NEWS RELEASES

June 20, 2001 (10:55 a.m. EDT) No. 85

PETTIGREW TO LEAD TRADE MISSION TO TURKEY AND GREECE

International Trade Minister Pierre Pettigrew invites Canadian companies to participate in a trade mission he will lead to Turkey and Greece from September 11 to 14 to explore and develop commercial opportunities in these important markets.

"This is an ideal time for Canadian firms to explore business opportunities in Turkey and Greece. With the 17th largest economy in the world, Turkey represents an important market for Canadian goods and services," Minister Pettigrew said. "Greece has set an economic goal of raising its standard of living to the European Union (EU) average by 2010. That can only mean an increased need for infrastructure, and goods and services, which presents many opportunities for Canadian businesses."

During the period 1991 to 2000, Canada's bilateral trade with Turkey increased more than three-fold. For Canadian companies, Turkey presents promising opportunities in the energy, transportation, telecommunications, mining and construction sectors. Historically, Turkey has been a strategic intersection between Europe, Asia and the Middle East, allowing trade to flourish. That still holds true today.

Greece's economy has improved tremendously over the last decade and it is expected to continue exceeding the EU growth average for the foreseeable future, fuelling opportunities in sectors like information technology and telecommunications, aerospace and defence, and agriculture and agri-food. Greece can also serve as an additional gateway for Canada into other European Union countries and the Balkans, another region offering good trade prospects.

Minister Pettigrew will arrive in Ankara for official meetings on September 10 before joining trade mission delegates in Istanbul on September 11. The mission will then move to Athens for the final two days. For more information on trade opportunities in Greece and Turkey and the trade mission, visit: http://www.infoexport.gc.ca and http://www.tcm-mec.gc.ca/welcome-e.asp respectively.

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A backgrounder is attached.

For further information, media representatives may contact:

Sébastien Théberge

Office of the Minister for International Trade

(613) 992-7332

Media Relations Office

Department of Foreign Affairs and International Trade

(613) 995-1874

Backgrounder

TURKEY

Bilateral Trade and Investment

• Canada's exports to Turkey totalled $259 million in 2000. Turkey is Canada's 38th largest export market. Exports include pulses (i.e. chick peas), coal, machinery, electrical goods, wood pulp, iron ore and wheat.

• Canada's imports from Turkey totalled $293 million in 2000. Turkey is Canada's 44th largest source of imports, which include iron and steel, garments, ceramic tile and dried fruit.

• From 1991 through 2000, Canada-Turkey bilateral trade increased more than three-fold, rising from $166 million in 1991 to $552 million in 2000.

• Cumulative Canadian Direct Investment in Turkey (to September 2000) totalled $452 million, making Canada its 11th largest foreign investor.

• For Canadian companies, Turkey presents very promising opportunities in the energy, transportation, telecommunications, mining and construction sectors. Since the signing of a Memorandum of Understanding on Bilateral Co-operation in the Energy Sector in September 1998, considerable potential exists for a substantial increase in Canadian exports of consulting engineering and infrastructure-related equipment and services to Turkey.

Economic Overview

The standard of living in Turkey approaches a Western European level, and with Turkey and the European Union (EU) increasing their level of co-operation, that will likely continue to improve. As the 17th largest economy in the world, Turkey represents an important market for Canadian goods and services.

Export Development Corporation supports the development of Canadian business endeavours in Turkey through its broad range of financial services, including its $76 million line of credit with Turk Eximbank for co-operation between Canadian and Turkish companies in third countries. The World Bank and the International Monetary Fund have recently provided significant financial resources in support of Turkey's economic reform program. Prospects have increased as a result of both Turkey's Customs Union with the EU and its increasingly important role as a gateway to the emerging markets and natural resources of the Caucasus region and Central Asia.

GREECE

Trade and Investment

• Canadian exports to Greece totalled $155.5 million in 2000. Canada's principal exports to Greece are aircraft, paper, cereals, wood pulp, furs, machinery, vegetables and vehicles.

• Canadian imports from Greece in 2000 totalled $103.4 million. Canada's main imports from Greece are preserved foods, salt, sulfur, earth, stone, aluminum, fats and oils, beverages, edible fruits and nuts and vegetables.

• Canadian Direct Investment into Greece is estimated at $500 million for 2001.

• Canada's trade and investment relations with Greece have grown steadily throughout the 1990s.

Economic Overview

Large improvements in Greece's economy resulted in accession to the European Monetary Union in January 2001. Greece has adapted well to the stringent requirements of accession to the Maastricht convergence criteria. The country has recently adopted a convergence plan focussing on budget cuts, reform of public sector and social programs, wider privatization and a more flexible workforce. The Greek economy has been characterized by a stronger than expected growth rate compared to other European countries, with 3.2 percent in 1997, 3.5 percent in 1998 and 1999, and about 3.7 percent in 2000. The economic growth rate is expected to continue to out-pace other European countries.

Government goals to raise the standard of living will likely mean increased opportunities in many sectors including construction. Greece's position as a gateway for reconstruction in the Balkans is also an advantageous opportunity for Canadian firms to establish links with local firms. As well, excellent opportunities will likely result from construction undertaken in Greece in anticipation of the 2004 Olympic Summer Games.