NEWS RELEASES

April 10, 2000 (4:45 p.m. EDT) No. 70

PETTIGREW HIGHLIGHTS GROWTH IN BILATERAL TRADE BETWEEN CANADA AND SPAIN

International Trade Minister Pierre S. Pettigrew underscored today the growth of bilateral trade between Canada and Spain, following the signing of a contract between Bombardier Aerospace and Spanish air carrier Air Nostrum. The contract will see Air Nostrum acquire 29 Q300 Dash 8 turboprop aircraft and 15 CRJ200-ER-type regional jets. The total value of the 44 aircraft to be purchased under the contract is $1.2 billion.

"With the exception of 1996, trade between Canada and Spain has risen steadily in recent years," said Minister Pettigrew, during the press conference following the signing. "This testifies to the solid economic growth recorded by both countries during this period."

Bilateral trade in 1999 totalled $1.49 billion, the balance of trade favouring Spain. Canadian exports totalled $633.7 million, up from $560.7 million in 1998, while imports from Spain totalled $854 million, up from $834 million. Mr. Pettigrew indicated that this rise in Canadian exports -- even more pronounced in the wake of Bombardier's sale of aircraft to Air Nostrum -- signalled a reversal of the trend. The Spanish air carrier also signed a purchase option for 40 other aircraft, which could include turboprops, as well as regional jets.

"Canada's aerospace sector comprises over 400 firms, employs nearly 60 000 Canadians and had sales of over $15 billion in 1998," said Mr. Pettigrew.

Some 40 Canadian firms are active in Spain in a wide variety of sectors: real estate, information technologies, telecommunications, the environment, recreation, mining, recycling, banking and petrochemicals. Nortel, for one, is doing particularly well in Spain. Moreover, with its recent acquisition of Spain's second-largest printing concern, Quebecor has become Europe's leading printer.

As well, the Caisse de dépôt et placement du Québec has greatly expanded its investments in Spain's telecommunications and real estate sectors, acquiring an interest in Spaincom/Cable Europa and Filo, respectively.

While Spanish investment in Canada has been concentrated to date in fewer sectors, these sectors make up in importance what they lack in number. They include petrochemicals, fashion, transportation, telecommunications and construction. A large portion of Spanish investment has been directed to Quebec and, more recently, to the transportation sector in Ontario and New Brunswick.

For Canadian firms, Spain can serve as a gateway to the European market. Its economic growth rate, well above average for the countries of the European Union, will no doubt make Spain an increasingly attractive destination for Canadian business investment.

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For further information, media representatives may contact:

Sylvie Bussières

Office of the Minister for International Trade

(613) 992-7332

Media Relations Office

Department of Foreign Affairs and International Trade

(613) 995-1874