MN Chamber of Commerce“Opportunities at our Doorstep”

September 25, 2012.

USA

Canada

Mexico

Mexico shares a

1,864Mile border with the US.

Mexico shares a

1,864Mile border with the US.

Mexico has

67deep sea ports that connect us to the world.

Mexico has 112million inhabitants

The median age of the population is

26 years. The median age of the population is

26 years.

Mexico14th largest country in surface area in the world.

Mexico14th largest country in surface area in the world.

= 3 X / 8 X

Why México?México ranks as a low-risk country in the Market Overheating Index, published by The Economist, which grades 27 countries.

Arg

entin

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ong

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ypt

Peru

Phili

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Chi

naC

olom

bia

Pola

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udi A

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uth

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enez

uela

Rus

sia

Sout

h A

fric

aC

zech

Rep

ublic

Mex

ico

Paki

stan

Taiw

anM

alay

sia

Hun

gary

Source: The Economist, http://www.economist.com/node/21522520 / OECD/ Mexico’s Central Bank

Mexico International Reserves Almost 1.5 billion USD.

Why México?We are champions of free trade

Source: IMF, OMC

• Part of the world’s largest economic block (NAFTA).

• NAFTA market= 18 trillion USD. • And we are the gateway to Latin

America.• The 13th largest economy in the

world.

FTA

Why México?

*Includes Africa, Oceania and other European countriesSource: 2011 Data. Mexico’s Central Bank and Global Trade Atlas.

Why México?

Why México?

Why México?

Source: FDI Benchmark (Labor Availability & Quality/ Skills), 2011.

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.

Why México?México’s strategy

• 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.

Why México?México’s Top Exports Facts

Source: ProMexico

•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.

Why México? México and the USA

USA Top Trading Partners

Source: FTDWebMaster, Foreign Trade Division, U.S. Census Bureau

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

Why México?

México – Minnesota Partnership

Source: MN Trade Office

Why México?

Mexico: • Export value, 2011: $1.2 billion. • State trend, 2010-2011: up 24 percent.

MN exports to MexicoWhy México?

Source: MN Trade Office

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

Why México?

THANK YOU!

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Opportunities in Canada

Minnesota Chamber of Commerce

Tuesday, September 25, 2012

Minneapolis, MN

Mike Flaherty

Senior Trade Commissioner

• 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

Consulate General of Canada in Minneapolis

Consulate General of Canada in Minneapolis

The Canada-US Partnership

• We make things together

• Job creation, global competitivenessand innovation

• Energy – safe, secure and reliable supplier

• Beyond the Border Action Plan

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

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

Minnesota Companies in Canada

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Excellent Economic Fundamentals

Consensus EconomicsConsensus Economics

2012-13

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.

Source: Consensus Forecasts, February 2012, Consensus Economics Inc.27

Real GDP Growth and Projections (%)

0.9

0.2

-0.6

0.1

-1.1

0.7

-0.8

2.22.4

1.2

0.5

-0.7

1.1

1.6

-2.0

-1.0

0.0

1.0

2.0

3.0

Canada

U.S.

U.K.

France

Italy

Germany

Japan%

2008-11

2828

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.

Source: U.S. Bureau of Labour Statistics, OECD Economic Outlook, No.90, November 2011

Employment Growth (%) 2000-2010

0.11

0.57

0.62

0.62

0.76

1.45

-0.28Japan

U.S.

U.K.

Germany

France

Italy

Canada

2929

… 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

10th9th

8th7th

6th5th

4th3rd

2nd1st

Canada

New Zeal

and

Hong Kong

Ireland

Denmark

Singapo

re

Sweden

Norway U.K.

U.S.A.

Rank

*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.Source: Forbes Publishing, October 2011

Opportunities in Canada

• Aerospace

• Cleantech

• ICT

• Life Sciences

• Defense and Security

• Bio Products

• Business Services

• Chemicals and Plastics

• Financial Services

• Functional Foods

• Machinery and Equipment

• Medical Devices

• Renewable Energy30

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

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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%).

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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.

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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

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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

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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.

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• 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.

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

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.

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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

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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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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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.

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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

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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

Minnesota Companies Active in the Alberta Oil Sands

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Economic Benefits to the U.S.

The 200th Caterpillar 797 hauler delivered April 2009 The 200th Caterpillar 797 hauler delivered April 2009

Lafayette, Lafayette, IndianaIndiana

Amite,Amite,LouisianaLouisiana

Decatur, Decatur, IllinoisIllinois

Joliet, IllinoisJoliet, Illinois

Lexington, Lexington, South CarolinaSouth Carolina

Fort McMurray, Fort McMurray, AlbertaAlberta

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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)

More Information

Contact

Consulate General of Canada –Minneapolis

701 Fourth Avenue South, Suite 900 Minneapolis, MN

Michael FlahertyConsul and Senior Trade Commissioner(612) 492-2909 michael.flaherty@international.gc.ca

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