Information and Communications Technologies ICT

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Meeting the Challenges of a Global Competitive
Marketplace
A Presentation by Louis Poisson Senior Trade
Commissioner Canadian Consulate General, NY To
the Council of State Governments Eastern Regional
Conference July, 26th,2005
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Canada US Trading RelationshipWhat we all know

• Largest and most comprehensive in the world
• Bilateral trade of US 510 Billion
• 1.35 Billion daily
• 37,000 trucks per day cross the border
• 500,000 people per day cross the border
• Bilateral Trade tripled since FTA (1989)
• Growth of bilateral trade (CDA-USA) of 6 per
  year since NAFTA
• Canadas trade with the US is
• 52 of Canadas GDP, 80 Canadas exports, 70
  imports
• 23 of US exports, 17 of US imports

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Canada US Trading RelationshipWhat we know

• We have the worlds largest investment
  relationship
• The US is largest foreign investor in Canada - US
  171 Billion in 2004
• Canada is 7th largest foreign investor in the US
  - US 124 Billion in 2004

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Total Canadian Exports ImportsCanada to New
York, New Jersey, ConnecticutLast 5 yearsValue
in Millions of Dollars
Source data Statistics Canada
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Total Canadian Exports ImportsCanada to DE,
ME, MD, MA, NH, PA, VTLast 5 yearsValue in
Millions of Dollars
Source data Statistics Canada
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Canada US Trading RelationshipWhat is less
known

• Bilateral trade in services (2003) US 46.4
  billion
• US 7.6 billion surplus for the U.S.A.
• Canada is number one foreign market in 39 states
• Top 3 for other 8 states
• Canada is largest energy supplier
• 88 natural gas supply 1/3 total demand in
  Northeastern U.S.
• 100 electricity
• 17 Oil

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Canada US Trading RelationshipWhat is less
known

• Bilateral trade in agri-food (2003) US 20
  billion
• Per capita consumption of US agri-food exports
• Canadians 274
• Mexicans 70
• Japanese 66
• Europeans 17
• Canadians consumed per capita US 6,364 of US
  goods and services
• Americans consumed per capita US 838 of Canadian
  products

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Canada US Trading RelationshipWhat is less
known

• 5 million US jobs
• 2 million Canadian jobs
• 40 of US Trade with Canada is infra-firm
• 60 of US wood/paper imports
• 20 of US imports used in production process or
  consumed
• Windsor Detroit border crossing busiest in the
  world

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Canada US Trading RelationshipChallenges

• Internal issues
• Softwood lumber
• BSE
• COOL
• Bio-Terrorism Act
• Drug re-importation
• External Challenges
• The Asian challenges
• Outsourcing
• Textile Quotas
• Security
• ST lead
• Global supply chain

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Canada US Trading RelationshipTrade impacts
select internal issues

• Softwood Lumber
• 27 duty passed on to US consumers. Inflated
  housing costs US 6,000 1
• US housing market needs 1/3 supply from stable
  external source
• 25 US jobs in lumber-consuming industry vs. 1 US
  job in lumber producing
• Affects some 7 million American workers
• B.S.E.
• Cost US 4.7 billion to US beef industry 2
• US exports packing jobs in Canada
• US beef exports down 82 below 2003 levels
• Link with US beef ban in key export markets
• _____________________________________
• 1. National Association of home builders
• 2. Kansas Department of Agriculture

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Canada US Trading RelationshipTrade impacts
select internal issues

• Country of Origin Labelling
• Cost to consumers US 3.9 billion 1
• Segregation, sourcing complexities
• Not linked to food safety-exclusions
• Bio-Terrorism Act
• Necessary
• Enhanced bilateral cooperation
• Direct impact on US 20 billion agri-food trade
• Increased costs to producers
• Increased risks vs. commitments for delivery
• _____________________________________
• 1. US Department of Agriculture

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Canada US Trading RelationshipPartnering to
meet external challenges

• Asian Challenge
• Canada lost 1st place to China in residential
  furniture
• Facilitate dialogue between associations
• Encourage business partnerships
• Market proximity/after sales servicing
• Develop niche markets
• Demand for smaller volumes
• Blending high-end and import product lines

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Canada US Trading RelationshipPartnering to
meet external challenges

• Outsourcing
• Bilateral trade in services US 46.4 billion
• US 7.6 billion US surplus
• Total investments US 295 billion
• 7 million jobs
• US trade with Canada is 40 intra-firm
• 1 outsourced generates 1.14 in benefits to US
  economy 1
• .58 in cost savings, new exports, profits
  repatriation
• .46 in value of labour redeployment
• ____________________________
• 1. McKinsey Global Institute 2003

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Canada US Trading RelationshipPartnering to
meet external challenges

• Science Technology
• Mar 05 Technology Transfer Roundtable
• Focus Biotech/Stem Cell, Fuel Cell, Nanotech
• Mar 05 Stem Cell Research Roundtable in NJ
• Ongoing dialogue
• Identification of areas of interest
• Aug 05 New Technology Partnership Position
• Sep 05 Basic research leading to Canada-NJ
  partnership development in Stem Cell
  research
• Nov 05 Stem Cell Research Mission
• Brain Repair Center in Halifax
• Canadian Nanotech Alliance in Edmonton

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Canada US Trading RelationshipPartnering to
meet external challenges

• SECURITY
• Sep 05 Reinforced Canadian Presence at New York
  Maritime Security Expo
• Fall 05 Research on Homeland Security Market
• NY, CT, NJ, PA
• Opportunities for Partnership
• Spring 06 Briefings/Outreach in Canada
• Fall 06 Incoming Technology Partnership Missions

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Contact

• Senior Trade Commissioner Louis Poisson
• Canadian Consulate General, NY
• 1251 Ave. of the Americas
• Tel [phone]
• Fax [phone]
• Email louis.poisson_at_international.gc.ca