Think!0310 Eng

Canada – Solid Reasons to Invest

1

Think Creative.Think Competitive.Think Bottom Line.

Think Canada.March 2010


2

Table ofContents Page

I Excellent Economic Fundamentals 3II A Cost-Competitive Business Environment 12III A Dynamic Workforce 25IV A Solid Infrastructure 33V Easy Access to Markets 39VI An Excellent Place to Live 44


3

I Excellent EconomicFundamentals

4

Real GDP Growth and Projections (%)

0.8 0.70.3

0.70.5

-0.5

3.1 3.1

1.91.5

1.0

1.7 1.8

-0.6-1.0

0.0

1.0

2.0

3.0

4.0

Cana

da U.S.

U.K.

Fran

ce Italy

Germ

any

Japa

n

%

2010-11

2006-09

Canada has a Relatively Strong EconomyDespite the Global Slowdown

Consensus Economics� According to Consensus Economics, Canada has been a top performer among

the G7 in GDP growth over the 2006-09 period and is expected to remain sothrough 2010-11.

Source: Consensus Forecasts, March 2010, Consensus Economics Inc.

5

Real GDP Growth and Projections (%)

0.8 0.70.4

0.7

-0.6

0.5

-0.4

2.52.7

1.7 1.61.3

1.71.9

-1.0

0.0

1.0

2.0

3.0

4.0

Cana

da U.S.

U.K.

Fran

ce Italy

Germ

any

Japa

n

%

2010-11

2006-09

� Similarly, recent OECD statistics rank Canada as a top performer among G7countries in terms of GDP growth during the 2006-09 period and one of thebest during the 2010-11 forecast period.

Source: OECD Economic Outlook, No. 86, November 2009.

Other Forecasts also Highlight Canada’sRelatively Strong Economy

OECD

6

Canada also has Superior EmploymentGrowth…

� Strong economic growth and rising demand for Canadian commodities over the lastdecade, combined with provincial and federal policies to improve the flexibility andadaptability to the changing workplace, have helped generate healthy gains inemployment.

Employment Growth (%)1998-2008

0.6

1.0

1.0

1.2

1.4

2.0

-0.2

-1 0 1 2 3

Japan

Germany

U.K.

U.S.

Italy

France

Canada

Source: U.S. Bureau of Labour Statistics, OECD Economic Outlook, No.86, November 2009

7

…a Sound Fiscal Advantage� Canada has enjoyed eleven consecutive annual federal budget surpluses ending in

2007-08; it has undertaken one of the largest stimulus packages among developedeconomies in the current global economic downturn.

� In Budget 2010, Canada has chosen to run short deficits to stimulate its economywithout putting long-term prosperity at risk and is expected to return to balancedbudgets in the medium term.

� Over the coming years, Canada’s net debt-to-GDP ratio will remain the lowest in theG7 by a wide margin with a return to a surplus predicted shortly following the 2014-15 fiscal year.

* Forecasts for both countriesSource Canada: The Federal Budget, Finance Canada, March 4, 2010Source United States: United States Congressional Budget Office, March 5, 2010.

Federal Government Budgetary Balance(% of GDP)

-0.4

-3.5 -3.1

-1.6-1.0 -0.5 -0.1

-10.9

-8.4

-5.5-4.6 -4.2 -4.3 -4.2

-12.0

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2008

-09

2009

-10*

2010

-11*

2011

-12*

2012

-13*

2013

-14*

2014

-15*

Canada U.S.

8

� Canada was the only G7 country to post a surplus in 2008. Despite being inan overall deficit position during the 2009-2011 period, Canada will be in afar better position than most G7 member countries.

Source: OECD Economic Outlook, No.86, November 2009

Total Government Budget Balance 2008-11(% of GDP)

(National Accounts Basis)

0.1

-2.7

-5.3

0.0

-3.4

-6.5

-2.7

-4.8 -5.3

-12.8

-4.4

-8.3

-10.4

-8.3

-14.0

-12.0

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2.0

Cana

da Italy

U.K.

Germ

any

Fran

ce U.S.

Japa

n

2008

2009-11

…Leading Most Other G-7 Countries

9

…a Low Inflation Rate Regime…

� A low inflation environment provides business certainty for investors. Canada’stargeted inflation rate range between 1% and 3% has been extended until 2011.

� Over the past five years, Canada has enjoyed relatively low inflation –averaging 2.3% compared to 3.2% for the U.S. and 2.1% for the G7.

Inflation(Year-Over-Year % Change)

2.8

1.92.2

2.0 2.12.42.3

2.7

3.43.2

2.9

3.8

1.8 1.9 1.9 1.9 1.9

3.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

2003 2004 2005 2006 2007 2008

Canada U.S. G-7

Source: OECD Economic Outlook, No. 86, November 2009

10

� Canada’s solid fiscal situation and low inflation has led to lower interest rates.

� The sharp decline in interest rates in both Canada and the U.S. in early 2009 were aconsequence of the global economic downturn. Rates in the U.S. were lowered morethan in Canada because of the greater severity of the slump in the U.S. economy.

Source Canada: Government of Canada 10-Year Bond: March 12, 2010Source U.S.: U.S. Treasury, Constant Maturity 10-Year Bond: March 12, 2010

Daily Yields (%)

3.0

3.2

3.4

3.6

3.8

4.0

6-Nov-

09

20-Nov-09

4-Dec-

09

18-Dec-09

1-Jan-1

0

15-Jan-1

0

29-Jan-1

0

12-Feb-10

26-Feb-10

12-Mar-10

Long-Term Bond Yields (%)

1.52.02.53.03.54.04.55.05.5

Jan-05

Jan-06

Jan-07

Jan-08

Jan-09

Jan-10

….Low Interest Rates

Canada

U.S.U.S.

Canada

11

…and Great Potential for Future EconomicProsperity

� According the Prosperity Potential Index*, Canada ranks 1st in the G7 and 6th among30 developed countries in terms of the likelihood for economic prosperity in theyear 2020.

Prosperity Potential Index - Ranking of Top TenCountries

10th9th

8th7th

6th5th

4th3rd

2nd1st

Sweden

Norway

Finland

Icelan

dSwitze

rland

Canada

Denmark

Luxem

bourg

NewZeal

andNeth

erland

s

Rank

* The Prosperity Potential Index measures the likelihood of economic prosperity in the year 2020 for 30 developedcountries. The ranking is based on data from the OECD on areas that spark future economic development:demographics, trade, energy, technology and education. Source: Canadian Business Magazine, October 26, 2009


12

II A Cost-CompetitiveBusiness Environment

13

Canada’s Positive Business Climate…� Canada understands the importance of its business community and has created an

environment to encourage its success.

� Canada is the best place for doing business among the G7 over the next five yearsaccording to the Economist Intelligence Unit and it ranked fifth overall out of 82countries in the Economist Intelligence Unit’s global business rankings for theforecast period (2010-14), down slightly from third from the historical period (2005-2009).

� The country also ranks well for its infrastructure, market opportunities, low taxes,and foreign trade and exchange controls.

Business Environment of Top Ten Countries,Rank for Forecast Period 2010-2014

10th9th

8th7th

6th5th

4th3rd

2nd1st

Singapo

re

Finland

Switzerla

ndHong

KongCana

daDen

markAust

ralia

NewZeal

andSwede

nNorw

ay

Rank

Source: The Economist Intelligence Unit, March 2010

14

…is a Safe Haven for Business Investment…

� According to Dun & Bradstreet’s Global Risk Indicator (GRI)*, Canada is consideredone of the world’s safest countries to invest, due to the relatively mild slowdownexperienced as a result of the global credit crisis.

� Despite being earmarked as having a deteriorating outlook, Canada ranks 1st in theG7 and 2nd among the 131 countries evaluated in the GRI study.

Highest Ranked Countries in Terms of the Global RiskIndicator*

10th9th

8th7th

6th5th

4th3rd

2nd1st

Australi

aCan

ada

Norway

Switzerlan

d

Austria

Finland

France

Germany

Luxem

bourg

Netherla

nds

Rank

•The Global Risk Indicator (GRI) assesses economic, commercial, external and political risk to provide risk ratings for 131 countries worldwide.

•Source: Dun & Bradstreet, August 2009

15

…Involving Relatively Few Steps inEstablishing a Business…

� Regulations pertaining to the creation of new businesses are considerably more flexiblein Canada than those in the rest of the G7.

� Canada ranks first among the G7 and OECD countries for the lowest number ofprocedures required to establish a new business.

Number of Procedures*

1

56

89

5.7 66

0123456789

10

Canada France OECDAverage

U.S. Italy U.K. Japan Germany

Source: Doing Business in 2010 - The World Bank Group, 2009 * A "procedure" is defined as any interaction of the company founderwith external parties (government agencies, lawyers, auditors, notaries, etc). Interactions between company founders or companyofficers and employees are not considered as separate procedures. For example, an inauguration meeting where shareholders electthe directors and secretary of the company is not considered a procedure, as there are no outside parties involved.

16

…and Relatively Less Time

� Canada ranks first among the G7 for the fewest number of days required forestablishing a new business.

Duration (days)

56 7

10

13 13

18

23

0

5

10

15

20

25

Canada U.S. France Italy U.K. OECDAverage

Germany Japan

Source: Doing Business in 2010- The World Bank Group, 2009

17

Canada also has Low Business Costs…� For the seventh consecutive time, KPMG’s Competitive Alternatives study finds Canada

leads the G7 with the lowest business costs.

� Canada is the lowest-cost G7 country in 11 of the 17 industries analyzed by KPMG’sCompetitive Alternatives 2008 report: aerospace, agri-food, chemicals, medicaldevices, pharmaceuticals, precision manufacturing, telecommunications,biotechnology, product testing, software design and Web and multimedia.

Source: KPMG Competitive Alternatives 2008

Percentage Cost Advantage (Disadvantage) Relative tothe United States

0.6 0.0

-3.6

-7.1-7.9

-14.3

-16.8-18

-16

-14

-12

-10

-8

-6

-4

-2

0

2

Cana

da U.S.

Fran

ce U.K.

Italy

Japa

n

Germ

any

18

Source: The Federal Budget, Finance Canada, March 4, 2010 and the OECD Tax Database.* METR takes into account federal and provincial statutory corporate income tax rates, deductions and credits available in the corporate taxsystem and other taxes paid by corporations, including provincial capital taxes and retail sales taxes on business inputs.

…and Offers an Overall Tax Advantage forFirms to Expand…

International Comparison of Statutory General Corporate TaxRates in 2012

39.5 39.1

34.4

30.228.0 27.5

25.0

10

15

20

25

30

35

40

45

Japan U.S. France Germany U.K. Italy Canada

%� As a result of corporate income tax reductions introduced by the Government since

2006, Canada will have the lowest statutory corporate tax rate in the G7 by 2012.

� Canada is on track to having the lowest overall tax rate on new business investment(marginal effective tax rate (METR*)) in the G7 in 2010.

Relative Generosity ofR&D Tax Incentives*(Index: Canada = 100.0)

76.1

77.0

80.6

84.0

85.9

100.0

123.9

50 60 70 80 90 100 110 120 130

Germany

Italy

U.S.

U.K.

Japan

Canada

France

19

…with Quality R&D as its Major Benefit

� Canada offers one of the mostfavorable tax treatments for R&Damong the G7.

� Canada provides a system oftax credits and accelerated taxdeductions for a wide-varietyof R&D expenditures.

� Eligible costs include: salaries,overhead, capital equipment,and materials.

� These tax-based incentives permitfirms to significantly reduce R&Dcosts through direct investment orsub-contracting in Canada.

Source: Warda, Jacek, Rating Measuring Canada's R&D Tax Incentives: May 22, 2009Note: Relative generosity is determined by dividing the after tax cost of performing $1.00 of R&D by 1 less the corporate tax rate.Results are indexed to the relative generosity of Canada's system of tax-based support for R&D. The higher the ratio the more competitive the tax system.* Calculations based on large firms

20

Canada Offers Competitive and AffordableBusiness Telephone Charges…

� Canada’s business telephone charges are relatively low among G7 countries.

Source: OECD Communications Outlook 2009

Annual Business* Telephone Charges(US$ PPP**, Price per line)

1243

990

896

811

723

550

495

0 200 400 600 800 1000 1200 1400

U.K.

Japan

Italy

France

Canada

U.S.

Germany

* Business (small and medium-sized enterprises) basket of telephone charges include fixed access and 84,000 calls broken down according todistance, destination (fixed, mobile and international), time of day over a one-year period.**PPP = Purchasing Power Parity (equalization of purchasing power of different countries in their home countries for a given basket of goods)

21

� Canada has the lowest residential telephone charges among the G7 andOECD countries.

Annual Residential* Telephone Charges(US$ PPP)

982

910

909

742

705

579

391

0 200 400 600 800 1000 1200

Japan

Italy

France

Germany

U.K.

U.S.

Canada

…and Low Residential Telephone Charges

Source: OECD Communications Outlook 2009

* High usage basket of residential telephone charges include fixed access and 2,400 calls broken down according to distance, destination(fixed, mobile and international), time of day over a one-year period.** PPP = Purchasing Power Parity (equalization of purchasing power of different countries in their home countries for a given basket of goods)

22

Canada has Sound Financial Institutions…

� With the world in the midst of the current financial crisis, investors can take comfortin the fact that Canada has the soundest banking system in the G7.

� Five of the 50 safest banks are in Canada, according to a recent study: Royal Bank ofCanada (10th), Toronto Dominion Bank (14th), Scotiabank (22nd), Bank of Montreal(31st) and CIBC (37th).**

Soundness of Banks* World Rank

10th9th

8th7th

6th5th

4th3rd

2nd1st

Canada

NewZeal

andAust

ralia

ChileHong KongSout

h Africa

Namibia

Singapo

rePana

ma

Brazil

Rank

*Standing among 133 countries. Ranking based on the degree of soundness of financial institutions. Source: Global Competitiveness Report, 2009-2010** Standing among 500 world banks based on total assets and long-term credit ratings. Source: Global Finance Magazine , October 2009

23

…Easy Access to Capital…

� Canada was able to weather the storm as world credit markets collapsed in 2008 dueto the stability of its equity markets and strength of its economic policy. In 2008, theMilken Institute ranked Canada 1st in its Capital Access Index.

*Standing among 117 countries. Milken Institute, July 2009

Capital Access Index (Maximum = 10)Top 10 Regions/Countries 2008

7.907.82

7.767.70

7.647.56

7.28 7.27 7.267.21

7

7.5

8

Canada

Hong Kon

gSwitze

rland U.K.

Singapo

re

U.S.Neth

erlands

Norway

Australi

a

Finland

24

… and Stands Among Leaders in ITIndustry Competitiveness

� Canada ranks second behind the U.S. among the G7 and fourth in a 66-country reviewof the countries best suited to provide an optimally competitive environment forinformation technology (IT) firms.

IT Industry Competitiveness Index* World Rank

10th9th

8th7th

6th5th

4th3rd

2nd1st

U.S.

Finland

Sweden

Canada

Netherl

ands

U.K.Aust

ralia

Denmark

Singapo

re

Norway

Rank

*Standing among 66 countries. Index based on the following six categories of quantitative and qualitative indicators: overall businessenvironment; IT infrastructure; human capital; legal environment; R&D environment; and support for IT industry development.Source: Economist Intelligence Unit, September 2009.


25

III A DynamicWorkforce

26

Canada has one of the World’s Best-Educated Workforces…

� The overall skill level of Canada’s workforce ranks high among competingcountries.

� Canada has the highest percentage of individuals achieving at least college oruniversity education, among OECD member countries.

Higher Education Achievement Among All Countries

56.755.0 54.0 53.0

51.2 50.0

44.042.0 42.0 42.0 41.0 41.0 40.5

30

35

40

45

50

55

60

Singapor

eCanada Jap

anSout

h Korea

Taiwan

Israel

NewZea

land

Belgium

Ireland

Norway

Denmark

France

HongKong

%

Source: IMD, World Competitiveness Yearbook 2009

27

� Canadian schoolchildren ranked second in the world in the OECD Program forInternational Student Assessment (PISA).

� The PISA survey is conducted annually among 400,000 school pupils across 57countries, and evaluates the capacity of 15-year old schoolchildren tounderstand and solve academic problems.

� It also provides insights into the reading ability and mathematical knowledge ofschoolchildren.

PISA Score (points)

553

529521 514 510 509 505 504 502 501 500

450

500

550

600

Finland

Canada

Netherla

ndsSwitze

rland

Belgium

Ireland

Germany

Sweden

U.K.Denm

arkOECD Aver

age

Source: OECD 2007

…is a World Leader in Youth AcademicPerformance…

28

� Canada ranked 3rd in the G7 and 14th in a 110-country study measuringinnovation performance in the manufacturing sector.

� Canada stood in the top tier, ranking ahead of traditionally strong innovatorssuch as Britain (15th), Israel (16th), Germany (19th), France (20th) and Australia(22nd).

…and Manufacturing Sector InnovativePerformance

International Innovation Index* World Rank

38th

20th19th15th14th

9th8th

U.S. Japan Canada U.K. Germany France Italy

Inde

x

*Standing among 110 countries. Index based on government support for innovation - through tax and education policies, and the quality of infrastructure; theperformance of innovative companies, measured by factors such as high-tech exports, the amount of intellectual property generated and employment growth.Source: The Innovation Imperative in Manufacturing – How the United States Can Restore its Edge, Boston Consulting Group, March 2009

29

Canada has Superior Management Training…

� Canada ranks first in the G7 and second in a 133-country study of locally availablemanagement education in first-class business schools. (see chart below)

� In addition, five Canadian schools of management are ranked among the top 100 inthe world according to the Financial Times (UK) Global MBA rankings for 2009.University of Toronto (Rotman) 47th; University of Western Ontario (Ivey) 47th; YorkUniversity in Toronto (Schulich) 49th; University of British Columbia (Sauder) 71st ;and University of Alberta 77th.

*Standing among 133 countries. Index based on the quality of Management education in first-class business schools.•Source: Global Competitiveness Report, 2009-2010

Management Education* World Rank

10th9th

8th7th

6th5th

4th3rd

2nd1st

Switzerlan

dCana

daFran

ce U.S.Sing

apore

Spain

Belgium Qata

rDenm

arkIce

land

Rank

30

… the Highest Concentration ofEntrepreneurs…

� From a global standpoint, Canada has the highest concentration of entrepreneurswithin its working population.

� Businesses, including start-ups, develop new products and services and get them tomarket and conceive new types of organization and production and put them intopractice.

� New companies also serve to remind existing firms of the need to adapt and continueinnovating.

Source: Statistics Netherlands 2008

Number of Entrepreneurs as a Percentage of theWorking Population

15.9

11.5 11.2 11.1 11.110.1 9.7

8.6 8.56.9

0

5

10

15

20

CanadaNeth

erlands U.K.

Ireland

Belgium U.S.

Germany

Finland

Sweden

Denmark

31

…PC and Internet Users…

� Canada has a technology savvy population and workforce. It is second to theU.S. among the G7 in terms of personal computers and second to Japanamong the G7 with respect to Internet users per capita.

Source: IMD, World Competitiveness Yearbook 2009

Internet UsersPer 1,000 Inhabitants

774 773 771

736

691

643 642

500

550

600

650

700

750

800

Japan

Canada U.S.U.K.

Germany

France Ital

y

Personal ComputersPer 1,000 Inhabitants

869

819

771750

701673

612

500550600650700750800850900

U.S.Cana

da U.K.Germ

anyFran

ceJap

an Italy

32

…and a Readily Available Army of QualifiedEngineers…

� Canada leads the G7 in terms of the availability of qualified engineers in itslabour market.

Source: IMD, * Rank among 57 economies considered in the World Competitiveness Yearbook 2009.

Qualified Engineers Availability Index*

7.13 7.01

6.556.37

6.165.85

5.30

4.0

4.5

5.0

5.5

6.0

6.5

7.0

7.5

8.0

Canada France Japan U.S. Germany Italy U.K.

Inde

x


33

IV A SolidInfrastructure

34

Canada’s Highly Globalized Infrastructure….

� Due to its rapidly growing prominence as an outsourcing market of choice, Canadaranked second in the G7 and eighth among 72 countries profiled in the recent A.T.Kearney/Foreign Policy Magazine Globalization Index* which measures economicintegration, personal contact, technological connectivity and political engagement.

� In technological connectivity, one of the four components of the index, Canada’sranking rose from sixth place in 1999 to second in 2006. It maintained this positionin 2007.

Globalization Index Rankings, 2007*

34th

28th25th

22nd

12th8th7th

U.S. Canada U.K. Germany France Japan Italy

Inde

x

Source: A.T. Kearney/Foreign Policy Magazine, 2007 * Standing based on 12 characteristics under the headings of trade, FDI, telephone,travel, remittances & personal transfers, internet users, internet hosts, secure servers, international organizations, UN peacekeeping,treaties and government transfers.

35

� Over the past decade, Canada has witnessed a substantial growth in both inward andoutward FDI reflecting its strong connection to global supply chains.

� Canada’s inward FDI stock reached C$505 billion in 2008, a 2 ½ -fold increase from C$219billion in 1998.

� As for Canada’s outbound FDI, the expansion of Canadian direct investment abroad (CDIA)has been equally spectacular, rising from C$263 billion in 1998 to C$637 billion in 2008, a2 ½ -fold increase.

Canada's Inward and Outward FDI Stock ($Billion)

0

100

200

300

400

500

600

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

CDIA

FDI

….is Driven by a Dynamic Two-WayInvestment Process

Source: Statistics Canada, April 8, 2009

36

The United States isCanada’s Largest Source of FDI…

� In 2008, the U.S. share of foreign direct investment (FDI) in Canada stood at58.2%, demonstrating its confidence in Canada’s business climate.

Source: Statistics Canada, April 8, 2009

Geographic Distribution of Inward FDI Stock in Canada2008

United Kingdom10.8%

Netherlands 6.7%

France 3.7%

Japan 2.6%

Switzerland 3.0%

United States 58.2%

Others 15.1%

37

� From 2000-2008, EU countries increased their FDI in Canada by C$37 billion and othernon-EU/US countries increased their investment in Canada by C$49 billion, demonstratingtheir confidence as well in Canada.

Source: Statistics Canada, May 4, 2009

0

100

200

300

400

500

600

'90 '92 '94 '96 '98 '00 '02 '04 '06 '08

Foreign direct investment in Canadaby geographic area of origin 1990-2008

Billion$Cdn

EU

US

Others

…and Companies from Other Countries arealso Increasing their Investments in Canada

38

� Increasingly more investment goes toward industries such as manufacturing,mining and oil and gas extraction and toward the management of companiesand enterprises. Since 2000, significant growth in terms of FDI has occurredin the mining and oil and gas extraction industry and the utilities industry.

Average Annual Growth Rates of Foreign DirectInvestment by Industry (%) 2000-2008*

-4.01.82.0

4.14.75.05.56.4

8.08.89.4

13.213.3

15.017.9

-5.9

12.8

-20 -10 0 10 20 30

Information and communication technologiesReal estate and rental and leasing

ManufacturingAgriculture,forestry, fishing and hunting

Information and cultural industriesWholesale trade

OVERALLProfessional, scientific and technical services

Finance and insuranceTransportation and warehousing

Accommodation and food servicesConstructionRetail trade

All other industriesManagement of companies and enterprises

UtilitiesMining and oil and gas extraction

Source: Statistics Canada, May 4, 2009

Canada Welcomes Foreign Investment inVarious Industries

19.30.7

11.62.14.00.70.60.9

11.52.1

100.06.61.70.2

33.30.93.8

2008 Distribution (%)

* North American Industry Classification System (NAICS)


39

V Easy Accessto Markets

40

Canada Offers Efficient Flows of GoodsAcross Borders…

� Canada leads the G7 and ranks 6th among 121 countries in terms of the enablingtrade index, which measures the effectiveness of the combined factors of marketaccess, border administration, transport & communications infrastructure, andbusiness environment towards the efficient flow of goods over borders and to theirfinal destination.

Enabling Trade Index

5.97

5.575.44 5.44 5.44

5.35 5.33 5.33 5.29 5.27 5.27 5.245.12 5.07 5.02

4.8

5.0

5.2

5.4

5.6

5.8

6.0

Singapor

eHong

KongSwitze

rland

DenmarkSwede

nCanadaNorw

ayFinla

ndAust

riaNeth

erlands

NewZea

land

GermanyLux

embou

rgAust

ralia U.S

Inde

x

Global Enabling Trade Report 2009, World Economic Forum.

41

� The North American market is serviced through a well-integrated transportationsystem, which is among the world’s best.

� Automated permit ports, transponder identification systems and joint processingcentres are being tested and deployed for easy movement of goods

� Bottom line – the border system is one of the world’s most efficient.

Annual Transborder CrossingsTotal Number of Trucks and Canada-U.S. Air Passengers

(Two-way movements)

0

5

10

15

20

25

1984 1988 1992 1996 2000 2004 2008*

Mill

ions

Source: Statistics Canada and Transport Canada, 2008 (* Preliminary data for 2008 air passengers)

Truck

Air

…a Streamlined Trans-BorderTransportation System…

20.8 million

11.5 million

42

Mexico City

1000 km

500 km

Los Angeles

Denver

Houston

Atlanta

Seattle

Miami

New YorkBoston

Philadelphia

WashingtonBaltimore

DetroitChicago Cleveland

St. LouisPittsburgh

Milwaukee

San Francisco

St. John's

CalgaryVancouver

ReginaHalifax

TorontoMontréal

WinnipegCharlottetown

Edmonton

Victoria Ottawa

Windsor

QuébecFredericton

Saskatoon

� Canadian-basedbusinesses haveaccess to onemarket of 452million consumerswith a combinedGDP of overUS$16.4 trillion.*

� Many Canadianproduction hubs areactually closer toU.S. markets thanAmericanproduction sites —of Canada’s 20largest cities, 17 arewithin an hour andhalf drive of the U.S.

� Direct air servicebetween major citiesin Canada and theU.S. has nearlydoubled in the lastsix years.

…and Direct Access to the NAFTA Market

* Source: CIA World Factbook, March 2010

43

Canada has Efficient Transport LinkagesTying North America with Asia

� A reliable and efficient transportation system is key to effective participationin global supply chains.

� In October 2006, Canada has launched the Asia-Pacific Gateway and CorridorInitiative, an unprecedented alignment of public and private sectorinvestments to strengthen Canada’s position as a fast, efficient and securegateway between North America and Asia.

� These investments will improve the flow of people, goods and servicesacross Canadian rail, roads, bridges and through our ports and airports.


44

VI An ExcellentPlace to Live

45

Canada is a Desirable Location to Live,Work, Study and Invest…

� Canada ranks first in a 60-country study that measures the potential of a country asan ideal place to live, work, study and invest.

Location Desirability Index*

62.3

61.1 61.1 61.0 60.7 60.559.6

59.0

57.757.1

5556575859606162636465

Canada U.K.

U.S.Switze

rlandGerm

anyFranceAust

ralia

Sweden ItalyJap

an

Loca

tion

Desir

abili

ty S

core

•Index ranging from 0-100 based on five components of a country’s potential for immigration and investment: (a) Willingnessto live and work for a substantial period in the country; (b) Quality of life; (c) Good place to study for educationalqualifications; (d) The country has businesses I’d like to invest in; (e) Equal opportunity.Source: Red Hot Locations, London U.K. 2009

46

… and has the Best Overall Quality ofLife Among Countries…

� Canada has the best overall quality of life among the G7.

Source: IMD, * Rank among 57 economies considered in the World Competitiveness Yearbook 2009.

Quality of Life Index*

9.219.05

8.26 8.18

7.68

7.056.70

6.0

6.5

7.0

7.5

8.0

8.5

9.0

9.5

10.0

Canada Germany France U.S. U.K. Japan Italy

Inde

x

47

� According to a recent annual quality-of-life ranking of 215 world cities, fourCanadian cities ranked among the top 25.

Source: Mercer Human Resources Consulting: April 2009

Overall Quality of Life Ranking (Top 25 Cities)(Index: New York City = 100.0 )

108.6

108.0

107.9

107.4

107.4

107.2

107.0

106.8

106.5

106.3

106.2

105.9

105.7

105.4

105.3

105.0

105.0

104.8

104.6

104.5

104.3

104.2

104.1

103.7

103.6

98

102

106

110

Vienna

Zurich

Geneva

Vancou

ver

Aucklan

dDus

seldo

rfMun

ichFra

nkfurt Bern

Sydney

Copen

hage

nWelli

ngton

Amsterda

mBrus

sels

Toron

toOtta

waBerl

inMelb

ourne

Luxem

bourg

Stockho

lmPert

hMon

treal

Nurembu

rgOsloDub

lin

…with Exceptional Quality of Life inCities….

48

� According to a recent annual health and sanitation ranking of 215 world cities,five Canadian cities ranked among the top 25 with Calgary topping the list andOttawa ranking 4th.

Source: Mercer Human Resources Consulting: April 2007* Hospital Services; Medical Supplies; Infectious Diseases; Water Portability; Troublesome and destructive animals/insects;Waste Removal; Sewage and Air Pollution

Health and Sanitation Ranking (Top 25 Cities)(Index: New York City = 100.0 )

131.7

130.3

128.5

127.2

125.7

125.0

125.0

125.0

123.8

123.7

123.7

123.7

123.7

123.7

123.7

123.7

123.7

123.1

123.1

122.9

122.4

122.4

122.3

122.2

122.0

110

115

120

125

130

135

Calgary

Honolulu

Helsink

iOttaw

aMinn

eapolis Oslo

Stockho

lmZuric

h

Katsuya

ma, Japa

nVanc

ouver

Montrea

lBost

onPitts

burgh

Lexing

ton, K

YBern

Geneva

Nurember

gAuck

land

Wellingt

onDubl

inToro

ntoAmste

rdam

Lyon

Copenha

genKobe

, Japan

…and Exceptional Health & Sanitation*

Standards

49

Canada is a Leader in HumanDevelopment*…

� In the latest United Nations Human Development Report, Canada ranked firstamong the G7 countries and fourth among 182 countries surveyed.

*Standing among 182 countries. Index based on achievements in terms of life expectancy, educational attainment, and adjusted real income.Source: United Nations Human Development Report 2009-2010, October 5, 2009

Human Development Index* World Rank

22nd21th18th

13th10th

8th4th

Canada France Japan U.S. Italy U.K. Germany

Inde

x

50

…and Ranks Among Model Nations ofPeace

� According to the Global Peace Index, a recently released measure by theEconomist Intelligence Unit, Canada ranked second in the G7 and eighthamong 144 countries surveyed.

*Standing among 144 countries. Index ranking countries based on peacefulness, both domestically and abroad using 24 indicators, includingthe number of soldiers killed overseas, the level of violent domestic crimes and relations with neighbouring countries.Source: Economist Intelligence Unit, June 2009

Global Peace Index* World Rank

83rd

36th35th30th

16th8th7th

Japan Canada Germany France U.K. Italy U.S.

Inde

x

51

Canada is also a Safe and Just Society…

� Canada ranks highest among G7 leaders in terms of the safest place to live andconduct business with the most fairly administered judicial system.

Source: IMD * Confidence that person and property is protected. Rank among 57 economies considered in the 2009 World Competitiveness Yearbook.**Degree of fairness of the judicial system in Society. Rank among 57 economies considered in the 2009 World Competitiveness Yearbook.

Security* — World Rank

8.88.5 8.4

7.6 7.5

6.7

5.3

5.0

5.5

6.0

6.5

7.0

7.5

8.0

8.5

9.0

9.5

Canada

Japan

German

y

U.S.Fra

nce U.K. Italy

Inde

x

Justice** — World Rank

8.3 8.2

7.5 7.5

6.86.5

3.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

Canada

German

y

U.K.Jap

an U.S.Fra

nce Italy

Inde

x

52

…a Land of Equal Opportunity…

� Canada ranks first among the G7 in providing equal opportunities forindividuals.

Source: IMD * Race, gender, family background does not pose a handicap for competitiveness.Rank among 57 economies considered in the 2009 World Competitiveness Yearbook.

Equal Opportunity* — World Rank

7.6

6.6 6.56.2

6.1 5.9

4.7

4.0

4.5

5.0

5.5

6.0

6.5

7.0

7.5

8.0

Canada Japan U.S. France Germany U.K. Italy

Inde

x

53

….and a Society Rich in Multiculturalism

� Canada has one of the world’s most multilingual societies with over 200languages identified as the mother tongue.

� While there has been a decline in the proportion of the Canadian populationwhose mother tongue is one of the two official languages, there has been anoverall increase in the proportion of the population whose mother tongue isneither English or French from 18.0% in 2001 to 20.1% in 2006.

Source: Statistics Canada, 2001 and 2006 Census * based on mother tongue. ** includes Cantonese and Mandarin

Top Ten Spoken Languages in Canada*(% of Population)

0.7

0.9

0.9

1.2

1.2

1.5

1.53.3

22.1

57.8

0.8

0.7

0.7

0.9

1.0

1.5

1.72.9

22.9

59.1

0

10

20

30

40

50

60

Portugese

Tagalog

Arabic

Spanish

Punjabi

German

Italian

Chinese**

French

English

%

2006 Census 2001 Census

54


Canada’s economic fundamentals and relative cost advantages provide a first-ratebusiness environment. Canada offers:

Excellent Economic Fundamentals

� Low inflation and low interest rates

� Strongest economy in the G-7

A Cost-Competitive BusinessEnvironment

� Ease in establishing a new business

� Competitive tax system(particularly for R&D)

� Strong technological environment

A Dynamic Workforce

� The world’s best-educated workforce

� Technology savvy workers

Think Creative. Think Competitive. Think Bottom Line.Think Canada.

A Solid Infrastructure

� Highly globalized infrastructure andtechnological connectivity

� Rapidly expanding foreign direct investmentlinkages

Easy Access to Markets

� Geography and NAFTA provide easy access tothe world’s most prosperous market

� Highly efficient transportation linkages withAsia

An Excellent Place to Live

� Superb overall quality of life

� A society rich in multiculturalism

55

Invest in Canada

� Through Canadian diplomatic missions around the world, and with directaccess to investment contacts at national, provincial and municipal levelswithin Canada, the Invest in Canada Bureau of the Department of ForeignAffairs and International Trade Canada is well positioned to assist inattracting and expanding your investment. We invite you to explore all thatCanada has to offer.

Please contact your local Canadian Embassy,High Commission or Consulate, or write to us at:

Foreign Affairs and International Trade CanadaInvest in Canada Bureau,111 Sussex Drive, 3rd FloorOttawa, Ontario, Canada K1A 1J1E-mail: [email protected]

www.investincanada.gc.ca

Think Canada! is prepared by Arif Mahmud,Invest in Canada Bureau.