2. Overview
Introduction to Consulate General of Canada
Canada’s Economic Relationship with Minnesota
Why do business with Canada?
Strong Business Environment
Entrepreneur friendly
Superb Infrastructure for Knowledge Industries
3. Consulate General of Canada in
Minneapolis
Representing Canada in the Upper Midwest United States
Consular Services for Travelling Canadians
Political and Economic Relations, Public Affairs
Trade and Investment Partnerships
4. Canada – Minnesota
Economic Relationship
In 2008:
MN exports to Canada. . . . . . $5.8 billion
MN imports from Canada. . . . $15.4 billion
Bilateral trade. . . . . . . . . . $21.2 billion
141,250 Minnesota jobs are supported by Canada–U.S. trade
5. Why Canadians do Business in
Minnesota
Next Door Neighbor
Similar Cultures
Access to Innovation-Intensive Industries and
Markets
Medical Devices
Agri-food Products
Advanced Manufacturing and Materials
Gateway to Larger US Market
8. Canada has a Relatively Strong Economy
Despite the Global Slowdown
Consensus Economics
According to Consensus Economics, Canada has been a top performer among
the G7 in GDP growth over the 2006-09 period and is expected to remain so
through 2010-11.
Real GDP Growth and Projections (%)
4.0
3.1 3.1
2010-11
3.0
1.9 1.8
2.0 1.7
1.5
%
1.0
1.0 0.8 0.7 0.7
0.5
0.3
0.0
2006-09
-0.6 -0.5
-1.0
Italy
n
any
ada
ce
U.S.
U.K.
Japa
Fra n
Germ
Can
Source: Consensus Forecasts, March 2010, Consensus Economics Inc.
8
9. Canada also has Superior Employment
Growth
Strong economic growth and rising demand for Canadian commodities over the last
decade, combined with provincial and federal policies to improve the flexibility and
adaptability to the changing workplace, have helped generate healthy gains in
employment.
Employment Growth (%)
1998-2008
Canada 2.0
France 1.4
Italy 1.2
U.S. 1.0
U.K. 1.0
Germany 0.6
Japan -0.2
-1 0 1 2 3
Source: U.S. Bureau of Labour Statistics, OECD Economic Outlook, No.86, November 2009
9
10. Sound Fiscal Advantage
Canada has enjoyed eleven consecutive annual federal budget surpluses ending in
2007-08; it has undertaken one of the largest stimulus packages among developed
economies in the current global economic downturn.
In Budget 2010, Canada has chosen to run short deficits to stimulate its economy
without putting long-term prosperity at risk and is expected to return to balanced
budgets in the medium term.
Over the coming years, Canada’s net debt-to-GDP ratio will remain the lowest in the
G7 by a wide margin with a return to a surplus predicted shortly following the 2014-
15 fiscal year.
Federal Government Budgetary Balance
2009-10* (% of GDP)
2010-11*
2011-12*
2012-13*
2013-14*
2014-15*
2008-09
0.0
-0.4 -0.1
-0.5
-1.0
-2.0 -1.6
-4.0 -3.1
-3.5
-4.2 -4.3 -4.2
-4.6
-6.0 -5.5
-8.0
-8.4
-10.0 Canada U.S.
-10.9
-12.0
* Forecasts for both countries
Source Canada: The Federal Budget, Finance Canada, March 4, 2010
Source United States: United States Congressional Budget Office, March 5, 2010.
10
11. Leading Most Other G-7 Countries
Canada was the only G7 country to post a surplus in 2008. Despite being in
an overall deficit position during the 2009-2011 period, Canada will be in a
far better position than most G7 member countries.
Total Government Budget Balance 2008-11
(% of GDP)
(National Accounts Basis)
2.0
0.1 0.0
0.0
a
any
nce
an
.
.
y
U.K
U. S
nad
Ital
-2.0
Jap
rm
Fra
Ca
Ge
-2.7 -2.7
-4.0 -3.4
-4.4
-4.8
-6.0 -5.3 -5.3
-6.5
-8.0
2008 -8.3 -8.3
-10.0
-10.4
-12.0
-12.8
-14.0
2009-11
Source: OECD Economic Outlook, No.86, November 2009
11
12. Canada has Sound Financial Institutions.
With the world in the midst of the current financial crisis, investors can take comfort
in the fact that Canada has the soundest banking system in the G7.
Five of the 50 safest banks are in Canada, according to a recent study: Royal Bank of
Canada (10th), Toronto Dominion Bank (14th), Scotiabank (22nd), Bank of Montreal
(31st) and CIBC (37th).**
Soundness of Banks* World Rank
1st
2nd
3rd
4th
5th
Rank
6th
7th
8th
9th
10th
ile
il
bia
nd
a
a
da
e
ma
ng
az
ali
ri c
or
Ch
ala
na
Ko
mi
na
Br
ap
str
Af
Ca
Na
Ze
Pa
ng
Au
ng
uth
Si
Ho
w
So
Ne
*Standing among 133 countries. Ranking based on the degree of soundness of financial institutions. Source: Global Competitiveness Report, 2009-2010
** Standing among 500 world banks based on total assets and long-term credit ratings. Source: Global Finance Magazine , October 2009
12
14. Canada also has Low Business Costs.
For the seventh consecutive time, KPMG’s Competitive Alternatives study finds Canada
leads the G7 with the lowest business costs.
Canada is the lowest-cost G7 country in 11 of the 17 industries analyzed by KPMG’s
Competitive Alternatives 2008 report: aerospace, agri-food, chemicals, medical
devices, pharmaceuticals, precision manufacturing, telecommunications,
biotechnology, product testing, software design and Web and multimedia.
Percentage Cost Advantage (Disadvantage) Relative to
the United States
2 0.6
0.0
0
a
any
nce
an
.
.
y
U.K
U.S
-2
nad
Ital
Jap
rm
Fra
Ca
-4
Ge
-3.6
-6
-8 -7.1
-7.9
-10
-12
-14
-14.3
-16
-18 -16.8
Source: KPMG Competitive Alternatives 2008
14
15. Overall Tax Advantage for Firms to Expand
As a result of corporate income tax reductions introduced by the Government since
2006, Canada will have the lowest statutory corporate tax rate in the G7 by 2012.
Canada is on track to having the lowest overall tax rate on new business investment
(marginal effective tax rate (METR*)) in the G7 in 2010.
International Comparison of Statutory General Corporate Tax
Rates in 2012
45
39.5 39.1
40
34.4
35
30.2
30 28.0 27.5
%
25.0
25
20
15
10
Japan U.S. France Germany U.K. Italy Canada
Source: The Federal Budget, Finance Canada, March 4, 2010 and the OECD Tax Database.
* METR takes into account federal and provincial statutory corporate income tax rates, deductions and credits available in the corporate tax
system and other taxes paid by corporations, including provincial capital taxes and retail sales taxes on business inputs.
15
16. Relatively Few Steps in Establishing
a Business…
Regulations pertaining to the creation of new businesses are considerably more flexible
in Canada than those in the rest of the G7.
Canada ranks first among the G7 and OECD countries for the lowest number of
procedures required to establish a new business.
Number of Procedures*
10
9
9
8
8
7
5.7 6 6 6
6
5
5
4
3
2
1
1
0
Canada France OECD U.S. Italy U.K. Japan Germany
Average
Source: Doing Business in 2010 - The World Bank Group, 2009 * A "procedure" is defined as any interaction of the company founder
with external parties (government agencies, lawyers, auditors, notaries, etc). Interactions between company founders or company
officers and employees are not considered as separate procedures. For example, an inauguration meeting where shareholders elect
the directors and secretary of the company is not considered a procedure, as there are no outside parties involved.
16
17. …and Relatively Less Time
Canada ranks first among the G7 for the fewest number of days required for
establishing a new business.
Duration (days)
25 23
20 18
15 13 13
10
10
7
6
5
5
0
Canada U.S. France Italy U.K. OECD Germany Japan
Average
Source: Doing Business in 2010- The World Bank Group, 2009
17
18. Highest Concentration of Entrepreneurs
From a global standpoint, Canada has the highest concentration of entrepreneurs
within its working population.
Businesses, including start-ups, develop new products and services and get them to
market and conceive new types of organization and production and put them into
practice.
New companies also serve to remind existing firms of the need to adapt and continue
innovating.
Number of Entrepreneurs as a Percentage of the
Working Population
20
15.9
15
11.5 11.2 11.1 11.1
10.1 9.7
10 8.6 8.5
6.9
5
0
s
d
k
d
y
en
da
um
K.
S.
nd
an
ar
lan
lan
U.
U.
na
ed
nm
lgi
rla
rm
Ir e
Fin
Sw
Ca
Be
the
Ge
De
Ne
Source: Statistics Netherlands 2008
18
19. Quality R&D Incentives
Relative Generosity of
Canada offers one of the most R&D Tax Incentives*
favorable tax treatments for R&D (Index: Canada = 100.0)
among the G7.
Canada provides a system of
tax credits and accelerated tax France 123.9
deductions for a wide-variety
of R&D expenditures.
Canada 100.0
30% refundable SR&ED tax
credit for small companies
Japan 85.9
Eligible costs include: salaries,
overhead, capital equipment,
and materials. U.K. 84.0
These tax-based incentives permit
firms to significantly reduce R&D U.S. 80.6
costs through direct investment or
sub-contracting in Canada. Italy 77.0
Germany 76.1
50 60 70 80 90 100 110 120 130
Source: Warda, Jacek, Rating Measuring Canada's R&D Tax Incentives: May 22, 2009
Note: Relative generosity is determined by dividing the after tax cost of performing $1.00 of R&D by 1 less the corporate tax rate.
Results are indexed to the relative generosity of Canada's system of tax-based support for R&D. The higher the ratio the more competitive the tax system.
* Calculations based on large firms
19
20. Canada has one of the World’s
Best-Educated Workforces…
The overall skill level of Canada’s workforce ranks high among competing
countries.
Canada has the highest percentage of individuals achieving at least college or
university education, among OECD member countries.
Higher Education Achievement Among All Countries
60
56.7
55.0 54.0
55 53.0
51.2
50.0
50
44.0
45
%
42.0 42.0 42.0
41.0 41.0 40.5
40
35
30
k
e
ng
a
nd
ce
De y
um
da
uth n
d
an
l
Ne srae
ar
a
re
or
pa
lan
rw
a la
an
Ko
na
iw
nm
ap
lgi
Ko
Ja
Ire
Ta
No
Fr
I
Ca
Be
Ze
ng
ng
Si
Ho
w
So
Source: IMD, World Competitiveness Yearbook 2009
20
21. Readily Available Qualified Engineers
Canada leads the G7 in terms of the availability of qualified engineers in its
labour market.
Qualified Engineers Availability Index*
8.0
7.5
7.13
7.01
7.0
6.55
6.5 6.37
6.16
Index
6.0 5.85
5.5 5.30
5.0
4.5
4.0
Canada France Japan U.S. Germany Italy U.K.
Source: IMD, * Rank among 57 economies considered in the World Competitiveness Yearbook 2009.
21
22. Exceptional Quality of Life in Cities.
According to a recent annual quality-of-life ranking of 215 world cities, four
Canadian cities ranked among the top 25.
Overall Quality of Life Ranking (Top 25 Cities)
(Index: New York City = 100.0 )
110
108.6
108.0
107.9
107.4
107.4
107.2
107.0
106.8
106.5
106.3
106.2
105.9
105.7
105.4
105.3
106
105.0
105.0
104.8
104.6
104.5
104.3
104.2
104.1
103.7
103.6
102
98
r f t g l g
na ich eva ve nd dor ich fur rn ey en on am els to wa erlin urne our holm rth ea ur lo lin
ien Zur en cou ckla sel un ank Be ydn hag lingt terd uss oron tta B lbo mb k Pe ontr emb Os Dub
V G an Au Dus
M Fr S en el ms Br T O e oc M ur
V op W A
e
M Lux St N
C
Source: Mercer Human Resources Consulting: April 2009
22
23. Think Canada…
… for Applied Research and Development
24. Position of Canada in Scientific Research
Publications, 1997-2004
“The State of Science & Technology in Canada”, Council of Canadian Academies, September 2006
26. New Models for Sharing Research
Infrastructure, Building Research Capacity
National Institute for
Nanotechnology
Example of federal lab co-located on university Campus
$120M joint venture between NRC, Government of Alberta & University of Alberta.
Opened June 2006
Shared facilities, staff jointly or cross appointed between NRC and the university
Multi-disciplinary institute: physics, chemistry, engineering, biology, informatics,
pharmacy and medicine
Incubation facilities for start-ups will act as a catalyst for a nanotech cluster in
Edmonton, accelerate commercialization of new technologies and the growth of high
tech firms
27. New Models to Foster Innovation &
Commercialization: The MaRS Centre
The MaRS Centre is a convergence facility located in the heart
of Toronto’s Discovery District, Canada’s largest biomedical
research cluster.
Phase I of the MaRS Centre (78K m2 in 3 buildings) is home to over 65
organizations: leading researchers, technology transfer groups, SMEs,
multinationals, service providers, venture capitalists and networking
organizations.
Private sector tenants outnumber public sector tenants 3:1.
The MaRS Incubator (4K m2) houses 27 promising emerging life sciences,
engineering and information technology companies.
The MaRS Collaboration Centre is a conference venue.
The MaRS Venture Group provides hands-on support to companies.
Phase II space will be doubled
28. MaRS Discovery District
Phase I
Phase II
The MaRS Centre
101 College Street, Toronto
Source: MaRS Discovery District
29. Thank You
Questions?
Michael Willmott
Consulate General of Canada, Minneapolis
Michael.Willmott@international.gc.ca
612-492-2904
www.Minneapolis.gc.ca
www.InvestinCanada.com