NEWS RELEASES

August 6, 2004 (4:00 p.m. EDT) No. 89

CANADA ACCOUNT TRANSACTION FOR AEROSPACE INDUSTRY

International Trade Minister Jim Peterson today announced the first transaction under the $1.2-billion Canada Account facility established in July 2003 to support export sales of regional aircraft to various buyers.

Export Development Canada (EDC), which manages and administers the Canada Account program, has negotiated a loan to Comair, a subsidiary of Delta Air Lines, for the acquisition of Bombardier jet aircraft to add to the airline’s existing fleet of Canadian regional jets. The financing of this transaction has been structured in accordance with commercial principles and is in full conformity with Canada’s international trade obligations. Details on this transaction are available on EDC’s Web site at http://www.edc.ca.

“Bombardier and the aerospace industry are important to our economy, our regions and our communities,” said Minister Peterson. “Canadians should be proud. Canada’s aerospace industry is one of the largest in the world.”

The aerospace industry influences the output and performance of many other sectors of the Canadian economy. It is a vital incubator of advanced technologies, bringing together a critical mass of Canadian firms that are helping to build a future economy based on high-tech, value-added products.

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A backgrounder is attached.

For further information, media representatives may contact:

Jacqueline LaRocque
Director of Communications
Office of the Minister of International Trade
(613) 992-7332

Media Relations Office
Foreign Affairs Canada and International Trade Canada
(613) 995-1874
http://www.international.gc.ca

Backgrounder

CANADA ACCOUNT

Export Development Canada (EDC) provides trade finance and risk management services to Canadian exporters and investors in up to 200 markets, making it possible for these companies to compete internationally. Founded in 1944, EDC is a Crown corporation that operates on commercial principles. It is financially self-sustaining, and is accountable to Parliament through the Minister of International Trade.

The vast majority of transactions facilitated by EDC on behalf of Canadian companies are done under EDC’s Corporate Account. However, for transactions that fall outside the scope or risk tolerance of the Corporate Account, transactions can be considered under EDC’s Canada Account.

EDC requires the authorization of the Minister of International Trade, with the concurrence of the Minister of Finance, before entering into a Canada Account transaction.

Canada Account transactions are negotiated, executed and administered by EDC, but the risks ultimately rest with the Government of Canada.

Canada Account information can be found in EDC’s annual report, on its Web site at http://www.edc.ca and in the Public Accounts published by the Government of Canada.