39
1 CETA: A CATALYST FOR INCREASED TRADE, INVESTMENT AND PROSPERITY Craig Alexander Senior Vice-President and Chief Economist, The Conference Board of Canada November 2017
1
CETA A CATALYST FOR INCREASED TRADE INVESTMENT AND PROSPERITY
Craig AlexanderSenior Vice-President and Chief Economist The Conference Board of CanadaNovember 2017
2
bull The Canada-European Union Comprehensive Economic and Trade Agreement (CETA) will create jobs strengthen economic relations and boost trade and investment It covers
bull trade in goodsbull trade in servicesbull labour mobilitybull investment protectionbull intellectual property andbull government procurement
Canadian-European Union Comprehensive Economic And Trade Agreement
3
bull Helps to generate growth and jobs in EUbull Creates a level playing field in Canada for EU companies big and smallbull Lowers prices and widens choice for Europes consumersbull Cuts customs duties for exporters and importersbull Reduces some other costs for EU businessesbull Makes it easier for EU firms to sell services in Canada bull Allows EU firms to bid for Canadian public contracts bull Helps Europes rural communities market distinctive food and drinksbull Protects Europes innovators and artistsbull Recognizes each others professional qualifications bull Encourages Canadian companies to invest more in Europebull Protects peoples rights at work and the environment
European Benefits from CETA
4
bull Virtually all tariffs reduced for its exports Sectors that will benefit most include machinery amp electrical equipment motor vehicles amp parts optical amp medical equipment mineral fuels (including petroleum)
bull Scope to increase trade in services main services export from Finland to Canada is telecommunication services but opportunities in financial services as well
bull CETA will allow more Finnish professionals to practice in Canada including lawyers accountants architects and engineers
bull Finland access to Canadarsquos procurement market Finland has particular strengths in high-tech environmental protection and green energy
bull Finnish innovations copyrights and trademarks will enjoy same protection as in Europe when CETA fully implemented
bull CETA improves mobility for key personnel and there is framework for professional qualification recognition
bull CETA will make it easier for firms to invest as threshold for government review of investments raised to 15 billion euros It will also help to attract Canadian investment into Finland
Specific Gains for Finland from CETA
5
bull The provisional application of CETA means that the vast majority (+95) of components of the deal have come into effect
bull The areas not provisionally applied are primarily certain parts of the Investment and Financial Services Chapters This includes the section on investment protection and the related investment dispute settlement mechanism
bull Nevertheless the provisional application will help incent increased Canada-EU trade and investment It will also help increase awareness of opportunities in Europe broadly ndash not just EU
Provisional Launch of CETA to Bring Gains
6
bull CETA helps reinforce Canadarsquos position that international trade and investment brings benefits although a key new focus is progressive trade
bull Rising income inequality across the advanced world is a concern
bull The gains from trade and investment has not lifted all equally
bull Progressive trade agenda supports a more inclusive trade policymaking process to promote ambitions of SMEs and address inequalities that hold back the ability of women minorities and the poor to participate fully in and benefit from international trade
bull Progressive trade focus can generate more public support for greater trade and investment opportunities
Canada Champions a Progressive Trade Agenda
7
A Primer on Canadarsquos Economy amp Opportunities from CETA
8
-30
-20
-10
00
10
20
30
40
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f
Canadian Economy Delivers Strong Performance Canada real GDP per cent change
Sources Statistics Canada The Conference Board of Canada
9
bull Canada had a recession in 200809 but itrsquos financial system remained solid
bull No banks failed and there was no government financial bailout World Economic Forum ranks Canada as having one of the soundest banking systems
bull Government fiscal balances were and remain healthy allowing significant government stimulus
bull Low inflation and well anchored inflation expectations allowed monetary stimulus without exceptional policies ndash like those of ECB
bull The recession reflected the global downturn that created an external shock Canada soon recovered It was then hit by global commodity correction in 2015 However economy has now adjusted and growth has rebounded
Robust Underlying Fundamentals
10
0
20
40
60
80
100
120
140
160
180
200
Greece Japan Portugal Italy Spain UnitedKingdom
UnitedStates
India China Canada
Source International Monetary Fund
Very Low Federal Government Debthellip Govrsquot net debt per cent of GDP 2017 estimates reporting gross debt
11
Source Department of Finance
hellipAllowed Sustained Government Stimulus to Boost Growth amp Address InequalityFederal government balance public accounts basis $ billions
-60
-50
-40
-30
-20
-10
0
10
20
12
00
05
10
15
20
25
30
35
40
00
05
10
15
20
25
30
35
40
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f
Consumer Price Index Bank of Canada Target
Low Inflation Facilitated Monetary Stimulusper cent change
Sources Statistics Canada The Conference Board of Canada
13
50
60
70
80
90
100
110
120
130
Unemployment Rate Natural Rate
Sources Statistics Canada The Conference Board of Canada
RecoveryExpansion Led to Low Unemploymentper cent
14
00
10
20
30
40
50
60
70
99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f 19f
Bank of Canada now Slowly Withdrawing Stimulus Reflecting Domestic StrengthBank of Canada Overnight Target Rate
Sources The Conference Board of Canada Statistics Canada
15
00
05
10
15
20
25
30
35
40
45
50
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f
Going Forward Shift from Domestic Growth towards Exports amp InvestmentReal personal consumption per cent change
Sources Statistics Canada The Conference Board of Canada
16
40
45
50
55
60
65
70
75
80
85
90
50100150200250300350400450500550600650700
Nominal trade index 1981=100 Trade as a share of GDP per cent
Source Statistics Canada
Canada is a Trading Nationleft axis nominal trade index (exports + imports) 1981=100 right axis trade as a share of GDP per cent
17
Canada Free Trade Agreements Gives Preferential Access to Many Markets
FTAs in force bull Canada - EU Comprehensive Economic and Trade Agreement (CETA) ndash September
21 2017 (provisional)bull Canada - Ukraine - August 1 2017bull Canada - Korea - January 1 2015bull Canada - Honduras - October 1 2014bull Canada - Panama - April 1 2013bull Canada - Jordan - October 1 2012bull Canada - Colombia - August 15 2011bull Canada - Peru - August 1 2009bull Canada - European Free Trade Association - July 1 2009bull Canada - Costa Rica - November 1 2002bull Canada - Chile - July 5 1997bull Canada - Israel - January 1 1997bull North American Free Trade Agreement (NAFTA) - January 1 1994Source Global Affairs Canada
18
-10
00
10
20
30
40
50
60
Canada Benefits from Improving Global GrowthWorld real GDP per cent change
Source IMF
19
NAFTA Renegotiation Critical as Canada Plugged into US Supply ChainsCanadian Merchandise Exports by Destination in 2016 per cent
Source Innovation Science and Economic Development Canada trade online database Conference Board of Canada
76
10
8 3 3
US
Asia
Europe
Mexico amp S America
Rest of World
20
bull US protectionism a concern
bull NAFTA is 23 years old There is scope to modernize the deal to benefit of all countries
bull Canadarsquos greatest ally is the vast number of US businesses that will want to keep border open to mutual benefit North American supply chain too valuable to disrupt
NAFTA can be Modernized
21
US Protectionism Highlights Need to Diversify Trade GeographicallyShare of Canadian Exports by Destination Non-US Markets 2016 per cent
Source Innovation Science and Economic Development Canada trade online database Conference Board of Canada
22
bull Canadian economy more diversified than many think Resource sector is 13 of economy Lotrsquos of opportunity to in wide array of products and services
bull Economic clusters are groups of firms and institutions that are located near one another and draw productive advantage from their mutual proximity and connections
bull Clusters are key drivers to economic growth and trade-oriented clusters serve markets beyond the region in which they are located
bull Famous US clusters include Wall Street Silicon Valley and Hollywood
bull Government of Canada looking to facilitate lsquosuper clustersrsquo
Canadian Economy is Diversified and Comprises Many Key Clusters
23
Mining and Energy-Related Clusters
Edmonton
Calgary
Saskatoon
Regina
Sudbury
Saint John
St Johnrsquos
24
Manufacturing Clusters
Winnipeg
LondonHamilton
Oshawa
Windsor
Saguenay
Trois-Riviegraveres
Sherbrooke
Abbotsford
Montreacuteal
25
Information amp Communications Technology (ICT) Clusters
Vancouver
Kitchener-Waterloo
Toronto
Ottawa
Montreacuteal
26
Other Key Clusters
VictoriaTourism
AbbotsfordAgriculture
St Catharines-NiagaraTourism
TorontoFinance
Queacutebec CityInsurance
MonctonInsurance
HalifaxTransportation
MontreacutealManuf
VancouverTransportation
WinnipegTransportation
OshawaUtilities
27
Sources Trade Data Online calculations by The Conference Board of Canada
Scope to Expand Exports to EuropeCanadian merchandise exports (Index 2007 = 100)
60
80
100
120
140
160
180
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
28
Canadian Goods Exports to Finland(share of top 10 goods and in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
25
22
16
15
5
3 3
2 1 1 7 Aerospace
Mineral Fuels amp Oils
Ores
Motor Vehicles
Boilers Machinery amp Appliances
Electrical Machinery amp Equip
Medical amp Technical Instruments
Plastics
Oil Seeds
Tools amp Cutlery
Other
$671Meuro450MShare of Cdn Exports 01
29
Sources Trade Data Online calculations by The Conference Board of Canada
Imports from Europe Rising Canadian merchandise imports (Index 2007 = 100)
758595
105115125135145155165
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
30
Canadian Goods Imports From Finland(share of top 10 goods in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
23
11
9
9 8
7
6
6
3 2
16 Boilers Machinery amp Appliances
Motor Vehcles
Mineral Fuels amp Oils
Pharmaceutical Products
Paper
Electrical Machinery amp Equip
Medical amp Technical Instruments
Ores
Nickel
Rubber
Others
$572Meuro353MShare of Cdn Imports 02
31
Sources Statistics Canada calculations by The Conference Board of Canada
Canada and Europe Direct Investment on the Rise(stocks C$ billions)
120
140
160
180
200
220
240
260
280
300
320
2007 08 09 10 11 12 13 14 15 16
Canadian Direct Investment in Europe European Foreign Direct Investment in Canada
32
bull Canada is welcoming to business and investment The World Bank rates Canada as one of the easiest places to start a business Forbes and the Economist rank Canada as a leading location to do business
bull Being a small economy Canada lacks adequate domestic savings to meet all investment needs Hence Canada needs to attract foreign capital and provide a good experience to overseas investors
bull Over the last decade Canada has had the second largest foreign direct investment flows per capital in the G20 nations Since 2012 Inward FDI to Canada has been 54 of GDP highest in G7 and higher than the 29 G-7 average
bull Canadarsquos free trade agreements make it ideal as location to tap global markets
bull Canadian taxation makes investment attractive but one of its greatest strengths is the quality of the labour force
Many Business Advantages for Investment
33
Source OECD Statistics
Canada has Low Corporate Taxes Rates and Generous RampD Incentiveslarge business corporate income tax rate includes federal and provincialstate government taxes
20
25
30
35
40
45Canada US Mexico
34
Canada has a Highly Educated Workforcepercentage of the population aged 25-64 with post-secondary education in 2016
Source OECD
200
250
300
350
400
450
500
550
600
35
Strong Support for Immigration and Diversity
0
20
40
60
80
100
120
140
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
Net immigration (000s left) Net immigration as a share of total population change (per cent right)
36
Sources Immigration Refugees and Citizenship Canada The Conference Board The Conference Board of Canada
Newcomers to Canada Contribute to the Economy and add to Multiculturalism
627
241
118
14
In 2015 63 of immigrants to Canada fell under Economic Class
EconomicSponsored FamilyResettled Refugee amp Protected Person in CanadaAll Other Immigration
37
00 05 10 15 20 25 30
NL
NB
NS
PEI
Sask
Man
Que
Ont
BC
Alta
Sources The Conference Board of Canada Statistics Canada
Broad-based Growth in 2017 amp BeyondReal GDP per cent change 2017-22 basic prices $2007
Canada 21
38
bull CETA can help to boost growth and prosperity in Canada and EU if the opportunities are seized
bull Canada is a small economy with big potential It is a trade-friendly investment-friendly market and ideal platform for tapping North American Economy or beyond
bull Canada has strong fundamentals competitive corporate tax rates generous RampD tax incentives highly educated population highly tolerant and diverse population well anchored monetary policy sound fiscal finances
bull It is a modern-knowledge based economy Resources are still a key sector but so are other key clusters like ICT Finance and other advanced manufacturing and services
bull Canadarsquos economy is strengthening It is resisting the global shift towards protectionism leaning against inequality and building sustainable economic growth for the long-term
Key Messages
conferenceboardca
CraigA_Eco
wwwtradecommissionergccaCETA website
2
bull The Canada-European Union Comprehensive Economic and Trade Agreement (CETA) will create jobs strengthen economic relations and boost trade and investment It covers
bull trade in goodsbull trade in servicesbull labour mobilitybull investment protectionbull intellectual property andbull government procurement
Canadian-European Union Comprehensive Economic And Trade Agreement
3
bull Helps to generate growth and jobs in EUbull Creates a level playing field in Canada for EU companies big and smallbull Lowers prices and widens choice for Europes consumersbull Cuts customs duties for exporters and importersbull Reduces some other costs for EU businessesbull Makes it easier for EU firms to sell services in Canada bull Allows EU firms to bid for Canadian public contracts bull Helps Europes rural communities market distinctive food and drinksbull Protects Europes innovators and artistsbull Recognizes each others professional qualifications bull Encourages Canadian companies to invest more in Europebull Protects peoples rights at work and the environment
European Benefits from CETA
4
bull Virtually all tariffs reduced for its exports Sectors that will benefit most include machinery amp electrical equipment motor vehicles amp parts optical amp medical equipment mineral fuels (including petroleum)
bull Scope to increase trade in services main services export from Finland to Canada is telecommunication services but opportunities in financial services as well
bull CETA will allow more Finnish professionals to practice in Canada including lawyers accountants architects and engineers
bull Finland access to Canadarsquos procurement market Finland has particular strengths in high-tech environmental protection and green energy
bull Finnish innovations copyrights and trademarks will enjoy same protection as in Europe when CETA fully implemented
bull CETA improves mobility for key personnel and there is framework for professional qualification recognition
bull CETA will make it easier for firms to invest as threshold for government review of investments raised to 15 billion euros It will also help to attract Canadian investment into Finland
Specific Gains for Finland from CETA
5
bull The provisional application of CETA means that the vast majority (+95) of components of the deal have come into effect
bull The areas not provisionally applied are primarily certain parts of the Investment and Financial Services Chapters This includes the section on investment protection and the related investment dispute settlement mechanism
bull Nevertheless the provisional application will help incent increased Canada-EU trade and investment It will also help increase awareness of opportunities in Europe broadly ndash not just EU
Provisional Launch of CETA to Bring Gains
6
bull CETA helps reinforce Canadarsquos position that international trade and investment brings benefits although a key new focus is progressive trade
bull Rising income inequality across the advanced world is a concern
bull The gains from trade and investment has not lifted all equally
bull Progressive trade agenda supports a more inclusive trade policymaking process to promote ambitions of SMEs and address inequalities that hold back the ability of women minorities and the poor to participate fully in and benefit from international trade
bull Progressive trade focus can generate more public support for greater trade and investment opportunities
Canada Champions a Progressive Trade Agenda
7
A Primer on Canadarsquos Economy amp Opportunities from CETA
8
-30
-20
-10
00
10
20
30
40
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f
Canadian Economy Delivers Strong Performance Canada real GDP per cent change
Sources Statistics Canada The Conference Board of Canada
9
bull Canada had a recession in 200809 but itrsquos financial system remained solid
bull No banks failed and there was no government financial bailout World Economic Forum ranks Canada as having one of the soundest banking systems
bull Government fiscal balances were and remain healthy allowing significant government stimulus
bull Low inflation and well anchored inflation expectations allowed monetary stimulus without exceptional policies ndash like those of ECB
bull The recession reflected the global downturn that created an external shock Canada soon recovered It was then hit by global commodity correction in 2015 However economy has now adjusted and growth has rebounded
Robust Underlying Fundamentals
10
0
20
40
60
80
100
120
140
160
180
200
Greece Japan Portugal Italy Spain UnitedKingdom
UnitedStates
India China Canada
Source International Monetary Fund
Very Low Federal Government Debthellip Govrsquot net debt per cent of GDP 2017 estimates reporting gross debt
11
Source Department of Finance
hellipAllowed Sustained Government Stimulus to Boost Growth amp Address InequalityFederal government balance public accounts basis $ billions
-60
-50
-40
-30
-20
-10
0
10
20
12
00
05
10
15
20
25
30
35
40
00
05
10
15
20
25
30
35
40
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f
Consumer Price Index Bank of Canada Target
Low Inflation Facilitated Monetary Stimulusper cent change
Sources Statistics Canada The Conference Board of Canada
13
50
60
70
80
90
100
110
120
130
Unemployment Rate Natural Rate
Sources Statistics Canada The Conference Board of Canada
RecoveryExpansion Led to Low Unemploymentper cent
14
00
10
20
30
40
50
60
70
99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f 19f
Bank of Canada now Slowly Withdrawing Stimulus Reflecting Domestic StrengthBank of Canada Overnight Target Rate
Sources The Conference Board of Canada Statistics Canada
15
00
05
10
15
20
25
30
35
40
45
50
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f
Going Forward Shift from Domestic Growth towards Exports amp InvestmentReal personal consumption per cent change
Sources Statistics Canada The Conference Board of Canada
16
40
45
50
55
60
65
70
75
80
85
90
50100150200250300350400450500550600650700
Nominal trade index 1981=100 Trade as a share of GDP per cent
Source Statistics Canada
Canada is a Trading Nationleft axis nominal trade index (exports + imports) 1981=100 right axis trade as a share of GDP per cent
17
Canada Free Trade Agreements Gives Preferential Access to Many Markets
FTAs in force bull Canada - EU Comprehensive Economic and Trade Agreement (CETA) ndash September
21 2017 (provisional)bull Canada - Ukraine - August 1 2017bull Canada - Korea - January 1 2015bull Canada - Honduras - October 1 2014bull Canada - Panama - April 1 2013bull Canada - Jordan - October 1 2012bull Canada - Colombia - August 15 2011bull Canada - Peru - August 1 2009bull Canada - European Free Trade Association - July 1 2009bull Canada - Costa Rica - November 1 2002bull Canada - Chile - July 5 1997bull Canada - Israel - January 1 1997bull North American Free Trade Agreement (NAFTA) - January 1 1994Source Global Affairs Canada
18
-10
00
10
20
30
40
50
60
Canada Benefits from Improving Global GrowthWorld real GDP per cent change
Source IMF
19
NAFTA Renegotiation Critical as Canada Plugged into US Supply ChainsCanadian Merchandise Exports by Destination in 2016 per cent
Source Innovation Science and Economic Development Canada trade online database Conference Board of Canada
76
10
8 3 3
US
Asia
Europe
Mexico amp S America
Rest of World
20
bull US protectionism a concern
bull NAFTA is 23 years old There is scope to modernize the deal to benefit of all countries
bull Canadarsquos greatest ally is the vast number of US businesses that will want to keep border open to mutual benefit North American supply chain too valuable to disrupt
NAFTA can be Modernized
21
US Protectionism Highlights Need to Diversify Trade GeographicallyShare of Canadian Exports by Destination Non-US Markets 2016 per cent
Source Innovation Science and Economic Development Canada trade online database Conference Board of Canada
22
bull Canadian economy more diversified than many think Resource sector is 13 of economy Lotrsquos of opportunity to in wide array of products and services
bull Economic clusters are groups of firms and institutions that are located near one another and draw productive advantage from their mutual proximity and connections
bull Clusters are key drivers to economic growth and trade-oriented clusters serve markets beyond the region in which they are located
bull Famous US clusters include Wall Street Silicon Valley and Hollywood
bull Government of Canada looking to facilitate lsquosuper clustersrsquo
Canadian Economy is Diversified and Comprises Many Key Clusters
23
Mining and Energy-Related Clusters
Edmonton
Calgary
Saskatoon
Regina
Sudbury
Saint John
St Johnrsquos
24
Manufacturing Clusters
Winnipeg
LondonHamilton
Oshawa
Windsor
Saguenay
Trois-Riviegraveres
Sherbrooke
Abbotsford
Montreacuteal
25
Information amp Communications Technology (ICT) Clusters
Vancouver
Kitchener-Waterloo
Toronto
Ottawa
Montreacuteal
26
Other Key Clusters
VictoriaTourism
AbbotsfordAgriculture
St Catharines-NiagaraTourism
TorontoFinance
Queacutebec CityInsurance
MonctonInsurance
HalifaxTransportation
MontreacutealManuf
VancouverTransportation
WinnipegTransportation
OshawaUtilities
27
Sources Trade Data Online calculations by The Conference Board of Canada
Scope to Expand Exports to EuropeCanadian merchandise exports (Index 2007 = 100)
60
80
100
120
140
160
180
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
28
Canadian Goods Exports to Finland(share of top 10 goods and in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
25
22
16
15
5
3 3
2 1 1 7 Aerospace
Mineral Fuels amp Oils
Ores
Motor Vehicles
Boilers Machinery amp Appliances
Electrical Machinery amp Equip
Medical amp Technical Instruments
Plastics
Oil Seeds
Tools amp Cutlery
Other
$671Meuro450MShare of Cdn Exports 01
29
Sources Trade Data Online calculations by The Conference Board of Canada
Imports from Europe Rising Canadian merchandise imports (Index 2007 = 100)
758595
105115125135145155165
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
30
Canadian Goods Imports From Finland(share of top 10 goods in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
23
11
9
9 8
7
6
6
3 2
16 Boilers Machinery amp Appliances
Motor Vehcles
Mineral Fuels amp Oils
Pharmaceutical Products
Paper
Electrical Machinery amp Equip
Medical amp Technical Instruments
Ores
Nickel
Rubber
Others
$572Meuro353MShare of Cdn Imports 02
31
Sources Statistics Canada calculations by The Conference Board of Canada
Canada and Europe Direct Investment on the Rise(stocks C$ billions)
120
140
160
180
200
220
240
260
280
300
320
2007 08 09 10 11 12 13 14 15 16
Canadian Direct Investment in Europe European Foreign Direct Investment in Canada
32
bull Canada is welcoming to business and investment The World Bank rates Canada as one of the easiest places to start a business Forbes and the Economist rank Canada as a leading location to do business
bull Being a small economy Canada lacks adequate domestic savings to meet all investment needs Hence Canada needs to attract foreign capital and provide a good experience to overseas investors
bull Over the last decade Canada has had the second largest foreign direct investment flows per capital in the G20 nations Since 2012 Inward FDI to Canada has been 54 of GDP highest in G7 and higher than the 29 G-7 average
bull Canadarsquos free trade agreements make it ideal as location to tap global markets
bull Canadian taxation makes investment attractive but one of its greatest strengths is the quality of the labour force
Many Business Advantages for Investment
33
Source OECD Statistics
Canada has Low Corporate Taxes Rates and Generous RampD Incentiveslarge business corporate income tax rate includes federal and provincialstate government taxes
20
25
30
35
40
45Canada US Mexico
34
Canada has a Highly Educated Workforcepercentage of the population aged 25-64 with post-secondary education in 2016
Source OECD
200
250
300
350
400
450
500
550
600
35
Strong Support for Immigration and Diversity
0
20
40
60
80
100
120
140
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
Net immigration (000s left) Net immigration as a share of total population change (per cent right)
36
Sources Immigration Refugees and Citizenship Canada The Conference Board The Conference Board of Canada
Newcomers to Canada Contribute to the Economy and add to Multiculturalism
627
241
118
14
In 2015 63 of immigrants to Canada fell under Economic Class
EconomicSponsored FamilyResettled Refugee amp Protected Person in CanadaAll Other Immigration
37
00 05 10 15 20 25 30
NL
NB
NS
PEI
Sask
Man
Que
Ont
BC
Alta
Sources The Conference Board of Canada Statistics Canada
Broad-based Growth in 2017 amp BeyondReal GDP per cent change 2017-22 basic prices $2007
Canada 21
38
bull CETA can help to boost growth and prosperity in Canada and EU if the opportunities are seized
bull Canada is a small economy with big potential It is a trade-friendly investment-friendly market and ideal platform for tapping North American Economy or beyond
bull Canada has strong fundamentals competitive corporate tax rates generous RampD tax incentives highly educated population highly tolerant and diverse population well anchored monetary policy sound fiscal finances
bull It is a modern-knowledge based economy Resources are still a key sector but so are other key clusters like ICT Finance and other advanced manufacturing and services
bull Canadarsquos economy is strengthening It is resisting the global shift towards protectionism leaning against inequality and building sustainable economic growth for the long-term
Key Messages
conferenceboardca
CraigA_Eco
wwwtradecommissionergccaCETA website
3
bull Helps to generate growth and jobs in EUbull Creates a level playing field in Canada for EU companies big and smallbull Lowers prices and widens choice for Europes consumersbull Cuts customs duties for exporters and importersbull Reduces some other costs for EU businessesbull Makes it easier for EU firms to sell services in Canada bull Allows EU firms to bid for Canadian public contracts bull Helps Europes rural communities market distinctive food and drinksbull Protects Europes innovators and artistsbull Recognizes each others professional qualifications bull Encourages Canadian companies to invest more in Europebull Protects peoples rights at work and the environment
European Benefits from CETA
4
bull Virtually all tariffs reduced for its exports Sectors that will benefit most include machinery amp electrical equipment motor vehicles amp parts optical amp medical equipment mineral fuels (including petroleum)
bull Scope to increase trade in services main services export from Finland to Canada is telecommunication services but opportunities in financial services as well
bull CETA will allow more Finnish professionals to practice in Canada including lawyers accountants architects and engineers
bull Finland access to Canadarsquos procurement market Finland has particular strengths in high-tech environmental protection and green energy
bull Finnish innovations copyrights and trademarks will enjoy same protection as in Europe when CETA fully implemented
bull CETA improves mobility for key personnel and there is framework for professional qualification recognition
bull CETA will make it easier for firms to invest as threshold for government review of investments raised to 15 billion euros It will also help to attract Canadian investment into Finland
Specific Gains for Finland from CETA
5
bull The provisional application of CETA means that the vast majority (+95) of components of the deal have come into effect
bull The areas not provisionally applied are primarily certain parts of the Investment and Financial Services Chapters This includes the section on investment protection and the related investment dispute settlement mechanism
bull Nevertheless the provisional application will help incent increased Canada-EU trade and investment It will also help increase awareness of opportunities in Europe broadly ndash not just EU
Provisional Launch of CETA to Bring Gains
6
bull CETA helps reinforce Canadarsquos position that international trade and investment brings benefits although a key new focus is progressive trade
bull Rising income inequality across the advanced world is a concern
bull The gains from trade and investment has not lifted all equally
bull Progressive trade agenda supports a more inclusive trade policymaking process to promote ambitions of SMEs and address inequalities that hold back the ability of women minorities and the poor to participate fully in and benefit from international trade
bull Progressive trade focus can generate more public support for greater trade and investment opportunities
Canada Champions a Progressive Trade Agenda
7
A Primer on Canadarsquos Economy amp Opportunities from CETA
8
-30
-20
-10
00
10
20
30
40
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f
Canadian Economy Delivers Strong Performance Canada real GDP per cent change
Sources Statistics Canada The Conference Board of Canada
9
bull Canada had a recession in 200809 but itrsquos financial system remained solid
bull No banks failed and there was no government financial bailout World Economic Forum ranks Canada as having one of the soundest banking systems
bull Government fiscal balances were and remain healthy allowing significant government stimulus
bull Low inflation and well anchored inflation expectations allowed monetary stimulus without exceptional policies ndash like those of ECB
bull The recession reflected the global downturn that created an external shock Canada soon recovered It was then hit by global commodity correction in 2015 However economy has now adjusted and growth has rebounded
Robust Underlying Fundamentals
10
0
20
40
60
80
100
120
140
160
180
200
Greece Japan Portugal Italy Spain UnitedKingdom
UnitedStates
India China Canada
Source International Monetary Fund
Very Low Federal Government Debthellip Govrsquot net debt per cent of GDP 2017 estimates reporting gross debt
11
Source Department of Finance
hellipAllowed Sustained Government Stimulus to Boost Growth amp Address InequalityFederal government balance public accounts basis $ billions
-60
-50
-40
-30
-20
-10
0
10
20
12
00
05
10
15
20
25
30
35
40
00
05
10
15
20
25
30
35
40
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f
Consumer Price Index Bank of Canada Target
Low Inflation Facilitated Monetary Stimulusper cent change
Sources Statistics Canada The Conference Board of Canada
13
50
60
70
80
90
100
110
120
130
Unemployment Rate Natural Rate
Sources Statistics Canada The Conference Board of Canada
RecoveryExpansion Led to Low Unemploymentper cent
14
00
10
20
30
40
50
60
70
99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f 19f
Bank of Canada now Slowly Withdrawing Stimulus Reflecting Domestic StrengthBank of Canada Overnight Target Rate
Sources The Conference Board of Canada Statistics Canada
15
00
05
10
15
20
25
30
35
40
45
50
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f
Going Forward Shift from Domestic Growth towards Exports amp InvestmentReal personal consumption per cent change
Sources Statistics Canada The Conference Board of Canada
16
40
45
50
55
60
65
70
75
80
85
90
50100150200250300350400450500550600650700
Nominal trade index 1981=100 Trade as a share of GDP per cent
Source Statistics Canada
Canada is a Trading Nationleft axis nominal trade index (exports + imports) 1981=100 right axis trade as a share of GDP per cent
17
Canada Free Trade Agreements Gives Preferential Access to Many Markets
FTAs in force bull Canada - EU Comprehensive Economic and Trade Agreement (CETA) ndash September
21 2017 (provisional)bull Canada - Ukraine - August 1 2017bull Canada - Korea - January 1 2015bull Canada - Honduras - October 1 2014bull Canada - Panama - April 1 2013bull Canada - Jordan - October 1 2012bull Canada - Colombia - August 15 2011bull Canada - Peru - August 1 2009bull Canada - European Free Trade Association - July 1 2009bull Canada - Costa Rica - November 1 2002bull Canada - Chile - July 5 1997bull Canada - Israel - January 1 1997bull North American Free Trade Agreement (NAFTA) - January 1 1994Source Global Affairs Canada
18
-10
00
10
20
30
40
50
60
Canada Benefits from Improving Global GrowthWorld real GDP per cent change
Source IMF
19
NAFTA Renegotiation Critical as Canada Plugged into US Supply ChainsCanadian Merchandise Exports by Destination in 2016 per cent
Source Innovation Science and Economic Development Canada trade online database Conference Board of Canada
76
10
8 3 3
US
Asia
Europe
Mexico amp S America
Rest of World
20
bull US protectionism a concern
bull NAFTA is 23 years old There is scope to modernize the deal to benefit of all countries
bull Canadarsquos greatest ally is the vast number of US businesses that will want to keep border open to mutual benefit North American supply chain too valuable to disrupt
NAFTA can be Modernized
21
US Protectionism Highlights Need to Diversify Trade GeographicallyShare of Canadian Exports by Destination Non-US Markets 2016 per cent
Source Innovation Science and Economic Development Canada trade online database Conference Board of Canada
22
bull Canadian economy more diversified than many think Resource sector is 13 of economy Lotrsquos of opportunity to in wide array of products and services
bull Economic clusters are groups of firms and institutions that are located near one another and draw productive advantage from their mutual proximity and connections
bull Clusters are key drivers to economic growth and trade-oriented clusters serve markets beyond the region in which they are located
bull Famous US clusters include Wall Street Silicon Valley and Hollywood
bull Government of Canada looking to facilitate lsquosuper clustersrsquo
Canadian Economy is Diversified and Comprises Many Key Clusters
23
Mining and Energy-Related Clusters
Edmonton
Calgary
Saskatoon
Regina
Sudbury
Saint John
St Johnrsquos
24
Manufacturing Clusters
Winnipeg
LondonHamilton
Oshawa
Windsor
Saguenay
Trois-Riviegraveres
Sherbrooke
Abbotsford
Montreacuteal
25
Information amp Communications Technology (ICT) Clusters
Vancouver
Kitchener-Waterloo
Toronto
Ottawa
Montreacuteal
26
Other Key Clusters
VictoriaTourism
AbbotsfordAgriculture
St Catharines-NiagaraTourism
TorontoFinance
Queacutebec CityInsurance
MonctonInsurance
HalifaxTransportation
MontreacutealManuf
VancouverTransportation
WinnipegTransportation
OshawaUtilities
27
Sources Trade Data Online calculations by The Conference Board of Canada
Scope to Expand Exports to EuropeCanadian merchandise exports (Index 2007 = 100)
60
80
100
120
140
160
180
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
28
Canadian Goods Exports to Finland(share of top 10 goods and in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
25
22
16
15
5
3 3
2 1 1 7 Aerospace
Mineral Fuels amp Oils
Ores
Motor Vehicles
Boilers Machinery amp Appliances
Electrical Machinery amp Equip
Medical amp Technical Instruments
Plastics
Oil Seeds
Tools amp Cutlery
Other
$671Meuro450MShare of Cdn Exports 01
29
Sources Trade Data Online calculations by The Conference Board of Canada
Imports from Europe Rising Canadian merchandise imports (Index 2007 = 100)
758595
105115125135145155165
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
30
Canadian Goods Imports From Finland(share of top 10 goods in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
23
11
9
9 8
7
6
6
3 2
16 Boilers Machinery amp Appliances
Motor Vehcles
Mineral Fuels amp Oils
Pharmaceutical Products
Paper
Electrical Machinery amp Equip
Medical amp Technical Instruments
Ores
Nickel
Rubber
Others
$572Meuro353MShare of Cdn Imports 02
31
Sources Statistics Canada calculations by The Conference Board of Canada
Canada and Europe Direct Investment on the Rise(stocks C$ billions)
120
140
160
180
200
220
240
260
280
300
320
2007 08 09 10 11 12 13 14 15 16
Canadian Direct Investment in Europe European Foreign Direct Investment in Canada
32
bull Canada is welcoming to business and investment The World Bank rates Canada as one of the easiest places to start a business Forbes and the Economist rank Canada as a leading location to do business
bull Being a small economy Canada lacks adequate domestic savings to meet all investment needs Hence Canada needs to attract foreign capital and provide a good experience to overseas investors
bull Over the last decade Canada has had the second largest foreign direct investment flows per capital in the G20 nations Since 2012 Inward FDI to Canada has been 54 of GDP highest in G7 and higher than the 29 G-7 average
bull Canadarsquos free trade agreements make it ideal as location to tap global markets
bull Canadian taxation makes investment attractive but one of its greatest strengths is the quality of the labour force
Many Business Advantages for Investment
33
Source OECD Statistics
Canada has Low Corporate Taxes Rates and Generous RampD Incentiveslarge business corporate income tax rate includes federal and provincialstate government taxes
20
25
30
35
40
45Canada US Mexico
34
Canada has a Highly Educated Workforcepercentage of the population aged 25-64 with post-secondary education in 2016
Source OECD
200
250
300
350
400
450
500
550
600
35
Strong Support for Immigration and Diversity
0
20
40
60
80
100
120
140
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
Net immigration (000s left) Net immigration as a share of total population change (per cent right)
36
Sources Immigration Refugees and Citizenship Canada The Conference Board The Conference Board of Canada
Newcomers to Canada Contribute to the Economy and add to Multiculturalism
627
241
118
14
In 2015 63 of immigrants to Canada fell under Economic Class
EconomicSponsored FamilyResettled Refugee amp Protected Person in CanadaAll Other Immigration
37
00 05 10 15 20 25 30
NL
NB
NS
PEI
Sask
Man
Que
Ont
BC
Alta
Sources The Conference Board of Canada Statistics Canada
Broad-based Growth in 2017 amp BeyondReal GDP per cent change 2017-22 basic prices $2007
Canada 21
38
bull CETA can help to boost growth and prosperity in Canada and EU if the opportunities are seized
bull Canada is a small economy with big potential It is a trade-friendly investment-friendly market and ideal platform for tapping North American Economy or beyond
bull Canada has strong fundamentals competitive corporate tax rates generous RampD tax incentives highly educated population highly tolerant and diverse population well anchored monetary policy sound fiscal finances
bull It is a modern-knowledge based economy Resources are still a key sector but so are other key clusters like ICT Finance and other advanced manufacturing and services
bull Canadarsquos economy is strengthening It is resisting the global shift towards protectionism leaning against inequality and building sustainable economic growth for the long-term
Key Messages
conferenceboardca
CraigA_Eco
wwwtradecommissionergccaCETA website
4
bull Virtually all tariffs reduced for its exports Sectors that will benefit most include machinery amp electrical equipment motor vehicles amp parts optical amp medical equipment mineral fuels (including petroleum)
bull Scope to increase trade in services main services export from Finland to Canada is telecommunication services but opportunities in financial services as well
bull CETA will allow more Finnish professionals to practice in Canada including lawyers accountants architects and engineers
bull Finland access to Canadarsquos procurement market Finland has particular strengths in high-tech environmental protection and green energy
bull Finnish innovations copyrights and trademarks will enjoy same protection as in Europe when CETA fully implemented
bull CETA improves mobility for key personnel and there is framework for professional qualification recognition
bull CETA will make it easier for firms to invest as threshold for government review of investments raised to 15 billion euros It will also help to attract Canadian investment into Finland
Specific Gains for Finland from CETA
5
bull The provisional application of CETA means that the vast majority (+95) of components of the deal have come into effect
bull The areas not provisionally applied are primarily certain parts of the Investment and Financial Services Chapters This includes the section on investment protection and the related investment dispute settlement mechanism
bull Nevertheless the provisional application will help incent increased Canada-EU trade and investment It will also help increase awareness of opportunities in Europe broadly ndash not just EU
Provisional Launch of CETA to Bring Gains
6
bull CETA helps reinforce Canadarsquos position that international trade and investment brings benefits although a key new focus is progressive trade
bull Rising income inequality across the advanced world is a concern
bull The gains from trade and investment has not lifted all equally
bull Progressive trade agenda supports a more inclusive trade policymaking process to promote ambitions of SMEs and address inequalities that hold back the ability of women minorities and the poor to participate fully in and benefit from international trade
bull Progressive trade focus can generate more public support for greater trade and investment opportunities
Canada Champions a Progressive Trade Agenda
7
A Primer on Canadarsquos Economy amp Opportunities from CETA
8
-30
-20
-10
00
10
20
30
40
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f
Canadian Economy Delivers Strong Performance Canada real GDP per cent change
Sources Statistics Canada The Conference Board of Canada
9
bull Canada had a recession in 200809 but itrsquos financial system remained solid
bull No banks failed and there was no government financial bailout World Economic Forum ranks Canada as having one of the soundest banking systems
bull Government fiscal balances were and remain healthy allowing significant government stimulus
bull Low inflation and well anchored inflation expectations allowed monetary stimulus without exceptional policies ndash like those of ECB
bull The recession reflected the global downturn that created an external shock Canada soon recovered It was then hit by global commodity correction in 2015 However economy has now adjusted and growth has rebounded
Robust Underlying Fundamentals
10
0
20
40
60
80
100
120
140
160
180
200
Greece Japan Portugal Italy Spain UnitedKingdom
UnitedStates
India China Canada
Source International Monetary Fund
Very Low Federal Government Debthellip Govrsquot net debt per cent of GDP 2017 estimates reporting gross debt
11
Source Department of Finance
hellipAllowed Sustained Government Stimulus to Boost Growth amp Address InequalityFederal government balance public accounts basis $ billions
-60
-50
-40
-30
-20
-10
0
10
20
12
00
05
10
15
20
25
30
35
40
00
05
10
15
20
25
30
35
40
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f
Consumer Price Index Bank of Canada Target
Low Inflation Facilitated Monetary Stimulusper cent change
Sources Statistics Canada The Conference Board of Canada
13
50
60
70
80
90
100
110
120
130
Unemployment Rate Natural Rate
Sources Statistics Canada The Conference Board of Canada
RecoveryExpansion Led to Low Unemploymentper cent
14
00
10
20
30
40
50
60
70
99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f 19f
Bank of Canada now Slowly Withdrawing Stimulus Reflecting Domestic StrengthBank of Canada Overnight Target Rate
Sources The Conference Board of Canada Statistics Canada
15
00
05
10
15
20
25
30
35
40
45
50
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f
Going Forward Shift from Domestic Growth towards Exports amp InvestmentReal personal consumption per cent change
Sources Statistics Canada The Conference Board of Canada
16
40
45
50
55
60
65
70
75
80
85
90
50100150200250300350400450500550600650700
Nominal trade index 1981=100 Trade as a share of GDP per cent
Source Statistics Canada
Canada is a Trading Nationleft axis nominal trade index (exports + imports) 1981=100 right axis trade as a share of GDP per cent
17
Canada Free Trade Agreements Gives Preferential Access to Many Markets
FTAs in force bull Canada - EU Comprehensive Economic and Trade Agreement (CETA) ndash September
21 2017 (provisional)bull Canada - Ukraine - August 1 2017bull Canada - Korea - January 1 2015bull Canada - Honduras - October 1 2014bull Canada - Panama - April 1 2013bull Canada - Jordan - October 1 2012bull Canada - Colombia - August 15 2011bull Canada - Peru - August 1 2009bull Canada - European Free Trade Association - July 1 2009bull Canada - Costa Rica - November 1 2002bull Canada - Chile - July 5 1997bull Canada - Israel - January 1 1997bull North American Free Trade Agreement (NAFTA) - January 1 1994Source Global Affairs Canada
18
-10
00
10
20
30
40
50
60
Canada Benefits from Improving Global GrowthWorld real GDP per cent change
Source IMF
19
NAFTA Renegotiation Critical as Canada Plugged into US Supply ChainsCanadian Merchandise Exports by Destination in 2016 per cent
Source Innovation Science and Economic Development Canada trade online database Conference Board of Canada
76
10
8 3 3
US
Asia
Europe
Mexico amp S America
Rest of World
20
bull US protectionism a concern
bull NAFTA is 23 years old There is scope to modernize the deal to benefit of all countries
bull Canadarsquos greatest ally is the vast number of US businesses that will want to keep border open to mutual benefit North American supply chain too valuable to disrupt
NAFTA can be Modernized
21
US Protectionism Highlights Need to Diversify Trade GeographicallyShare of Canadian Exports by Destination Non-US Markets 2016 per cent
Source Innovation Science and Economic Development Canada trade online database Conference Board of Canada
22
bull Canadian economy more diversified than many think Resource sector is 13 of economy Lotrsquos of opportunity to in wide array of products and services
bull Economic clusters are groups of firms and institutions that are located near one another and draw productive advantage from their mutual proximity and connections
bull Clusters are key drivers to economic growth and trade-oriented clusters serve markets beyond the region in which they are located
bull Famous US clusters include Wall Street Silicon Valley and Hollywood
bull Government of Canada looking to facilitate lsquosuper clustersrsquo
Canadian Economy is Diversified and Comprises Many Key Clusters
23
Mining and Energy-Related Clusters
Edmonton
Calgary
Saskatoon
Regina
Sudbury
Saint John
St Johnrsquos
24
Manufacturing Clusters
Winnipeg
LondonHamilton
Oshawa
Windsor
Saguenay
Trois-Riviegraveres
Sherbrooke
Abbotsford
Montreacuteal
25
Information amp Communications Technology (ICT) Clusters
Vancouver
Kitchener-Waterloo
Toronto
Ottawa
Montreacuteal
26
Other Key Clusters
VictoriaTourism
AbbotsfordAgriculture
St Catharines-NiagaraTourism
TorontoFinance
Queacutebec CityInsurance
MonctonInsurance
HalifaxTransportation
MontreacutealManuf
VancouverTransportation
WinnipegTransportation
OshawaUtilities
27
Sources Trade Data Online calculations by The Conference Board of Canada
Scope to Expand Exports to EuropeCanadian merchandise exports (Index 2007 = 100)
60
80
100
120
140
160
180
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
28
Canadian Goods Exports to Finland(share of top 10 goods and in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
25
22
16
15
5
3 3
2 1 1 7 Aerospace
Mineral Fuels amp Oils
Ores
Motor Vehicles
Boilers Machinery amp Appliances
Electrical Machinery amp Equip
Medical amp Technical Instruments
Plastics
Oil Seeds
Tools amp Cutlery
Other
$671Meuro450MShare of Cdn Exports 01
29
Sources Trade Data Online calculations by The Conference Board of Canada
Imports from Europe Rising Canadian merchandise imports (Index 2007 = 100)
758595
105115125135145155165
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
30
Canadian Goods Imports From Finland(share of top 10 goods in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
23
11
9
9 8
7
6
6
3 2
16 Boilers Machinery amp Appliances
Motor Vehcles
Mineral Fuels amp Oils
Pharmaceutical Products
Paper
Electrical Machinery amp Equip
Medical amp Technical Instruments
Ores
Nickel
Rubber
Others
$572Meuro353MShare of Cdn Imports 02
31
Sources Statistics Canada calculations by The Conference Board of Canada
Canada and Europe Direct Investment on the Rise(stocks C$ billions)
120
140
160
180
200
220
240
260
280
300
320
2007 08 09 10 11 12 13 14 15 16
Canadian Direct Investment in Europe European Foreign Direct Investment in Canada
32
bull Canada is welcoming to business and investment The World Bank rates Canada as one of the easiest places to start a business Forbes and the Economist rank Canada as a leading location to do business
bull Being a small economy Canada lacks adequate domestic savings to meet all investment needs Hence Canada needs to attract foreign capital and provide a good experience to overseas investors
bull Over the last decade Canada has had the second largest foreign direct investment flows per capital in the G20 nations Since 2012 Inward FDI to Canada has been 54 of GDP highest in G7 and higher than the 29 G-7 average
bull Canadarsquos free trade agreements make it ideal as location to tap global markets
bull Canadian taxation makes investment attractive but one of its greatest strengths is the quality of the labour force
Many Business Advantages for Investment
33
Source OECD Statistics
Canada has Low Corporate Taxes Rates and Generous RampD Incentiveslarge business corporate income tax rate includes federal and provincialstate government taxes
20
25
30
35
40
45Canada US Mexico
34
Canada has a Highly Educated Workforcepercentage of the population aged 25-64 with post-secondary education in 2016
Source OECD
200
250
300
350
400
450
500
550
600
35
Strong Support for Immigration and Diversity
0
20
40
60
80
100
120
140
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
Net immigration (000s left) Net immigration as a share of total population change (per cent right)
36
Sources Immigration Refugees and Citizenship Canada The Conference Board The Conference Board of Canada
Newcomers to Canada Contribute to the Economy and add to Multiculturalism
627
241
118
14
In 2015 63 of immigrants to Canada fell under Economic Class
EconomicSponsored FamilyResettled Refugee amp Protected Person in CanadaAll Other Immigration
37
00 05 10 15 20 25 30
NL
NB
NS
PEI
Sask
Man
Que
Ont
BC
Alta
Sources The Conference Board of Canada Statistics Canada
Broad-based Growth in 2017 amp BeyondReal GDP per cent change 2017-22 basic prices $2007
Canada 21
38
bull CETA can help to boost growth and prosperity in Canada and EU if the opportunities are seized
bull Canada is a small economy with big potential It is a trade-friendly investment-friendly market and ideal platform for tapping North American Economy or beyond
bull Canada has strong fundamentals competitive corporate tax rates generous RampD tax incentives highly educated population highly tolerant and diverse population well anchored monetary policy sound fiscal finances
bull It is a modern-knowledge based economy Resources are still a key sector but so are other key clusters like ICT Finance and other advanced manufacturing and services
bull Canadarsquos economy is strengthening It is resisting the global shift towards protectionism leaning against inequality and building sustainable economic growth for the long-term
Key Messages
conferenceboardca
CraigA_Eco
wwwtradecommissionergccaCETA website
5
bull The provisional application of CETA means that the vast majority (+95) of components of the deal have come into effect
bull The areas not provisionally applied are primarily certain parts of the Investment and Financial Services Chapters This includes the section on investment protection and the related investment dispute settlement mechanism
bull Nevertheless the provisional application will help incent increased Canada-EU trade and investment It will also help increase awareness of opportunities in Europe broadly ndash not just EU
Provisional Launch of CETA to Bring Gains
6
bull CETA helps reinforce Canadarsquos position that international trade and investment brings benefits although a key new focus is progressive trade
bull Rising income inequality across the advanced world is a concern
bull The gains from trade and investment has not lifted all equally
bull Progressive trade agenda supports a more inclusive trade policymaking process to promote ambitions of SMEs and address inequalities that hold back the ability of women minorities and the poor to participate fully in and benefit from international trade
bull Progressive trade focus can generate more public support for greater trade and investment opportunities
Canada Champions a Progressive Trade Agenda
7
A Primer on Canadarsquos Economy amp Opportunities from CETA
8
-30
-20
-10
00
10
20
30
40
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f
Canadian Economy Delivers Strong Performance Canada real GDP per cent change
Sources Statistics Canada The Conference Board of Canada
9
bull Canada had a recession in 200809 but itrsquos financial system remained solid
bull No banks failed and there was no government financial bailout World Economic Forum ranks Canada as having one of the soundest banking systems
bull Government fiscal balances were and remain healthy allowing significant government stimulus
bull Low inflation and well anchored inflation expectations allowed monetary stimulus without exceptional policies ndash like those of ECB
bull The recession reflected the global downturn that created an external shock Canada soon recovered It was then hit by global commodity correction in 2015 However economy has now adjusted and growth has rebounded
Robust Underlying Fundamentals
10
0
20
40
60
80
100
120
140
160
180
200
Greece Japan Portugal Italy Spain UnitedKingdom
UnitedStates
India China Canada
Source International Monetary Fund
Very Low Federal Government Debthellip Govrsquot net debt per cent of GDP 2017 estimates reporting gross debt
11
Source Department of Finance
hellipAllowed Sustained Government Stimulus to Boost Growth amp Address InequalityFederal government balance public accounts basis $ billions
-60
-50
-40
-30
-20
-10
0
10
20
12
00
05
10
15
20
25
30
35
40
00
05
10
15
20
25
30
35
40
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f
Consumer Price Index Bank of Canada Target
Low Inflation Facilitated Monetary Stimulusper cent change
Sources Statistics Canada The Conference Board of Canada
13
50
60
70
80
90
100
110
120
130
Unemployment Rate Natural Rate
Sources Statistics Canada The Conference Board of Canada
RecoveryExpansion Led to Low Unemploymentper cent
14
00
10
20
30
40
50
60
70
99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f 19f
Bank of Canada now Slowly Withdrawing Stimulus Reflecting Domestic StrengthBank of Canada Overnight Target Rate
Sources The Conference Board of Canada Statistics Canada
15
00
05
10
15
20
25
30
35
40
45
50
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f
Going Forward Shift from Domestic Growth towards Exports amp InvestmentReal personal consumption per cent change
Sources Statistics Canada The Conference Board of Canada
16
40
45
50
55
60
65
70
75
80
85
90
50100150200250300350400450500550600650700
Nominal trade index 1981=100 Trade as a share of GDP per cent
Source Statistics Canada
Canada is a Trading Nationleft axis nominal trade index (exports + imports) 1981=100 right axis trade as a share of GDP per cent
17
Canada Free Trade Agreements Gives Preferential Access to Many Markets
FTAs in force bull Canada - EU Comprehensive Economic and Trade Agreement (CETA) ndash September
21 2017 (provisional)bull Canada - Ukraine - August 1 2017bull Canada - Korea - January 1 2015bull Canada - Honduras - October 1 2014bull Canada - Panama - April 1 2013bull Canada - Jordan - October 1 2012bull Canada - Colombia - August 15 2011bull Canada - Peru - August 1 2009bull Canada - European Free Trade Association - July 1 2009bull Canada - Costa Rica - November 1 2002bull Canada - Chile - July 5 1997bull Canada - Israel - January 1 1997bull North American Free Trade Agreement (NAFTA) - January 1 1994Source Global Affairs Canada
18
-10
00
10
20
30
40
50
60
Canada Benefits from Improving Global GrowthWorld real GDP per cent change
Source IMF
19
NAFTA Renegotiation Critical as Canada Plugged into US Supply ChainsCanadian Merchandise Exports by Destination in 2016 per cent
Source Innovation Science and Economic Development Canada trade online database Conference Board of Canada
76
10
8 3 3
US
Asia
Europe
Mexico amp S America
Rest of World
20
bull US protectionism a concern
bull NAFTA is 23 years old There is scope to modernize the deal to benefit of all countries
bull Canadarsquos greatest ally is the vast number of US businesses that will want to keep border open to mutual benefit North American supply chain too valuable to disrupt
NAFTA can be Modernized
21
US Protectionism Highlights Need to Diversify Trade GeographicallyShare of Canadian Exports by Destination Non-US Markets 2016 per cent
Source Innovation Science and Economic Development Canada trade online database Conference Board of Canada
22
bull Canadian economy more diversified than many think Resource sector is 13 of economy Lotrsquos of opportunity to in wide array of products and services
bull Economic clusters are groups of firms and institutions that are located near one another and draw productive advantage from their mutual proximity and connections
bull Clusters are key drivers to economic growth and trade-oriented clusters serve markets beyond the region in which they are located
bull Famous US clusters include Wall Street Silicon Valley and Hollywood
bull Government of Canada looking to facilitate lsquosuper clustersrsquo
Canadian Economy is Diversified and Comprises Many Key Clusters
23
Mining and Energy-Related Clusters
Edmonton
Calgary
Saskatoon
Regina
Sudbury
Saint John
St Johnrsquos
24
Manufacturing Clusters
Winnipeg
LondonHamilton
Oshawa
Windsor
Saguenay
Trois-Riviegraveres
Sherbrooke
Abbotsford
Montreacuteal
25
Information amp Communications Technology (ICT) Clusters
Vancouver
Kitchener-Waterloo
Toronto
Ottawa
Montreacuteal
26
Other Key Clusters
VictoriaTourism
AbbotsfordAgriculture
St Catharines-NiagaraTourism
TorontoFinance
Queacutebec CityInsurance
MonctonInsurance
HalifaxTransportation
MontreacutealManuf
VancouverTransportation
WinnipegTransportation
OshawaUtilities
27
Sources Trade Data Online calculations by The Conference Board of Canada
Scope to Expand Exports to EuropeCanadian merchandise exports (Index 2007 = 100)
60
80
100
120
140
160
180
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
28
Canadian Goods Exports to Finland(share of top 10 goods and in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
25
22
16
15
5
3 3
2 1 1 7 Aerospace
Mineral Fuels amp Oils
Ores
Motor Vehicles
Boilers Machinery amp Appliances
Electrical Machinery amp Equip
Medical amp Technical Instruments
Plastics
Oil Seeds
Tools amp Cutlery
Other
$671Meuro450MShare of Cdn Exports 01
29
Sources Trade Data Online calculations by The Conference Board of Canada
Imports from Europe Rising Canadian merchandise imports (Index 2007 = 100)
758595
105115125135145155165
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
30
Canadian Goods Imports From Finland(share of top 10 goods in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
23
11
9
9 8
7
6
6
3 2
16 Boilers Machinery amp Appliances
Motor Vehcles
Mineral Fuels amp Oils
Pharmaceutical Products
Paper
Electrical Machinery amp Equip
Medical amp Technical Instruments
Ores
Nickel
Rubber
Others
$572Meuro353MShare of Cdn Imports 02
31
Sources Statistics Canada calculations by The Conference Board of Canada
Canada and Europe Direct Investment on the Rise(stocks C$ billions)
120
140
160
180
200
220
240
260
280
300
320
2007 08 09 10 11 12 13 14 15 16
Canadian Direct Investment in Europe European Foreign Direct Investment in Canada
32
bull Canada is welcoming to business and investment The World Bank rates Canada as one of the easiest places to start a business Forbes and the Economist rank Canada as a leading location to do business
bull Being a small economy Canada lacks adequate domestic savings to meet all investment needs Hence Canada needs to attract foreign capital and provide a good experience to overseas investors
bull Over the last decade Canada has had the second largest foreign direct investment flows per capital in the G20 nations Since 2012 Inward FDI to Canada has been 54 of GDP highest in G7 and higher than the 29 G-7 average
bull Canadarsquos free trade agreements make it ideal as location to tap global markets
bull Canadian taxation makes investment attractive but one of its greatest strengths is the quality of the labour force
Many Business Advantages for Investment
33
Source OECD Statistics
Canada has Low Corporate Taxes Rates and Generous RampD Incentiveslarge business corporate income tax rate includes federal and provincialstate government taxes
20
25
30
35
40
45Canada US Mexico
34
Canada has a Highly Educated Workforcepercentage of the population aged 25-64 with post-secondary education in 2016
Source OECD
200
250
300
350
400
450
500
550
600
35
Strong Support for Immigration and Diversity
0
20
40
60
80
100
120
140
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
Net immigration (000s left) Net immigration as a share of total population change (per cent right)
36
Sources Immigration Refugees and Citizenship Canada The Conference Board The Conference Board of Canada
Newcomers to Canada Contribute to the Economy and add to Multiculturalism
627
241
118
14
In 2015 63 of immigrants to Canada fell under Economic Class
EconomicSponsored FamilyResettled Refugee amp Protected Person in CanadaAll Other Immigration
37
00 05 10 15 20 25 30
NL
NB
NS
PEI
Sask
Man
Que
Ont
BC
Alta
Sources The Conference Board of Canada Statistics Canada
Broad-based Growth in 2017 amp BeyondReal GDP per cent change 2017-22 basic prices $2007
Canada 21
38
bull CETA can help to boost growth and prosperity in Canada and EU if the opportunities are seized
bull Canada is a small economy with big potential It is a trade-friendly investment-friendly market and ideal platform for tapping North American Economy or beyond
bull Canada has strong fundamentals competitive corporate tax rates generous RampD tax incentives highly educated population highly tolerant and diverse population well anchored monetary policy sound fiscal finances
bull It is a modern-knowledge based economy Resources are still a key sector but so are other key clusters like ICT Finance and other advanced manufacturing and services
bull Canadarsquos economy is strengthening It is resisting the global shift towards protectionism leaning against inequality and building sustainable economic growth for the long-term
Key Messages
conferenceboardca
CraigA_Eco
wwwtradecommissionergccaCETA website
6
bull CETA helps reinforce Canadarsquos position that international trade and investment brings benefits although a key new focus is progressive trade
bull Rising income inequality across the advanced world is a concern
bull The gains from trade and investment has not lifted all equally
bull Progressive trade agenda supports a more inclusive trade policymaking process to promote ambitions of SMEs and address inequalities that hold back the ability of women minorities and the poor to participate fully in and benefit from international trade
bull Progressive trade focus can generate more public support for greater trade and investment opportunities
Canada Champions a Progressive Trade Agenda
7
A Primer on Canadarsquos Economy amp Opportunities from CETA
8
-30
-20
-10
00
10
20
30
40
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f
Canadian Economy Delivers Strong Performance Canada real GDP per cent change
Sources Statistics Canada The Conference Board of Canada
9
bull Canada had a recession in 200809 but itrsquos financial system remained solid
bull No banks failed and there was no government financial bailout World Economic Forum ranks Canada as having one of the soundest banking systems
bull Government fiscal balances were and remain healthy allowing significant government stimulus
bull Low inflation and well anchored inflation expectations allowed monetary stimulus without exceptional policies ndash like those of ECB
bull The recession reflected the global downturn that created an external shock Canada soon recovered It was then hit by global commodity correction in 2015 However economy has now adjusted and growth has rebounded
Robust Underlying Fundamentals
10
0
20
40
60
80
100
120
140
160
180
200
Greece Japan Portugal Italy Spain UnitedKingdom
UnitedStates
India China Canada
Source International Monetary Fund
Very Low Federal Government Debthellip Govrsquot net debt per cent of GDP 2017 estimates reporting gross debt
11
Source Department of Finance
hellipAllowed Sustained Government Stimulus to Boost Growth amp Address InequalityFederal government balance public accounts basis $ billions
-60
-50
-40
-30
-20
-10
0
10
20
12
00
05
10
15
20
25
30
35
40
00
05
10
15
20
25
30
35
40
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f
Consumer Price Index Bank of Canada Target
Low Inflation Facilitated Monetary Stimulusper cent change
Sources Statistics Canada The Conference Board of Canada
13
50
60
70
80
90
100
110
120
130
Unemployment Rate Natural Rate
Sources Statistics Canada The Conference Board of Canada
RecoveryExpansion Led to Low Unemploymentper cent
14
00
10
20
30
40
50
60
70
99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f 19f
Bank of Canada now Slowly Withdrawing Stimulus Reflecting Domestic StrengthBank of Canada Overnight Target Rate
Sources The Conference Board of Canada Statistics Canada
15
00
05
10
15
20
25
30
35
40
45
50
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f
Going Forward Shift from Domestic Growth towards Exports amp InvestmentReal personal consumption per cent change
Sources Statistics Canada The Conference Board of Canada
16
40
45
50
55
60
65
70
75
80
85
90
50100150200250300350400450500550600650700
Nominal trade index 1981=100 Trade as a share of GDP per cent
Source Statistics Canada
Canada is a Trading Nationleft axis nominal trade index (exports + imports) 1981=100 right axis trade as a share of GDP per cent
17
Canada Free Trade Agreements Gives Preferential Access to Many Markets
FTAs in force bull Canada - EU Comprehensive Economic and Trade Agreement (CETA) ndash September
21 2017 (provisional)bull Canada - Ukraine - August 1 2017bull Canada - Korea - January 1 2015bull Canada - Honduras - October 1 2014bull Canada - Panama - April 1 2013bull Canada - Jordan - October 1 2012bull Canada - Colombia - August 15 2011bull Canada - Peru - August 1 2009bull Canada - European Free Trade Association - July 1 2009bull Canada - Costa Rica - November 1 2002bull Canada - Chile - July 5 1997bull Canada - Israel - January 1 1997bull North American Free Trade Agreement (NAFTA) - January 1 1994Source Global Affairs Canada
18
-10
00
10
20
30
40
50
60
Canada Benefits from Improving Global GrowthWorld real GDP per cent change
Source IMF
19
NAFTA Renegotiation Critical as Canada Plugged into US Supply ChainsCanadian Merchandise Exports by Destination in 2016 per cent
Source Innovation Science and Economic Development Canada trade online database Conference Board of Canada
76
10
8 3 3
US
Asia
Europe
Mexico amp S America
Rest of World
20
bull US protectionism a concern
bull NAFTA is 23 years old There is scope to modernize the deal to benefit of all countries
bull Canadarsquos greatest ally is the vast number of US businesses that will want to keep border open to mutual benefit North American supply chain too valuable to disrupt
NAFTA can be Modernized
21
US Protectionism Highlights Need to Diversify Trade GeographicallyShare of Canadian Exports by Destination Non-US Markets 2016 per cent
Source Innovation Science and Economic Development Canada trade online database Conference Board of Canada
22
bull Canadian economy more diversified than many think Resource sector is 13 of economy Lotrsquos of opportunity to in wide array of products and services
bull Economic clusters are groups of firms and institutions that are located near one another and draw productive advantage from their mutual proximity and connections
bull Clusters are key drivers to economic growth and trade-oriented clusters serve markets beyond the region in which they are located
bull Famous US clusters include Wall Street Silicon Valley and Hollywood
bull Government of Canada looking to facilitate lsquosuper clustersrsquo
Canadian Economy is Diversified and Comprises Many Key Clusters
23
Mining and Energy-Related Clusters
Edmonton
Calgary
Saskatoon
Regina
Sudbury
Saint John
St Johnrsquos
24
Manufacturing Clusters
Winnipeg
LondonHamilton
Oshawa
Windsor
Saguenay
Trois-Riviegraveres
Sherbrooke
Abbotsford
Montreacuteal
25
Information amp Communications Technology (ICT) Clusters
Vancouver
Kitchener-Waterloo
Toronto
Ottawa
Montreacuteal
26
Other Key Clusters
VictoriaTourism
AbbotsfordAgriculture
St Catharines-NiagaraTourism
TorontoFinance
Queacutebec CityInsurance
MonctonInsurance
HalifaxTransportation
MontreacutealManuf
VancouverTransportation
WinnipegTransportation
OshawaUtilities
27
Sources Trade Data Online calculations by The Conference Board of Canada
Scope to Expand Exports to EuropeCanadian merchandise exports (Index 2007 = 100)
60
80
100
120
140
160
180
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
28
Canadian Goods Exports to Finland(share of top 10 goods and in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
25
22
16
15
5
3 3
2 1 1 7 Aerospace
Mineral Fuels amp Oils
Ores
Motor Vehicles
Boilers Machinery amp Appliances
Electrical Machinery amp Equip
Medical amp Technical Instruments
Plastics
Oil Seeds
Tools amp Cutlery
Other
$671Meuro450MShare of Cdn Exports 01
29
Sources Trade Data Online calculations by The Conference Board of Canada
Imports from Europe Rising Canadian merchandise imports (Index 2007 = 100)
758595
105115125135145155165
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
30
Canadian Goods Imports From Finland(share of top 10 goods in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
23
11
9
9 8
7
6
6
3 2
16 Boilers Machinery amp Appliances
Motor Vehcles
Mineral Fuels amp Oils
Pharmaceutical Products
Paper
Electrical Machinery amp Equip
Medical amp Technical Instruments
Ores
Nickel
Rubber
Others
$572Meuro353MShare of Cdn Imports 02
31
Sources Statistics Canada calculations by The Conference Board of Canada
Canada and Europe Direct Investment on the Rise(stocks C$ billions)
120
140
160
180
200
220
240
260
280
300
320
2007 08 09 10 11 12 13 14 15 16
Canadian Direct Investment in Europe European Foreign Direct Investment in Canada
32
bull Canada is welcoming to business and investment The World Bank rates Canada as one of the easiest places to start a business Forbes and the Economist rank Canada as a leading location to do business
bull Being a small economy Canada lacks adequate domestic savings to meet all investment needs Hence Canada needs to attract foreign capital and provide a good experience to overseas investors
bull Over the last decade Canada has had the second largest foreign direct investment flows per capital in the G20 nations Since 2012 Inward FDI to Canada has been 54 of GDP highest in G7 and higher than the 29 G-7 average
bull Canadarsquos free trade agreements make it ideal as location to tap global markets
bull Canadian taxation makes investment attractive but one of its greatest strengths is the quality of the labour force
Many Business Advantages for Investment
33
Source OECD Statistics
Canada has Low Corporate Taxes Rates and Generous RampD Incentiveslarge business corporate income tax rate includes federal and provincialstate government taxes
20
25
30
35
40
45Canada US Mexico
34
Canada has a Highly Educated Workforcepercentage of the population aged 25-64 with post-secondary education in 2016
Source OECD
200
250
300
350
400
450
500
550
600
35
Strong Support for Immigration and Diversity
0
20
40
60
80
100
120
140
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
Net immigration (000s left) Net immigration as a share of total population change (per cent right)
36
Sources Immigration Refugees and Citizenship Canada The Conference Board The Conference Board of Canada
Newcomers to Canada Contribute to the Economy and add to Multiculturalism
627
241
118
14
In 2015 63 of immigrants to Canada fell under Economic Class
EconomicSponsored FamilyResettled Refugee amp Protected Person in CanadaAll Other Immigration
37
00 05 10 15 20 25 30
NL
NB
NS
PEI
Sask
Man
Que
Ont
BC
Alta
Sources The Conference Board of Canada Statistics Canada
Broad-based Growth in 2017 amp BeyondReal GDP per cent change 2017-22 basic prices $2007
Canada 21
38
bull CETA can help to boost growth and prosperity in Canada and EU if the opportunities are seized
bull Canada is a small economy with big potential It is a trade-friendly investment-friendly market and ideal platform for tapping North American Economy or beyond
bull Canada has strong fundamentals competitive corporate tax rates generous RampD tax incentives highly educated population highly tolerant and diverse population well anchored monetary policy sound fiscal finances
bull It is a modern-knowledge based economy Resources are still a key sector but so are other key clusters like ICT Finance and other advanced manufacturing and services
bull Canadarsquos economy is strengthening It is resisting the global shift towards protectionism leaning against inequality and building sustainable economic growth for the long-term
Key Messages
conferenceboardca
CraigA_Eco
wwwtradecommissionergccaCETA website
7
A Primer on Canadarsquos Economy amp Opportunities from CETA
8
-30
-20
-10
00
10
20
30
40
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f
Canadian Economy Delivers Strong Performance Canada real GDP per cent change
Sources Statistics Canada The Conference Board of Canada
9
bull Canada had a recession in 200809 but itrsquos financial system remained solid
bull No banks failed and there was no government financial bailout World Economic Forum ranks Canada as having one of the soundest banking systems
bull Government fiscal balances were and remain healthy allowing significant government stimulus
bull Low inflation and well anchored inflation expectations allowed monetary stimulus without exceptional policies ndash like those of ECB
bull The recession reflected the global downturn that created an external shock Canada soon recovered It was then hit by global commodity correction in 2015 However economy has now adjusted and growth has rebounded
Robust Underlying Fundamentals
10
0
20
40
60
80
100
120
140
160
180
200
Greece Japan Portugal Italy Spain UnitedKingdom
UnitedStates
India China Canada
Source International Monetary Fund
Very Low Federal Government Debthellip Govrsquot net debt per cent of GDP 2017 estimates reporting gross debt
11
Source Department of Finance
hellipAllowed Sustained Government Stimulus to Boost Growth amp Address InequalityFederal government balance public accounts basis $ billions
-60
-50
-40
-30
-20
-10
0
10
20
12
00
05
10
15
20
25
30
35
40
00
05
10
15
20
25
30
35
40
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f
Consumer Price Index Bank of Canada Target
Low Inflation Facilitated Monetary Stimulusper cent change
Sources Statistics Canada The Conference Board of Canada
13
50
60
70
80
90
100
110
120
130
Unemployment Rate Natural Rate
Sources Statistics Canada The Conference Board of Canada
RecoveryExpansion Led to Low Unemploymentper cent
14
00
10
20
30
40
50
60
70
99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f 19f
Bank of Canada now Slowly Withdrawing Stimulus Reflecting Domestic StrengthBank of Canada Overnight Target Rate
Sources The Conference Board of Canada Statistics Canada
15
00
05
10
15
20
25
30
35
40
45
50
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f
Going Forward Shift from Domestic Growth towards Exports amp InvestmentReal personal consumption per cent change
Sources Statistics Canada The Conference Board of Canada
16
40
45
50
55
60
65
70
75
80
85
90
50100150200250300350400450500550600650700
Nominal trade index 1981=100 Trade as a share of GDP per cent
Source Statistics Canada
Canada is a Trading Nationleft axis nominal trade index (exports + imports) 1981=100 right axis trade as a share of GDP per cent
17
Canada Free Trade Agreements Gives Preferential Access to Many Markets
FTAs in force bull Canada - EU Comprehensive Economic and Trade Agreement (CETA) ndash September
21 2017 (provisional)bull Canada - Ukraine - August 1 2017bull Canada - Korea - January 1 2015bull Canada - Honduras - October 1 2014bull Canada - Panama - April 1 2013bull Canada - Jordan - October 1 2012bull Canada - Colombia - August 15 2011bull Canada - Peru - August 1 2009bull Canada - European Free Trade Association - July 1 2009bull Canada - Costa Rica - November 1 2002bull Canada - Chile - July 5 1997bull Canada - Israel - January 1 1997bull North American Free Trade Agreement (NAFTA) - January 1 1994Source Global Affairs Canada
18
-10
00
10
20
30
40
50
60
Canada Benefits from Improving Global GrowthWorld real GDP per cent change
Source IMF
19
NAFTA Renegotiation Critical as Canada Plugged into US Supply ChainsCanadian Merchandise Exports by Destination in 2016 per cent
Source Innovation Science and Economic Development Canada trade online database Conference Board of Canada
76
10
8 3 3
US
Asia
Europe
Mexico amp S America
Rest of World
20
bull US protectionism a concern
bull NAFTA is 23 years old There is scope to modernize the deal to benefit of all countries
bull Canadarsquos greatest ally is the vast number of US businesses that will want to keep border open to mutual benefit North American supply chain too valuable to disrupt
NAFTA can be Modernized
21
US Protectionism Highlights Need to Diversify Trade GeographicallyShare of Canadian Exports by Destination Non-US Markets 2016 per cent
Source Innovation Science and Economic Development Canada trade online database Conference Board of Canada
22
bull Canadian economy more diversified than many think Resource sector is 13 of economy Lotrsquos of opportunity to in wide array of products and services
bull Economic clusters are groups of firms and institutions that are located near one another and draw productive advantage from their mutual proximity and connections
bull Clusters are key drivers to economic growth and trade-oriented clusters serve markets beyond the region in which they are located
bull Famous US clusters include Wall Street Silicon Valley and Hollywood
bull Government of Canada looking to facilitate lsquosuper clustersrsquo
Canadian Economy is Diversified and Comprises Many Key Clusters
23
Mining and Energy-Related Clusters
Edmonton
Calgary
Saskatoon
Regina
Sudbury
Saint John
St Johnrsquos
24
Manufacturing Clusters
Winnipeg
LondonHamilton
Oshawa
Windsor
Saguenay
Trois-Riviegraveres
Sherbrooke
Abbotsford
Montreacuteal
25
Information amp Communications Technology (ICT) Clusters
Vancouver
Kitchener-Waterloo
Toronto
Ottawa
Montreacuteal
26
Other Key Clusters
VictoriaTourism
AbbotsfordAgriculture
St Catharines-NiagaraTourism
TorontoFinance
Queacutebec CityInsurance
MonctonInsurance
HalifaxTransportation
MontreacutealManuf
VancouverTransportation
WinnipegTransportation
OshawaUtilities
27
Sources Trade Data Online calculations by The Conference Board of Canada
Scope to Expand Exports to EuropeCanadian merchandise exports (Index 2007 = 100)
60
80
100
120
140
160
180
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
28
Canadian Goods Exports to Finland(share of top 10 goods and in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
25
22
16
15
5
3 3
2 1 1 7 Aerospace
Mineral Fuels amp Oils
Ores
Motor Vehicles
Boilers Machinery amp Appliances
Electrical Machinery amp Equip
Medical amp Technical Instruments
Plastics
Oil Seeds
Tools amp Cutlery
Other
$671Meuro450MShare of Cdn Exports 01
29
Sources Trade Data Online calculations by The Conference Board of Canada
Imports from Europe Rising Canadian merchandise imports (Index 2007 = 100)
758595
105115125135145155165
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
30
Canadian Goods Imports From Finland(share of top 10 goods in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
23
11
9
9 8
7
6
6
3 2
16 Boilers Machinery amp Appliances
Motor Vehcles
Mineral Fuels amp Oils
Pharmaceutical Products
Paper
Electrical Machinery amp Equip
Medical amp Technical Instruments
Ores
Nickel
Rubber
Others
$572Meuro353MShare of Cdn Imports 02
31
Sources Statistics Canada calculations by The Conference Board of Canada
Canada and Europe Direct Investment on the Rise(stocks C$ billions)
120
140
160
180
200
220
240
260
280
300
320
2007 08 09 10 11 12 13 14 15 16
Canadian Direct Investment in Europe European Foreign Direct Investment in Canada
32
bull Canada is welcoming to business and investment The World Bank rates Canada as one of the easiest places to start a business Forbes and the Economist rank Canada as a leading location to do business
bull Being a small economy Canada lacks adequate domestic savings to meet all investment needs Hence Canada needs to attract foreign capital and provide a good experience to overseas investors
bull Over the last decade Canada has had the second largest foreign direct investment flows per capital in the G20 nations Since 2012 Inward FDI to Canada has been 54 of GDP highest in G7 and higher than the 29 G-7 average
bull Canadarsquos free trade agreements make it ideal as location to tap global markets
bull Canadian taxation makes investment attractive but one of its greatest strengths is the quality of the labour force
Many Business Advantages for Investment
33
Source OECD Statistics
Canada has Low Corporate Taxes Rates and Generous RampD Incentiveslarge business corporate income tax rate includes federal and provincialstate government taxes
20
25
30
35
40
45Canada US Mexico
34
Canada has a Highly Educated Workforcepercentage of the population aged 25-64 with post-secondary education in 2016
Source OECD
200
250
300
350
400
450
500
550
600
35
Strong Support for Immigration and Diversity
0
20
40
60
80
100
120
140
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
Net immigration (000s left) Net immigration as a share of total population change (per cent right)
36
Sources Immigration Refugees and Citizenship Canada The Conference Board The Conference Board of Canada
Newcomers to Canada Contribute to the Economy and add to Multiculturalism
627
241
118
14
In 2015 63 of immigrants to Canada fell under Economic Class
EconomicSponsored FamilyResettled Refugee amp Protected Person in CanadaAll Other Immigration
37
00 05 10 15 20 25 30
NL
NB
NS
PEI
Sask
Man
Que
Ont
BC
Alta
Sources The Conference Board of Canada Statistics Canada
Broad-based Growth in 2017 amp BeyondReal GDP per cent change 2017-22 basic prices $2007
Canada 21
38
bull CETA can help to boost growth and prosperity in Canada and EU if the opportunities are seized
bull Canada is a small economy with big potential It is a trade-friendly investment-friendly market and ideal platform for tapping North American Economy or beyond
bull Canada has strong fundamentals competitive corporate tax rates generous RampD tax incentives highly educated population highly tolerant and diverse population well anchored monetary policy sound fiscal finances
bull It is a modern-knowledge based economy Resources are still a key sector but so are other key clusters like ICT Finance and other advanced manufacturing and services
bull Canadarsquos economy is strengthening It is resisting the global shift towards protectionism leaning against inequality and building sustainable economic growth for the long-term
Key Messages
conferenceboardca
CraigA_Eco
wwwtradecommissionergccaCETA website
8
-30
-20
-10
00
10
20
30
40
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f
Canadian Economy Delivers Strong Performance Canada real GDP per cent change
Sources Statistics Canada The Conference Board of Canada
9
bull Canada had a recession in 200809 but itrsquos financial system remained solid
bull No banks failed and there was no government financial bailout World Economic Forum ranks Canada as having one of the soundest banking systems
bull Government fiscal balances were and remain healthy allowing significant government stimulus
bull Low inflation and well anchored inflation expectations allowed monetary stimulus without exceptional policies ndash like those of ECB
bull The recession reflected the global downturn that created an external shock Canada soon recovered It was then hit by global commodity correction in 2015 However economy has now adjusted and growth has rebounded
Robust Underlying Fundamentals
10
0
20
40
60
80
100
120
140
160
180
200
Greece Japan Portugal Italy Spain UnitedKingdom
UnitedStates
India China Canada
Source International Monetary Fund
Very Low Federal Government Debthellip Govrsquot net debt per cent of GDP 2017 estimates reporting gross debt
11
Source Department of Finance
hellipAllowed Sustained Government Stimulus to Boost Growth amp Address InequalityFederal government balance public accounts basis $ billions
-60
-50
-40
-30
-20
-10
0
10
20
12
00
05
10
15
20
25
30
35
40
00
05
10
15
20
25
30
35
40
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f
Consumer Price Index Bank of Canada Target
Low Inflation Facilitated Monetary Stimulusper cent change
Sources Statistics Canada The Conference Board of Canada
13
50
60
70
80
90
100
110
120
130
Unemployment Rate Natural Rate
Sources Statistics Canada The Conference Board of Canada
RecoveryExpansion Led to Low Unemploymentper cent
14
00
10
20
30
40
50
60
70
99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f 19f
Bank of Canada now Slowly Withdrawing Stimulus Reflecting Domestic StrengthBank of Canada Overnight Target Rate
Sources The Conference Board of Canada Statistics Canada
15
00
05
10
15
20
25
30
35
40
45
50
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f
Going Forward Shift from Domestic Growth towards Exports amp InvestmentReal personal consumption per cent change
Sources Statistics Canada The Conference Board of Canada
16
40
45
50
55
60
65
70
75
80
85
90
50100150200250300350400450500550600650700
Nominal trade index 1981=100 Trade as a share of GDP per cent
Source Statistics Canada
Canada is a Trading Nationleft axis nominal trade index (exports + imports) 1981=100 right axis trade as a share of GDP per cent
17
Canada Free Trade Agreements Gives Preferential Access to Many Markets
FTAs in force bull Canada - EU Comprehensive Economic and Trade Agreement (CETA) ndash September
21 2017 (provisional)bull Canada - Ukraine - August 1 2017bull Canada - Korea - January 1 2015bull Canada - Honduras - October 1 2014bull Canada - Panama - April 1 2013bull Canada - Jordan - October 1 2012bull Canada - Colombia - August 15 2011bull Canada - Peru - August 1 2009bull Canada - European Free Trade Association - July 1 2009bull Canada - Costa Rica - November 1 2002bull Canada - Chile - July 5 1997bull Canada - Israel - January 1 1997bull North American Free Trade Agreement (NAFTA) - January 1 1994Source Global Affairs Canada
18
-10
00
10
20
30
40
50
60
Canada Benefits from Improving Global GrowthWorld real GDP per cent change
Source IMF
19
NAFTA Renegotiation Critical as Canada Plugged into US Supply ChainsCanadian Merchandise Exports by Destination in 2016 per cent
Source Innovation Science and Economic Development Canada trade online database Conference Board of Canada
76
10
8 3 3
US
Asia
Europe
Mexico amp S America
Rest of World
20
bull US protectionism a concern
bull NAFTA is 23 years old There is scope to modernize the deal to benefit of all countries
bull Canadarsquos greatest ally is the vast number of US businesses that will want to keep border open to mutual benefit North American supply chain too valuable to disrupt
NAFTA can be Modernized
21
US Protectionism Highlights Need to Diversify Trade GeographicallyShare of Canadian Exports by Destination Non-US Markets 2016 per cent
Source Innovation Science and Economic Development Canada trade online database Conference Board of Canada
22
bull Canadian economy more diversified than many think Resource sector is 13 of economy Lotrsquos of opportunity to in wide array of products and services
bull Economic clusters are groups of firms and institutions that are located near one another and draw productive advantage from their mutual proximity and connections
bull Clusters are key drivers to economic growth and trade-oriented clusters serve markets beyond the region in which they are located
bull Famous US clusters include Wall Street Silicon Valley and Hollywood
bull Government of Canada looking to facilitate lsquosuper clustersrsquo
Canadian Economy is Diversified and Comprises Many Key Clusters
23
Mining and Energy-Related Clusters
Edmonton
Calgary
Saskatoon
Regina
Sudbury
Saint John
St Johnrsquos
24
Manufacturing Clusters
Winnipeg
LondonHamilton
Oshawa
Windsor
Saguenay
Trois-Riviegraveres
Sherbrooke
Abbotsford
Montreacuteal
25
Information amp Communications Technology (ICT) Clusters
Vancouver
Kitchener-Waterloo
Toronto
Ottawa
Montreacuteal
26
Other Key Clusters
VictoriaTourism
AbbotsfordAgriculture
St Catharines-NiagaraTourism
TorontoFinance
Queacutebec CityInsurance
MonctonInsurance
HalifaxTransportation
MontreacutealManuf
VancouverTransportation
WinnipegTransportation
OshawaUtilities
27
Sources Trade Data Online calculations by The Conference Board of Canada
Scope to Expand Exports to EuropeCanadian merchandise exports (Index 2007 = 100)
60
80
100
120
140
160
180
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
28
Canadian Goods Exports to Finland(share of top 10 goods and in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
25
22
16
15
5
3 3
2 1 1 7 Aerospace
Mineral Fuels amp Oils
Ores
Motor Vehicles
Boilers Machinery amp Appliances
Electrical Machinery amp Equip
Medical amp Technical Instruments
Plastics
Oil Seeds
Tools amp Cutlery
Other
$671Meuro450MShare of Cdn Exports 01
29
Sources Trade Data Online calculations by The Conference Board of Canada
Imports from Europe Rising Canadian merchandise imports (Index 2007 = 100)
758595
105115125135145155165
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
30
Canadian Goods Imports From Finland(share of top 10 goods in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
23
11
9
9 8
7
6
6
3 2
16 Boilers Machinery amp Appliances
Motor Vehcles
Mineral Fuels amp Oils
Pharmaceutical Products
Paper
Electrical Machinery amp Equip
Medical amp Technical Instruments
Ores
Nickel
Rubber
Others
$572Meuro353MShare of Cdn Imports 02
31
Sources Statistics Canada calculations by The Conference Board of Canada
Canada and Europe Direct Investment on the Rise(stocks C$ billions)
120
140
160
180
200
220
240
260
280
300
320
2007 08 09 10 11 12 13 14 15 16
Canadian Direct Investment in Europe European Foreign Direct Investment in Canada
32
bull Canada is welcoming to business and investment The World Bank rates Canada as one of the easiest places to start a business Forbes and the Economist rank Canada as a leading location to do business
bull Being a small economy Canada lacks adequate domestic savings to meet all investment needs Hence Canada needs to attract foreign capital and provide a good experience to overseas investors
bull Over the last decade Canada has had the second largest foreign direct investment flows per capital in the G20 nations Since 2012 Inward FDI to Canada has been 54 of GDP highest in G7 and higher than the 29 G-7 average
bull Canadarsquos free trade agreements make it ideal as location to tap global markets
bull Canadian taxation makes investment attractive but one of its greatest strengths is the quality of the labour force
Many Business Advantages for Investment
33
Source OECD Statistics
Canada has Low Corporate Taxes Rates and Generous RampD Incentiveslarge business corporate income tax rate includes federal and provincialstate government taxes
20
25
30
35
40
45Canada US Mexico
34
Canada has a Highly Educated Workforcepercentage of the population aged 25-64 with post-secondary education in 2016
Source OECD
200
250
300
350
400
450
500
550
600
35
Strong Support for Immigration and Diversity
0
20
40
60
80
100
120
140
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
Net immigration (000s left) Net immigration as a share of total population change (per cent right)
36
Sources Immigration Refugees and Citizenship Canada The Conference Board The Conference Board of Canada
Newcomers to Canada Contribute to the Economy and add to Multiculturalism
627
241
118
14
In 2015 63 of immigrants to Canada fell under Economic Class
EconomicSponsored FamilyResettled Refugee amp Protected Person in CanadaAll Other Immigration
37
00 05 10 15 20 25 30
NL
NB
NS
PEI
Sask
Man
Que
Ont
BC
Alta
Sources The Conference Board of Canada Statistics Canada
Broad-based Growth in 2017 amp BeyondReal GDP per cent change 2017-22 basic prices $2007
Canada 21
38
bull CETA can help to boost growth and prosperity in Canada and EU if the opportunities are seized
bull Canada is a small economy with big potential It is a trade-friendly investment-friendly market and ideal platform for tapping North American Economy or beyond
bull Canada has strong fundamentals competitive corporate tax rates generous RampD tax incentives highly educated population highly tolerant and diverse population well anchored monetary policy sound fiscal finances
bull It is a modern-knowledge based economy Resources are still a key sector but so are other key clusters like ICT Finance and other advanced manufacturing and services
bull Canadarsquos economy is strengthening It is resisting the global shift towards protectionism leaning against inequality and building sustainable economic growth for the long-term
Key Messages
conferenceboardca
CraigA_Eco
wwwtradecommissionergccaCETA website
9
bull Canada had a recession in 200809 but itrsquos financial system remained solid
bull No banks failed and there was no government financial bailout World Economic Forum ranks Canada as having one of the soundest banking systems
bull Government fiscal balances were and remain healthy allowing significant government stimulus
bull Low inflation and well anchored inflation expectations allowed monetary stimulus without exceptional policies ndash like those of ECB
bull The recession reflected the global downturn that created an external shock Canada soon recovered It was then hit by global commodity correction in 2015 However economy has now adjusted and growth has rebounded
Robust Underlying Fundamentals
10
0
20
40
60
80
100
120
140
160
180
200
Greece Japan Portugal Italy Spain UnitedKingdom
UnitedStates
India China Canada
Source International Monetary Fund
Very Low Federal Government Debthellip Govrsquot net debt per cent of GDP 2017 estimates reporting gross debt
11
Source Department of Finance
hellipAllowed Sustained Government Stimulus to Boost Growth amp Address InequalityFederal government balance public accounts basis $ billions
-60
-50
-40
-30
-20
-10
0
10
20
12
00
05
10
15
20
25
30
35
40
00
05
10
15
20
25
30
35
40
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f
Consumer Price Index Bank of Canada Target
Low Inflation Facilitated Monetary Stimulusper cent change
Sources Statistics Canada The Conference Board of Canada
13
50
60
70
80
90
100
110
120
130
Unemployment Rate Natural Rate
Sources Statistics Canada The Conference Board of Canada
RecoveryExpansion Led to Low Unemploymentper cent
14
00
10
20
30
40
50
60
70
99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f 19f
Bank of Canada now Slowly Withdrawing Stimulus Reflecting Domestic StrengthBank of Canada Overnight Target Rate
Sources The Conference Board of Canada Statistics Canada
15
00
05
10
15
20
25
30
35
40
45
50
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f
Going Forward Shift from Domestic Growth towards Exports amp InvestmentReal personal consumption per cent change
Sources Statistics Canada The Conference Board of Canada
16
40
45
50
55
60
65
70
75
80
85
90
50100150200250300350400450500550600650700
Nominal trade index 1981=100 Trade as a share of GDP per cent
Source Statistics Canada
Canada is a Trading Nationleft axis nominal trade index (exports + imports) 1981=100 right axis trade as a share of GDP per cent
17
Canada Free Trade Agreements Gives Preferential Access to Many Markets
FTAs in force bull Canada - EU Comprehensive Economic and Trade Agreement (CETA) ndash September
21 2017 (provisional)bull Canada - Ukraine - August 1 2017bull Canada - Korea - January 1 2015bull Canada - Honduras - October 1 2014bull Canada - Panama - April 1 2013bull Canada - Jordan - October 1 2012bull Canada - Colombia - August 15 2011bull Canada - Peru - August 1 2009bull Canada - European Free Trade Association - July 1 2009bull Canada - Costa Rica - November 1 2002bull Canada - Chile - July 5 1997bull Canada - Israel - January 1 1997bull North American Free Trade Agreement (NAFTA) - January 1 1994Source Global Affairs Canada
18
-10
00
10
20
30
40
50
60
Canada Benefits from Improving Global GrowthWorld real GDP per cent change
Source IMF
19
NAFTA Renegotiation Critical as Canada Plugged into US Supply ChainsCanadian Merchandise Exports by Destination in 2016 per cent
Source Innovation Science and Economic Development Canada trade online database Conference Board of Canada
76
10
8 3 3
US
Asia
Europe
Mexico amp S America
Rest of World
20
bull US protectionism a concern
bull NAFTA is 23 years old There is scope to modernize the deal to benefit of all countries
bull Canadarsquos greatest ally is the vast number of US businesses that will want to keep border open to mutual benefit North American supply chain too valuable to disrupt
NAFTA can be Modernized
21
US Protectionism Highlights Need to Diversify Trade GeographicallyShare of Canadian Exports by Destination Non-US Markets 2016 per cent
Source Innovation Science and Economic Development Canada trade online database Conference Board of Canada
22
bull Canadian economy more diversified than many think Resource sector is 13 of economy Lotrsquos of opportunity to in wide array of products and services
bull Economic clusters are groups of firms and institutions that are located near one another and draw productive advantage from their mutual proximity and connections
bull Clusters are key drivers to economic growth and trade-oriented clusters serve markets beyond the region in which they are located
bull Famous US clusters include Wall Street Silicon Valley and Hollywood
bull Government of Canada looking to facilitate lsquosuper clustersrsquo
Canadian Economy is Diversified and Comprises Many Key Clusters
23
Mining and Energy-Related Clusters
Edmonton
Calgary
Saskatoon
Regina
Sudbury
Saint John
St Johnrsquos
24
Manufacturing Clusters
Winnipeg
LondonHamilton
Oshawa
Windsor
Saguenay
Trois-Riviegraveres
Sherbrooke
Abbotsford
Montreacuteal
25
Information amp Communications Technology (ICT) Clusters
Vancouver
Kitchener-Waterloo
Toronto
Ottawa
Montreacuteal
26
Other Key Clusters
VictoriaTourism
AbbotsfordAgriculture
St Catharines-NiagaraTourism
TorontoFinance
Queacutebec CityInsurance
MonctonInsurance
HalifaxTransportation
MontreacutealManuf
VancouverTransportation
WinnipegTransportation
OshawaUtilities
27
Sources Trade Data Online calculations by The Conference Board of Canada
Scope to Expand Exports to EuropeCanadian merchandise exports (Index 2007 = 100)
60
80
100
120
140
160
180
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
28
Canadian Goods Exports to Finland(share of top 10 goods and in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
25
22
16
15
5
3 3
2 1 1 7 Aerospace
Mineral Fuels amp Oils
Ores
Motor Vehicles
Boilers Machinery amp Appliances
Electrical Machinery amp Equip
Medical amp Technical Instruments
Plastics
Oil Seeds
Tools amp Cutlery
Other
$671Meuro450MShare of Cdn Exports 01
29
Sources Trade Data Online calculations by The Conference Board of Canada
Imports from Europe Rising Canadian merchandise imports (Index 2007 = 100)
758595
105115125135145155165
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
30
Canadian Goods Imports From Finland(share of top 10 goods in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
23
11
9
9 8
7
6
6
3 2
16 Boilers Machinery amp Appliances
Motor Vehcles
Mineral Fuels amp Oils
Pharmaceutical Products
Paper
Electrical Machinery amp Equip
Medical amp Technical Instruments
Ores
Nickel
Rubber
Others
$572Meuro353MShare of Cdn Imports 02
31
Sources Statistics Canada calculations by The Conference Board of Canada
Canada and Europe Direct Investment on the Rise(stocks C$ billions)
120
140
160
180
200
220
240
260
280
300
320
2007 08 09 10 11 12 13 14 15 16
Canadian Direct Investment in Europe European Foreign Direct Investment in Canada
32
bull Canada is welcoming to business and investment The World Bank rates Canada as one of the easiest places to start a business Forbes and the Economist rank Canada as a leading location to do business
bull Being a small economy Canada lacks adequate domestic savings to meet all investment needs Hence Canada needs to attract foreign capital and provide a good experience to overseas investors
bull Over the last decade Canada has had the second largest foreign direct investment flows per capital in the G20 nations Since 2012 Inward FDI to Canada has been 54 of GDP highest in G7 and higher than the 29 G-7 average
bull Canadarsquos free trade agreements make it ideal as location to tap global markets
bull Canadian taxation makes investment attractive but one of its greatest strengths is the quality of the labour force
Many Business Advantages for Investment
33
Source OECD Statistics
Canada has Low Corporate Taxes Rates and Generous RampD Incentiveslarge business corporate income tax rate includes federal and provincialstate government taxes
20
25
30
35
40
45Canada US Mexico
34
Canada has a Highly Educated Workforcepercentage of the population aged 25-64 with post-secondary education in 2016
Source OECD
200
250
300
350
400
450
500
550
600
35
Strong Support for Immigration and Diversity
0
20
40
60
80
100
120
140
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
Net immigration (000s left) Net immigration as a share of total population change (per cent right)
36
Sources Immigration Refugees and Citizenship Canada The Conference Board The Conference Board of Canada
Newcomers to Canada Contribute to the Economy and add to Multiculturalism
627
241
118
14
In 2015 63 of immigrants to Canada fell under Economic Class
EconomicSponsored FamilyResettled Refugee amp Protected Person in CanadaAll Other Immigration
37
00 05 10 15 20 25 30
NL
NB
NS
PEI
Sask
Man
Que
Ont
BC
Alta
Sources The Conference Board of Canada Statistics Canada
Broad-based Growth in 2017 amp BeyondReal GDP per cent change 2017-22 basic prices $2007
Canada 21
38
bull CETA can help to boost growth and prosperity in Canada and EU if the opportunities are seized
bull Canada is a small economy with big potential It is a trade-friendly investment-friendly market and ideal platform for tapping North American Economy or beyond
bull Canada has strong fundamentals competitive corporate tax rates generous RampD tax incentives highly educated population highly tolerant and diverse population well anchored monetary policy sound fiscal finances
bull It is a modern-knowledge based economy Resources are still a key sector but so are other key clusters like ICT Finance and other advanced manufacturing and services
bull Canadarsquos economy is strengthening It is resisting the global shift towards protectionism leaning against inequality and building sustainable economic growth for the long-term
Key Messages
conferenceboardca
CraigA_Eco
wwwtradecommissionergccaCETA website
10
0
20
40
60
80
100
120
140
160
180
200
Greece Japan Portugal Italy Spain UnitedKingdom
UnitedStates
India China Canada
Source International Monetary Fund
Very Low Federal Government Debthellip Govrsquot net debt per cent of GDP 2017 estimates reporting gross debt
11
Source Department of Finance
hellipAllowed Sustained Government Stimulus to Boost Growth amp Address InequalityFederal government balance public accounts basis $ billions
-60
-50
-40
-30
-20
-10
0
10
20
12
00
05
10
15
20
25
30
35
40
00
05
10
15
20
25
30
35
40
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f
Consumer Price Index Bank of Canada Target
Low Inflation Facilitated Monetary Stimulusper cent change
Sources Statistics Canada The Conference Board of Canada
13
50
60
70
80
90
100
110
120
130
Unemployment Rate Natural Rate
Sources Statistics Canada The Conference Board of Canada
RecoveryExpansion Led to Low Unemploymentper cent
14
00
10
20
30
40
50
60
70
99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f 19f
Bank of Canada now Slowly Withdrawing Stimulus Reflecting Domestic StrengthBank of Canada Overnight Target Rate
Sources The Conference Board of Canada Statistics Canada
15
00
05
10
15
20
25
30
35
40
45
50
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f
Going Forward Shift from Domestic Growth towards Exports amp InvestmentReal personal consumption per cent change
Sources Statistics Canada The Conference Board of Canada
16
40
45
50
55
60
65
70
75
80
85
90
50100150200250300350400450500550600650700
Nominal trade index 1981=100 Trade as a share of GDP per cent
Source Statistics Canada
Canada is a Trading Nationleft axis nominal trade index (exports + imports) 1981=100 right axis trade as a share of GDP per cent
17
Canada Free Trade Agreements Gives Preferential Access to Many Markets
FTAs in force bull Canada - EU Comprehensive Economic and Trade Agreement (CETA) ndash September
21 2017 (provisional)bull Canada - Ukraine - August 1 2017bull Canada - Korea - January 1 2015bull Canada - Honduras - October 1 2014bull Canada - Panama - April 1 2013bull Canada - Jordan - October 1 2012bull Canada - Colombia - August 15 2011bull Canada - Peru - August 1 2009bull Canada - European Free Trade Association - July 1 2009bull Canada - Costa Rica - November 1 2002bull Canada - Chile - July 5 1997bull Canada - Israel - January 1 1997bull North American Free Trade Agreement (NAFTA) - January 1 1994Source Global Affairs Canada
18
-10
00
10
20
30
40
50
60
Canada Benefits from Improving Global GrowthWorld real GDP per cent change
Source IMF
19
NAFTA Renegotiation Critical as Canada Plugged into US Supply ChainsCanadian Merchandise Exports by Destination in 2016 per cent
Source Innovation Science and Economic Development Canada trade online database Conference Board of Canada
76
10
8 3 3
US
Asia
Europe
Mexico amp S America
Rest of World
20
bull US protectionism a concern
bull NAFTA is 23 years old There is scope to modernize the deal to benefit of all countries
bull Canadarsquos greatest ally is the vast number of US businesses that will want to keep border open to mutual benefit North American supply chain too valuable to disrupt
NAFTA can be Modernized
21
US Protectionism Highlights Need to Diversify Trade GeographicallyShare of Canadian Exports by Destination Non-US Markets 2016 per cent
Source Innovation Science and Economic Development Canada trade online database Conference Board of Canada
22
bull Canadian economy more diversified than many think Resource sector is 13 of economy Lotrsquos of opportunity to in wide array of products and services
bull Economic clusters are groups of firms and institutions that are located near one another and draw productive advantage from their mutual proximity and connections
bull Clusters are key drivers to economic growth and trade-oriented clusters serve markets beyond the region in which they are located
bull Famous US clusters include Wall Street Silicon Valley and Hollywood
bull Government of Canada looking to facilitate lsquosuper clustersrsquo
Canadian Economy is Diversified and Comprises Many Key Clusters
23
Mining and Energy-Related Clusters
Edmonton
Calgary
Saskatoon
Regina
Sudbury
Saint John
St Johnrsquos
24
Manufacturing Clusters
Winnipeg
LondonHamilton
Oshawa
Windsor
Saguenay
Trois-Riviegraveres
Sherbrooke
Abbotsford
Montreacuteal
25
Information amp Communications Technology (ICT) Clusters
Vancouver
Kitchener-Waterloo
Toronto
Ottawa
Montreacuteal
26
Other Key Clusters
VictoriaTourism
AbbotsfordAgriculture
St Catharines-NiagaraTourism
TorontoFinance
Queacutebec CityInsurance
MonctonInsurance
HalifaxTransportation
MontreacutealManuf
VancouverTransportation
WinnipegTransportation
OshawaUtilities
27
Sources Trade Data Online calculations by The Conference Board of Canada
Scope to Expand Exports to EuropeCanadian merchandise exports (Index 2007 = 100)
60
80
100
120
140
160
180
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
28
Canadian Goods Exports to Finland(share of top 10 goods and in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
25
22
16
15
5
3 3
2 1 1 7 Aerospace
Mineral Fuels amp Oils
Ores
Motor Vehicles
Boilers Machinery amp Appliances
Electrical Machinery amp Equip
Medical amp Technical Instruments
Plastics
Oil Seeds
Tools amp Cutlery
Other
$671Meuro450MShare of Cdn Exports 01
29
Sources Trade Data Online calculations by The Conference Board of Canada
Imports from Europe Rising Canadian merchandise imports (Index 2007 = 100)
758595
105115125135145155165
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
30
Canadian Goods Imports From Finland(share of top 10 goods in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
23
11
9
9 8
7
6
6
3 2
16 Boilers Machinery amp Appliances
Motor Vehcles
Mineral Fuels amp Oils
Pharmaceutical Products
Paper
Electrical Machinery amp Equip
Medical amp Technical Instruments
Ores
Nickel
Rubber
Others
$572Meuro353MShare of Cdn Imports 02
31
Sources Statistics Canada calculations by The Conference Board of Canada
Canada and Europe Direct Investment on the Rise(stocks C$ billions)
120
140
160
180
200
220
240
260
280
300
320
2007 08 09 10 11 12 13 14 15 16
Canadian Direct Investment in Europe European Foreign Direct Investment in Canada
32
bull Canada is welcoming to business and investment The World Bank rates Canada as one of the easiest places to start a business Forbes and the Economist rank Canada as a leading location to do business
bull Being a small economy Canada lacks adequate domestic savings to meet all investment needs Hence Canada needs to attract foreign capital and provide a good experience to overseas investors
bull Over the last decade Canada has had the second largest foreign direct investment flows per capital in the G20 nations Since 2012 Inward FDI to Canada has been 54 of GDP highest in G7 and higher than the 29 G-7 average
bull Canadarsquos free trade agreements make it ideal as location to tap global markets
bull Canadian taxation makes investment attractive but one of its greatest strengths is the quality of the labour force
Many Business Advantages for Investment
33
Source OECD Statistics
Canada has Low Corporate Taxes Rates and Generous RampD Incentiveslarge business corporate income tax rate includes federal and provincialstate government taxes
20
25
30
35
40
45Canada US Mexico
34
Canada has a Highly Educated Workforcepercentage of the population aged 25-64 with post-secondary education in 2016
Source OECD
200
250
300
350
400
450
500
550
600
35
Strong Support for Immigration and Diversity
0
20
40
60
80
100
120
140
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
Net immigration (000s left) Net immigration as a share of total population change (per cent right)
36
Sources Immigration Refugees and Citizenship Canada The Conference Board The Conference Board of Canada
Newcomers to Canada Contribute to the Economy and add to Multiculturalism
627
241
118
14
In 2015 63 of immigrants to Canada fell under Economic Class
EconomicSponsored FamilyResettled Refugee amp Protected Person in CanadaAll Other Immigration
37
00 05 10 15 20 25 30
NL
NB
NS
PEI
Sask
Man
Que
Ont
BC
Alta
Sources The Conference Board of Canada Statistics Canada
Broad-based Growth in 2017 amp BeyondReal GDP per cent change 2017-22 basic prices $2007
Canada 21
38
bull CETA can help to boost growth and prosperity in Canada and EU if the opportunities are seized
bull Canada is a small economy with big potential It is a trade-friendly investment-friendly market and ideal platform for tapping North American Economy or beyond
bull Canada has strong fundamentals competitive corporate tax rates generous RampD tax incentives highly educated population highly tolerant and diverse population well anchored monetary policy sound fiscal finances
bull It is a modern-knowledge based economy Resources are still a key sector but so are other key clusters like ICT Finance and other advanced manufacturing and services
bull Canadarsquos economy is strengthening It is resisting the global shift towards protectionism leaning against inequality and building sustainable economic growth for the long-term
Key Messages
conferenceboardca
CraigA_Eco
wwwtradecommissionergccaCETA website
11
Source Department of Finance
hellipAllowed Sustained Government Stimulus to Boost Growth amp Address InequalityFederal government balance public accounts basis $ billions
-60
-50
-40
-30
-20
-10
0
10
20
12
00
05
10
15
20
25
30
35
40
00
05
10
15
20
25
30
35
40
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f
Consumer Price Index Bank of Canada Target
Low Inflation Facilitated Monetary Stimulusper cent change
Sources Statistics Canada The Conference Board of Canada
13
50
60
70
80
90
100
110
120
130
Unemployment Rate Natural Rate
Sources Statistics Canada The Conference Board of Canada
RecoveryExpansion Led to Low Unemploymentper cent
14
00
10
20
30
40
50
60
70
99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f 19f
Bank of Canada now Slowly Withdrawing Stimulus Reflecting Domestic StrengthBank of Canada Overnight Target Rate
Sources The Conference Board of Canada Statistics Canada
15
00
05
10
15
20
25
30
35
40
45
50
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f
Going Forward Shift from Domestic Growth towards Exports amp InvestmentReal personal consumption per cent change
Sources Statistics Canada The Conference Board of Canada
16
40
45
50
55
60
65
70
75
80
85
90
50100150200250300350400450500550600650700
Nominal trade index 1981=100 Trade as a share of GDP per cent
Source Statistics Canada
Canada is a Trading Nationleft axis nominal trade index (exports + imports) 1981=100 right axis trade as a share of GDP per cent
17
Canada Free Trade Agreements Gives Preferential Access to Many Markets
FTAs in force bull Canada - EU Comprehensive Economic and Trade Agreement (CETA) ndash September
21 2017 (provisional)bull Canada - Ukraine - August 1 2017bull Canada - Korea - January 1 2015bull Canada - Honduras - October 1 2014bull Canada - Panama - April 1 2013bull Canada - Jordan - October 1 2012bull Canada - Colombia - August 15 2011bull Canada - Peru - August 1 2009bull Canada - European Free Trade Association - July 1 2009bull Canada - Costa Rica - November 1 2002bull Canada - Chile - July 5 1997bull Canada - Israel - January 1 1997bull North American Free Trade Agreement (NAFTA) - January 1 1994Source Global Affairs Canada
18
-10
00
10
20
30
40
50
60
Canada Benefits from Improving Global GrowthWorld real GDP per cent change
Source IMF
19
NAFTA Renegotiation Critical as Canada Plugged into US Supply ChainsCanadian Merchandise Exports by Destination in 2016 per cent
Source Innovation Science and Economic Development Canada trade online database Conference Board of Canada
76
10
8 3 3
US
Asia
Europe
Mexico amp S America
Rest of World
20
bull US protectionism a concern
bull NAFTA is 23 years old There is scope to modernize the deal to benefit of all countries
bull Canadarsquos greatest ally is the vast number of US businesses that will want to keep border open to mutual benefit North American supply chain too valuable to disrupt
NAFTA can be Modernized
21
US Protectionism Highlights Need to Diversify Trade GeographicallyShare of Canadian Exports by Destination Non-US Markets 2016 per cent
Source Innovation Science and Economic Development Canada trade online database Conference Board of Canada
22
bull Canadian economy more diversified than many think Resource sector is 13 of economy Lotrsquos of opportunity to in wide array of products and services
bull Economic clusters are groups of firms and institutions that are located near one another and draw productive advantage from their mutual proximity and connections
bull Clusters are key drivers to economic growth and trade-oriented clusters serve markets beyond the region in which they are located
bull Famous US clusters include Wall Street Silicon Valley and Hollywood
bull Government of Canada looking to facilitate lsquosuper clustersrsquo
Canadian Economy is Diversified and Comprises Many Key Clusters
23
Mining and Energy-Related Clusters
Edmonton
Calgary
Saskatoon
Regina
Sudbury
Saint John
St Johnrsquos
24
Manufacturing Clusters
Winnipeg
LondonHamilton
Oshawa
Windsor
Saguenay
Trois-Riviegraveres
Sherbrooke
Abbotsford
Montreacuteal
25
Information amp Communications Technology (ICT) Clusters
Vancouver
Kitchener-Waterloo
Toronto
Ottawa
Montreacuteal
26
Other Key Clusters
VictoriaTourism
AbbotsfordAgriculture
St Catharines-NiagaraTourism
TorontoFinance
Queacutebec CityInsurance
MonctonInsurance
HalifaxTransportation
MontreacutealManuf
VancouverTransportation
WinnipegTransportation
OshawaUtilities
27
Sources Trade Data Online calculations by The Conference Board of Canada
Scope to Expand Exports to EuropeCanadian merchandise exports (Index 2007 = 100)
60
80
100
120
140
160
180
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
28
Canadian Goods Exports to Finland(share of top 10 goods and in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
25
22
16
15
5
3 3
2 1 1 7 Aerospace
Mineral Fuels amp Oils
Ores
Motor Vehicles
Boilers Machinery amp Appliances
Electrical Machinery amp Equip
Medical amp Technical Instruments
Plastics
Oil Seeds
Tools amp Cutlery
Other
$671Meuro450MShare of Cdn Exports 01
29
Sources Trade Data Online calculations by The Conference Board of Canada
Imports from Europe Rising Canadian merchandise imports (Index 2007 = 100)
758595
105115125135145155165
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
30
Canadian Goods Imports From Finland(share of top 10 goods in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
23
11
9
9 8
7
6
6
3 2
16 Boilers Machinery amp Appliances
Motor Vehcles
Mineral Fuels amp Oils
Pharmaceutical Products
Paper
Electrical Machinery amp Equip
Medical amp Technical Instruments
Ores
Nickel
Rubber
Others
$572Meuro353MShare of Cdn Imports 02
31
Sources Statistics Canada calculations by The Conference Board of Canada
Canada and Europe Direct Investment on the Rise(stocks C$ billions)
120
140
160
180
200
220
240
260
280
300
320
2007 08 09 10 11 12 13 14 15 16
Canadian Direct Investment in Europe European Foreign Direct Investment in Canada
32
bull Canada is welcoming to business and investment The World Bank rates Canada as one of the easiest places to start a business Forbes and the Economist rank Canada as a leading location to do business
bull Being a small economy Canada lacks adequate domestic savings to meet all investment needs Hence Canada needs to attract foreign capital and provide a good experience to overseas investors
bull Over the last decade Canada has had the second largest foreign direct investment flows per capital in the G20 nations Since 2012 Inward FDI to Canada has been 54 of GDP highest in G7 and higher than the 29 G-7 average
bull Canadarsquos free trade agreements make it ideal as location to tap global markets
bull Canadian taxation makes investment attractive but one of its greatest strengths is the quality of the labour force
Many Business Advantages for Investment
33
Source OECD Statistics
Canada has Low Corporate Taxes Rates and Generous RampD Incentiveslarge business corporate income tax rate includes federal and provincialstate government taxes
20
25
30
35
40
45Canada US Mexico
34
Canada has a Highly Educated Workforcepercentage of the population aged 25-64 with post-secondary education in 2016
Source OECD
200
250
300
350
400
450
500
550
600
35
Strong Support for Immigration and Diversity
0
20
40
60
80
100
120
140
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
Net immigration (000s left) Net immigration as a share of total population change (per cent right)
36
Sources Immigration Refugees and Citizenship Canada The Conference Board The Conference Board of Canada
Newcomers to Canada Contribute to the Economy and add to Multiculturalism
627
241
118
14
In 2015 63 of immigrants to Canada fell under Economic Class
EconomicSponsored FamilyResettled Refugee amp Protected Person in CanadaAll Other Immigration
37
00 05 10 15 20 25 30
NL
NB
NS
PEI
Sask
Man
Que
Ont
BC
Alta
Sources The Conference Board of Canada Statistics Canada
Broad-based Growth in 2017 amp BeyondReal GDP per cent change 2017-22 basic prices $2007
Canada 21
38
bull CETA can help to boost growth and prosperity in Canada and EU if the opportunities are seized
bull Canada is a small economy with big potential It is a trade-friendly investment-friendly market and ideal platform for tapping North American Economy or beyond
bull Canada has strong fundamentals competitive corporate tax rates generous RampD tax incentives highly educated population highly tolerant and diverse population well anchored monetary policy sound fiscal finances
bull It is a modern-knowledge based economy Resources are still a key sector but so are other key clusters like ICT Finance and other advanced manufacturing and services
bull Canadarsquos economy is strengthening It is resisting the global shift towards protectionism leaning against inequality and building sustainable economic growth for the long-term
Key Messages
conferenceboardca
CraigA_Eco
wwwtradecommissionergccaCETA website
12
00
05
10
15
20
25
30
35
40
00
05
10
15
20
25
30
35
40
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f
Consumer Price Index Bank of Canada Target
Low Inflation Facilitated Monetary Stimulusper cent change
Sources Statistics Canada The Conference Board of Canada
13
50
60
70
80
90
100
110
120
130
Unemployment Rate Natural Rate
Sources Statistics Canada The Conference Board of Canada
RecoveryExpansion Led to Low Unemploymentper cent
14
00
10
20
30
40
50
60
70
99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f 19f
Bank of Canada now Slowly Withdrawing Stimulus Reflecting Domestic StrengthBank of Canada Overnight Target Rate
Sources The Conference Board of Canada Statistics Canada
15
00
05
10
15
20
25
30
35
40
45
50
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f
Going Forward Shift from Domestic Growth towards Exports amp InvestmentReal personal consumption per cent change
Sources Statistics Canada The Conference Board of Canada
16
40
45
50
55
60
65
70
75
80
85
90
50100150200250300350400450500550600650700
Nominal trade index 1981=100 Trade as a share of GDP per cent
Source Statistics Canada
Canada is a Trading Nationleft axis nominal trade index (exports + imports) 1981=100 right axis trade as a share of GDP per cent
17
Canada Free Trade Agreements Gives Preferential Access to Many Markets
FTAs in force bull Canada - EU Comprehensive Economic and Trade Agreement (CETA) ndash September
21 2017 (provisional)bull Canada - Ukraine - August 1 2017bull Canada - Korea - January 1 2015bull Canada - Honduras - October 1 2014bull Canada - Panama - April 1 2013bull Canada - Jordan - October 1 2012bull Canada - Colombia - August 15 2011bull Canada - Peru - August 1 2009bull Canada - European Free Trade Association - July 1 2009bull Canada - Costa Rica - November 1 2002bull Canada - Chile - July 5 1997bull Canada - Israel - January 1 1997bull North American Free Trade Agreement (NAFTA) - January 1 1994Source Global Affairs Canada
18
-10
00
10
20
30
40
50
60
Canada Benefits from Improving Global GrowthWorld real GDP per cent change
Source IMF
19
NAFTA Renegotiation Critical as Canada Plugged into US Supply ChainsCanadian Merchandise Exports by Destination in 2016 per cent
Source Innovation Science and Economic Development Canada trade online database Conference Board of Canada
76
10
8 3 3
US
Asia
Europe
Mexico amp S America
Rest of World
20
bull US protectionism a concern
bull NAFTA is 23 years old There is scope to modernize the deal to benefit of all countries
bull Canadarsquos greatest ally is the vast number of US businesses that will want to keep border open to mutual benefit North American supply chain too valuable to disrupt
NAFTA can be Modernized
21
US Protectionism Highlights Need to Diversify Trade GeographicallyShare of Canadian Exports by Destination Non-US Markets 2016 per cent
Source Innovation Science and Economic Development Canada trade online database Conference Board of Canada
22
bull Canadian economy more diversified than many think Resource sector is 13 of economy Lotrsquos of opportunity to in wide array of products and services
bull Economic clusters are groups of firms and institutions that are located near one another and draw productive advantage from their mutual proximity and connections
bull Clusters are key drivers to economic growth and trade-oriented clusters serve markets beyond the region in which they are located
bull Famous US clusters include Wall Street Silicon Valley and Hollywood
bull Government of Canada looking to facilitate lsquosuper clustersrsquo
Canadian Economy is Diversified and Comprises Many Key Clusters
23
Mining and Energy-Related Clusters
Edmonton
Calgary
Saskatoon
Regina
Sudbury
Saint John
St Johnrsquos
24
Manufacturing Clusters
Winnipeg
LondonHamilton
Oshawa
Windsor
Saguenay
Trois-Riviegraveres
Sherbrooke
Abbotsford
Montreacuteal
25
Information amp Communications Technology (ICT) Clusters
Vancouver
Kitchener-Waterloo
Toronto
Ottawa
Montreacuteal
26
Other Key Clusters
VictoriaTourism
AbbotsfordAgriculture
St Catharines-NiagaraTourism
TorontoFinance
Queacutebec CityInsurance
MonctonInsurance
HalifaxTransportation
MontreacutealManuf
VancouverTransportation
WinnipegTransportation
OshawaUtilities
27
Sources Trade Data Online calculations by The Conference Board of Canada
Scope to Expand Exports to EuropeCanadian merchandise exports (Index 2007 = 100)
60
80
100
120
140
160
180
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
28
Canadian Goods Exports to Finland(share of top 10 goods and in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
25
22
16
15
5
3 3
2 1 1 7 Aerospace
Mineral Fuels amp Oils
Ores
Motor Vehicles
Boilers Machinery amp Appliances
Electrical Machinery amp Equip
Medical amp Technical Instruments
Plastics
Oil Seeds
Tools amp Cutlery
Other
$671Meuro450MShare of Cdn Exports 01
29
Sources Trade Data Online calculations by The Conference Board of Canada
Imports from Europe Rising Canadian merchandise imports (Index 2007 = 100)
758595
105115125135145155165
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
30
Canadian Goods Imports From Finland(share of top 10 goods in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
23
11
9
9 8
7
6
6
3 2
16 Boilers Machinery amp Appliances
Motor Vehcles
Mineral Fuels amp Oils
Pharmaceutical Products
Paper
Electrical Machinery amp Equip
Medical amp Technical Instruments
Ores
Nickel
Rubber
Others
$572Meuro353MShare of Cdn Imports 02
31
Sources Statistics Canada calculations by The Conference Board of Canada
Canada and Europe Direct Investment on the Rise(stocks C$ billions)
120
140
160
180
200
220
240
260
280
300
320
2007 08 09 10 11 12 13 14 15 16
Canadian Direct Investment in Europe European Foreign Direct Investment in Canada
32
bull Canada is welcoming to business and investment The World Bank rates Canada as one of the easiest places to start a business Forbes and the Economist rank Canada as a leading location to do business
bull Being a small economy Canada lacks adequate domestic savings to meet all investment needs Hence Canada needs to attract foreign capital and provide a good experience to overseas investors
bull Over the last decade Canada has had the second largest foreign direct investment flows per capital in the G20 nations Since 2012 Inward FDI to Canada has been 54 of GDP highest in G7 and higher than the 29 G-7 average
bull Canadarsquos free trade agreements make it ideal as location to tap global markets
bull Canadian taxation makes investment attractive but one of its greatest strengths is the quality of the labour force
Many Business Advantages for Investment
33
Source OECD Statistics
Canada has Low Corporate Taxes Rates and Generous RampD Incentiveslarge business corporate income tax rate includes federal and provincialstate government taxes
20
25
30
35
40
45Canada US Mexico
34
Canada has a Highly Educated Workforcepercentage of the population aged 25-64 with post-secondary education in 2016
Source OECD
200
250
300
350
400
450
500
550
600
35
Strong Support for Immigration and Diversity
0
20
40
60
80
100
120
140
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
Net immigration (000s left) Net immigration as a share of total population change (per cent right)
36
Sources Immigration Refugees and Citizenship Canada The Conference Board The Conference Board of Canada
Newcomers to Canada Contribute to the Economy and add to Multiculturalism
627
241
118
14
In 2015 63 of immigrants to Canada fell under Economic Class
EconomicSponsored FamilyResettled Refugee amp Protected Person in CanadaAll Other Immigration
37
00 05 10 15 20 25 30
NL
NB
NS
PEI
Sask
Man
Que
Ont
BC
Alta
Sources The Conference Board of Canada Statistics Canada
Broad-based Growth in 2017 amp BeyondReal GDP per cent change 2017-22 basic prices $2007
Canada 21
38
bull CETA can help to boost growth and prosperity in Canada and EU if the opportunities are seized
bull Canada is a small economy with big potential It is a trade-friendly investment-friendly market and ideal platform for tapping North American Economy or beyond
bull Canada has strong fundamentals competitive corporate tax rates generous RampD tax incentives highly educated population highly tolerant and diverse population well anchored monetary policy sound fiscal finances
bull It is a modern-knowledge based economy Resources are still a key sector but so are other key clusters like ICT Finance and other advanced manufacturing and services
bull Canadarsquos economy is strengthening It is resisting the global shift towards protectionism leaning against inequality and building sustainable economic growth for the long-term
Key Messages
conferenceboardca
CraigA_Eco
wwwtradecommissionergccaCETA website
13
50
60
70
80
90
100
110
120
130
Unemployment Rate Natural Rate
Sources Statistics Canada The Conference Board of Canada
RecoveryExpansion Led to Low Unemploymentper cent
14
00
10
20
30
40
50
60
70
99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f 19f
Bank of Canada now Slowly Withdrawing Stimulus Reflecting Domestic StrengthBank of Canada Overnight Target Rate
Sources The Conference Board of Canada Statistics Canada
15
00
05
10
15
20
25
30
35
40
45
50
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f
Going Forward Shift from Domestic Growth towards Exports amp InvestmentReal personal consumption per cent change
Sources Statistics Canada The Conference Board of Canada
16
40
45
50
55
60
65
70
75
80
85
90
50100150200250300350400450500550600650700
Nominal trade index 1981=100 Trade as a share of GDP per cent
Source Statistics Canada
Canada is a Trading Nationleft axis nominal trade index (exports + imports) 1981=100 right axis trade as a share of GDP per cent
17
Canada Free Trade Agreements Gives Preferential Access to Many Markets
FTAs in force bull Canada - EU Comprehensive Economic and Trade Agreement (CETA) ndash September
21 2017 (provisional)bull Canada - Ukraine - August 1 2017bull Canada - Korea - January 1 2015bull Canada - Honduras - October 1 2014bull Canada - Panama - April 1 2013bull Canada - Jordan - October 1 2012bull Canada - Colombia - August 15 2011bull Canada - Peru - August 1 2009bull Canada - European Free Trade Association - July 1 2009bull Canada - Costa Rica - November 1 2002bull Canada - Chile - July 5 1997bull Canada - Israel - January 1 1997bull North American Free Trade Agreement (NAFTA) - January 1 1994Source Global Affairs Canada
18
-10
00
10
20
30
40
50
60
Canada Benefits from Improving Global GrowthWorld real GDP per cent change
Source IMF
19
NAFTA Renegotiation Critical as Canada Plugged into US Supply ChainsCanadian Merchandise Exports by Destination in 2016 per cent
Source Innovation Science and Economic Development Canada trade online database Conference Board of Canada
76
10
8 3 3
US
Asia
Europe
Mexico amp S America
Rest of World
20
bull US protectionism a concern
bull NAFTA is 23 years old There is scope to modernize the deal to benefit of all countries
bull Canadarsquos greatest ally is the vast number of US businesses that will want to keep border open to mutual benefit North American supply chain too valuable to disrupt
NAFTA can be Modernized
21
US Protectionism Highlights Need to Diversify Trade GeographicallyShare of Canadian Exports by Destination Non-US Markets 2016 per cent
Source Innovation Science and Economic Development Canada trade online database Conference Board of Canada
22
bull Canadian economy more diversified than many think Resource sector is 13 of economy Lotrsquos of opportunity to in wide array of products and services
bull Economic clusters are groups of firms and institutions that are located near one another and draw productive advantage from their mutual proximity and connections
bull Clusters are key drivers to economic growth and trade-oriented clusters serve markets beyond the region in which they are located
bull Famous US clusters include Wall Street Silicon Valley and Hollywood
bull Government of Canada looking to facilitate lsquosuper clustersrsquo
Canadian Economy is Diversified and Comprises Many Key Clusters
23
Mining and Energy-Related Clusters
Edmonton
Calgary
Saskatoon
Regina
Sudbury
Saint John
St Johnrsquos
24
Manufacturing Clusters
Winnipeg
LondonHamilton
Oshawa
Windsor
Saguenay
Trois-Riviegraveres
Sherbrooke
Abbotsford
Montreacuteal
25
Information amp Communications Technology (ICT) Clusters
Vancouver
Kitchener-Waterloo
Toronto
Ottawa
Montreacuteal
26
Other Key Clusters
VictoriaTourism
AbbotsfordAgriculture
St Catharines-NiagaraTourism
TorontoFinance
Queacutebec CityInsurance
MonctonInsurance
HalifaxTransportation
MontreacutealManuf
VancouverTransportation
WinnipegTransportation
OshawaUtilities
27
Sources Trade Data Online calculations by The Conference Board of Canada
Scope to Expand Exports to EuropeCanadian merchandise exports (Index 2007 = 100)
60
80
100
120
140
160
180
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
28
Canadian Goods Exports to Finland(share of top 10 goods and in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
25
22
16
15
5
3 3
2 1 1 7 Aerospace
Mineral Fuels amp Oils
Ores
Motor Vehicles
Boilers Machinery amp Appliances
Electrical Machinery amp Equip
Medical amp Technical Instruments
Plastics
Oil Seeds
Tools amp Cutlery
Other
$671Meuro450MShare of Cdn Exports 01
29
Sources Trade Data Online calculations by The Conference Board of Canada
Imports from Europe Rising Canadian merchandise imports (Index 2007 = 100)
758595
105115125135145155165
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
30
Canadian Goods Imports From Finland(share of top 10 goods in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
23
11
9
9 8
7
6
6
3 2
16 Boilers Machinery amp Appliances
Motor Vehcles
Mineral Fuels amp Oils
Pharmaceutical Products
Paper
Electrical Machinery amp Equip
Medical amp Technical Instruments
Ores
Nickel
Rubber
Others
$572Meuro353MShare of Cdn Imports 02
31
Sources Statistics Canada calculations by The Conference Board of Canada
Canada and Europe Direct Investment on the Rise(stocks C$ billions)
120
140
160
180
200
220
240
260
280
300
320
2007 08 09 10 11 12 13 14 15 16
Canadian Direct Investment in Europe European Foreign Direct Investment in Canada
32
bull Canada is welcoming to business and investment The World Bank rates Canada as one of the easiest places to start a business Forbes and the Economist rank Canada as a leading location to do business
bull Being a small economy Canada lacks adequate domestic savings to meet all investment needs Hence Canada needs to attract foreign capital and provide a good experience to overseas investors
bull Over the last decade Canada has had the second largest foreign direct investment flows per capital in the G20 nations Since 2012 Inward FDI to Canada has been 54 of GDP highest in G7 and higher than the 29 G-7 average
bull Canadarsquos free trade agreements make it ideal as location to tap global markets
bull Canadian taxation makes investment attractive but one of its greatest strengths is the quality of the labour force
Many Business Advantages for Investment
33
Source OECD Statistics
Canada has Low Corporate Taxes Rates and Generous RampD Incentiveslarge business corporate income tax rate includes federal and provincialstate government taxes
20
25
30
35
40
45Canada US Mexico
34
Canada has a Highly Educated Workforcepercentage of the population aged 25-64 with post-secondary education in 2016
Source OECD
200
250
300
350
400
450
500
550
600
35
Strong Support for Immigration and Diversity
0
20
40
60
80
100
120
140
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
Net immigration (000s left) Net immigration as a share of total population change (per cent right)
36
Sources Immigration Refugees and Citizenship Canada The Conference Board The Conference Board of Canada
Newcomers to Canada Contribute to the Economy and add to Multiculturalism
627
241
118
14
In 2015 63 of immigrants to Canada fell under Economic Class
EconomicSponsored FamilyResettled Refugee amp Protected Person in CanadaAll Other Immigration
37
00 05 10 15 20 25 30
NL
NB
NS
PEI
Sask
Man
Que
Ont
BC
Alta
Sources The Conference Board of Canada Statistics Canada
Broad-based Growth in 2017 amp BeyondReal GDP per cent change 2017-22 basic prices $2007
Canada 21
38
bull CETA can help to boost growth and prosperity in Canada and EU if the opportunities are seized
bull Canada is a small economy with big potential It is a trade-friendly investment-friendly market and ideal platform for tapping North American Economy or beyond
bull Canada has strong fundamentals competitive corporate tax rates generous RampD tax incentives highly educated population highly tolerant and diverse population well anchored monetary policy sound fiscal finances
bull It is a modern-knowledge based economy Resources are still a key sector but so are other key clusters like ICT Finance and other advanced manufacturing and services
bull Canadarsquos economy is strengthening It is resisting the global shift towards protectionism leaning against inequality and building sustainable economic growth for the long-term
Key Messages
conferenceboardca
CraigA_Eco
wwwtradecommissionergccaCETA website
14
00
10
20
30
40
50
60
70
99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f 19f
Bank of Canada now Slowly Withdrawing Stimulus Reflecting Domestic StrengthBank of Canada Overnight Target Rate
Sources The Conference Board of Canada Statistics Canada
15
00
05
10
15
20
25
30
35
40
45
50
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f
Going Forward Shift from Domestic Growth towards Exports amp InvestmentReal personal consumption per cent change
Sources Statistics Canada The Conference Board of Canada
16
40
45
50
55
60
65
70
75
80
85
90
50100150200250300350400450500550600650700
Nominal trade index 1981=100 Trade as a share of GDP per cent
Source Statistics Canada
Canada is a Trading Nationleft axis nominal trade index (exports + imports) 1981=100 right axis trade as a share of GDP per cent
17
Canada Free Trade Agreements Gives Preferential Access to Many Markets
FTAs in force bull Canada - EU Comprehensive Economic and Trade Agreement (CETA) ndash September
21 2017 (provisional)bull Canada - Ukraine - August 1 2017bull Canada - Korea - January 1 2015bull Canada - Honduras - October 1 2014bull Canada - Panama - April 1 2013bull Canada - Jordan - October 1 2012bull Canada - Colombia - August 15 2011bull Canada - Peru - August 1 2009bull Canada - European Free Trade Association - July 1 2009bull Canada - Costa Rica - November 1 2002bull Canada - Chile - July 5 1997bull Canada - Israel - January 1 1997bull North American Free Trade Agreement (NAFTA) - January 1 1994Source Global Affairs Canada
18
-10
00
10
20
30
40
50
60
Canada Benefits from Improving Global GrowthWorld real GDP per cent change
Source IMF
19
NAFTA Renegotiation Critical as Canada Plugged into US Supply ChainsCanadian Merchandise Exports by Destination in 2016 per cent
Source Innovation Science and Economic Development Canada trade online database Conference Board of Canada
76
10
8 3 3
US
Asia
Europe
Mexico amp S America
Rest of World
20
bull US protectionism a concern
bull NAFTA is 23 years old There is scope to modernize the deal to benefit of all countries
bull Canadarsquos greatest ally is the vast number of US businesses that will want to keep border open to mutual benefit North American supply chain too valuable to disrupt
NAFTA can be Modernized
21
US Protectionism Highlights Need to Diversify Trade GeographicallyShare of Canadian Exports by Destination Non-US Markets 2016 per cent
Source Innovation Science and Economic Development Canada trade online database Conference Board of Canada
22
bull Canadian economy more diversified than many think Resource sector is 13 of economy Lotrsquos of opportunity to in wide array of products and services
bull Economic clusters are groups of firms and institutions that are located near one another and draw productive advantage from their mutual proximity and connections
bull Clusters are key drivers to economic growth and trade-oriented clusters serve markets beyond the region in which they are located
bull Famous US clusters include Wall Street Silicon Valley and Hollywood
bull Government of Canada looking to facilitate lsquosuper clustersrsquo
Canadian Economy is Diversified and Comprises Many Key Clusters
23
Mining and Energy-Related Clusters
Edmonton
Calgary
Saskatoon
Regina
Sudbury
Saint John
St Johnrsquos
24
Manufacturing Clusters
Winnipeg
LondonHamilton
Oshawa
Windsor
Saguenay
Trois-Riviegraveres
Sherbrooke
Abbotsford
Montreacuteal
25
Information amp Communications Technology (ICT) Clusters
Vancouver
Kitchener-Waterloo
Toronto
Ottawa
Montreacuteal
26
Other Key Clusters
VictoriaTourism
AbbotsfordAgriculture
St Catharines-NiagaraTourism
TorontoFinance
Queacutebec CityInsurance
MonctonInsurance
HalifaxTransportation
MontreacutealManuf
VancouverTransportation
WinnipegTransportation
OshawaUtilities
27
Sources Trade Data Online calculations by The Conference Board of Canada
Scope to Expand Exports to EuropeCanadian merchandise exports (Index 2007 = 100)
60
80
100
120
140
160
180
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
28
Canadian Goods Exports to Finland(share of top 10 goods and in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
25
22
16
15
5
3 3
2 1 1 7 Aerospace
Mineral Fuels amp Oils
Ores
Motor Vehicles
Boilers Machinery amp Appliances
Electrical Machinery amp Equip
Medical amp Technical Instruments
Plastics
Oil Seeds
Tools amp Cutlery
Other
$671Meuro450MShare of Cdn Exports 01
29
Sources Trade Data Online calculations by The Conference Board of Canada
Imports from Europe Rising Canadian merchandise imports (Index 2007 = 100)
758595
105115125135145155165
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
30
Canadian Goods Imports From Finland(share of top 10 goods in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
23
11
9
9 8
7
6
6
3 2
16 Boilers Machinery amp Appliances
Motor Vehcles
Mineral Fuels amp Oils
Pharmaceutical Products
Paper
Electrical Machinery amp Equip
Medical amp Technical Instruments
Ores
Nickel
Rubber
Others
$572Meuro353MShare of Cdn Imports 02
31
Sources Statistics Canada calculations by The Conference Board of Canada
Canada and Europe Direct Investment on the Rise(stocks C$ billions)
120
140
160
180
200
220
240
260
280
300
320
2007 08 09 10 11 12 13 14 15 16
Canadian Direct Investment in Europe European Foreign Direct Investment in Canada
32
bull Canada is welcoming to business and investment The World Bank rates Canada as one of the easiest places to start a business Forbes and the Economist rank Canada as a leading location to do business
bull Being a small economy Canada lacks adequate domestic savings to meet all investment needs Hence Canada needs to attract foreign capital and provide a good experience to overseas investors
bull Over the last decade Canada has had the second largest foreign direct investment flows per capital in the G20 nations Since 2012 Inward FDI to Canada has been 54 of GDP highest in G7 and higher than the 29 G-7 average
bull Canadarsquos free trade agreements make it ideal as location to tap global markets
bull Canadian taxation makes investment attractive but one of its greatest strengths is the quality of the labour force
Many Business Advantages for Investment
33
Source OECD Statistics
Canada has Low Corporate Taxes Rates and Generous RampD Incentiveslarge business corporate income tax rate includes federal and provincialstate government taxes
20
25
30
35
40
45Canada US Mexico
34
Canada has a Highly Educated Workforcepercentage of the population aged 25-64 with post-secondary education in 2016
Source OECD
200
250
300
350
400
450
500
550
600
35
Strong Support for Immigration and Diversity
0
20
40
60
80
100
120
140
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
Net immigration (000s left) Net immigration as a share of total population change (per cent right)
36
Sources Immigration Refugees and Citizenship Canada The Conference Board The Conference Board of Canada
Newcomers to Canada Contribute to the Economy and add to Multiculturalism
627
241
118
14
In 2015 63 of immigrants to Canada fell under Economic Class
EconomicSponsored FamilyResettled Refugee amp Protected Person in CanadaAll Other Immigration
37
00 05 10 15 20 25 30
NL
NB
NS
PEI
Sask
Man
Que
Ont
BC
Alta
Sources The Conference Board of Canada Statistics Canada
Broad-based Growth in 2017 amp BeyondReal GDP per cent change 2017-22 basic prices $2007
Canada 21
38
bull CETA can help to boost growth and prosperity in Canada and EU if the opportunities are seized
bull Canada is a small economy with big potential It is a trade-friendly investment-friendly market and ideal platform for tapping North American Economy or beyond
bull Canada has strong fundamentals competitive corporate tax rates generous RampD tax incentives highly educated population highly tolerant and diverse population well anchored monetary policy sound fiscal finances
bull It is a modern-knowledge based economy Resources are still a key sector but so are other key clusters like ICT Finance and other advanced manufacturing and services
bull Canadarsquos economy is strengthening It is resisting the global shift towards protectionism leaning against inequality and building sustainable economic growth for the long-term
Key Messages
conferenceboardca
CraigA_Eco
wwwtradecommissionergccaCETA website
15
00
05
10
15
20
25
30
35
40
45
50
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17f 18f
Going Forward Shift from Domestic Growth towards Exports amp InvestmentReal personal consumption per cent change
Sources Statistics Canada The Conference Board of Canada
16
40
45
50
55
60
65
70
75
80
85
90
50100150200250300350400450500550600650700
Nominal trade index 1981=100 Trade as a share of GDP per cent
Source Statistics Canada
Canada is a Trading Nationleft axis nominal trade index (exports + imports) 1981=100 right axis trade as a share of GDP per cent
17
Canada Free Trade Agreements Gives Preferential Access to Many Markets
FTAs in force bull Canada - EU Comprehensive Economic and Trade Agreement (CETA) ndash September
21 2017 (provisional)bull Canada - Ukraine - August 1 2017bull Canada - Korea - January 1 2015bull Canada - Honduras - October 1 2014bull Canada - Panama - April 1 2013bull Canada - Jordan - October 1 2012bull Canada - Colombia - August 15 2011bull Canada - Peru - August 1 2009bull Canada - European Free Trade Association - July 1 2009bull Canada - Costa Rica - November 1 2002bull Canada - Chile - July 5 1997bull Canada - Israel - January 1 1997bull North American Free Trade Agreement (NAFTA) - January 1 1994Source Global Affairs Canada
18
-10
00
10
20
30
40
50
60
Canada Benefits from Improving Global GrowthWorld real GDP per cent change
Source IMF
19
NAFTA Renegotiation Critical as Canada Plugged into US Supply ChainsCanadian Merchandise Exports by Destination in 2016 per cent
Source Innovation Science and Economic Development Canada trade online database Conference Board of Canada
76
10
8 3 3
US
Asia
Europe
Mexico amp S America
Rest of World
20
bull US protectionism a concern
bull NAFTA is 23 years old There is scope to modernize the deal to benefit of all countries
bull Canadarsquos greatest ally is the vast number of US businesses that will want to keep border open to mutual benefit North American supply chain too valuable to disrupt
NAFTA can be Modernized
21
US Protectionism Highlights Need to Diversify Trade GeographicallyShare of Canadian Exports by Destination Non-US Markets 2016 per cent
Source Innovation Science and Economic Development Canada trade online database Conference Board of Canada
22
bull Canadian economy more diversified than many think Resource sector is 13 of economy Lotrsquos of opportunity to in wide array of products and services
bull Economic clusters are groups of firms and institutions that are located near one another and draw productive advantage from their mutual proximity and connections
bull Clusters are key drivers to economic growth and trade-oriented clusters serve markets beyond the region in which they are located
bull Famous US clusters include Wall Street Silicon Valley and Hollywood
bull Government of Canada looking to facilitate lsquosuper clustersrsquo
Canadian Economy is Diversified and Comprises Many Key Clusters
23
Mining and Energy-Related Clusters
Edmonton
Calgary
Saskatoon
Regina
Sudbury
Saint John
St Johnrsquos
24
Manufacturing Clusters
Winnipeg
LondonHamilton
Oshawa
Windsor
Saguenay
Trois-Riviegraveres
Sherbrooke
Abbotsford
Montreacuteal
25
Information amp Communications Technology (ICT) Clusters
Vancouver
Kitchener-Waterloo
Toronto
Ottawa
Montreacuteal
26
Other Key Clusters
VictoriaTourism
AbbotsfordAgriculture
St Catharines-NiagaraTourism
TorontoFinance
Queacutebec CityInsurance
MonctonInsurance
HalifaxTransportation
MontreacutealManuf
VancouverTransportation
WinnipegTransportation
OshawaUtilities
27
Sources Trade Data Online calculations by The Conference Board of Canada
Scope to Expand Exports to EuropeCanadian merchandise exports (Index 2007 = 100)
60
80
100
120
140
160
180
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
28
Canadian Goods Exports to Finland(share of top 10 goods and in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
25
22
16
15
5
3 3
2 1 1 7 Aerospace
Mineral Fuels amp Oils
Ores
Motor Vehicles
Boilers Machinery amp Appliances
Electrical Machinery amp Equip
Medical amp Technical Instruments
Plastics
Oil Seeds
Tools amp Cutlery
Other
$671Meuro450MShare of Cdn Exports 01
29
Sources Trade Data Online calculations by The Conference Board of Canada
Imports from Europe Rising Canadian merchandise imports (Index 2007 = 100)
758595
105115125135145155165
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
30
Canadian Goods Imports From Finland(share of top 10 goods in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
23
11
9
9 8
7
6
6
3 2
16 Boilers Machinery amp Appliances
Motor Vehcles
Mineral Fuels amp Oils
Pharmaceutical Products
Paper
Electrical Machinery amp Equip
Medical amp Technical Instruments
Ores
Nickel
Rubber
Others
$572Meuro353MShare of Cdn Imports 02
31
Sources Statistics Canada calculations by The Conference Board of Canada
Canada and Europe Direct Investment on the Rise(stocks C$ billions)
120
140
160
180
200
220
240
260
280
300
320
2007 08 09 10 11 12 13 14 15 16
Canadian Direct Investment in Europe European Foreign Direct Investment in Canada
32
bull Canada is welcoming to business and investment The World Bank rates Canada as one of the easiest places to start a business Forbes and the Economist rank Canada as a leading location to do business
bull Being a small economy Canada lacks adequate domestic savings to meet all investment needs Hence Canada needs to attract foreign capital and provide a good experience to overseas investors
bull Over the last decade Canada has had the second largest foreign direct investment flows per capital in the G20 nations Since 2012 Inward FDI to Canada has been 54 of GDP highest in G7 and higher than the 29 G-7 average
bull Canadarsquos free trade agreements make it ideal as location to tap global markets
bull Canadian taxation makes investment attractive but one of its greatest strengths is the quality of the labour force
Many Business Advantages for Investment
33
Source OECD Statistics
Canada has Low Corporate Taxes Rates and Generous RampD Incentiveslarge business corporate income tax rate includes federal and provincialstate government taxes
20
25
30
35
40
45Canada US Mexico
34
Canada has a Highly Educated Workforcepercentage of the population aged 25-64 with post-secondary education in 2016
Source OECD
200
250
300
350
400
450
500
550
600
35
Strong Support for Immigration and Diversity
0
20
40
60
80
100
120
140
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
Net immigration (000s left) Net immigration as a share of total population change (per cent right)
36
Sources Immigration Refugees and Citizenship Canada The Conference Board The Conference Board of Canada
Newcomers to Canada Contribute to the Economy and add to Multiculturalism
627
241
118
14
In 2015 63 of immigrants to Canada fell under Economic Class
EconomicSponsored FamilyResettled Refugee amp Protected Person in CanadaAll Other Immigration
37
00 05 10 15 20 25 30
NL
NB
NS
PEI
Sask
Man
Que
Ont
BC
Alta
Sources The Conference Board of Canada Statistics Canada
Broad-based Growth in 2017 amp BeyondReal GDP per cent change 2017-22 basic prices $2007
Canada 21
38
bull CETA can help to boost growth and prosperity in Canada and EU if the opportunities are seized
bull Canada is a small economy with big potential It is a trade-friendly investment-friendly market and ideal platform for tapping North American Economy or beyond
bull Canada has strong fundamentals competitive corporate tax rates generous RampD tax incentives highly educated population highly tolerant and diverse population well anchored monetary policy sound fiscal finances
bull It is a modern-knowledge based economy Resources are still a key sector but so are other key clusters like ICT Finance and other advanced manufacturing and services
bull Canadarsquos economy is strengthening It is resisting the global shift towards protectionism leaning against inequality and building sustainable economic growth for the long-term
Key Messages
conferenceboardca
CraigA_Eco
wwwtradecommissionergccaCETA website
16
40
45
50
55
60
65
70
75
80
85
90
50100150200250300350400450500550600650700
Nominal trade index 1981=100 Trade as a share of GDP per cent
Source Statistics Canada
Canada is a Trading Nationleft axis nominal trade index (exports + imports) 1981=100 right axis trade as a share of GDP per cent
17
Canada Free Trade Agreements Gives Preferential Access to Many Markets
FTAs in force bull Canada - EU Comprehensive Economic and Trade Agreement (CETA) ndash September
21 2017 (provisional)bull Canada - Ukraine - August 1 2017bull Canada - Korea - January 1 2015bull Canada - Honduras - October 1 2014bull Canada - Panama - April 1 2013bull Canada - Jordan - October 1 2012bull Canada - Colombia - August 15 2011bull Canada - Peru - August 1 2009bull Canada - European Free Trade Association - July 1 2009bull Canada - Costa Rica - November 1 2002bull Canada - Chile - July 5 1997bull Canada - Israel - January 1 1997bull North American Free Trade Agreement (NAFTA) - January 1 1994Source Global Affairs Canada
18
-10
00
10
20
30
40
50
60
Canada Benefits from Improving Global GrowthWorld real GDP per cent change
Source IMF
19
NAFTA Renegotiation Critical as Canada Plugged into US Supply ChainsCanadian Merchandise Exports by Destination in 2016 per cent
Source Innovation Science and Economic Development Canada trade online database Conference Board of Canada
76
10
8 3 3
US
Asia
Europe
Mexico amp S America
Rest of World
20
bull US protectionism a concern
bull NAFTA is 23 years old There is scope to modernize the deal to benefit of all countries
bull Canadarsquos greatest ally is the vast number of US businesses that will want to keep border open to mutual benefit North American supply chain too valuable to disrupt
NAFTA can be Modernized
21
US Protectionism Highlights Need to Diversify Trade GeographicallyShare of Canadian Exports by Destination Non-US Markets 2016 per cent
Source Innovation Science and Economic Development Canada trade online database Conference Board of Canada
22
bull Canadian economy more diversified than many think Resource sector is 13 of economy Lotrsquos of opportunity to in wide array of products and services
bull Economic clusters are groups of firms and institutions that are located near one another and draw productive advantage from their mutual proximity and connections
bull Clusters are key drivers to economic growth and trade-oriented clusters serve markets beyond the region in which they are located
bull Famous US clusters include Wall Street Silicon Valley and Hollywood
bull Government of Canada looking to facilitate lsquosuper clustersrsquo
Canadian Economy is Diversified and Comprises Many Key Clusters
23
Mining and Energy-Related Clusters
Edmonton
Calgary
Saskatoon
Regina
Sudbury
Saint John
St Johnrsquos
24
Manufacturing Clusters
Winnipeg
LondonHamilton
Oshawa
Windsor
Saguenay
Trois-Riviegraveres
Sherbrooke
Abbotsford
Montreacuteal
25
Information amp Communications Technology (ICT) Clusters
Vancouver
Kitchener-Waterloo
Toronto
Ottawa
Montreacuteal
26
Other Key Clusters
VictoriaTourism
AbbotsfordAgriculture
St Catharines-NiagaraTourism
TorontoFinance
Queacutebec CityInsurance
MonctonInsurance
HalifaxTransportation
MontreacutealManuf
VancouverTransportation
WinnipegTransportation
OshawaUtilities
27
Sources Trade Data Online calculations by The Conference Board of Canada
Scope to Expand Exports to EuropeCanadian merchandise exports (Index 2007 = 100)
60
80
100
120
140
160
180
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
28
Canadian Goods Exports to Finland(share of top 10 goods and in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
25
22
16
15
5
3 3
2 1 1 7 Aerospace
Mineral Fuels amp Oils
Ores
Motor Vehicles
Boilers Machinery amp Appliances
Electrical Machinery amp Equip
Medical amp Technical Instruments
Plastics
Oil Seeds
Tools amp Cutlery
Other
$671Meuro450MShare of Cdn Exports 01
29
Sources Trade Data Online calculations by The Conference Board of Canada
Imports from Europe Rising Canadian merchandise imports (Index 2007 = 100)
758595
105115125135145155165
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
30
Canadian Goods Imports From Finland(share of top 10 goods in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
23
11
9
9 8
7
6
6
3 2
16 Boilers Machinery amp Appliances
Motor Vehcles
Mineral Fuels amp Oils
Pharmaceutical Products
Paper
Electrical Machinery amp Equip
Medical amp Technical Instruments
Ores
Nickel
Rubber
Others
$572Meuro353MShare of Cdn Imports 02
31
Sources Statistics Canada calculations by The Conference Board of Canada
Canada and Europe Direct Investment on the Rise(stocks C$ billions)
120
140
160
180
200
220
240
260
280
300
320
2007 08 09 10 11 12 13 14 15 16
Canadian Direct Investment in Europe European Foreign Direct Investment in Canada
32
bull Canada is welcoming to business and investment The World Bank rates Canada as one of the easiest places to start a business Forbes and the Economist rank Canada as a leading location to do business
bull Being a small economy Canada lacks adequate domestic savings to meet all investment needs Hence Canada needs to attract foreign capital and provide a good experience to overseas investors
bull Over the last decade Canada has had the second largest foreign direct investment flows per capital in the G20 nations Since 2012 Inward FDI to Canada has been 54 of GDP highest in G7 and higher than the 29 G-7 average
bull Canadarsquos free trade agreements make it ideal as location to tap global markets
bull Canadian taxation makes investment attractive but one of its greatest strengths is the quality of the labour force
Many Business Advantages for Investment
33
Source OECD Statistics
Canada has Low Corporate Taxes Rates and Generous RampD Incentiveslarge business corporate income tax rate includes federal and provincialstate government taxes
20
25
30
35
40
45Canada US Mexico
34
Canada has a Highly Educated Workforcepercentage of the population aged 25-64 with post-secondary education in 2016
Source OECD
200
250
300
350
400
450
500
550
600
35
Strong Support for Immigration and Diversity
0
20
40
60
80
100
120
140
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
Net immigration (000s left) Net immigration as a share of total population change (per cent right)
36
Sources Immigration Refugees and Citizenship Canada The Conference Board The Conference Board of Canada
Newcomers to Canada Contribute to the Economy and add to Multiculturalism
627
241
118
14
In 2015 63 of immigrants to Canada fell under Economic Class
EconomicSponsored FamilyResettled Refugee amp Protected Person in CanadaAll Other Immigration
37
00 05 10 15 20 25 30
NL
NB
NS
PEI
Sask
Man
Que
Ont
BC
Alta
Sources The Conference Board of Canada Statistics Canada
Broad-based Growth in 2017 amp BeyondReal GDP per cent change 2017-22 basic prices $2007
Canada 21
38
bull CETA can help to boost growth and prosperity in Canada and EU if the opportunities are seized
bull Canada is a small economy with big potential It is a trade-friendly investment-friendly market and ideal platform for tapping North American Economy or beyond
bull Canada has strong fundamentals competitive corporate tax rates generous RampD tax incentives highly educated population highly tolerant and diverse population well anchored monetary policy sound fiscal finances
bull It is a modern-knowledge based economy Resources are still a key sector but so are other key clusters like ICT Finance and other advanced manufacturing and services
bull Canadarsquos economy is strengthening It is resisting the global shift towards protectionism leaning against inequality and building sustainable economic growth for the long-term
Key Messages
conferenceboardca
CraigA_Eco
wwwtradecommissionergccaCETA website
17
Canada Free Trade Agreements Gives Preferential Access to Many Markets
FTAs in force bull Canada - EU Comprehensive Economic and Trade Agreement (CETA) ndash September
21 2017 (provisional)bull Canada - Ukraine - August 1 2017bull Canada - Korea - January 1 2015bull Canada - Honduras - October 1 2014bull Canada - Panama - April 1 2013bull Canada - Jordan - October 1 2012bull Canada - Colombia - August 15 2011bull Canada - Peru - August 1 2009bull Canada - European Free Trade Association - July 1 2009bull Canada - Costa Rica - November 1 2002bull Canada - Chile - July 5 1997bull Canada - Israel - January 1 1997bull North American Free Trade Agreement (NAFTA) - January 1 1994Source Global Affairs Canada
18
-10
00
10
20
30
40
50
60
Canada Benefits from Improving Global GrowthWorld real GDP per cent change
Source IMF
19
NAFTA Renegotiation Critical as Canada Plugged into US Supply ChainsCanadian Merchandise Exports by Destination in 2016 per cent
Source Innovation Science and Economic Development Canada trade online database Conference Board of Canada
76
10
8 3 3
US
Asia
Europe
Mexico amp S America
Rest of World
20
bull US protectionism a concern
bull NAFTA is 23 years old There is scope to modernize the deal to benefit of all countries
bull Canadarsquos greatest ally is the vast number of US businesses that will want to keep border open to mutual benefit North American supply chain too valuable to disrupt
NAFTA can be Modernized
21
US Protectionism Highlights Need to Diversify Trade GeographicallyShare of Canadian Exports by Destination Non-US Markets 2016 per cent
Source Innovation Science and Economic Development Canada trade online database Conference Board of Canada
22
bull Canadian economy more diversified than many think Resource sector is 13 of economy Lotrsquos of opportunity to in wide array of products and services
bull Economic clusters are groups of firms and institutions that are located near one another and draw productive advantage from their mutual proximity and connections
bull Clusters are key drivers to economic growth and trade-oriented clusters serve markets beyond the region in which they are located
bull Famous US clusters include Wall Street Silicon Valley and Hollywood
bull Government of Canada looking to facilitate lsquosuper clustersrsquo
Canadian Economy is Diversified and Comprises Many Key Clusters
23
Mining and Energy-Related Clusters
Edmonton
Calgary
Saskatoon
Regina
Sudbury
Saint John
St Johnrsquos
24
Manufacturing Clusters
Winnipeg
LondonHamilton
Oshawa
Windsor
Saguenay
Trois-Riviegraveres
Sherbrooke
Abbotsford
Montreacuteal
25
Information amp Communications Technology (ICT) Clusters
Vancouver
Kitchener-Waterloo
Toronto
Ottawa
Montreacuteal
26
Other Key Clusters
VictoriaTourism
AbbotsfordAgriculture
St Catharines-NiagaraTourism
TorontoFinance
Queacutebec CityInsurance
MonctonInsurance
HalifaxTransportation
MontreacutealManuf
VancouverTransportation
WinnipegTransportation
OshawaUtilities
27
Sources Trade Data Online calculations by The Conference Board of Canada
Scope to Expand Exports to EuropeCanadian merchandise exports (Index 2007 = 100)
60
80
100
120
140
160
180
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
28
Canadian Goods Exports to Finland(share of top 10 goods and in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
25
22
16
15
5
3 3
2 1 1 7 Aerospace
Mineral Fuels amp Oils
Ores
Motor Vehicles
Boilers Machinery amp Appliances
Electrical Machinery amp Equip
Medical amp Technical Instruments
Plastics
Oil Seeds
Tools amp Cutlery
Other
$671Meuro450MShare of Cdn Exports 01
29
Sources Trade Data Online calculations by The Conference Board of Canada
Imports from Europe Rising Canadian merchandise imports (Index 2007 = 100)
758595
105115125135145155165
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
30
Canadian Goods Imports From Finland(share of top 10 goods in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
23
11
9
9 8
7
6
6
3 2
16 Boilers Machinery amp Appliances
Motor Vehcles
Mineral Fuels amp Oils
Pharmaceutical Products
Paper
Electrical Machinery amp Equip
Medical amp Technical Instruments
Ores
Nickel
Rubber
Others
$572Meuro353MShare of Cdn Imports 02
31
Sources Statistics Canada calculations by The Conference Board of Canada
Canada and Europe Direct Investment on the Rise(stocks C$ billions)
120
140
160
180
200
220
240
260
280
300
320
2007 08 09 10 11 12 13 14 15 16
Canadian Direct Investment in Europe European Foreign Direct Investment in Canada
32
bull Canada is welcoming to business and investment The World Bank rates Canada as one of the easiest places to start a business Forbes and the Economist rank Canada as a leading location to do business
bull Being a small economy Canada lacks adequate domestic savings to meet all investment needs Hence Canada needs to attract foreign capital and provide a good experience to overseas investors
bull Over the last decade Canada has had the second largest foreign direct investment flows per capital in the G20 nations Since 2012 Inward FDI to Canada has been 54 of GDP highest in G7 and higher than the 29 G-7 average
bull Canadarsquos free trade agreements make it ideal as location to tap global markets
bull Canadian taxation makes investment attractive but one of its greatest strengths is the quality of the labour force
Many Business Advantages for Investment
33
Source OECD Statistics
Canada has Low Corporate Taxes Rates and Generous RampD Incentiveslarge business corporate income tax rate includes federal and provincialstate government taxes
20
25
30
35
40
45Canada US Mexico
34
Canada has a Highly Educated Workforcepercentage of the population aged 25-64 with post-secondary education in 2016
Source OECD
200
250
300
350
400
450
500
550
600
35
Strong Support for Immigration and Diversity
0
20
40
60
80
100
120
140
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
Net immigration (000s left) Net immigration as a share of total population change (per cent right)
36
Sources Immigration Refugees and Citizenship Canada The Conference Board The Conference Board of Canada
Newcomers to Canada Contribute to the Economy and add to Multiculturalism
627
241
118
14
In 2015 63 of immigrants to Canada fell under Economic Class
EconomicSponsored FamilyResettled Refugee amp Protected Person in CanadaAll Other Immigration
37
00 05 10 15 20 25 30
NL
NB
NS
PEI
Sask
Man
Que
Ont
BC
Alta
Sources The Conference Board of Canada Statistics Canada
Broad-based Growth in 2017 amp BeyondReal GDP per cent change 2017-22 basic prices $2007
Canada 21
38
bull CETA can help to boost growth and prosperity in Canada and EU if the opportunities are seized
bull Canada is a small economy with big potential It is a trade-friendly investment-friendly market and ideal platform for tapping North American Economy or beyond
bull Canada has strong fundamentals competitive corporate tax rates generous RampD tax incentives highly educated population highly tolerant and diverse population well anchored monetary policy sound fiscal finances
bull It is a modern-knowledge based economy Resources are still a key sector but so are other key clusters like ICT Finance and other advanced manufacturing and services
bull Canadarsquos economy is strengthening It is resisting the global shift towards protectionism leaning against inequality and building sustainable economic growth for the long-term
Key Messages
conferenceboardca
CraigA_Eco
wwwtradecommissionergccaCETA website
18
-10
00
10
20
30
40
50
60
Canada Benefits from Improving Global GrowthWorld real GDP per cent change
Source IMF
19
NAFTA Renegotiation Critical as Canada Plugged into US Supply ChainsCanadian Merchandise Exports by Destination in 2016 per cent
Source Innovation Science and Economic Development Canada trade online database Conference Board of Canada
76
10
8 3 3
US
Asia
Europe
Mexico amp S America
Rest of World
20
bull US protectionism a concern
bull NAFTA is 23 years old There is scope to modernize the deal to benefit of all countries
bull Canadarsquos greatest ally is the vast number of US businesses that will want to keep border open to mutual benefit North American supply chain too valuable to disrupt
NAFTA can be Modernized
21
US Protectionism Highlights Need to Diversify Trade GeographicallyShare of Canadian Exports by Destination Non-US Markets 2016 per cent
Source Innovation Science and Economic Development Canada trade online database Conference Board of Canada
22
bull Canadian economy more diversified than many think Resource sector is 13 of economy Lotrsquos of opportunity to in wide array of products and services
bull Economic clusters are groups of firms and institutions that are located near one another and draw productive advantage from their mutual proximity and connections
bull Clusters are key drivers to economic growth and trade-oriented clusters serve markets beyond the region in which they are located
bull Famous US clusters include Wall Street Silicon Valley and Hollywood
bull Government of Canada looking to facilitate lsquosuper clustersrsquo
Canadian Economy is Diversified and Comprises Many Key Clusters
23
Mining and Energy-Related Clusters
Edmonton
Calgary
Saskatoon
Regina
Sudbury
Saint John
St Johnrsquos
24
Manufacturing Clusters
Winnipeg
LondonHamilton
Oshawa
Windsor
Saguenay
Trois-Riviegraveres
Sherbrooke
Abbotsford
Montreacuteal
25
Information amp Communications Technology (ICT) Clusters
Vancouver
Kitchener-Waterloo
Toronto
Ottawa
Montreacuteal
26
Other Key Clusters
VictoriaTourism
AbbotsfordAgriculture
St Catharines-NiagaraTourism
TorontoFinance
Queacutebec CityInsurance
MonctonInsurance
HalifaxTransportation
MontreacutealManuf
VancouverTransportation
WinnipegTransportation
OshawaUtilities
27
Sources Trade Data Online calculations by The Conference Board of Canada
Scope to Expand Exports to EuropeCanadian merchandise exports (Index 2007 = 100)
60
80
100
120
140
160
180
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
28
Canadian Goods Exports to Finland(share of top 10 goods and in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
25
22
16
15
5
3 3
2 1 1 7 Aerospace
Mineral Fuels amp Oils
Ores
Motor Vehicles
Boilers Machinery amp Appliances
Electrical Machinery amp Equip
Medical amp Technical Instruments
Plastics
Oil Seeds
Tools amp Cutlery
Other
$671Meuro450MShare of Cdn Exports 01
29
Sources Trade Data Online calculations by The Conference Board of Canada
Imports from Europe Rising Canadian merchandise imports (Index 2007 = 100)
758595
105115125135145155165
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
30
Canadian Goods Imports From Finland(share of top 10 goods in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
23
11
9
9 8
7
6
6
3 2
16 Boilers Machinery amp Appliances
Motor Vehcles
Mineral Fuels amp Oils
Pharmaceutical Products
Paper
Electrical Machinery amp Equip
Medical amp Technical Instruments
Ores
Nickel
Rubber
Others
$572Meuro353MShare of Cdn Imports 02
31
Sources Statistics Canada calculations by The Conference Board of Canada
Canada and Europe Direct Investment on the Rise(stocks C$ billions)
120
140
160
180
200
220
240
260
280
300
320
2007 08 09 10 11 12 13 14 15 16
Canadian Direct Investment in Europe European Foreign Direct Investment in Canada
32
bull Canada is welcoming to business and investment The World Bank rates Canada as one of the easiest places to start a business Forbes and the Economist rank Canada as a leading location to do business
bull Being a small economy Canada lacks adequate domestic savings to meet all investment needs Hence Canada needs to attract foreign capital and provide a good experience to overseas investors
bull Over the last decade Canada has had the second largest foreign direct investment flows per capital in the G20 nations Since 2012 Inward FDI to Canada has been 54 of GDP highest in G7 and higher than the 29 G-7 average
bull Canadarsquos free trade agreements make it ideal as location to tap global markets
bull Canadian taxation makes investment attractive but one of its greatest strengths is the quality of the labour force
Many Business Advantages for Investment
33
Source OECD Statistics
Canada has Low Corporate Taxes Rates and Generous RampD Incentiveslarge business corporate income tax rate includes federal and provincialstate government taxes
20
25
30
35
40
45Canada US Mexico
34
Canada has a Highly Educated Workforcepercentage of the population aged 25-64 with post-secondary education in 2016
Source OECD
200
250
300
350
400
450
500
550
600
35
Strong Support for Immigration and Diversity
0
20
40
60
80
100
120
140
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
Net immigration (000s left) Net immigration as a share of total population change (per cent right)
36
Sources Immigration Refugees and Citizenship Canada The Conference Board The Conference Board of Canada
Newcomers to Canada Contribute to the Economy and add to Multiculturalism
627
241
118
14
In 2015 63 of immigrants to Canada fell under Economic Class
EconomicSponsored FamilyResettled Refugee amp Protected Person in CanadaAll Other Immigration
37
00 05 10 15 20 25 30
NL
NB
NS
PEI
Sask
Man
Que
Ont
BC
Alta
Sources The Conference Board of Canada Statistics Canada
Broad-based Growth in 2017 amp BeyondReal GDP per cent change 2017-22 basic prices $2007
Canada 21
38
bull CETA can help to boost growth and prosperity in Canada and EU if the opportunities are seized
bull Canada is a small economy with big potential It is a trade-friendly investment-friendly market and ideal platform for tapping North American Economy or beyond
bull Canada has strong fundamentals competitive corporate tax rates generous RampD tax incentives highly educated population highly tolerant and diverse population well anchored monetary policy sound fiscal finances
bull It is a modern-knowledge based economy Resources are still a key sector but so are other key clusters like ICT Finance and other advanced manufacturing and services
bull Canadarsquos economy is strengthening It is resisting the global shift towards protectionism leaning against inequality and building sustainable economic growth for the long-term
Key Messages
conferenceboardca
CraigA_Eco
wwwtradecommissionergccaCETA website
19
NAFTA Renegotiation Critical as Canada Plugged into US Supply ChainsCanadian Merchandise Exports by Destination in 2016 per cent
Source Innovation Science and Economic Development Canada trade online database Conference Board of Canada
76
10
8 3 3
US
Asia
Europe
Mexico amp S America
Rest of World
20
bull US protectionism a concern
bull NAFTA is 23 years old There is scope to modernize the deal to benefit of all countries
bull Canadarsquos greatest ally is the vast number of US businesses that will want to keep border open to mutual benefit North American supply chain too valuable to disrupt
NAFTA can be Modernized
21
US Protectionism Highlights Need to Diversify Trade GeographicallyShare of Canadian Exports by Destination Non-US Markets 2016 per cent
Source Innovation Science and Economic Development Canada trade online database Conference Board of Canada
22
bull Canadian economy more diversified than many think Resource sector is 13 of economy Lotrsquos of opportunity to in wide array of products and services
bull Economic clusters are groups of firms and institutions that are located near one another and draw productive advantage from their mutual proximity and connections
bull Clusters are key drivers to economic growth and trade-oriented clusters serve markets beyond the region in which they are located
bull Famous US clusters include Wall Street Silicon Valley and Hollywood
bull Government of Canada looking to facilitate lsquosuper clustersrsquo
Canadian Economy is Diversified and Comprises Many Key Clusters
23
Mining and Energy-Related Clusters
Edmonton
Calgary
Saskatoon
Regina
Sudbury
Saint John
St Johnrsquos
24
Manufacturing Clusters
Winnipeg
LondonHamilton
Oshawa
Windsor
Saguenay
Trois-Riviegraveres
Sherbrooke
Abbotsford
Montreacuteal
25
Information amp Communications Technology (ICT) Clusters
Vancouver
Kitchener-Waterloo
Toronto
Ottawa
Montreacuteal
26
Other Key Clusters
VictoriaTourism
AbbotsfordAgriculture
St Catharines-NiagaraTourism
TorontoFinance
Queacutebec CityInsurance
MonctonInsurance
HalifaxTransportation
MontreacutealManuf
VancouverTransportation
WinnipegTransportation
OshawaUtilities
27
Sources Trade Data Online calculations by The Conference Board of Canada
Scope to Expand Exports to EuropeCanadian merchandise exports (Index 2007 = 100)
60
80
100
120
140
160
180
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
28
Canadian Goods Exports to Finland(share of top 10 goods and in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
25
22
16
15
5
3 3
2 1 1 7 Aerospace
Mineral Fuels amp Oils
Ores
Motor Vehicles
Boilers Machinery amp Appliances
Electrical Machinery amp Equip
Medical amp Technical Instruments
Plastics
Oil Seeds
Tools amp Cutlery
Other
$671Meuro450MShare of Cdn Exports 01
29
Sources Trade Data Online calculations by The Conference Board of Canada
Imports from Europe Rising Canadian merchandise imports (Index 2007 = 100)
758595
105115125135145155165
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
30
Canadian Goods Imports From Finland(share of top 10 goods in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
23
11
9
9 8
7
6
6
3 2
16 Boilers Machinery amp Appliances
Motor Vehcles
Mineral Fuels amp Oils
Pharmaceutical Products
Paper
Electrical Machinery amp Equip
Medical amp Technical Instruments
Ores
Nickel
Rubber
Others
$572Meuro353MShare of Cdn Imports 02
31
Sources Statistics Canada calculations by The Conference Board of Canada
Canada and Europe Direct Investment on the Rise(stocks C$ billions)
120
140
160
180
200
220
240
260
280
300
320
2007 08 09 10 11 12 13 14 15 16
Canadian Direct Investment in Europe European Foreign Direct Investment in Canada
32
bull Canada is welcoming to business and investment The World Bank rates Canada as one of the easiest places to start a business Forbes and the Economist rank Canada as a leading location to do business
bull Being a small economy Canada lacks adequate domestic savings to meet all investment needs Hence Canada needs to attract foreign capital and provide a good experience to overseas investors
bull Over the last decade Canada has had the second largest foreign direct investment flows per capital in the G20 nations Since 2012 Inward FDI to Canada has been 54 of GDP highest in G7 and higher than the 29 G-7 average
bull Canadarsquos free trade agreements make it ideal as location to tap global markets
bull Canadian taxation makes investment attractive but one of its greatest strengths is the quality of the labour force
Many Business Advantages for Investment
33
Source OECD Statistics
Canada has Low Corporate Taxes Rates and Generous RampD Incentiveslarge business corporate income tax rate includes federal and provincialstate government taxes
20
25
30
35
40
45Canada US Mexico
34
Canada has a Highly Educated Workforcepercentage of the population aged 25-64 with post-secondary education in 2016
Source OECD
200
250
300
350
400
450
500
550
600
35
Strong Support for Immigration and Diversity
0
20
40
60
80
100
120
140
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
Net immigration (000s left) Net immigration as a share of total population change (per cent right)
36
Sources Immigration Refugees and Citizenship Canada The Conference Board The Conference Board of Canada
Newcomers to Canada Contribute to the Economy and add to Multiculturalism
627
241
118
14
In 2015 63 of immigrants to Canada fell under Economic Class
EconomicSponsored FamilyResettled Refugee amp Protected Person in CanadaAll Other Immigration
37
00 05 10 15 20 25 30
NL
NB
NS
PEI
Sask
Man
Que
Ont
BC
Alta
Sources The Conference Board of Canada Statistics Canada
Broad-based Growth in 2017 amp BeyondReal GDP per cent change 2017-22 basic prices $2007
Canada 21
38
bull CETA can help to boost growth and prosperity in Canada and EU if the opportunities are seized
bull Canada is a small economy with big potential It is a trade-friendly investment-friendly market and ideal platform for tapping North American Economy or beyond
bull Canada has strong fundamentals competitive corporate tax rates generous RampD tax incentives highly educated population highly tolerant and diverse population well anchored monetary policy sound fiscal finances
bull It is a modern-knowledge based economy Resources are still a key sector but so are other key clusters like ICT Finance and other advanced manufacturing and services
bull Canadarsquos economy is strengthening It is resisting the global shift towards protectionism leaning against inequality and building sustainable economic growth for the long-term
Key Messages
conferenceboardca
CraigA_Eco
wwwtradecommissionergccaCETA website
20
bull US protectionism a concern
bull NAFTA is 23 years old There is scope to modernize the deal to benefit of all countries
bull Canadarsquos greatest ally is the vast number of US businesses that will want to keep border open to mutual benefit North American supply chain too valuable to disrupt
NAFTA can be Modernized
21
US Protectionism Highlights Need to Diversify Trade GeographicallyShare of Canadian Exports by Destination Non-US Markets 2016 per cent
Source Innovation Science and Economic Development Canada trade online database Conference Board of Canada
22
bull Canadian economy more diversified than many think Resource sector is 13 of economy Lotrsquos of opportunity to in wide array of products and services
bull Economic clusters are groups of firms and institutions that are located near one another and draw productive advantage from their mutual proximity and connections
bull Clusters are key drivers to economic growth and trade-oriented clusters serve markets beyond the region in which they are located
bull Famous US clusters include Wall Street Silicon Valley and Hollywood
bull Government of Canada looking to facilitate lsquosuper clustersrsquo
Canadian Economy is Diversified and Comprises Many Key Clusters
23
Mining and Energy-Related Clusters
Edmonton
Calgary
Saskatoon
Regina
Sudbury
Saint John
St Johnrsquos
24
Manufacturing Clusters
Winnipeg
LondonHamilton
Oshawa
Windsor
Saguenay
Trois-Riviegraveres
Sherbrooke
Abbotsford
Montreacuteal
25
Information amp Communications Technology (ICT) Clusters
Vancouver
Kitchener-Waterloo
Toronto
Ottawa
Montreacuteal
26
Other Key Clusters
VictoriaTourism
AbbotsfordAgriculture
St Catharines-NiagaraTourism
TorontoFinance
Queacutebec CityInsurance
MonctonInsurance
HalifaxTransportation
MontreacutealManuf
VancouverTransportation
WinnipegTransportation
OshawaUtilities
27
Sources Trade Data Online calculations by The Conference Board of Canada
Scope to Expand Exports to EuropeCanadian merchandise exports (Index 2007 = 100)
60
80
100
120
140
160
180
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
28
Canadian Goods Exports to Finland(share of top 10 goods and in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
25
22
16
15
5
3 3
2 1 1 7 Aerospace
Mineral Fuels amp Oils
Ores
Motor Vehicles
Boilers Machinery amp Appliances
Electrical Machinery amp Equip
Medical amp Technical Instruments
Plastics
Oil Seeds
Tools amp Cutlery
Other
$671Meuro450MShare of Cdn Exports 01
29
Sources Trade Data Online calculations by The Conference Board of Canada
Imports from Europe Rising Canadian merchandise imports (Index 2007 = 100)
758595
105115125135145155165
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
30
Canadian Goods Imports From Finland(share of top 10 goods in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
23
11
9
9 8
7
6
6
3 2
16 Boilers Machinery amp Appliances
Motor Vehcles
Mineral Fuels amp Oils
Pharmaceutical Products
Paper
Electrical Machinery amp Equip
Medical amp Technical Instruments
Ores
Nickel
Rubber
Others
$572Meuro353MShare of Cdn Imports 02
31
Sources Statistics Canada calculations by The Conference Board of Canada
Canada and Europe Direct Investment on the Rise(stocks C$ billions)
120
140
160
180
200
220
240
260
280
300
320
2007 08 09 10 11 12 13 14 15 16
Canadian Direct Investment in Europe European Foreign Direct Investment in Canada
32
bull Canada is welcoming to business and investment The World Bank rates Canada as one of the easiest places to start a business Forbes and the Economist rank Canada as a leading location to do business
bull Being a small economy Canada lacks adequate domestic savings to meet all investment needs Hence Canada needs to attract foreign capital and provide a good experience to overseas investors
bull Over the last decade Canada has had the second largest foreign direct investment flows per capital in the G20 nations Since 2012 Inward FDI to Canada has been 54 of GDP highest in G7 and higher than the 29 G-7 average
bull Canadarsquos free trade agreements make it ideal as location to tap global markets
bull Canadian taxation makes investment attractive but one of its greatest strengths is the quality of the labour force
Many Business Advantages for Investment
33
Source OECD Statistics
Canada has Low Corporate Taxes Rates and Generous RampD Incentiveslarge business corporate income tax rate includes federal and provincialstate government taxes
20
25
30
35
40
45Canada US Mexico
34
Canada has a Highly Educated Workforcepercentage of the population aged 25-64 with post-secondary education in 2016
Source OECD
200
250
300
350
400
450
500
550
600
35
Strong Support for Immigration and Diversity
0
20
40
60
80
100
120
140
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
Net immigration (000s left) Net immigration as a share of total population change (per cent right)
36
Sources Immigration Refugees and Citizenship Canada The Conference Board The Conference Board of Canada
Newcomers to Canada Contribute to the Economy and add to Multiculturalism
627
241
118
14
In 2015 63 of immigrants to Canada fell under Economic Class
EconomicSponsored FamilyResettled Refugee amp Protected Person in CanadaAll Other Immigration
37
00 05 10 15 20 25 30
NL
NB
NS
PEI
Sask
Man
Que
Ont
BC
Alta
Sources The Conference Board of Canada Statistics Canada
Broad-based Growth in 2017 amp BeyondReal GDP per cent change 2017-22 basic prices $2007
Canada 21
38
bull CETA can help to boost growth and prosperity in Canada and EU if the opportunities are seized
bull Canada is a small economy with big potential It is a trade-friendly investment-friendly market and ideal platform for tapping North American Economy or beyond
bull Canada has strong fundamentals competitive corporate tax rates generous RampD tax incentives highly educated population highly tolerant and diverse population well anchored monetary policy sound fiscal finances
bull It is a modern-knowledge based economy Resources are still a key sector but so are other key clusters like ICT Finance and other advanced manufacturing and services
bull Canadarsquos economy is strengthening It is resisting the global shift towards protectionism leaning against inequality and building sustainable economic growth for the long-term
Key Messages
conferenceboardca
CraigA_Eco
wwwtradecommissionergccaCETA website
21
US Protectionism Highlights Need to Diversify Trade GeographicallyShare of Canadian Exports by Destination Non-US Markets 2016 per cent
Source Innovation Science and Economic Development Canada trade online database Conference Board of Canada
22
bull Canadian economy more diversified than many think Resource sector is 13 of economy Lotrsquos of opportunity to in wide array of products and services
bull Economic clusters are groups of firms and institutions that are located near one another and draw productive advantage from their mutual proximity and connections
bull Clusters are key drivers to economic growth and trade-oriented clusters serve markets beyond the region in which they are located
bull Famous US clusters include Wall Street Silicon Valley and Hollywood
bull Government of Canada looking to facilitate lsquosuper clustersrsquo
Canadian Economy is Diversified and Comprises Many Key Clusters
23
Mining and Energy-Related Clusters
Edmonton
Calgary
Saskatoon
Regina
Sudbury
Saint John
St Johnrsquos
24
Manufacturing Clusters
Winnipeg
LondonHamilton
Oshawa
Windsor
Saguenay
Trois-Riviegraveres
Sherbrooke
Abbotsford
Montreacuteal
25
Information amp Communications Technology (ICT) Clusters
Vancouver
Kitchener-Waterloo
Toronto
Ottawa
Montreacuteal
26
Other Key Clusters
VictoriaTourism
AbbotsfordAgriculture
St Catharines-NiagaraTourism
TorontoFinance
Queacutebec CityInsurance
MonctonInsurance
HalifaxTransportation
MontreacutealManuf
VancouverTransportation
WinnipegTransportation
OshawaUtilities
27
Sources Trade Data Online calculations by The Conference Board of Canada
Scope to Expand Exports to EuropeCanadian merchandise exports (Index 2007 = 100)
60
80
100
120
140
160
180
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
28
Canadian Goods Exports to Finland(share of top 10 goods and in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
25
22
16
15
5
3 3
2 1 1 7 Aerospace
Mineral Fuels amp Oils
Ores
Motor Vehicles
Boilers Machinery amp Appliances
Electrical Machinery amp Equip
Medical amp Technical Instruments
Plastics
Oil Seeds
Tools amp Cutlery
Other
$671Meuro450MShare of Cdn Exports 01
29
Sources Trade Data Online calculations by The Conference Board of Canada
Imports from Europe Rising Canadian merchandise imports (Index 2007 = 100)
758595
105115125135145155165
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
30
Canadian Goods Imports From Finland(share of top 10 goods in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
23
11
9
9 8
7
6
6
3 2
16 Boilers Machinery amp Appliances
Motor Vehcles
Mineral Fuels amp Oils
Pharmaceutical Products
Paper
Electrical Machinery amp Equip
Medical amp Technical Instruments
Ores
Nickel
Rubber
Others
$572Meuro353MShare of Cdn Imports 02
31
Sources Statistics Canada calculations by The Conference Board of Canada
Canada and Europe Direct Investment on the Rise(stocks C$ billions)
120
140
160
180
200
220
240
260
280
300
320
2007 08 09 10 11 12 13 14 15 16
Canadian Direct Investment in Europe European Foreign Direct Investment in Canada
32
bull Canada is welcoming to business and investment The World Bank rates Canada as one of the easiest places to start a business Forbes and the Economist rank Canada as a leading location to do business
bull Being a small economy Canada lacks adequate domestic savings to meet all investment needs Hence Canada needs to attract foreign capital and provide a good experience to overseas investors
bull Over the last decade Canada has had the second largest foreign direct investment flows per capital in the G20 nations Since 2012 Inward FDI to Canada has been 54 of GDP highest in G7 and higher than the 29 G-7 average
bull Canadarsquos free trade agreements make it ideal as location to tap global markets
bull Canadian taxation makes investment attractive but one of its greatest strengths is the quality of the labour force
Many Business Advantages for Investment
33
Source OECD Statistics
Canada has Low Corporate Taxes Rates and Generous RampD Incentiveslarge business corporate income tax rate includes federal and provincialstate government taxes
20
25
30
35
40
45Canada US Mexico
34
Canada has a Highly Educated Workforcepercentage of the population aged 25-64 with post-secondary education in 2016
Source OECD
200
250
300
350
400
450
500
550
600
35
Strong Support for Immigration and Diversity
0
20
40
60
80
100
120
140
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
Net immigration (000s left) Net immigration as a share of total population change (per cent right)
36
Sources Immigration Refugees and Citizenship Canada The Conference Board The Conference Board of Canada
Newcomers to Canada Contribute to the Economy and add to Multiculturalism
627
241
118
14
In 2015 63 of immigrants to Canada fell under Economic Class
EconomicSponsored FamilyResettled Refugee amp Protected Person in CanadaAll Other Immigration
37
00 05 10 15 20 25 30
NL
NB
NS
PEI
Sask
Man
Que
Ont
BC
Alta
Sources The Conference Board of Canada Statistics Canada
Broad-based Growth in 2017 amp BeyondReal GDP per cent change 2017-22 basic prices $2007
Canada 21
38
bull CETA can help to boost growth and prosperity in Canada and EU if the opportunities are seized
bull Canada is a small economy with big potential It is a trade-friendly investment-friendly market and ideal platform for tapping North American Economy or beyond
bull Canada has strong fundamentals competitive corporate tax rates generous RampD tax incentives highly educated population highly tolerant and diverse population well anchored monetary policy sound fiscal finances
bull It is a modern-knowledge based economy Resources are still a key sector but so are other key clusters like ICT Finance and other advanced manufacturing and services
bull Canadarsquos economy is strengthening It is resisting the global shift towards protectionism leaning against inequality and building sustainable economic growth for the long-term
Key Messages
conferenceboardca
CraigA_Eco
wwwtradecommissionergccaCETA website
22
bull Canadian economy more diversified than many think Resource sector is 13 of economy Lotrsquos of opportunity to in wide array of products and services
bull Economic clusters are groups of firms and institutions that are located near one another and draw productive advantage from their mutual proximity and connections
bull Clusters are key drivers to economic growth and trade-oriented clusters serve markets beyond the region in which they are located
bull Famous US clusters include Wall Street Silicon Valley and Hollywood
bull Government of Canada looking to facilitate lsquosuper clustersrsquo
Canadian Economy is Diversified and Comprises Many Key Clusters
23
Mining and Energy-Related Clusters
Edmonton
Calgary
Saskatoon
Regina
Sudbury
Saint John
St Johnrsquos
24
Manufacturing Clusters
Winnipeg
LondonHamilton
Oshawa
Windsor
Saguenay
Trois-Riviegraveres
Sherbrooke
Abbotsford
Montreacuteal
25
Information amp Communications Technology (ICT) Clusters
Vancouver
Kitchener-Waterloo
Toronto
Ottawa
Montreacuteal
26
Other Key Clusters
VictoriaTourism
AbbotsfordAgriculture
St Catharines-NiagaraTourism
TorontoFinance
Queacutebec CityInsurance
MonctonInsurance
HalifaxTransportation
MontreacutealManuf
VancouverTransportation
WinnipegTransportation
OshawaUtilities
27
Sources Trade Data Online calculations by The Conference Board of Canada
Scope to Expand Exports to EuropeCanadian merchandise exports (Index 2007 = 100)
60
80
100
120
140
160
180
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
28
Canadian Goods Exports to Finland(share of top 10 goods and in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
25
22
16
15
5
3 3
2 1 1 7 Aerospace
Mineral Fuels amp Oils
Ores
Motor Vehicles
Boilers Machinery amp Appliances
Electrical Machinery amp Equip
Medical amp Technical Instruments
Plastics
Oil Seeds
Tools amp Cutlery
Other
$671Meuro450MShare of Cdn Exports 01
29
Sources Trade Data Online calculations by The Conference Board of Canada
Imports from Europe Rising Canadian merchandise imports (Index 2007 = 100)
758595
105115125135145155165
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
30
Canadian Goods Imports From Finland(share of top 10 goods in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
23
11
9
9 8
7
6
6
3 2
16 Boilers Machinery amp Appliances
Motor Vehcles
Mineral Fuels amp Oils
Pharmaceutical Products
Paper
Electrical Machinery amp Equip
Medical amp Technical Instruments
Ores
Nickel
Rubber
Others
$572Meuro353MShare of Cdn Imports 02
31
Sources Statistics Canada calculations by The Conference Board of Canada
Canada and Europe Direct Investment on the Rise(stocks C$ billions)
120
140
160
180
200
220
240
260
280
300
320
2007 08 09 10 11 12 13 14 15 16
Canadian Direct Investment in Europe European Foreign Direct Investment in Canada
32
bull Canada is welcoming to business and investment The World Bank rates Canada as one of the easiest places to start a business Forbes and the Economist rank Canada as a leading location to do business
bull Being a small economy Canada lacks adequate domestic savings to meet all investment needs Hence Canada needs to attract foreign capital and provide a good experience to overseas investors
bull Over the last decade Canada has had the second largest foreign direct investment flows per capital in the G20 nations Since 2012 Inward FDI to Canada has been 54 of GDP highest in G7 and higher than the 29 G-7 average
bull Canadarsquos free trade agreements make it ideal as location to tap global markets
bull Canadian taxation makes investment attractive but one of its greatest strengths is the quality of the labour force
Many Business Advantages for Investment
33
Source OECD Statistics
Canada has Low Corporate Taxes Rates and Generous RampD Incentiveslarge business corporate income tax rate includes federal and provincialstate government taxes
20
25
30
35
40
45Canada US Mexico
34
Canada has a Highly Educated Workforcepercentage of the population aged 25-64 with post-secondary education in 2016
Source OECD
200
250
300
350
400
450
500
550
600
35
Strong Support for Immigration and Diversity
0
20
40
60
80
100
120
140
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
Net immigration (000s left) Net immigration as a share of total population change (per cent right)
36
Sources Immigration Refugees and Citizenship Canada The Conference Board The Conference Board of Canada
Newcomers to Canada Contribute to the Economy and add to Multiculturalism
627
241
118
14
In 2015 63 of immigrants to Canada fell under Economic Class
EconomicSponsored FamilyResettled Refugee amp Protected Person in CanadaAll Other Immigration
37
00 05 10 15 20 25 30
NL
NB
NS
PEI
Sask
Man
Que
Ont
BC
Alta
Sources The Conference Board of Canada Statistics Canada
Broad-based Growth in 2017 amp BeyondReal GDP per cent change 2017-22 basic prices $2007
Canada 21
38
bull CETA can help to boost growth and prosperity in Canada and EU if the opportunities are seized
bull Canada is a small economy with big potential It is a trade-friendly investment-friendly market and ideal platform for tapping North American Economy or beyond
bull Canada has strong fundamentals competitive corporate tax rates generous RampD tax incentives highly educated population highly tolerant and diverse population well anchored monetary policy sound fiscal finances
bull It is a modern-knowledge based economy Resources are still a key sector but so are other key clusters like ICT Finance and other advanced manufacturing and services
bull Canadarsquos economy is strengthening It is resisting the global shift towards protectionism leaning against inequality and building sustainable economic growth for the long-term
Key Messages
conferenceboardca
CraigA_Eco
wwwtradecommissionergccaCETA website
23
Mining and Energy-Related Clusters
Edmonton
Calgary
Saskatoon
Regina
Sudbury
Saint John
St Johnrsquos
24
Manufacturing Clusters
Winnipeg
LondonHamilton
Oshawa
Windsor
Saguenay
Trois-Riviegraveres
Sherbrooke
Abbotsford
Montreacuteal
25
Information amp Communications Technology (ICT) Clusters
Vancouver
Kitchener-Waterloo
Toronto
Ottawa
Montreacuteal
26
Other Key Clusters
VictoriaTourism
AbbotsfordAgriculture
St Catharines-NiagaraTourism
TorontoFinance
Queacutebec CityInsurance
MonctonInsurance
HalifaxTransportation
MontreacutealManuf
VancouverTransportation
WinnipegTransportation
OshawaUtilities
27
Sources Trade Data Online calculations by The Conference Board of Canada
Scope to Expand Exports to EuropeCanadian merchandise exports (Index 2007 = 100)
60
80
100
120
140
160
180
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
28
Canadian Goods Exports to Finland(share of top 10 goods and in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
25
22
16
15
5
3 3
2 1 1 7 Aerospace
Mineral Fuels amp Oils
Ores
Motor Vehicles
Boilers Machinery amp Appliances
Electrical Machinery amp Equip
Medical amp Technical Instruments
Plastics
Oil Seeds
Tools amp Cutlery
Other
$671Meuro450MShare of Cdn Exports 01
29
Sources Trade Data Online calculations by The Conference Board of Canada
Imports from Europe Rising Canadian merchandise imports (Index 2007 = 100)
758595
105115125135145155165
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
30
Canadian Goods Imports From Finland(share of top 10 goods in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
23
11
9
9 8
7
6
6
3 2
16 Boilers Machinery amp Appliances
Motor Vehcles
Mineral Fuels amp Oils
Pharmaceutical Products
Paper
Electrical Machinery amp Equip
Medical amp Technical Instruments
Ores
Nickel
Rubber
Others
$572Meuro353MShare of Cdn Imports 02
31
Sources Statistics Canada calculations by The Conference Board of Canada
Canada and Europe Direct Investment on the Rise(stocks C$ billions)
120
140
160
180
200
220
240
260
280
300
320
2007 08 09 10 11 12 13 14 15 16
Canadian Direct Investment in Europe European Foreign Direct Investment in Canada
32
bull Canada is welcoming to business and investment The World Bank rates Canada as one of the easiest places to start a business Forbes and the Economist rank Canada as a leading location to do business
bull Being a small economy Canada lacks adequate domestic savings to meet all investment needs Hence Canada needs to attract foreign capital and provide a good experience to overseas investors
bull Over the last decade Canada has had the second largest foreign direct investment flows per capital in the G20 nations Since 2012 Inward FDI to Canada has been 54 of GDP highest in G7 and higher than the 29 G-7 average
bull Canadarsquos free trade agreements make it ideal as location to tap global markets
bull Canadian taxation makes investment attractive but one of its greatest strengths is the quality of the labour force
Many Business Advantages for Investment
33
Source OECD Statistics
Canada has Low Corporate Taxes Rates and Generous RampD Incentiveslarge business corporate income tax rate includes federal and provincialstate government taxes
20
25
30
35
40
45Canada US Mexico
34
Canada has a Highly Educated Workforcepercentage of the population aged 25-64 with post-secondary education in 2016
Source OECD
200
250
300
350
400
450
500
550
600
35
Strong Support for Immigration and Diversity
0
20
40
60
80
100
120
140
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
Net immigration (000s left) Net immigration as a share of total population change (per cent right)
36
Sources Immigration Refugees and Citizenship Canada The Conference Board The Conference Board of Canada
Newcomers to Canada Contribute to the Economy and add to Multiculturalism
627
241
118
14
In 2015 63 of immigrants to Canada fell under Economic Class
EconomicSponsored FamilyResettled Refugee amp Protected Person in CanadaAll Other Immigration
37
00 05 10 15 20 25 30
NL
NB
NS
PEI
Sask
Man
Que
Ont
BC
Alta
Sources The Conference Board of Canada Statistics Canada
Broad-based Growth in 2017 amp BeyondReal GDP per cent change 2017-22 basic prices $2007
Canada 21
38
bull CETA can help to boost growth and prosperity in Canada and EU if the opportunities are seized
bull Canada is a small economy with big potential It is a trade-friendly investment-friendly market and ideal platform for tapping North American Economy or beyond
bull Canada has strong fundamentals competitive corporate tax rates generous RampD tax incentives highly educated population highly tolerant and diverse population well anchored monetary policy sound fiscal finances
bull It is a modern-knowledge based economy Resources are still a key sector but so are other key clusters like ICT Finance and other advanced manufacturing and services
bull Canadarsquos economy is strengthening It is resisting the global shift towards protectionism leaning against inequality and building sustainable economic growth for the long-term
Key Messages
conferenceboardca
CraigA_Eco
wwwtradecommissionergccaCETA website
24
Manufacturing Clusters
Winnipeg
LondonHamilton
Oshawa
Windsor
Saguenay
Trois-Riviegraveres
Sherbrooke
Abbotsford
Montreacuteal
25
Information amp Communications Technology (ICT) Clusters
Vancouver
Kitchener-Waterloo
Toronto
Ottawa
Montreacuteal
26
Other Key Clusters
VictoriaTourism
AbbotsfordAgriculture
St Catharines-NiagaraTourism
TorontoFinance
Queacutebec CityInsurance
MonctonInsurance
HalifaxTransportation
MontreacutealManuf
VancouverTransportation
WinnipegTransportation
OshawaUtilities
27
Sources Trade Data Online calculations by The Conference Board of Canada
Scope to Expand Exports to EuropeCanadian merchandise exports (Index 2007 = 100)
60
80
100
120
140
160
180
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
28
Canadian Goods Exports to Finland(share of top 10 goods and in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
25
22
16
15
5
3 3
2 1 1 7 Aerospace
Mineral Fuels amp Oils
Ores
Motor Vehicles
Boilers Machinery amp Appliances
Electrical Machinery amp Equip
Medical amp Technical Instruments
Plastics
Oil Seeds
Tools amp Cutlery
Other
$671Meuro450MShare of Cdn Exports 01
29
Sources Trade Data Online calculations by The Conference Board of Canada
Imports from Europe Rising Canadian merchandise imports (Index 2007 = 100)
758595
105115125135145155165
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
30
Canadian Goods Imports From Finland(share of top 10 goods in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
23
11
9
9 8
7
6
6
3 2
16 Boilers Machinery amp Appliances
Motor Vehcles
Mineral Fuels amp Oils
Pharmaceutical Products
Paper
Electrical Machinery amp Equip
Medical amp Technical Instruments
Ores
Nickel
Rubber
Others
$572Meuro353MShare of Cdn Imports 02
31
Sources Statistics Canada calculations by The Conference Board of Canada
Canada and Europe Direct Investment on the Rise(stocks C$ billions)
120
140
160
180
200
220
240
260
280
300
320
2007 08 09 10 11 12 13 14 15 16
Canadian Direct Investment in Europe European Foreign Direct Investment in Canada
32
bull Canada is welcoming to business and investment The World Bank rates Canada as one of the easiest places to start a business Forbes and the Economist rank Canada as a leading location to do business
bull Being a small economy Canada lacks adequate domestic savings to meet all investment needs Hence Canada needs to attract foreign capital and provide a good experience to overseas investors
bull Over the last decade Canada has had the second largest foreign direct investment flows per capital in the G20 nations Since 2012 Inward FDI to Canada has been 54 of GDP highest in G7 and higher than the 29 G-7 average
bull Canadarsquos free trade agreements make it ideal as location to tap global markets
bull Canadian taxation makes investment attractive but one of its greatest strengths is the quality of the labour force
Many Business Advantages for Investment
33
Source OECD Statistics
Canada has Low Corporate Taxes Rates and Generous RampD Incentiveslarge business corporate income tax rate includes federal and provincialstate government taxes
20
25
30
35
40
45Canada US Mexico
34
Canada has a Highly Educated Workforcepercentage of the population aged 25-64 with post-secondary education in 2016
Source OECD
200
250
300
350
400
450
500
550
600
35
Strong Support for Immigration and Diversity
0
20
40
60
80
100
120
140
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
Net immigration (000s left) Net immigration as a share of total population change (per cent right)
36
Sources Immigration Refugees and Citizenship Canada The Conference Board The Conference Board of Canada
Newcomers to Canada Contribute to the Economy and add to Multiculturalism
627
241
118
14
In 2015 63 of immigrants to Canada fell under Economic Class
EconomicSponsored FamilyResettled Refugee amp Protected Person in CanadaAll Other Immigration
37
00 05 10 15 20 25 30
NL
NB
NS
PEI
Sask
Man
Que
Ont
BC
Alta
Sources The Conference Board of Canada Statistics Canada
Broad-based Growth in 2017 amp BeyondReal GDP per cent change 2017-22 basic prices $2007
Canada 21
38
bull CETA can help to boost growth and prosperity in Canada and EU if the opportunities are seized
bull Canada is a small economy with big potential It is a trade-friendly investment-friendly market and ideal platform for tapping North American Economy or beyond
bull Canada has strong fundamentals competitive corporate tax rates generous RampD tax incentives highly educated population highly tolerant and diverse population well anchored monetary policy sound fiscal finances
bull It is a modern-knowledge based economy Resources are still a key sector but so are other key clusters like ICT Finance and other advanced manufacturing and services
bull Canadarsquos economy is strengthening It is resisting the global shift towards protectionism leaning against inequality and building sustainable economic growth for the long-term
Key Messages
conferenceboardca
CraigA_Eco
wwwtradecommissionergccaCETA website
25
Information amp Communications Technology (ICT) Clusters
Vancouver
Kitchener-Waterloo
Toronto
Ottawa
Montreacuteal
26
Other Key Clusters
VictoriaTourism
AbbotsfordAgriculture
St Catharines-NiagaraTourism
TorontoFinance
Queacutebec CityInsurance
MonctonInsurance
HalifaxTransportation
MontreacutealManuf
VancouverTransportation
WinnipegTransportation
OshawaUtilities
27
Sources Trade Data Online calculations by The Conference Board of Canada
Scope to Expand Exports to EuropeCanadian merchandise exports (Index 2007 = 100)
60
80
100
120
140
160
180
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
28
Canadian Goods Exports to Finland(share of top 10 goods and in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
25
22
16
15
5
3 3
2 1 1 7 Aerospace
Mineral Fuels amp Oils
Ores
Motor Vehicles
Boilers Machinery amp Appliances
Electrical Machinery amp Equip
Medical amp Technical Instruments
Plastics
Oil Seeds
Tools amp Cutlery
Other
$671Meuro450MShare of Cdn Exports 01
29
Sources Trade Data Online calculations by The Conference Board of Canada
Imports from Europe Rising Canadian merchandise imports (Index 2007 = 100)
758595
105115125135145155165
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
30
Canadian Goods Imports From Finland(share of top 10 goods in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
23
11
9
9 8
7
6
6
3 2
16 Boilers Machinery amp Appliances
Motor Vehcles
Mineral Fuels amp Oils
Pharmaceutical Products
Paper
Electrical Machinery amp Equip
Medical amp Technical Instruments
Ores
Nickel
Rubber
Others
$572Meuro353MShare of Cdn Imports 02
31
Sources Statistics Canada calculations by The Conference Board of Canada
Canada and Europe Direct Investment on the Rise(stocks C$ billions)
120
140
160
180
200
220
240
260
280
300
320
2007 08 09 10 11 12 13 14 15 16
Canadian Direct Investment in Europe European Foreign Direct Investment in Canada
32
bull Canada is welcoming to business and investment The World Bank rates Canada as one of the easiest places to start a business Forbes and the Economist rank Canada as a leading location to do business
bull Being a small economy Canada lacks adequate domestic savings to meet all investment needs Hence Canada needs to attract foreign capital and provide a good experience to overseas investors
bull Over the last decade Canada has had the second largest foreign direct investment flows per capital in the G20 nations Since 2012 Inward FDI to Canada has been 54 of GDP highest in G7 and higher than the 29 G-7 average
bull Canadarsquos free trade agreements make it ideal as location to tap global markets
bull Canadian taxation makes investment attractive but one of its greatest strengths is the quality of the labour force
Many Business Advantages for Investment
33
Source OECD Statistics
Canada has Low Corporate Taxes Rates and Generous RampD Incentiveslarge business corporate income tax rate includes federal and provincialstate government taxes
20
25
30
35
40
45Canada US Mexico
34
Canada has a Highly Educated Workforcepercentage of the population aged 25-64 with post-secondary education in 2016
Source OECD
200
250
300
350
400
450
500
550
600
35
Strong Support for Immigration and Diversity
0
20
40
60
80
100
120
140
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
Net immigration (000s left) Net immigration as a share of total population change (per cent right)
36
Sources Immigration Refugees and Citizenship Canada The Conference Board The Conference Board of Canada
Newcomers to Canada Contribute to the Economy and add to Multiculturalism
627
241
118
14
In 2015 63 of immigrants to Canada fell under Economic Class
EconomicSponsored FamilyResettled Refugee amp Protected Person in CanadaAll Other Immigration
37
00 05 10 15 20 25 30
NL
NB
NS
PEI
Sask
Man
Que
Ont
BC
Alta
Sources The Conference Board of Canada Statistics Canada
Broad-based Growth in 2017 amp BeyondReal GDP per cent change 2017-22 basic prices $2007
Canada 21
38
bull CETA can help to boost growth and prosperity in Canada and EU if the opportunities are seized
bull Canada is a small economy with big potential It is a trade-friendly investment-friendly market and ideal platform for tapping North American Economy or beyond
bull Canada has strong fundamentals competitive corporate tax rates generous RampD tax incentives highly educated population highly tolerant and diverse population well anchored monetary policy sound fiscal finances
bull It is a modern-knowledge based economy Resources are still a key sector but so are other key clusters like ICT Finance and other advanced manufacturing and services
bull Canadarsquos economy is strengthening It is resisting the global shift towards protectionism leaning against inequality and building sustainable economic growth for the long-term
Key Messages
conferenceboardca
CraigA_Eco
wwwtradecommissionergccaCETA website
26
Other Key Clusters
VictoriaTourism
AbbotsfordAgriculture
St Catharines-NiagaraTourism
TorontoFinance
Queacutebec CityInsurance
MonctonInsurance
HalifaxTransportation
MontreacutealManuf
VancouverTransportation
WinnipegTransportation
OshawaUtilities
27
Sources Trade Data Online calculations by The Conference Board of Canada
Scope to Expand Exports to EuropeCanadian merchandise exports (Index 2007 = 100)
60
80
100
120
140
160
180
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
28
Canadian Goods Exports to Finland(share of top 10 goods and in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
25
22
16
15
5
3 3
2 1 1 7 Aerospace
Mineral Fuels amp Oils
Ores
Motor Vehicles
Boilers Machinery amp Appliances
Electrical Machinery amp Equip
Medical amp Technical Instruments
Plastics
Oil Seeds
Tools amp Cutlery
Other
$671Meuro450MShare of Cdn Exports 01
29
Sources Trade Data Online calculations by The Conference Board of Canada
Imports from Europe Rising Canadian merchandise imports (Index 2007 = 100)
758595
105115125135145155165
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
30
Canadian Goods Imports From Finland(share of top 10 goods in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
23
11
9
9 8
7
6
6
3 2
16 Boilers Machinery amp Appliances
Motor Vehcles
Mineral Fuels amp Oils
Pharmaceutical Products
Paper
Electrical Machinery amp Equip
Medical amp Technical Instruments
Ores
Nickel
Rubber
Others
$572Meuro353MShare of Cdn Imports 02
31
Sources Statistics Canada calculations by The Conference Board of Canada
Canada and Europe Direct Investment on the Rise(stocks C$ billions)
120
140
160
180
200
220
240
260
280
300
320
2007 08 09 10 11 12 13 14 15 16
Canadian Direct Investment in Europe European Foreign Direct Investment in Canada
32
bull Canada is welcoming to business and investment The World Bank rates Canada as one of the easiest places to start a business Forbes and the Economist rank Canada as a leading location to do business
bull Being a small economy Canada lacks adequate domestic savings to meet all investment needs Hence Canada needs to attract foreign capital and provide a good experience to overseas investors
bull Over the last decade Canada has had the second largest foreign direct investment flows per capital in the G20 nations Since 2012 Inward FDI to Canada has been 54 of GDP highest in G7 and higher than the 29 G-7 average
bull Canadarsquos free trade agreements make it ideal as location to tap global markets
bull Canadian taxation makes investment attractive but one of its greatest strengths is the quality of the labour force
Many Business Advantages for Investment
33
Source OECD Statistics
Canada has Low Corporate Taxes Rates and Generous RampD Incentiveslarge business corporate income tax rate includes federal and provincialstate government taxes
20
25
30
35
40
45Canada US Mexico
34
Canada has a Highly Educated Workforcepercentage of the population aged 25-64 with post-secondary education in 2016
Source OECD
200
250
300
350
400
450
500
550
600
35
Strong Support for Immigration and Diversity
0
20
40
60
80
100
120
140
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
Net immigration (000s left) Net immigration as a share of total population change (per cent right)
36
Sources Immigration Refugees and Citizenship Canada The Conference Board The Conference Board of Canada
Newcomers to Canada Contribute to the Economy and add to Multiculturalism
627
241
118
14
In 2015 63 of immigrants to Canada fell under Economic Class
EconomicSponsored FamilyResettled Refugee amp Protected Person in CanadaAll Other Immigration
37
00 05 10 15 20 25 30
NL
NB
NS
PEI
Sask
Man
Que
Ont
BC
Alta
Sources The Conference Board of Canada Statistics Canada
Broad-based Growth in 2017 amp BeyondReal GDP per cent change 2017-22 basic prices $2007
Canada 21
38
bull CETA can help to boost growth and prosperity in Canada and EU if the opportunities are seized
bull Canada is a small economy with big potential It is a trade-friendly investment-friendly market and ideal platform for tapping North American Economy or beyond
bull Canada has strong fundamentals competitive corporate tax rates generous RampD tax incentives highly educated population highly tolerant and diverse population well anchored monetary policy sound fiscal finances
bull It is a modern-knowledge based economy Resources are still a key sector but so are other key clusters like ICT Finance and other advanced manufacturing and services
bull Canadarsquos economy is strengthening It is resisting the global shift towards protectionism leaning against inequality and building sustainable economic growth for the long-term
Key Messages
conferenceboardca
CraigA_Eco
wwwtradecommissionergccaCETA website
27
Sources Trade Data Online calculations by The Conference Board of Canada
Scope to Expand Exports to EuropeCanadian merchandise exports (Index 2007 = 100)
60
80
100
120
140
160
180
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
28
Canadian Goods Exports to Finland(share of top 10 goods and in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
25
22
16
15
5
3 3
2 1 1 7 Aerospace
Mineral Fuels amp Oils
Ores
Motor Vehicles
Boilers Machinery amp Appliances
Electrical Machinery amp Equip
Medical amp Technical Instruments
Plastics
Oil Seeds
Tools amp Cutlery
Other
$671Meuro450MShare of Cdn Exports 01
29
Sources Trade Data Online calculations by The Conference Board of Canada
Imports from Europe Rising Canadian merchandise imports (Index 2007 = 100)
758595
105115125135145155165
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
30
Canadian Goods Imports From Finland(share of top 10 goods in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
23
11
9
9 8
7
6
6
3 2
16 Boilers Machinery amp Appliances
Motor Vehcles
Mineral Fuels amp Oils
Pharmaceutical Products
Paper
Electrical Machinery amp Equip
Medical amp Technical Instruments
Ores
Nickel
Rubber
Others
$572Meuro353MShare of Cdn Imports 02
31
Sources Statistics Canada calculations by The Conference Board of Canada
Canada and Europe Direct Investment on the Rise(stocks C$ billions)
120
140
160
180
200
220
240
260
280
300
320
2007 08 09 10 11 12 13 14 15 16
Canadian Direct Investment in Europe European Foreign Direct Investment in Canada
32
bull Canada is welcoming to business and investment The World Bank rates Canada as one of the easiest places to start a business Forbes and the Economist rank Canada as a leading location to do business
bull Being a small economy Canada lacks adequate domestic savings to meet all investment needs Hence Canada needs to attract foreign capital and provide a good experience to overseas investors
bull Over the last decade Canada has had the second largest foreign direct investment flows per capital in the G20 nations Since 2012 Inward FDI to Canada has been 54 of GDP highest in G7 and higher than the 29 G-7 average
bull Canadarsquos free trade agreements make it ideal as location to tap global markets
bull Canadian taxation makes investment attractive but one of its greatest strengths is the quality of the labour force
Many Business Advantages for Investment
33
Source OECD Statistics
Canada has Low Corporate Taxes Rates and Generous RampD Incentiveslarge business corporate income tax rate includes federal and provincialstate government taxes
20
25
30
35
40
45Canada US Mexico
34
Canada has a Highly Educated Workforcepercentage of the population aged 25-64 with post-secondary education in 2016
Source OECD
200
250
300
350
400
450
500
550
600
35
Strong Support for Immigration and Diversity
0
20
40
60
80
100
120
140
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
Net immigration (000s left) Net immigration as a share of total population change (per cent right)
36
Sources Immigration Refugees and Citizenship Canada The Conference Board The Conference Board of Canada
Newcomers to Canada Contribute to the Economy and add to Multiculturalism
627
241
118
14
In 2015 63 of immigrants to Canada fell under Economic Class
EconomicSponsored FamilyResettled Refugee amp Protected Person in CanadaAll Other Immigration
37
00 05 10 15 20 25 30
NL
NB
NS
PEI
Sask
Man
Que
Ont
BC
Alta
Sources The Conference Board of Canada Statistics Canada
Broad-based Growth in 2017 amp BeyondReal GDP per cent change 2017-22 basic prices $2007
Canada 21
38
bull CETA can help to boost growth and prosperity in Canada and EU if the opportunities are seized
bull Canada is a small economy with big potential It is a trade-friendly investment-friendly market and ideal platform for tapping North American Economy or beyond
bull Canada has strong fundamentals competitive corporate tax rates generous RampD tax incentives highly educated population highly tolerant and diverse population well anchored monetary policy sound fiscal finances
bull It is a modern-knowledge based economy Resources are still a key sector but so are other key clusters like ICT Finance and other advanced manufacturing and services
bull Canadarsquos economy is strengthening It is resisting the global shift towards protectionism leaning against inequality and building sustainable economic growth for the long-term
Key Messages
conferenceboardca
CraigA_Eco
wwwtradecommissionergccaCETA website
28
Canadian Goods Exports to Finland(share of top 10 goods and in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
25
22
16
15
5
3 3
2 1 1 7 Aerospace
Mineral Fuels amp Oils
Ores
Motor Vehicles
Boilers Machinery amp Appliances
Electrical Machinery amp Equip
Medical amp Technical Instruments
Plastics
Oil Seeds
Tools amp Cutlery
Other
$671Meuro450MShare of Cdn Exports 01
29
Sources Trade Data Online calculations by The Conference Board of Canada
Imports from Europe Rising Canadian merchandise imports (Index 2007 = 100)
758595
105115125135145155165
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
30
Canadian Goods Imports From Finland(share of top 10 goods in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
23
11
9
9 8
7
6
6
3 2
16 Boilers Machinery amp Appliances
Motor Vehcles
Mineral Fuels amp Oils
Pharmaceutical Products
Paper
Electrical Machinery amp Equip
Medical amp Technical Instruments
Ores
Nickel
Rubber
Others
$572Meuro353MShare of Cdn Imports 02
31
Sources Statistics Canada calculations by The Conference Board of Canada
Canada and Europe Direct Investment on the Rise(stocks C$ billions)
120
140
160
180
200
220
240
260
280
300
320
2007 08 09 10 11 12 13 14 15 16
Canadian Direct Investment in Europe European Foreign Direct Investment in Canada
32
bull Canada is welcoming to business and investment The World Bank rates Canada as one of the easiest places to start a business Forbes and the Economist rank Canada as a leading location to do business
bull Being a small economy Canada lacks adequate domestic savings to meet all investment needs Hence Canada needs to attract foreign capital and provide a good experience to overseas investors
bull Over the last decade Canada has had the second largest foreign direct investment flows per capital in the G20 nations Since 2012 Inward FDI to Canada has been 54 of GDP highest in G7 and higher than the 29 G-7 average
bull Canadarsquos free trade agreements make it ideal as location to tap global markets
bull Canadian taxation makes investment attractive but one of its greatest strengths is the quality of the labour force
Many Business Advantages for Investment
33
Source OECD Statistics
Canada has Low Corporate Taxes Rates and Generous RampD Incentiveslarge business corporate income tax rate includes federal and provincialstate government taxes
20
25
30
35
40
45Canada US Mexico
34
Canada has a Highly Educated Workforcepercentage of the population aged 25-64 with post-secondary education in 2016
Source OECD
200
250
300
350
400
450
500
550
600
35
Strong Support for Immigration and Diversity
0
20
40
60
80
100
120
140
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
Net immigration (000s left) Net immigration as a share of total population change (per cent right)
36
Sources Immigration Refugees and Citizenship Canada The Conference Board The Conference Board of Canada
Newcomers to Canada Contribute to the Economy and add to Multiculturalism
627
241
118
14
In 2015 63 of immigrants to Canada fell under Economic Class
EconomicSponsored FamilyResettled Refugee amp Protected Person in CanadaAll Other Immigration
37
00 05 10 15 20 25 30
NL
NB
NS
PEI
Sask
Man
Que
Ont
BC
Alta
Sources The Conference Board of Canada Statistics Canada
Broad-based Growth in 2017 amp BeyondReal GDP per cent change 2017-22 basic prices $2007
Canada 21
38
bull CETA can help to boost growth and prosperity in Canada and EU if the opportunities are seized
bull Canada is a small economy with big potential It is a trade-friendly investment-friendly market and ideal platform for tapping North American Economy or beyond
bull Canada has strong fundamentals competitive corporate tax rates generous RampD tax incentives highly educated population highly tolerant and diverse population well anchored monetary policy sound fiscal finances
bull It is a modern-knowledge based economy Resources are still a key sector but so are other key clusters like ICT Finance and other advanced manufacturing and services
bull Canadarsquos economy is strengthening It is resisting the global shift towards protectionism leaning against inequality and building sustainable economic growth for the long-term
Key Messages
conferenceboardca
CraigA_Eco
wwwtradecommissionergccaCETA website
29
Sources Trade Data Online calculations by The Conference Board of Canada
Imports from Europe Rising Canadian merchandise imports (Index 2007 = 100)
758595
105115125135145155165
2007 08 09 10 11 12 13 14 15 16
Europe Asia N and S America
30
Canadian Goods Imports From Finland(share of top 10 goods in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
23
11
9
9 8
7
6
6
3 2
16 Boilers Machinery amp Appliances
Motor Vehcles
Mineral Fuels amp Oils
Pharmaceutical Products
Paper
Electrical Machinery amp Equip
Medical amp Technical Instruments
Ores
Nickel
Rubber
Others
$572Meuro353MShare of Cdn Imports 02
31
Sources Statistics Canada calculations by The Conference Board of Canada
Canada and Europe Direct Investment on the Rise(stocks C$ billions)
120
140
160
180
200
220
240
260
280
300
320
2007 08 09 10 11 12 13 14 15 16
Canadian Direct Investment in Europe European Foreign Direct Investment in Canada
32
bull Canada is welcoming to business and investment The World Bank rates Canada as one of the easiest places to start a business Forbes and the Economist rank Canada as a leading location to do business
bull Being a small economy Canada lacks adequate domestic savings to meet all investment needs Hence Canada needs to attract foreign capital and provide a good experience to overseas investors
bull Over the last decade Canada has had the second largest foreign direct investment flows per capital in the G20 nations Since 2012 Inward FDI to Canada has been 54 of GDP highest in G7 and higher than the 29 G-7 average
bull Canadarsquos free trade agreements make it ideal as location to tap global markets
bull Canadian taxation makes investment attractive but one of its greatest strengths is the quality of the labour force
Many Business Advantages for Investment
33
Source OECD Statistics
Canada has Low Corporate Taxes Rates and Generous RampD Incentiveslarge business corporate income tax rate includes federal and provincialstate government taxes
20
25
30
35
40
45Canada US Mexico
34
Canada has a Highly Educated Workforcepercentage of the population aged 25-64 with post-secondary education in 2016
Source OECD
200
250
300
350
400
450
500
550
600
35
Strong Support for Immigration and Diversity
0
20
40
60
80
100
120
140
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
Net immigration (000s left) Net immigration as a share of total population change (per cent right)
36
Sources Immigration Refugees and Citizenship Canada The Conference Board The Conference Board of Canada
Newcomers to Canada Contribute to the Economy and add to Multiculturalism
627
241
118
14
In 2015 63 of immigrants to Canada fell under Economic Class
EconomicSponsored FamilyResettled Refugee amp Protected Person in CanadaAll Other Immigration
37
00 05 10 15 20 25 30
NL
NB
NS
PEI
Sask
Man
Que
Ont
BC
Alta
Sources The Conference Board of Canada Statistics Canada
Broad-based Growth in 2017 amp BeyondReal GDP per cent change 2017-22 basic prices $2007
Canada 21
38
bull CETA can help to boost growth and prosperity in Canada and EU if the opportunities are seized
bull Canada is a small economy with big potential It is a trade-friendly investment-friendly market and ideal platform for tapping North American Economy or beyond
bull Canada has strong fundamentals competitive corporate tax rates generous RampD tax incentives highly educated population highly tolerant and diverse population well anchored monetary policy sound fiscal finances
bull It is a modern-knowledge based economy Resources are still a key sector but so are other key clusters like ICT Finance and other advanced manufacturing and services
bull Canadarsquos economy is strengthening It is resisting the global shift towards protectionism leaning against inequality and building sustainable economic growth for the long-term
Key Messages
conferenceboardca
CraigA_Eco
wwwtradecommissionergccaCETA website
30
Canadian Goods Imports From Finland(share of top 10 goods in 2016 per cent)
Sources Trade Data Online calculations by The Conference Board of Canada
23
11
9
9 8
7
6
6
3 2
16 Boilers Machinery amp Appliances
Motor Vehcles
Mineral Fuels amp Oils
Pharmaceutical Products
Paper
Electrical Machinery amp Equip
Medical amp Technical Instruments
Ores
Nickel
Rubber
Others
$572Meuro353MShare of Cdn Imports 02
31
Sources Statistics Canada calculations by The Conference Board of Canada
Canada and Europe Direct Investment on the Rise(stocks C$ billions)
120
140
160
180
200
220
240
260
280
300
320
2007 08 09 10 11 12 13 14 15 16
Canadian Direct Investment in Europe European Foreign Direct Investment in Canada
32
bull Canada is welcoming to business and investment The World Bank rates Canada as one of the easiest places to start a business Forbes and the Economist rank Canada as a leading location to do business
bull Being a small economy Canada lacks adequate domestic savings to meet all investment needs Hence Canada needs to attract foreign capital and provide a good experience to overseas investors
bull Over the last decade Canada has had the second largest foreign direct investment flows per capital in the G20 nations Since 2012 Inward FDI to Canada has been 54 of GDP highest in G7 and higher than the 29 G-7 average
bull Canadarsquos free trade agreements make it ideal as location to tap global markets
bull Canadian taxation makes investment attractive but one of its greatest strengths is the quality of the labour force
Many Business Advantages for Investment
33
Source OECD Statistics
Canada has Low Corporate Taxes Rates and Generous RampD Incentiveslarge business corporate income tax rate includes federal and provincialstate government taxes
20
25
30
35
40
45Canada US Mexico
34
Canada has a Highly Educated Workforcepercentage of the population aged 25-64 with post-secondary education in 2016
Source OECD
200
250
300
350
400
450
500
550
600
35
Strong Support for Immigration and Diversity
0
20
40
60
80
100
120
140
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
Net immigration (000s left) Net immigration as a share of total population change (per cent right)
36
Sources Immigration Refugees and Citizenship Canada The Conference Board The Conference Board of Canada
Newcomers to Canada Contribute to the Economy and add to Multiculturalism
627
241
118
14
In 2015 63 of immigrants to Canada fell under Economic Class
EconomicSponsored FamilyResettled Refugee amp Protected Person in CanadaAll Other Immigration
37
00 05 10 15 20 25 30
NL
NB
NS
PEI
Sask
Man
Que
Ont
BC
Alta
Sources The Conference Board of Canada Statistics Canada
Broad-based Growth in 2017 amp BeyondReal GDP per cent change 2017-22 basic prices $2007
Canada 21
38
bull CETA can help to boost growth and prosperity in Canada and EU if the opportunities are seized
bull Canada is a small economy with big potential It is a trade-friendly investment-friendly market and ideal platform for tapping North American Economy or beyond
bull Canada has strong fundamentals competitive corporate tax rates generous RampD tax incentives highly educated population highly tolerant and diverse population well anchored monetary policy sound fiscal finances
bull It is a modern-knowledge based economy Resources are still a key sector but so are other key clusters like ICT Finance and other advanced manufacturing and services
bull Canadarsquos economy is strengthening It is resisting the global shift towards protectionism leaning against inequality and building sustainable economic growth for the long-term
Key Messages
conferenceboardca
CraigA_Eco
wwwtradecommissionergccaCETA website
31
Sources Statistics Canada calculations by The Conference Board of Canada
Canada and Europe Direct Investment on the Rise(stocks C$ billions)
120
140
160
180
200
220
240
260
280
300
320
2007 08 09 10 11 12 13 14 15 16
Canadian Direct Investment in Europe European Foreign Direct Investment in Canada
32
bull Canada is welcoming to business and investment The World Bank rates Canada as one of the easiest places to start a business Forbes and the Economist rank Canada as a leading location to do business
bull Being a small economy Canada lacks adequate domestic savings to meet all investment needs Hence Canada needs to attract foreign capital and provide a good experience to overseas investors
bull Over the last decade Canada has had the second largest foreign direct investment flows per capital in the G20 nations Since 2012 Inward FDI to Canada has been 54 of GDP highest in G7 and higher than the 29 G-7 average
bull Canadarsquos free trade agreements make it ideal as location to tap global markets
bull Canadian taxation makes investment attractive but one of its greatest strengths is the quality of the labour force
Many Business Advantages for Investment
33
Source OECD Statistics
Canada has Low Corporate Taxes Rates and Generous RampD Incentiveslarge business corporate income tax rate includes federal and provincialstate government taxes
20
25
30
35
40
45Canada US Mexico
34
Canada has a Highly Educated Workforcepercentage of the population aged 25-64 with post-secondary education in 2016
Source OECD
200
250
300
350
400
450
500
550
600
35
Strong Support for Immigration and Diversity
0
20
40
60
80
100
120
140
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
Net immigration (000s left) Net immigration as a share of total population change (per cent right)
36
Sources Immigration Refugees and Citizenship Canada The Conference Board The Conference Board of Canada
Newcomers to Canada Contribute to the Economy and add to Multiculturalism
627
241
118
14
In 2015 63 of immigrants to Canada fell under Economic Class
EconomicSponsored FamilyResettled Refugee amp Protected Person in CanadaAll Other Immigration
37
00 05 10 15 20 25 30
NL
NB
NS
PEI
Sask
Man
Que
Ont
BC
Alta
Sources The Conference Board of Canada Statistics Canada
Broad-based Growth in 2017 amp BeyondReal GDP per cent change 2017-22 basic prices $2007
Canada 21
38
bull CETA can help to boost growth and prosperity in Canada and EU if the opportunities are seized
bull Canada is a small economy with big potential It is a trade-friendly investment-friendly market and ideal platform for tapping North American Economy or beyond
bull Canada has strong fundamentals competitive corporate tax rates generous RampD tax incentives highly educated population highly tolerant and diverse population well anchored monetary policy sound fiscal finances
bull It is a modern-knowledge based economy Resources are still a key sector but so are other key clusters like ICT Finance and other advanced manufacturing and services
bull Canadarsquos economy is strengthening It is resisting the global shift towards protectionism leaning against inequality and building sustainable economic growth for the long-term
Key Messages
conferenceboardca
CraigA_Eco
wwwtradecommissionergccaCETA website
32
bull Canada is welcoming to business and investment The World Bank rates Canada as one of the easiest places to start a business Forbes and the Economist rank Canada as a leading location to do business
bull Being a small economy Canada lacks adequate domestic savings to meet all investment needs Hence Canada needs to attract foreign capital and provide a good experience to overseas investors
bull Over the last decade Canada has had the second largest foreign direct investment flows per capital in the G20 nations Since 2012 Inward FDI to Canada has been 54 of GDP highest in G7 and higher than the 29 G-7 average
bull Canadarsquos free trade agreements make it ideal as location to tap global markets
bull Canadian taxation makes investment attractive but one of its greatest strengths is the quality of the labour force
Many Business Advantages for Investment
33
Source OECD Statistics
Canada has Low Corporate Taxes Rates and Generous RampD Incentiveslarge business corporate income tax rate includes federal and provincialstate government taxes
20
25
30
35
40
45Canada US Mexico
34
Canada has a Highly Educated Workforcepercentage of the population aged 25-64 with post-secondary education in 2016
Source OECD
200
250
300
350
400
450
500
550
600
35
Strong Support for Immigration and Diversity
0
20
40
60
80
100
120
140
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
Net immigration (000s left) Net immigration as a share of total population change (per cent right)
36
Sources Immigration Refugees and Citizenship Canada The Conference Board The Conference Board of Canada
Newcomers to Canada Contribute to the Economy and add to Multiculturalism
627
241
118
14
In 2015 63 of immigrants to Canada fell under Economic Class
EconomicSponsored FamilyResettled Refugee amp Protected Person in CanadaAll Other Immigration
37
00 05 10 15 20 25 30
NL
NB
NS
PEI
Sask
Man
Que
Ont
BC
Alta
Sources The Conference Board of Canada Statistics Canada
Broad-based Growth in 2017 amp BeyondReal GDP per cent change 2017-22 basic prices $2007
Canada 21
38
bull CETA can help to boost growth and prosperity in Canada and EU if the opportunities are seized
bull Canada is a small economy with big potential It is a trade-friendly investment-friendly market and ideal platform for tapping North American Economy or beyond
bull Canada has strong fundamentals competitive corporate tax rates generous RampD tax incentives highly educated population highly tolerant and diverse population well anchored monetary policy sound fiscal finances
bull It is a modern-knowledge based economy Resources are still a key sector but so are other key clusters like ICT Finance and other advanced manufacturing and services
bull Canadarsquos economy is strengthening It is resisting the global shift towards protectionism leaning against inequality and building sustainable economic growth for the long-term
Key Messages
conferenceboardca
CraigA_Eco
wwwtradecommissionergccaCETA website
33
Source OECD Statistics
Canada has Low Corporate Taxes Rates and Generous RampD Incentiveslarge business corporate income tax rate includes federal and provincialstate government taxes
20
25
30
35
40
45Canada US Mexico
34
Canada has a Highly Educated Workforcepercentage of the population aged 25-64 with post-secondary education in 2016
Source OECD
200
250
300
350
400
450
500
550
600
35
Strong Support for Immigration and Diversity
0
20
40
60
80
100
120
140
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
Net immigration (000s left) Net immigration as a share of total population change (per cent right)
36
Sources Immigration Refugees and Citizenship Canada The Conference Board The Conference Board of Canada
Newcomers to Canada Contribute to the Economy and add to Multiculturalism
627
241
118
14
In 2015 63 of immigrants to Canada fell under Economic Class
EconomicSponsored FamilyResettled Refugee amp Protected Person in CanadaAll Other Immigration
37
00 05 10 15 20 25 30
NL
NB
NS
PEI
Sask
Man
Que
Ont
BC
Alta
Sources The Conference Board of Canada Statistics Canada
Broad-based Growth in 2017 amp BeyondReal GDP per cent change 2017-22 basic prices $2007
Canada 21
38
bull CETA can help to boost growth and prosperity in Canada and EU if the opportunities are seized
bull Canada is a small economy with big potential It is a trade-friendly investment-friendly market and ideal platform for tapping North American Economy or beyond
bull Canada has strong fundamentals competitive corporate tax rates generous RampD tax incentives highly educated population highly tolerant and diverse population well anchored monetary policy sound fiscal finances
bull It is a modern-knowledge based economy Resources are still a key sector but so are other key clusters like ICT Finance and other advanced manufacturing and services
bull Canadarsquos economy is strengthening It is resisting the global shift towards protectionism leaning against inequality and building sustainable economic growth for the long-term
Key Messages
conferenceboardca
CraigA_Eco
wwwtradecommissionergccaCETA website
34
Canada has a Highly Educated Workforcepercentage of the population aged 25-64 with post-secondary education in 2016
Source OECD
200
250
300
350
400
450
500
550
600
35
Strong Support for Immigration and Diversity
0
20
40
60
80
100
120
140
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
Net immigration (000s left) Net immigration as a share of total population change (per cent right)
36
Sources Immigration Refugees and Citizenship Canada The Conference Board The Conference Board of Canada
Newcomers to Canada Contribute to the Economy and add to Multiculturalism
627
241
118
14
In 2015 63 of immigrants to Canada fell under Economic Class
EconomicSponsored FamilyResettled Refugee amp Protected Person in CanadaAll Other Immigration
37
00 05 10 15 20 25 30
NL
NB
NS
PEI
Sask
Man
Que
Ont
BC
Alta
Sources The Conference Board of Canada Statistics Canada
Broad-based Growth in 2017 amp BeyondReal GDP per cent change 2017-22 basic prices $2007
Canada 21
38
bull CETA can help to boost growth and prosperity in Canada and EU if the opportunities are seized
bull Canada is a small economy with big potential It is a trade-friendly investment-friendly market and ideal platform for tapping North American Economy or beyond
bull Canada has strong fundamentals competitive corporate tax rates generous RampD tax incentives highly educated population highly tolerant and diverse population well anchored monetary policy sound fiscal finances
bull It is a modern-knowledge based economy Resources are still a key sector but so are other key clusters like ICT Finance and other advanced manufacturing and services
bull Canadarsquos economy is strengthening It is resisting the global shift towards protectionism leaning against inequality and building sustainable economic growth for the long-term
Key Messages
conferenceboardca
CraigA_Eco
wwwtradecommissionergccaCETA website
35
Strong Support for Immigration and Diversity
0
20
40
60
80
100
120
140
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
Net immigration (000s left) Net immigration as a share of total population change (per cent right)
36
Sources Immigration Refugees and Citizenship Canada The Conference Board The Conference Board of Canada
Newcomers to Canada Contribute to the Economy and add to Multiculturalism
627
241
118
14
In 2015 63 of immigrants to Canada fell under Economic Class
EconomicSponsored FamilyResettled Refugee amp Protected Person in CanadaAll Other Immigration
37
00 05 10 15 20 25 30
NL
NB
NS
PEI
Sask
Man
Que
Ont
BC
Alta
Sources The Conference Board of Canada Statistics Canada
Broad-based Growth in 2017 amp BeyondReal GDP per cent change 2017-22 basic prices $2007
Canada 21
38
bull CETA can help to boost growth and prosperity in Canada and EU if the opportunities are seized
bull Canada is a small economy with big potential It is a trade-friendly investment-friendly market and ideal platform for tapping North American Economy or beyond
bull Canada has strong fundamentals competitive corporate tax rates generous RampD tax incentives highly educated population highly tolerant and diverse population well anchored monetary policy sound fiscal finances
bull It is a modern-knowledge based economy Resources are still a key sector but so are other key clusters like ICT Finance and other advanced manufacturing and services
bull Canadarsquos economy is strengthening It is resisting the global shift towards protectionism leaning against inequality and building sustainable economic growth for the long-term
Key Messages
conferenceboardca
CraigA_Eco
wwwtradecommissionergccaCETA website
36
Sources Immigration Refugees and Citizenship Canada The Conference Board The Conference Board of Canada
Newcomers to Canada Contribute to the Economy and add to Multiculturalism
627
241
118
14
In 2015 63 of immigrants to Canada fell under Economic Class
EconomicSponsored FamilyResettled Refugee amp Protected Person in CanadaAll Other Immigration
37
00 05 10 15 20 25 30
NL
NB
NS
PEI
Sask
Man
Que
Ont
BC
Alta
Sources The Conference Board of Canada Statistics Canada
Broad-based Growth in 2017 amp BeyondReal GDP per cent change 2017-22 basic prices $2007
Canada 21
38
bull CETA can help to boost growth and prosperity in Canada and EU if the opportunities are seized
bull Canada is a small economy with big potential It is a trade-friendly investment-friendly market and ideal platform for tapping North American Economy or beyond
bull Canada has strong fundamentals competitive corporate tax rates generous RampD tax incentives highly educated population highly tolerant and diverse population well anchored monetary policy sound fiscal finances
bull It is a modern-knowledge based economy Resources are still a key sector but so are other key clusters like ICT Finance and other advanced manufacturing and services
bull Canadarsquos economy is strengthening It is resisting the global shift towards protectionism leaning against inequality and building sustainable economic growth for the long-term
Key Messages
conferenceboardca
CraigA_Eco
wwwtradecommissionergccaCETA website
37
00 05 10 15 20 25 30
NL
NB
NS
PEI
Sask
Man
Que
Ont
BC
Alta
Sources The Conference Board of Canada Statistics Canada
Broad-based Growth in 2017 amp BeyondReal GDP per cent change 2017-22 basic prices $2007
Canada 21
38
bull CETA can help to boost growth and prosperity in Canada and EU if the opportunities are seized
bull Canada is a small economy with big potential It is a trade-friendly investment-friendly market and ideal platform for tapping North American Economy or beyond
bull Canada has strong fundamentals competitive corporate tax rates generous RampD tax incentives highly educated population highly tolerant and diverse population well anchored monetary policy sound fiscal finances
bull It is a modern-knowledge based economy Resources are still a key sector but so are other key clusters like ICT Finance and other advanced manufacturing and services
bull Canadarsquos economy is strengthening It is resisting the global shift towards protectionism leaning against inequality and building sustainable economic growth for the long-term
Key Messages
conferenceboardca
CraigA_Eco
wwwtradecommissionergccaCETA website
38
bull CETA can help to boost growth and prosperity in Canada and EU if the opportunities are seized
bull Canada is a small economy with big potential It is a trade-friendly investment-friendly market and ideal platform for tapping North American Economy or beyond
bull Canada has strong fundamentals competitive corporate tax rates generous RampD tax incentives highly educated population highly tolerant and diverse population well anchored monetary policy sound fiscal finances
bull It is a modern-knowledge based economy Resources are still a key sector but so are other key clusters like ICT Finance and other advanced manufacturing and services
bull Canadarsquos economy is strengthening It is resisting the global shift towards protectionism leaning against inequality and building sustainable economic growth for the long-term
Key Messages
conferenceboardca
CraigA_Eco
wwwtradecommissionergccaCETA website
conferenceboardca
CraigA_Eco
wwwtradecommissionergccaCETA website
