They Come, They See, They Expand
Foreign direct investment in Canada has more than doubled since 1990. Much of the new investment has come from the United States, where entrepreneurs can see Canadian advantages close at hand. American investors see us up close, and like what they see. But new investors are also coming from around the world.
Canada has become a great place for entrepreneurs. The 2003 World Competitiveness Yearbook ranked Canada
- First for overall business environment
- Third globally for overall competitiveness
This section highlights the unique business advantages of Canada. Each Reason to Invest provides you with a compelling overview and the related facts and figures to help you make solid business decisions.
" The success of BlackBerry ® as a leading wireless platform around the globe stems from the employment of a world-class team and a partnership-oriented culture that focuses on innovation and quality. Canada offers a positive business environment for high tech firms, with exceptional research and educational institutions and a very attractive quality of life.”
Mike Lazaridis, President and Co-CEO
Research In Motion
Foreign Direct Investment
U.S. Investment
The United States is Canada’s Largest Source of FDI. In 2003, the U.S. share of foreign direct investment (FDI) in Canada was
63.9%.
|
Geographic Distribution of Inward FDI stock in Canada |
|
Country |
% |
|
United States |
63.9 |
|
France |
8.9 |
|
United Kingdom |
7.6 |
|
Netherlands |
4.3 |
|
Japan |
2.7 |
|
Switzerland |
2.1 |
|
Others |
10.6 |
|
Source: Statistics Canada, May 2004 |
Canada and the U.S. have one of the world’s largest direct investment partnerships, with the stock of investment between the two countries totalling C$393 billion in 2003.
FDI Rates
Canada Welcomes Foreign Investment. Foreign direct investment in Canada has more than doubled since 1990.
|
Foreign Direct Investment in Canada |
|
Year |
CND$ Billions |
|
1994 |
154.6 |
|
1995 |
168.2 |
|
1996 |
182.1 |
|
1997 |
194.3 |
|
1998 |
219.4 |
|
1999 |
252.6 |
|
2000 |
319.1 |
|
2001 |
341.0 |
|
2002 |
348.9 |
|
2003 |
357.5 |
|
Source: Canada's International Investment Position |
Growth
Increasingly more investment goes to knowledge-based industries in high-tech manufacturing such as electronics, communications and chemicals.
|
Average Annual Growth Rates of Foreign Direct Investment by Industry 1990-2003 |
|
Industry |
% |
|
Electrical and Electronic Products |
13.4 |
|
Food, Beverage and Tobacco |
13.1 |
|
Communications |
10.3 |
|
Energy |
9.1 |
|
Transportation Equipment |
8.9 |
|
Services and Retailing |
8.8 |
|
Finance and Insurance |
8.5 |
|
Chemical products and Textiles |
7.1 |
|
Metallic minerals and metal products |
6.7 |
|
Machinery and Equipment |
6.4 |
|
Wood and Paper |
5.7 |
|
Construction and related activities |
5.5 |
|
Source: Statistics Canada, May 2004 |