca
Be
Ze
ng
ng
Si
Ho
w
So
Source: IMD, World Competitiveness Yearbook 2009
26
27. …is a World Leader in Youth Academic
Performance…
Canadian schoolchildren ranked second in the world in the OECD Program for
International Student Assessment (PISA).
The PISA survey is conducted annually among 400,000 school pupils across 57
countries, and evaluates the capacity of 15-year old schoolchildren to
understand and solve academic problems.
It also provides insights into the reading ability and mathematical knowledge of
schoolchildren.
PISA Score (points)
600
553
550
529
521
514 510 509 505 504 502 501 500
500
450
s
d
k
d
y
d
en
e
da
um
K.
nd
an
ar
la n
lan
lan
ag
U.
na
ed
nm
lg i
rla
rm
er
I re
Fin
er
Sw
Ca
Be
Av
t he
Ge
De
itz
Sw
CD
Ne
OE
Source: OECD 2007
27
28. …and Manufacturing Sector Innovative
Performance
Canada ranked 3rd in the G7 and 14th in a 110-country study measuring
innovation performance in the manufacturing sector.
Canada stood in the top tier, ranking ahead of traditionally strong innovators
such as Britain (15th), Israel (16th), Germany (19th), France (20th) and Australia
(22nd).
International Innovation Index* World Rank
8th 9th
14th 15th
19th 20th
Index
38th
U.S. Japan Canada U.K. Germany France Italy
*Standing among 110 countries. Index based on government support for innovation - through tax and education policies, and the quality of infrastructure; the
performance of innovative companies, measured by factors such as high-tech exports, the amount of intellectual property generated and employment growth.
Source: The Innovation Imperative in Manufacturing – How the United States Can Restore its Edge, Boston Consulting Group, March 2009
28
29. Canada has Superior Management Training…
Canada ranks first in the G7 and second in a 133-country study of locally available
management education in first-class business schools. (see chart below)
In addition, five Canadian schools of management are ranked among the top 100 in
the world according to the Financial Times (UK) Global MBA rankings for 2009.
University of Toronto (Rotman) 47th; University of Western Ontario (Ivey) 47th; York
University in Toronto (Schulich) 49th; University of British Columbia (Sauder) 71st ;
and University of Alberta 77th.
Management Education* World Rank
1st
2nd
3rd
4th
5th
Rank
6th
7th
8th
9th
10th
nd da ce S. re in um ata
r
ar
k
lan
d
rla na an U. po pa lgi m
tze Ca Fr ing
a S
Be
Q n Ice
wi S De
S
*Standing among 133 countries. Index based on the quality of Management education in first-class business schools.
•Source: Global Competitiveness Report, 2009-2010
29
30. … the Highest Concentration of
Entrepreneurs…
From a global standpoint, Canada has the highest concentration of entrepreneurs
within its working population.
Businesses, including start-ups, develop new products and services and get them to
market and conceive new types of organization and production and put them into
practice.
New companies also serve to remind existing firms of the need to adapt and continue
innovating.
Number of Entrepreneurs as a Percentage of the
Working Population
20
15.9
15
11.5 11.2 11.1 11.1
10.1 9.7
10 8.6 8.5
6.9
5
0
s
d
k
d
y
en
da
um
K.
S.
nd
an
ar
lan
lan
U.
U.
na
ed
nm
lgi
rla
rm
Ir e
Fin
Sw
Ca
Be
the
Ge
De
Ne
Source: Statistics Netherlands 2008
30
31. …PC and Internet Users…
Canada has a technology savvy population and workforce. It is second to the
U.S. among the G7 in terms of personal computers and second to Japan
among the G7 with respect to Internet users per capita.
Personal Computers Internet Users
Per 1,000 Inhabitants Per 1,000 Inhabitants
900 869 800 774 773 771
850 819
750 736
800 771
750 691
700
750
701
643 642
700 673 650
650 612 600
600
550
550
500 500
ly
ly
Ca .S.
Ge .K.
S.
Ge .K.
Fr y
Fr y
ce
n
ce
Ca n
da
da
an
an
Ita
Ita
pa
pa
U.
U
U
U
an
an
na
na
rm
rm
Ja
Ja
Source: IMD, World Competitiveness Yearbook 2009
31
32. …and a Readily Available Army of Qualified
Engineers…
Canada leads the G7 in terms of the availability of qualified engineers in its
labour market.
Qualified Engineers Availability Index*
8.0
7.5
7.13
7.01
7.0
6.55
6.5 6.37
6.16
Index
6.0 5.85
5.5 5.30
5.0
4.5
4.0
Canada France Japan U.S. Germany Italy U.K.
Source: IMD, * Rank among 57 economies considered in the World Competitiveness Yearbook 2009.
32
33. Canada – Solid Reasons to Invest
IV A Solid
Infrastructure
33
34. Canada’s Highly Globalized Infrastructure….
Due to its rapidly growing prominence as an outsourcing market of choice, Canada
ranked second in the G7 and eighth among 72 countries profiled in the recent A.T.
Kearney/Foreign Policy Magazine Globalization Index* which measures economic
integration, personal contact, technological connectivity and political engagement.
In technological connectivity, one of the four components of the index, Canada’s
ranking rose from sixth place in 1999 to second in 2006. It maintained this position
in 2007.
Globalization Index Rankings, 2007*
7th 8th
12th
22nd
25th
28th
Index
34th
U.S. Canada U.K. Germany France Japan Italy
Source: A.T. Kearney/Foreign Policy Magazine, 2007 * Standing based on 12 characteristics under the headings of trade, FDI, telephone,
travel, remittances & personal transfers, internet users, internet hosts, secure servers, international organizations, UN peacekeeping,
treaties and government transfers.
34
35. ….is Driven by a Dynamic Two-Way
Investment Process
Over the past decade, Canada has witnessed a substantial growth in both inward and
outward FDI reflecting its strong connection to global supply chains.
Canada’s inward FDI stock reached C$505 billion in 2008, a 2 ½ -fold increase from C$219
billion in 1998.
As for Canada’s outbound FDI, the expansion of Canadian direct investment abroad (CDIA)
has been equally spectacular, rising from C$263 billion in 1998 to C$637 billion in 2008, a
2 ½ -fold increase.
Canada's Inward and Outward FDI Stock ($Billion)
600 CDIA
500
FDI
400
300
200
100
0
19 19 20 20 20 20 20 20 20 20 20
98 99 00 01 02 03 04 05 06 07 08
Source: Statistics Canada, April 8, 2009 35
36. The United States is
Canada’s Largest Source of FDI…
In 2008, the U.S. share of foreign direct investment (FDI) in Canada stood at
58.2%, demonstrating its confidence in Canada’s business climate.
Geographic Distribution of Inward FDI Stock in Canada
2008
United Kingdom
10.8%
United States 58.2%
Netherlands 6.7%
France 3.7%
Switzerland 3.0%
Japan 2.6%
Others 15.1%
Source: Statistics Canada, April 8, 2009
36
37. …and Companies from Other Countries are
also Increasing their Investments in Canada
From 2000-2008, EU countries increased their FDI in Canada by C$37 billion and other
non-EU/US countries increased their investment in Canada by C$49 billion, demonstrating
their confidence as well in Canada.
Foreign direct investment in Canada
by geographic area of origin 1990-2008
600
Billion
$Cdn
500 Others
400
300
US
200
100
EU
0
'90 '92 '94 '96 '98 '00 '02 '04 '06 '08
Source: Statistics Canada, May 4, 2009
37
38. Canada Welcomes Foreign Investment in
Various Industries
Increasingly more investment goes toward industries such as manufacturing,
mining and oil and gas extraction and toward the management of companies
and enterprises. Since 2000, significant growth in terms of FDI has occurred
in the mining and oil and gas extraction industry and the utilities industry.
Average Annual Growth Rates of Foreign Direct
Investment by Industry (%) 2000-2008*
Mining and oil and gas extraction 17.9 19.3
Utilities 0.7
15.0
11.6
Management of companies and enterprises 13.3
All other industries 13.2 2.1
2008 Distribution (%)
Retail trade 12.8 4.0
Construction 9.4 0.7
Accommodation and food services 8.8 0.6
Transportation and warehousing 8.0 0.9
Finance and insurance 11.5
6.4
Professional, scientific and technical services 5.5 2.1
OVERALL 5.0 100.0
Wholesale trade 4.7 6.6
Information and cultural industries 1.7
4.1
Agriculture,forestry, fishing and hunting 2.0 0.2
Manufacturing 33.3
1.8
0.9
Real estate and rental and leasing -4.0
3.8
Information and communication technologies -5.9
-20 -10 0 10 20 30
Source: Statistics Canada, May 4, 2009
* North American Industry Classification System (NAICS) 38
39. Canada – Solid Reasons to Invest
V Easy Access
to Markets
39
40. Canada Offers Efficient Flows of Goods
Across Borders…
Canada leads the G7 and ranks 6th among 121 countries in terms of the enabling
trade index, which measures the effectiveness of the combined factors of market
access, border administration, transport & communications infrastructure, and
business environment towards the efficient flow of goods over borders and to their
final destination.
Enabling Trade Index
5.97
6.0
5.8
5.57
5.6
5.44 5.44 5.44
Index
5.4 5.35 5.33 5.33
5.29 5.27 5.27
5.24
5.2 5.12
5.07
5.02
5.0
4.8
Au r g
itz g
Sw k
Ho pore
y
ay
Ze s
Ge nd
a
De d
t h ia
Ca n
da
d
S
Lu man
d
ar
Sw Kon
lan
ali
e
lan
U.
Ne str
ou
Ne rlan
rw
a la
na
ed
nm
str
er
Au
Fin
mb
a
No
r
ng
ng
e
xe
Si
w
Global Enabling Trade Report 2009, World Economic Forum.
40
41. …a Streamlined Trans-Border
Transportation System…
The North American market is serviced through a well-integrated transportation
system, which is among the world’s best.
Automated permit ports, transponder identification systems and joint processing
centres are being tested and deployed for easy movement of goods
Bottom line – the border system is one of the world’s most efficient.
Annual Transborder Crossings
Total Number of Trucks and Canada-U.S. Air Passengers
(Two-way movements)
25
Air
20
20.8 million
15
Millions
Truck 11.5 million
10
5
0
1984 1988 1992 1996 2000 2004 2008*
Source: Statistics Canada and Transport Canada, 2008 (* Preliminary data for 2008 air passengers)
41
42. …and Direct Access to the NAFTA Market
Canadian-based
businesses have
access to one
market of 452
million consumers
500 km with a combined
GDP of over
St. John's US$16.4 trillion.*
Edmonton
1000 km
Saskatoon Québec
Many Canadian
Charlottetown production hubs are
Calgary Regina
Winnipeg Fredericton
Victoria Vancouver
Halifax actually closer to
Ottawa Montréal
Seattle U.S. markets than
Milwaukee
Toronto Boston American
Windsor
Chicago
Detroit
New York
Cleveland
Philadelphia
production sites —
Pittsburgh Baltimore of Canada’s 20
Washington
St. Louis
largest cities, 17 are
San Francisco Denver within an hour and
half drive of the U.S.
Atlanta
Los Angeles
Direct air service
between major cities
Houston in Canada and the
Miami
U.S. has nearly
doubled in the last
six years.
* Source: CIA World Factbook, March 2010
Mexico City
42
43. Canada has Efficient Transport Linkages
Tying North America with Asia
A reliable and efficient transportation system is key to effective participation
in global supply chains.
In October 2006, Canada has launched the Asia-Pacific Gateway and Corridor
Initiative, an unprecedented alignment of public and private sector
investments to strengthen Canada’s position as a fast, efficient and secure
gateway between North America and Asia.
These investments will improve the flow of people, goods and services
across Canadian rail, roads, bridges and through our ports and airports.
43
44. Canada – Solid Reasons to Invest
VI An Excellent
Place to Live
44
45. Canada is a Desirable Location to Live,
Work, Study and Invest…
Canada ranks first in a 60-country study that measures the potential of a country as
an ideal place to live, work, study and invest.
Location Desirability Index*
65
64
Location Desirability Score
63 62.3
62 61.1 61.1 61.0 60.7 60.5
61
60 59.6
59.0
59
57.7
58 57.1
57
56
55
ly
a
y
d
en
n
da
ce
.
.
K
S
an
ali
lan
pa
Ita
U.
U.
an
na
ed
str
rm
Ja
er
Fr
Sw
Ca
Au
Ge
itz
Sw
•Index ranging from 0-100 based on five components of a country’s potential for immigration and investment: (a) Willingness
to live and work for a substantial period in the country; (b) Quality of life; (c) Good place to study for educational
qualifications; (d) The country has businesses I’d like to invest in; (e) Equal opportunity.
Source: Red Hot Locations, London U.K. 2009
45
46. … and has the Best Overall Quality of
Life Among Countries…
Canada has the best overall quality of life among the G7.
Quality of Life Index*
10.0
9.5 9.21
9.05
9.0
8.5 8.26 8.18
Index
8.0 7.68
7.5
7.05
7.0 6.70
6.5
6.0
Canada Germany France U.S. U.K. Japan Italy
Source: IMD, * Rank among 57 economies considered in the World Competitiveness Yearbook 2009.
46
47. …with Exceptional Quality of Life in
Cities….
According to a recent annual quality-of-life ranking of 215 world cities, four
Canadian cities ranked among the top 25.
Overall Quality of Life Ranking (Top 25 Cities)
(Index: New York City = 100.0 )
110
108.6
108.0
107.9
107.4
107.4
107.2
107.0
106.8
106.5
106.3
106.2
105.9
105.7
105.4
105.3
106
105.0
105.0
104.8
104.6
104.5
104.3
104.2
104.1
103.7
103.6
102
98
r f t g l g
na ich eva ve nd dor ich fur rn ey en on am els to wa erlin urne our holm rth ea ur lo lin
ien Zur en cou ckla sel un ank Be ydn hag lingt terd uss oron tta B lbo mb k Pe ontr emb Os Dub
V G an Au Dus
M Fr S en el ms Br T O e oc M ur
V op W A
e
M Lux St N
C
Source: Mercer Human Resources Consulting: April 2009
47