Canada Imigration

8/3/2019 Canada Imigration

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Canada -A Strategic

Choice

Think Dynamic.

Think Competitive.Think Bottom Line.

Think Canada.

April-May 2009


2/65

Canada -A Strategic

Choice

Excellent Economic

Fundamentals


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3

A Sound Forecast for Canada

Canadas federal government has made the right choices when times were good as isevidenced by its eleventh consecutive annual surplus in fiscal 2007-08.

However, in light of the current global economic downturn, Canada, in its latest budget,has deliberately chose to run short deficits to stimulate its economy without putting long-term prosperity at risk. Canadas net debt-to-GDP ratio will remain the lowest in the G-7by a wide margin with a return to a surplus expected by the 2013-14 fiscal year.

The U.S. will continue to experience deficits for at least the next ten years.

Federal Government Budgetary Balance

9.6

-1.1

-33.7-29.8

-13.0-7.3

0.7

-455

-1186

-703

-498

-264 -257 -250

-120

-100

-80

-60

-40

-20

0

202

007-08

2008-09*

2009-10*

2010-11*

2011-12*

2012-13*

2013-14*

Can$billi

-1200

-1000

-800

-600

-400

-200

0

200

US$

billi

* Forecasts for both countriesSource Canada: The Federal Budget, Finance Canada, January 27, 2009

Source United States: The Budget and Economic Outlook, United States Congressional BudgetOffice, January 2009.

Canada

U.S.


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4

Canada and Germany were the only G-7 members to post a surplus in2007 with Canada in the lead. Despite being in an overall deficit positionduring the 2008-2010 period, Canada will be in a far better position thanmost G-7 member countries.

Source: OECD Economic Outlook, Number 84 , December 2008

Total Government Budget Balance 2007-10(% of GDP)

(National Accounts Basis)

1.4

-1.5

-2.8

0.1

-2.7-2.9

-2.4

-0.9

-2.8

-5.1

-0.6

-3.5

-6.3

-2.8

-7.0

-6.0

-5.0

-4.0

-3.0

-2.0

-1.0

0.01.0

2.0

Canada

Italy

U.K.

Germany

France

U.S.

Japan

2007

2008-10

Leading Most Other G-7Countries


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5

Low Inflation Rates

Canadas targeted inflation rate range between 1% and 3% has beenextended until 2011.

With low inflation over the past decade, Canada is considered among the lowinflation countries.

Over the past five years, Canadas inflation rate averaged 2.1%,compared to 3.2% for the U.S.

Inflation(Year-Over-Year % Change)

2.3

2.8

1.9

2.22.0

2.1

2.4

1.6

2.3

2.7

3.43.2

2.9

3.8

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

2002 2003 2004 2005 2006 2007 2008

Canada U.S.

Sources: Statistics Canada and the Federal Reserve Bank of St. Louis (FRED II Database),January 2009


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Canadas 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 recent monthswere a consequence of the global economic downturn. Rates in the U.S. werelowered more than in Canada because of the greater severity of the slump in theU.S. economy.

Source Canada: Government of Canada 10-Year Bond: May 22, 2009Source U.S.: U.S. Treasury, Constant Maturity 10-Year Bond: May 22, 2009

Daily Yields (%)

2.0

2.2

2.42.6

2.8

3.0

3.2

3.4

3.6

3.8

16-Jan-09

30-Jan-09

13-Feb-09

27-Feb-09

13-Mar-09

27-Mar-09

10-Apr-09

24-Apr-09

8-May-09

22-May-09

Long-TermBond Yields (%)

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

5.5

Jan-04

Jan-05

Jan-06

Jan-07

Jan-08

Jan-09

Low Interest Rates

Canada

U.S.

U.S.

Cana

da


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Real GDP Growth Projections (%) - Consensus

Economics Inc.Consensus Forecasts, May 2009, Consensus Ecomonics Inc.

2.3 2.2 2.21.8

0.9

1.9

1.4

-0.3-0.6

-1.8

-1.1

-2.0-2.3 -2.4

-3.0

-2.0

-1.0

0.0

1.0

2.0

3.0

Canada

U.S.

U.K.

Fran

ce Italy

Germany

Japan

%

2005-08

2009-10

A Stable Domestic Economy

According to Consensus Economics, Canada has been the best performer

among the G-7 in GDP growth over the 2005-08 period and is expected toremain so through 2009-10 despite the recent global economic downturn.


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Real GDP Growth Projections (%) - OECDOECD Economic Outlook, Number 84, December 2008

2.3 2.3 2.2

1.8

0.9

2.0

1.7

0.8

0.4

-0.1

0.6

-0.1

0.2 0.3

-1.0

0.0

1.0

2.0

3.0

4.0

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

A Stable Domestic Economy

2005-08

2009-10

Recent OECD statistics rank Canada as a top performer the among G-7

countries in terms of GDP growth during the 2005-08 period and the bestduring the 2009-10 forecast period.


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Canada -A Strategic

Choice

Easy Access

to Markets


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Efficient Flow of Goods AcrossBorders

Canada leads the G-7 and ranks 5th among 118 countries in terms of the enablingtrade index, which measures the effectiveness of the combined factors of market

access, border administration, transport & communications infrastructure, andbusiness environment towards the efficient flow of goods over borders and to theirfinal destination.

Enabling Trade Index

6.04

5.715.66 5.65 5.62 5.62 5.61 5.58 5.58

5.52 5.51 5.505.43 5.42

5.05.2

5.4

5.6

5.8

6.0

6.2

Hong

Kong

Singapore

Sweden

Norway

Canada

Denmark

Finland

Germany

Switzerland

NewZealan

Netherlands

Luxemb

ourg

Japan

U.S.

Inde

Global Enabling Trade Report 2008, World Economic Forum.


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The North American market is serviced through a well-integrated transportationsystem, which is among the worlds best.

Automated permit ports, transponder identification systems and jointprocessing centres are being tested and deployed for easy movement of goods

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*

Millions

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

Truck

Air

Streamlined Trans-Border Flows

20.8million

11.5million


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Smart Borders

Canada and the United States work closely together to ensure the safety,security, and prosperity of both our countries.

Significant steps forward were accomplished to increase overalleffectiveness of border programs, such as:

FAST (fast movement of pre-approved eligible goods by truck);

NEXUS (special program for frequent travelers);

Harmonization of procedures for commercial shipments;

Harmonized timeframes for advance electronic cargo reporting;

Implemented the "24-Hour Rule" for marine shipments destined to NorthAmerica;

Collaborated in the development of automated risk assessmentsystems, tools and methods;

Improved infrastructure and border processing times.

The border system is one of the most efficient in the world: wait times areusually less than 10 minutes.


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Direct Access to the NAFTAMarket

Since the enactment of the North American Free Trade Agreement (NAFTA)

in 1994, Canada provides long-term assured access to the North Americanmarket.

In addition to eliminating tariffs, NAFTA provides procedures for:

border facilitation

movement of personnel

investment and intellectual property protection

product certification The signing of the North American Free Trade Agreement (NAFTA)

integrated the Canadian, U.S., and Mexican economies for nearly allbusiness purposes.

As a result, Canadian-based businesses have access to one market of 447million consumers with a combined GDP (PPP*) of almost US$17.5 trillion.**

Many Canadian production hubs are actually closer to U.S. markets thanAmerican production sites of Canadas 20 largest cities, 17 are within anhour and half drive of the U.S.

Direct air service between major cities in Canada and the U.S. has nearlydoubled in the last six years.

* PPP = Purchasing Power Parity (equalization of purchasing power of different countries in their home countriesfor a given basket of goods)

** Source: CIA World Factbook, March 2009


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Mexico City

1000 km

500 km

Los Angeles

Denver

Houston

Atlanta

Seattle

Miami

New York

Boston

Philadelphia

Washington

BaltimoreDetroit

Chicago Cleveland

St. Louis

Pittsburgh

Milwaukee

San Francisco

St. John's

CalgaryVancouver

Regina Halifax

Toronto

MontralWinnipeg

Charlottetown

Edmonton

VictoriaOttawa

Windsor

Qubec

Fredericton

Saskatoon


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Canada is the United StatesLargest Trading Partner by Far

Canada and the U.S. have the worlds largest trade partnership, with two-waytrade in goods and services amounting to CAN$740 billion in 2008. Thisaverages to more than CAN$1.4 million dollars a minute in trade.

Canada - U.S. Trade in Goods & Services($CAN Billions)

U.S. to

Canada

Canada to

U.S.

0

200

400

600

800

19931994

19951996

19971998

19992000

20012002

20032004

20052006

20072008

Source: Statistics Canada, February 27, 2009


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The U.S. trades more with Canada than with any other countrymore withCanada than with all of the E.U. countries combined!

Distribution of U.S. Trade* - 2008Canada

17.5%

China

12.0%

Mexico

10.8%

Japan

6.1%Germany

4.5%

All Others

49.1%

Source: World Trade Atlas * Merchandise trade, February 2009

Canada is the United StatesLargest Trading Partner by Far


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Vital Trade Links with theAmericas

Despite the lack of an expandedfree trade zone beyond NAFTAfor additional countries in theAmericas, sizable tradeopportunities are still apparentwithin this region for Canada.

Source: Statistics Canada, February 2009 Note: Merchandise trade * Ranking is based

on 2008 data.

Total Tradein

Top Sectors,2008, CAN$Billions

616.4Total Trade

241.9Other Sectors

43.1Primary Metals

44.8Machinery

51.2Chemicals

109.6Oil & Gas Extraction

125.7TransportationEquipment


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Strong Historical Trade Tieswith Europe

European markets continue toprovide tremendous tradeopportunities for Canada.

Total TradeinTop Sectors,

2008, CAN$Billions

87.8Total Trade

35.8Other Sectors

6.0Primary Metals

10.8Mining (except oil & gas)

11.1Machinery


12.7Chemicals

Source: Statistics Canada, February 2009 Note: Merchandise trade * Ranking is based

on 2008 data.


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Unique Access to Asia-PacificMarkets

With its geographical location, itsimmigration links and activeinvolvement in APEC to reducetrade barriers, Canada is uniquelypositioned to gain from the long-term potential of Asianeconomies.

Source: Statistics Canada, February 2009, Note: Merchandise trade * Ranking is based on2008 data.** Includes Oceania and the Middle East

Total TradeinTop Sectors,2008, CAN$Billions

134.6Total Trade

70.3Other Sectors

7.7Primary Metals

9.8Mining (except oil & gas)

10.6Machinery


23.5Computer & ElectronicProducts


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Efficient Transport Linkagesbetween North America and Asia

A reliable and efficient transportation system is key to facilitating globalsupply chains.

In October 2006, Canada has launched the Asia-Pacific Gateway andCorridor Initiative, an unprecedented alignment of public and private

sector investments to strengthen Canadas position as a fast, efficient andsecure gateway 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.


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Canada -A Strategic

Choice

Growing

ForeignDirect

InvestmentLinkages


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22

A Highly GlobalizedInfrastructure

Due to its rapidly growing prominence as an outsourcing market of choice, Canada

ranked second in the G-7 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, Canadasranking 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

Source: A.T. Kearney/Foreign Policy Magazine, 2007 * Standing based on 12 characteristicsunder the headings of trade, FDI, telephone, travel, remittances & personal transfers, internet

users, internet hosts, secure servers, international organizations, UN peacekeeping, treaties andgovernment transfers.


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Over the past two decades, Canada has witnessed a substantial growth in both inward and

outward FDI. Canadas inward FDI stock reached C$505 billion in 2008, an almost 8-fold increase from

C$65 billion in 1980.

As for Canadas outbound FDI, the expansion of Canadian direct investment abroad (CDIA)has been even more spectacular, rising from C$28 billion in 1980 to $637 billion in 2008, a23-fold increase.

Since 1997, Canada has been a net exporter of FDI, with outward FDI stock outstrippinginward FDI stock each consecutive year.

CDIA

FDI

Driven by a Dynamic Two-WayInvestment Process

Source: Statistics Canada, April 8, 2009


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24

The United States isCanadas Largest Source of FDI

In 2009, the U.S. share of foreign direct investment (FDI) in Canada stoodat 58.2%, down from the 10-year record level of 69.7% in 1999.


Geographic Distribution of Inward FDI Stock in Canada

2008

United Kingdo

10.8%

Netherlands 6.7%

France 3.7%

Japan 2.6%

Switzerland 3.0%

United States 58.2%

Others 15.1%


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From 2000-2008, the US share of FDI stock in Canada declined from 61% to 58%, whilethat of the EU, the second largest contributor to FDI in Canada, declined from 30% to26%.

Source: Statistics Canada, May 4, 2009

0

100

200

300

400

500

600

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

24%

30%26%

64%61%

58%

12% 9% 15%

0%

20%

40%

60%

80%

100%

1990 2000 2008

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

Billion$Cdn

EU

US

Others

FDI stock: distribution by geographic region oforigin (%)

EU

US

Others

Outnumbering the EU by Morethan Two to One


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26

The United States is the LargestRecipient of CDIA

In 2008, the U.S. share of outward FDI or Canadian direct investment abroad(CDIA) was 48.8%, down from the 10-year record level of 52.2% in 1999.


Others26.0%

United States48.8%

Ireland3.2%

Cayman

Islands3.0%

Bermuda

3.5%

Barbados

7.1%

United Kingdom8.5%

Geographic Distribution of Outward FDIStock from Canada

2008


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27

The United States remains the largest single recipient of Canadian direct investment

abroad, the EU has gradually been gaining ground in recent years. From 2000-2008, CDIA stock in the US declined slightly from 50% to 49%, while that of

the EU held steady at 21%.

Source: Statistics Canada, May 4, 2009

0

100

200

300

400

500

600

700

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

21% 21% 21%

61%50% 49%

18%29% 30%

0%

20%

40%

60%

80%

100%

1990 2000 2008

Canadian direct investment stock abroad

by geographic area 1990-2008Billion$Cdn

EU

US

Others

CDIA stock: distribution by geographic Area (%)

EU

US

Others

The EU is Also An ImportantDestination for CDIA

I t t i th M i M d f


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28

399

240

Affiliate

Sales

Exports

Affiliate Sales and Exports of Goods and Services ($Billion), 2006

EuropeanUnion

UnitedStates

43

86

Affiliate

Sales

Exports

Exports from Canada to the U.S. far outweigh sales by American affiliates of Canadian

multinationals in the U.S. Conversely, sales in Europe by European affiliates of Canadian multinationals are more

than twice the level of Canadian exports to the European Union*.

* Does not include Bulgaria and Romania which joined the EU inJanuary 2007 to form the EU-27Source: BIA compilations based on data from Statistics Canada,

Investment is the Main Mode forDelivering Goods and Services

Canada Welcomes Foreign


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Increasingly more investment goes toward industries such asmanufacturing, mining and oil and gas extraction and the management ofcompanies and enterprises. Since 2000, significant growth in terms of FDI

has occurred in the mining and oil and gas extraction industry and theutilities industry.

Average Annual Growth Rates of Foreign Direct

Investment by Industry (%) 2000-2008*

-4.0

1.8

2.0

4.14.7

5.0

5.5

6.4

8.0

8.8

9.4

13.213.3

15.0

17.9

-5.9

12.8

-20 -10 0 10 20 30

Information and communication technologies

Real estate and rental and leasing

Manufacturing

Agriculture,forestry, fishing and hunting

Information and cultural industriesWholesale trade

OVERALL

Professional, scientific and technical services

Finance and insurance

Transportation and warehousing

Accommodation and food services

Construction

Retail trade

All other industriesManagement of companies and enterprises

Utilities

Mining and oil and gas extraction

Source: Statistics Canada,May 4, 2009

Canada Welcomes ForeignInvestment

19.30.7

11.62.1

4.0

0.7

0.6

0.9

11.5

2.1

100.0

6.61.7

0.2

33.3

0.9

3.8

2008Distribution(%)

* North American Industry ClassificationSystem (NAICS)


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Canadas outward FDI is focused largely in the finance & insurance,manufacturing and mining and oil and gas extraction industries. The agriculture,forestry, fishing and hunting industry and the utilities industry has seen

significant growth since 2000 in terms of CDIA.

Canada Actively Invests Abroad

Average Annual Growth Rates of Canadian Direct

Investment Abroad by Industry (%) 2000-2008*

-2.5

0.7

0.8

2.6

6.5

9.8

10.2

10.6

10.7

14.0

14.3

20.7

25.3

28.9

42.3

16.6

-10.6

-20 -10 0 10 20 30 40 50 60

Information and communication technologies

Information and cultural industries

Manufacturing

Transportation and warehousing

All other industries

OVERALL

Professional, scientific and technical services

Real estate and rental and leasing

Construction

Mining and oil and gas extraction

Wholesale trade

Finance and insurance

Accommodation and food services

Management of companies and enterprises

Retail trade

Utilities

Agriculture,forestry, fishing and hunting

Source: Statistics Canada,

May 4, 2009

0.8

2.4

1.3

10.4

0.5

39.2

0.8

14.4

0.3

1.7

1.3

100.00.5

2.6

17.8

3.2

2.8

2008Distribution(

%)

* North American Industry ClassificationSystem (NAICS)


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Canada -A Strategic

Choice

A Cost-Competitive

Business Environment

An Overall Tax Advantage for Firms


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32

Source: The Federal Budget, Finance Canada, January 27, 2009 and the OECD Tax Database.

* METR takes into account federal and provincial statutory corporate income tax rates, deductionsand credits available in the corporate tax system and other taxes paid by corporations, includingprovincial capital taxes and retail sales taxes on business inputs.

An Overall Tax Advantage for Firmsto Expand in Canada

International Comparison of Statutory General Corporate Tax

Rates in 2012

39.5 39.3

34.4

31.430.2

28 27.2

10

15

20

25

30

35

4045

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

%

As a result of corporate income tax reductions introduced by the Government since2006, Canada will have the lowest statutory tax rate in the G-7 by 2012.

Canada will also reach the goal of the lowest overall tax rate on new businessinvestment (marginal effective tax rate (METR*)) in the G-7 by 2010.

Quality R&D Canadas Big


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Quality R&D Canada s BigBargain

Canada offers one of the mostfavorable tax treatments for R&Damong the G-7.

Canada provides a system oftax credits and acceleratedtax deductions for a wide-variety of R&D expenditures.

Eligible costs include:

salaries, overhead, capitalequipment, and materials.

These tax-based incentivespermit firms to significantlyreduce R&D costs through directinvestment or sub-contracting inCanada.

Relative Generosity of

R&D Tax Incentives*(Index: Canada =100.0)

79.7

80.3

87.9

90.8

93.1

100.0

101.2

50 60 70 80 90 100 110

Germany

Italy

U.S.

U.K.

J apan

Canada

France

Source: Warda, Jacek, Rating Canada's R&D Tax Treatment: September 20, 2007Note: Relative generosity is determined by dividing the after tax cost of performing $1.00 of R&D by 1 less thecorporate tax rate.Results are indexed to the relative generosity of Canada's system of tax-based support for R&D. The higher theratio the more competitive the tax system.* Calculations based on large firms


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Competitive Business TelephoneCharges

Canadas business telephone charges are relatively low among G-7countries.

Source: OECD Communications Outlook 2007

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

963

956

880

792

655

588

442

0 200 400 600 800 1000 1200

Japan

Italy

U.K.

France

Canada

Germany

U.S.

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


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Canada has the lowest residential telephone charges among the G7 and

OECD countries.

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

1027

989

922

796

794

518

368

0 200 400 600 800 1000 1200

Italy

France

Japan

U.K.

Germany

U.S.

Canada

The Most Affordable ResidentialTelephone Charges

Source: OECD Communications Outlook 2007

* High usage basket of residential telephone charges include fixed access and 84,000 calls brokendown according to distance, destination (fixed, mobile and international), time of day over a one-yearperiod.** PPP = Purchasing Power Parity (equalization of purchasing power of different countries in theirhome countries for a given basket of goods)


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Canada -A Strategic

Choice

A Dynamic

and WelcomingInfrastructure

Highest Concentration of


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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 andcontinue innovating.

Source: Statistics Netherlands 2008

Number of Entrepreneurs as a Percentage of the

Working Population

15.9

11.5 11.2 11.1 11.110.1 9.7

8.6 8.5

6.9

0

5

10

15

20

Canada

Netherlands

U.K.

Irelan

d

Belgium U.

S.

Germany

Finlan

d

Sweden

Denmark


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Positive Business Climate Canada understands the importance of its business community and has

created an environment to encourage its success.

Canada business climate ranked first in the G-7 and third out of 82countries in the Economist Intelligence Units global business rankings forthe forecast period (2009-13), up from fourth and still first in the G-7 out ofthe full 82 countries from the historical period (2004-2008).

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

Business Environment of Top Ten Countries,

Rank for Forecast Period 2009-2013

10th

9th

8th7th

6th

5th

4th

3rd

2nd

1st

Finlan

d

Singapore

Canada

Hong

Kong

Switzerland

Denmark

Australia

Sweden

Norway

Netherlands

Ran

Source: The Economist Intelligence Unit, April 2009


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Ease in Establishing a Businessin Terms of Procedures

Regulations pertaining to the creation of new businesses are

considerably more flexible in Canada than those in the rest of the G-7.

Canada ranks first among the G-7 and OECD countries for the lowestnumber of procedures required to establish a new business.

Number of Procedures*

1

5

6

8

9

5.8 66

0

1

23

4

5

6

7

8

910

Canada France OECDAverage

U.S. U.K. Italy J apan Germany

Source: Doing Business in 2009 - The World Bank Group, 2008 * A "procedure" is defined asany interaction of the company founder with external parties (government agencies, lawyers,auditors, notaries, etc). Interactions between company founders or company officers andemployees are not considered as separate procedures. For example, an inauguration meeting

where shareholders elect the directors and secretary of the company is not considered aprocedure, as there are no outside parties involved.


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40

Canada ranks first among the G-7 for the fewest number of days required

for establishing a new business.

Duration (days)

56

7

10

13 13.4

18

23

0

5

10

15

20

25

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

Germany Japan

Source: Doing Business in 2009- The World Bank Group, 2008

And in Terms of Time


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41

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 knowledgeof schoolchildren.

PISA Score (points)

553

529521

514 510 509 505 504 502 501 500

450

500

550

600

Finlan

d

Canada

Netherlands

Switzerland

Belgium

Irelan

d

Germany

Sweden U.

K.

Denmark

OECD

Average

Source: OECD

2007

A World Leader in YouthAcademic Performance


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42

The Worlds Best-EducatedWorkforce

The overall skill level of Canadas workforce ranks high among competing

countries.

Canada has one of the highest percentage of individuals achieving at leastcollege or university education, among OECD member countries.

Higher Education Achievement

56.755.0

54.0 53.051.2

50.0

44.042.0 42.0 42.0

41.0 41.0 40.5

30

35

40

45

50

55

60

Singapore

Canada

Japan

South

Korea

Taiwa

nIsrael

NewZealand

Belgium

Irelan

d

Norway

Denmark

France

Hong

Kong

%

Source: IMD, World Competitiveness Yearbook 2009

T t h M t T i i


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Top-notch Management Training

Canada ranks among the top-ten in a 134-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

in the world according to the Financial Times (UK) Global MBA rankings for 2009.University of Toronto (Rotman) 47th; University of Western Ontario (Ivey) 47th;

York University in Toronto (Schulich) 49 th; University of British Columbia (Sauder)71st ; and University of Alberta 77th.

*Standing among 134 countries. Index based on the quality of Management education in first-class

business schools.Source: Global Competitiveness Report, 2008-2009

Management Education* World Rank

10th

9th

8th

7th

6th

5th

4th

3rd

2nd

1st

France

Switzerlan

U.S.

Canada

Belgiu

Spain

Singapor

Denmar

Finlan

Netherlan

Ran

State of the Art Venues for


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State of the Art Venues forScientific Research

Canada ranks second behind the U.S. among the G-7 and fourth in a 134-country

review of the quality of scientific research undertaken in government anduniversity laboratories.

*Standing among 134 countries. Index based on the quality of scientific research in government anduniversity laboratories. Source: Global Competitiveness Report, 2008-2009

Quality of Scientific Research Institutions* World Rank

10th

9th

8th

7th

6th

5th

4th

3rd

2nd1st

U.S.

Switzerlan

Israel

Canada

Belgiu

German

U.K.

Australia

Finlan

Netherlan

Ran

Among Leaders in IT Industry


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Among Leaders in IT IndustryCompetitiveness

Canada ranks third behind the U.S. and the U.K. among the G-7 and sixth in a 66-

country review of the countries best suited to provide an optimally competitiveenvironment for information technology (IT) firms.

*Standing among 66 countries. Index based on the following six categories of quantitative andqualitative indicators: overall business environment; IT infrastructure; human capital; legal

environment; R&D environment; and support for IT industry development. Source: EconomistIntelligence Unit, September 2008.

IT Industry Competitiveness Index* World Rank

10th

9th

8th

7th

6th

5th

4th

3rd

2nd

1st

U.S.

Taiwa

nU.K

.

Swedem

Denmark

Canada

Australia

South

Korea

Singapore

Netherlands

Rank


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46

PC and Internet Users

Canada is second to the U.S. among the G-7 in terms of personal

computers and second to Japan among the G-7 with respect to Internetusers per capita.

Source: IMD, World Competitiveness Yearbook 2009

Internet Users

Per 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

Italy

Personal Computers

Per 1,000 Inhabitants

869

819

771750

701

673

612

500

550

600

650

700

750

800

850

900

U.S.

Canada U.

K.

Germany

FranceJapan Ita

ly

And Manufacturing Sector


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Canada ranked 3rd in the G-7 and 14th in a 110-country study measuringinnovation performance in the manufacturing sector.

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

And Manufacturing SectorInnovators

International Innovation Index* World Rank

38th

20th19th

15th14th

9th8th

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

Index

*Standing among 110 countries. Index based on government support for innovation - through tax and educationpolicies, and the quality of infrastructure; the performance of innovative companies, measured by factors such ashigh-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, BostonConsulting Group, March 2009


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Sound Financial Institutions

With the world in the midst of the current financial crisis, investors can take comfortin the fact that Canadian banks are generally healthy with solid balance sheets andleast likely to require a government bailout in the event of a major economic

downturn.

In a recent study, five Canadian banks were listed among the worlds 50 safestbanks: Royal Bank of Canada (10th), Toronto Dominion Bank (14th), Scotiabank (23rd),Bank of Montreal (33rd) and CIBC (43rd).**

*Standing among 134 countries. Ranking based on the degree of soundness of financial institutions. Source:Global Competitiveness Report, 2008-2009** Standing among 500 world banks based on total assets and long-term credit ratings. Source: Global FinanceMagazine , February 2009

Soundness of Banks* World Rank

10th

9th

8th

7th

6th

5th

4th

3rd

2nd

1st

Canad

Swede

Luxembo

Australi

Denm

ar

Netherlan

Belgiu

NewZeala

Irelan Ma

lta

Ra


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With Superior Credit Ratings

Canadian banks rank first among the G-7 in terms of their intrinsic credit

worthiness. (see chart below)

In addition, Moodys Investors Services raised Canadas credit rating to AAA(the highest rating) in May 2002 in response to Canadas improved fiscalbalance sheet and excellent long-term growth prospects. Similarly in July2002, Standard & Poors raised Canadas long-term foreign sovereign creditrating to AAA. These ratings have since been maintained.

Source: Moody's Financial Services, May 2009 B= Strong, intrinsic financial strength C = Good

D = Adequate E = Very weak

Moody's Average Bank Financial-Strength Rating

Canada

U.S.

France

Italy

Germany

Japan

U.K.

E E+ D- D D+ C- C C+ B- B

F d L ki F k


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50

Forward-Looking FrameworkPolicies

The economic policies of the Government of Canada are focused on

making Canada a world leader in the global knowledge-based economy ofthe 21st century. Commitments include:

making broadband Internet access available in all communities by2009.

becoming one of the top five countries for research and developmentby 2010.

shaping a National System of Innovation.

providing marketplace frameworks/services benchmarked against thebest in the world.


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The Government of Canada has numerous policies/programs aimed atbuilding the knowledge infrastructure. Examples include: Canadian Networkfor the Advancement of Research, Industry and Education (CANARIE), andCo-operative sectoral research programs (PAPRICAN).

Canada leads the G7 in public sector R&D investment as a share of GDP.The public sector currently finances 85% of primary research in Canada.

The Government of Canada will spend over $2.7 billion in 2008-2009 insupport of research and development conducted in post-secondary

institutions. The Government spends more than $2 billion each year on itsown research activities.

The SR&ED Program provides more than $2.5 billion in support of Canadianprivate sector innovation and is accompanied by more than $15 billion ininvestments by claimants each year.

Since its creation in 1997, the Canada Foundation for Innovation hasinvested $4.5 billion in more than 6,000 research projects in 129 Canadianuniversities, colleges, research hospitals, and research institutions in 64

municipalities. Source: Canada Foundation for Innovation, January 2009.

Forward-Looking Support forInnovation Programs


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Canada -A Strategic

Choice

An Excellent

Place to Live

A Champion in Attracting Capital and


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53

p g pTalent through Immigration andInvestment

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

Immigration/Investment Index*

62.3

61.1 61.1 61.0 60.7 60.5

59.659.0

57.757.1

55

56

57

58

59

60

61

62

63

64

65

Canada U.

K.U.S.

Switzerland

Germany

France

Australia

Sweden Ita

ly

Japan

Immigration/InvestmentS

cor

Index ranging from 0-100 based on five components of a countrys potential forimmigration and investment: (a) Willingness to live and work for a substantial period inthe country; (b) Quality of life; (c) Good place to study for educational qualifications; (d)The country has businesses Id like to invest in; (e) Equal opportunity.

Source: Red Hot Locations, London U.K. 2009


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Best Overall Quality of Life

Canada has the best overall quality of life among the G-7.

Source: IMD, * Rank among 55 economies considered in the World CompetitivenessYearbook 2008.

Quality of Life Index*

9.27

8.89

8.53

8.17

7.166.90 6.86

6.0

6.5

7.0

7.5

8.0

8.5

9.0

9.5

10.0

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

Inde

E ti l Q lit f Lif i


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According to a recent annual quality-of-life ranking of 215 world cities, four

Canadian cities ranked among the top 25.

Source: Mercer Human Resources Consulting: April 2009

Exceptional Quality of Life inCities

With E ti l H lth &


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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 and

Ottawa 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

With Exceptional Health &Sanitation* Standards


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A Vast Arable Landscape

Source: IMD, World Competitiveness Yearbook 2009.

Arable Land(Thousands of Square metres per capita)

15.86

5.66

3.17

1.65 1.47 1.010.36

0

5

10

15

20

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

Canada ranks highest in the G-7 and second with respect to the area of availableland for agricultural usage on a per capita basis.

Backed by a Strong


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Backed by a StrongEnvironmental Record

As measured by the Environmental Performance Index (EPI), Canadas ranks

2nd in the G-7 and 12th in a 149-country study in terms of effectively reducingenvironmental stresses on human health and promoting ecosystem vitalityand sound natural resource management.

* Perfect EPI Score = 100. Country rank based on twenty-five indicators tracked in sixestablished policy categories Environmental Health, Air Pollution, Water Resources,Biodiversity & Habitat, Productive Natural Resources, and Climate Change.Source: Yale Center for Environmental Law and Policy, January 23, 2008

Environmental Performance Index* 2008

87.8

86.686.3 86.3

84.584.2

81.0

80

85

90

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

Inde

A Leader in Human


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A Leader in HumanDevelopment*

In the latest United Nations Human Development Report, Canada ranked

first among the G-7 countries and third among 179 countries surveyed.

*Standing among 179 countries. Index based on achievements in terms of life expectancy, educationalattainment, and adjusted real income.Source: United Nations Human Development Report 2008-2009, December 18, 2008

Human Development Index* World Rank

23rd21th

19th

15th

11th8th

3rd

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

Index


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Among Model Nations of Peace

According to the Global Peace Index, a recently released measure by the

Economist Intelligence Unit, Canada ranked second in the G-7 andeleventh among 140 countries surveyed.

*Standing among 140 countries. Index ranking countries based on peacefulness, both domesticallyand abroad using 24 indicators, including the number of soldiers killed overseas, the level of violentdomestic crimes and relations with neighbouring countries.Source: Economist Intelligence Unit, May 2008

Global Peace Index* World Rank

97th

49th

36th

28th

14th11th5th

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

Inde


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A Safe and Just Society

Canada is among G-7 leaders in terms of the safest place to live and conduct

business with the most fairly administered judicial system.

Source: IMD * Confidence that person and property is protected. Rank among 55 economies considered inthe 2008 World Competitiveness Yearbook.**Degree of fairness of the judicial system in Society. Rank among 55 economies considered in the 2008

World Competitiveness Yearbook.

Security* World Rank

8.58.3

8.1

7.8 7.7

6.1

5.7

5.0

5.5

6.0

6.5

7.0

7.5

8.0

8.5

9.0

German

Canada

Japan

U.S.

France

U.K.

Italy

Inde

Justice** World Rank

8.38.1

7.57.2 7.1

6.9

3.5

3.0

4.0

5.0

6.0

7.0

8.0

9.0

German

Canada

Japan

France

U.K.

U.S. Ita

ly

Inde


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A Land of Equal Opportunity

Canada ranks first among the G-7 in providing equal opportunities for

individuals.

Source: IMD * Race, gender, family background does not pose a handicap forcompetitiveness.Rank among 55 economies considered in the 2008 World Competitiveness Yearbook.

Equal Opportunity* World Rank

7.5

6.8

6.4

6.16.0

5.6

5.2

4.0

4.5

5.0

5.5

6.0

6.5

7.0

7.5

8.0

Canada U.S. J apan France Germany U.K. Italy

Inde

And a Society Rich in


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yMulticulturalism

Canada has one of the worlds 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

Portuges

Tagalog

ArabicSpanish

Punjabi

German

ItalianChinese**

French

English

%

2006 Census 2001 Census


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64

Canada A Strategic Choice

Canadas economic fundamentals and relative cost advantages provide a first-rate

business environment. Canada offers:

Solid Economic Fundamentals

Low inflation and low interest rates

Easy Access to Markets

Geography and NAFTA provide easyaccess to the worlds most prosperous

market

A Cost-Competitive BusinessEnvironment

Competitive tax system(particularly for R&D)

Think Dynamic. Think Competitive. Think BottomLine.

Think Canada.

An Energetic and WelcomingInfrastructure

Ease in establishing a new business

The worlds best-educated workforce

Strong technological environment

Forward-looking framework policies

An Excellent Place to Live

Superb overall quality of life

A strong environmental record

A society rich in multiculturalism


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Invest in Canada

Through Canadian diplomatic missions around the world, and with direct

access 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 allthat Canada 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 0G2E-mail: [email protected]

www.investincanada.gc.ca

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

Documents

Canada Imigration