When you are thinking of growing your business, are you thinking over the border? Learn about the opportunities available to businesses in Minnesota for doing business in Canada and Mexico. Ana Luisa Fager, consul general of Mexico, St. Paul; Michael Flaherty, senior trade commissioner, Consulate General of Canada

1. MN Chamber of Commerce
“Opportunities at our Doorstep”
September 25, 2012.

2. Mexico has 112
million inhabitants
Canada
The median age of the population is
The median age of the population is
USA 26 years.
Mexico
Mexico shares a
Mexico shares a Mexico has
1,864 67
deep sea ports that
Mile border with
Mile border with connect us to the
the US.
the US. world.

3. Mexico
14th largest
largest
country in surface
country in surface
area in the world.
area in the world.
= 3X / 8X

4. Why México?
México ranks as a low-risk country in the Market Overheating Index,
published by The Economist, which grades 27 countries.
Mexico International Reserves
Almost 1.5 billion USD.
Czech Republic
South Africa
Mexico
Venezuela
Saudi Arabia
Egypt
Vietnam
Colombia
Chile
Argentina
Hong Kong
Peru
Turkey
Brazil
Thailand
Singapore
India
Malaysia
South Korea
Poland
Indonesia
Taiwan
Pakistan
Russia
China
Philippines
Hungary
Source: The Economist, http://www.economist.com/node/21522520 / OECD/ Mexico’s Central Bank

5. Why México?
We are champions of free trade
• Part of the world’s largest
economic block (NAFTA).
FTA
• NAFTA market= 18 trillion USD.
• And we are the gateway to Latin
America.
• The 13th largest economy in the
world.
Source: IMF, OMC

6. Why México?
*Includes Africa, Oceania and other European countries
Source: 2011 Data. Mexico’s Central Bank and Global Trade Atlas.

7. Why México?

8. Why México?

9. Why México?
Source: FDI Benchmark (Labor Availability & Quality/ Skills), 2011.

10. Why México?
Source: Goldman Sachs. The N-11: More Than an Acronym. Global Economics Paper No: 153. March, 2007/ HSBC.
1/ Goldman Sachs forecast / International Monetary Fund.

11. Why México?
México’s strategy

12. Why México?
México’s Top Exports Facts
• Mexico is the 7th supplier to the US aerospace industry.
• Mexico is the 8th vehicle producer in the world and the 5th
exporter globally.
• The leading two-door refrigerator and freezer exporter.
• The 7th global exporter of mobile phones.
• Mexico is the 5th global exporter of medical instruments
and devices. Mexico is the leading producer and exporter
of silver in the world.
• Mexico has the largest film and videogame market in
Latin America.
Source: ProMexico

14. Why México?
México and the USA
USA Top Trading Partners
•We trade 1 billion USD
on any given day.
•6 million U.S. jobs
depend on trade with
Mexico.
•Mexico is the first and
second market for 28
states of the USA.
Source: FTDWebMaster, Foreign Trade Division, U.S. Census
Bureau

15. Why México?
México – Minnesota Partnership
 Mexico was the 4th business
partner of Minnesota in 2011.
Minnesota exported 1.2 billions
to Mexico.
 $ 2.73 billion was the trade
between Mexico and Minnesota
in 2011.
 117,000 jobs in Minnesota
depend on trade with Mexico.
Source: MN Trade Office

16. Why México?
México – Minnesota Partnership
Mexico:
• Export value, 2011: $1.2 billion.
• State trend, 2010-2011: up 24 percent.
Source: MN Trade Office

17. Why México?
MN exports to Mexico
Source: MN Trade Office

18. Why México?
México – Minnesota Partnership
 Minnesota companies with presence in Mexico:
Best Buy, 3M, Carlson, Cargill, Dairy Queen,
Medtronic, Ecolab, Polaris, Cummins, General
Mills, C.H. Robinson, H.B. Fuller, Toro.
Source: MN Trade Office

19. THANK YOU!

20. Opportunities in Canada
Minnesota Chamber of
Commerce
Mike Flaherty
Tuesday, September 25, 2012
Senior Trade
Minneapolis, MN
Commissioner
20

21. Consulate General of Canada in Minneapolis
• Part of network of Canadian offices across the United States
• Programs
– Trade, Investment and S&T Partnerships: Trade
Commissioners
– Political/Economic Relations & Public Affairs
– Consular
• Over 40 Years in Minneapolis

22. Consulate General of Canada in Minneapolis

23. The Canada-US Partnership
• We make things together
• Job creation, global
competitiveness
and innovation
• Energy – safe, secure and reliable
supplier
• Beyond the Border Action Plan

24. Canada and the US are each other’s most important
trading partner...
• $708 billion of trade in goods and services in 2011, $2 billion
crossing border every day
• Biggest two-way trading relationship in world; U.S. sells 3
times more to Canada than to China
• Trade with Canada supports over 8 million U.S. jobs
• Canadian-owned companies in 17,000 locations across United
States employ more than 619,000 Americans

25. Canada is Minnesota’s #1 Partner
• Minnesota exported $5.9 billion in goods to Canada in
2011
• Canada bought more than next 4 countries combined,
3 times China
• Minnesota imported $13.7 billion from Canada
• Canada is largest supplier of energy to MN
• 157,200 jobs in Minnesota depend on Canada–U.S.
trade

26. Minnesota Companies in Canada
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27. Excellent Economic Fundamentals
Consensus Economics
Consensus Economics
 According to Consensus Economics, Canada has been a top performer among
the G-7 in GDP growth over the 2008-11 period and is expected to remain so
through 2012-13.
Real GDP Growth and Projections (%)
3.0
2.4
2.2 2012-13
2.0 2008-11
1.6
1.2 1.1
0.9
1.0 0.7
0.5
%
0.2 0.1
0.0
-0.6 -0.7
-1.0 -0.8
Fra
Ita
Ca
U.S
U.K
Ge
Jap
-1.1
ly
na
rm
nce
an
.
.
da
an
-2.0
y 27
Source: Consensus Forecasts, February 2012, Consensus Economics Inc.

28. 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 (%)
2000-2010
Canada 1.45
Italy 0.76
France 0.62
Germany 0.62
U.K. 0.57
U.S. 0.11
Japan -0.28
Source: U.S. Bureau of Labour Statistics, OECD Economic Outlook, No.90, November 2011
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29. … and More Recently by Forbes
• Canada was ranked # 1in Forbes latest annual study on the Best Countries for
Business, up from 4th place last year
• Canada ranked in the top ten in 7 of the 11 criteria used in the study, most
notably personal freedom (1st); degree of red tape involved in starting a business
(3rd); investor protection (5th) and low corruption (6th).
Top Ten Countries to Conduct Business in 2011
1st
2nd
3rd
4th
5th
Rank
6th
7th
8th
9th
10th
ad
a nd ng lan
d ar
k
or
e en wa
y K. A.
an ala Ko nm ap ed or U. S.
Ze ng Ire
ng Sw N U.
C De Si
New Ho
*Standing among 134 countries. Rankings based on the following eleven categories of quantitative and qualitative indicators: trade freedom, monetary
freedom, property rights, innovation, technology, red tape, investor protection, corruption, personal freedom tax burden and market performance. 29
Source: Forbes Publishing, October 2011

30. Opportunities in Canada
• Aerospace • Bio Products
• Cleantech • Business Services
• ICT • Chemicals and Plastics
• Life Sciences • Financial Services
• Defense and Security • Functional Foods
• Machinery and
Equipment
• Medical Devices
• Renewable Energy
30

31. Aerospace
•Canada is the third largest manufacturer of civil aerospace
products (by revenue) behind only the U.S. and France.
•Montreal is the third largest aerospace cluster in the world
31

32. Cleantech
• The Canadian environment
market is valued at more than $29
billion and generates sales worth
more than $18.4 billion.
• The majority of environmental
companies are located in Ontario
(43.4%), Quebec (18.8%), Alberta
(15.2%) and British Columbia
(12.6%).
32

33. Information & Communication Technology (ICT)
• Many ICT companies have shifted the focus of their Canadian
production toward research and development of technologies.
• Multinationals such as IBM, Alcatel-Lucent, Ericsson, Research In
Motion, AMD, Electronic Arts and SAP have major development
centres in Canada
• ICT is the highest performing R&D sector, accounting for 38.5 percent
or $6.2 billion of all Canadian private-sector expenditures in R&D in
2009.
33

34. Life Sciences
• Canada has one of the
largest life sciences
industries in the world
• Businesses based on
biotechnology are estimated
to contribute around $87
billion to Canadian GDP
• The pharmaceutical industry
in Canada generates
upwards of $23 billion
annually and employs over
30,000 people
34

35. Bio Products
• Canada is one of the world’s top
five biotechnology markets.
• Almost 100 foreign companies
established greenfield FDI
projects in the renewable energy,
chemicals and plastics sector in
Canada between 2003 and 2011.
• Preliminary gross domestic
expenditure on R&D in Canada in
2011 is $30 billion, one of the
highest levels in the world.
• Scientific Research &
Development tax credits
35

36. Business Services
• Consulting engineering is a $21.8-billion-a-
year industry that employs over 100,000
Canadians.
• Canada is globally recognized for its
engineering services and is the fourth-largest
exporter of engineering services in the world
• Edmonton is an important manufacturing
and service centre, and the gateway to
northern Alberta’s oil and gas resources.
• Quebec’s expertise is concentrated in health, human resources,
management, logistics, finance and government online.
• Ontario’s business and professional services cluster is among the largest in
North America, comprised of law and accounting firms; advertising and
marketing agencies; customer care centres; management, technical, and
design consultancies; and human resources services.
36

37. Chemicals and Plastics
• The industry in Canada generated revenues of $61
billion in 2010
• Canadian research and development expenditures in the
chemical and plastics industry totalled $1.1 billion
• Canada is the first G-20 country to eliminate tariffs on all
manufacturing inputs.
• Ontario is Canada’s largest producer of chemical
products, the leading petroleum-refining region, and the
hub of the nation’s plastics industry.
• Alberta’s chemical industry has four main segments:
petrochemicals, fertilizers, inorganic chemicals, and
specialty and fine chemicals
• Montréal is the hub of Québec’s chemical industry,
supplying the consumer market with products as diverse
as adhesives, textiles, paint, maintenance and cleaning
products, electronics and cosmetics. 37

38. Financial Services
• The Canadian banking system was ranked the
soundest in the world by the World Economic
Forum in 2011.
• The financial services industry is one of the
largest sectors for employment in Canada,
with a workforce of nearly 700,000.
• Montréal is known for its pioneering expertise
in derivative and commodity trading, wealth
management, and pension fund asset
management
• Ontario’s key strengths include financing for
the mining and energy sector. It contains 80%
of Canada’s investment management
industry, worth $700 billion in assets.
38

39. Functional Foods
• With nearly 700 producers, Canada’s
natural-health products and dietary-
supplements sector generates annual
revenues of more than $3.5 billion.
• Saskatchewan is Canada’s largest
producer of canola and flaxseed.
• British Columbia produces more than
3,000 functional foods and natural
health products.
• Nova Scotia is home to the Atlantic Food
and Horticulture Research Centre and is
a major exporter of seafood and wild
blueberries.
• Cargill just announced an expansion of
their canola processing facility in
Saskatchewan 39

40. Machinery & Equipment
• With nearly 8,700 companies and a
direct-production labour force of
more than 113,000 people, the
industry generated sales of $44.8
billion in 2011.
• Canada is the first country in the G-20
to create a tariff-free zone for
industrial manufacturers; tariffs on all
manufacturing inputs will be
eliminated by 2015.
• Alberta has the world’s third largest
proven crude oil reserves and is a
leader in extractive machinery and
technologies.
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41. Medical Devices
• Canada’s highly diversified medical device
manufacturing and development industry
encompasses more than 1,000 firms
employing some 26,000 people.
• Vancouver is the hub of British Columbia’s
life-sciences sector, with annual revenues of
approximately $800 million.
• Ontario’s medical- and assistive-device
industry is based primarily in Ottawa and
Toronto, and comprises many subsidiaries
of multinational companies
• Montréal is the centre of Québec’s booming
medical technologies industry, which
comprises more than 350 companies.
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42. Renewable Energy
• Canada has the third-largest
renewable energy capacity in the
world; renewable sources generate
17% of its total primary energy supply
and more than 60% of its total
electricity capacity.
• The feed-in-tariff rates for solar PV
electricity offered in Ontario are
among the world’s most attractive.
• In Quebec, a significant cluster of
companies in the solar supply chain
exists, including semiconductor
manufacturers, aluminum smelters
and steel mills in addition to other
solar PV component manufacturers.
42

43. Alberta Oil Sands Scope
• Recoverable reserves of
approximately 170 billion barrels
of bitumen (among the largest
deposits of crude oil in the world)
• Forecasted production rises to 1.2
billion barrels per year by 2019
• Oil sands deposits underlie
54,903 square miles
• Land disturbed to date for mining
is about 232 square miles
• Less than 30% of mineable area
has been approved for mining
• Total minable area is about 0.15%
of Canada’s Boreal forest

44. Economic Opportunities
Oil Sands Heavy Hauler Trucks
– The 200th Caterpillar 797 hauler
delivered April 2009
Oil Pipeline Construction
– Billions of dollars of pipelines being built
– Using steel and creating jobs
– Major regional economic stimulus
Refinery expansions underway
– Several expansions and modifications
are underway
– Providing significant jobs and
local benefits
44

45. Minnesota Companies Active in
the Alberta Oil Sands
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46. Economic Benefits to the U.S.
Fort McMurray,
Alberta
Joliet,
Joliet,
Illinois
Illinois
Lafayette,
Indiana
Decatur,
Illinois
Lexington,
South Carolina
Amite,
Louisiana
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The 200th Caterpillar 797 hauler delivered April 2009
The 200th Caterpillar 797 hauler delivered April 2009

47. More Information
The Logistics of Doing Business in Canada
A Commercial Service Webinar Series
Temporarily Moving Goods & People across the Border
Date: October 17, 2012
Time: 1:00pm – 2:30pm (Central)
Distribution Strategies for Canada
Date: October 31, 2012
Time: 1:00pm – 2:30pm (Central)
Canada Trade Regulations & Standards
Date: November 14, 2012
Time: 1:00pm – 2:30pm (Central)
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48. Contact
Consulate General of Canada –
Minneapolis
701 Fourth Avenue South, Suite 900 Minneapolis, MN
Michael Flaherty
Consul and Senior Trade Commissioner
(612) 492-2909
michael.flaherty@international.gc.ca
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