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<title> MARCHI TO VISIT HALIFAX AND BOSTON ON ATLANTIC CANADA TRADE PROMOTION TRIP</title>
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<p><font face="Courier"></font><font face="Univers" size="+2"></font><font face="Univers" size="+2">September 8, 1998 No. 206</font></p>
<p align="CENTER"><font face="Univers" size="+2"> MARCHI TO VISIT HALIFAX AND BOSTON </font></p>
<p align="CENTER"><font face="Univers" size="+2">ON ATLANTIC CANADA TRADE PROMOTION TRIP</font></p>
<p><font face="Courier">International Trade Minister Sergio Marchi will visit Halifax on Thursday,
September 10, and Boston on Friday, September 11, to meet with prominent business
and investment leaders on both sides of the Atlantic border.</font></p>
<p><font face="Courier">"It's a great time for Canadians to be exporting to the United States," said
Mr. Marchi. "There are many opportunities for Atlantic businesses in the United
States, and I see superb potential to build on what is already a successful
relationship between Atlantic Canada and New England." </font></p>
<p><font face="Courier">Minister Marchi will speak at a luncheon meeting of the Alliance of Manufacturers
and Exporters and the Greater Halifax Partnership. Mr. Marchi's visit to Halifax
also features a round-table meeting with business leaders from the Atlantic region
-- many of them winners of Canada and Nova Scotia Export Awards and participants on
Team Canada trade missions. </font></p>
<p><font face="Courier">In Boston, Minister Marchi will participate in an investment breakfast with
representatives of Massachusetts companies with business interests in Canada. He
will speak about business partnerships at a luncheon sponsored by the New England-Canada Business Council, and give the Mackenzie King Lecture at the Harvard Center
for International Affairs. Mr. Marchi will also meet with state trade officials
and Canadian businesses situated in the Boston area.</font></p>
<p><font face="Courier">"Companies in Atlantic Canada have a great deal to offer the United States," said
Minister Marchi. "I plan to remind our New England friends of the great
opportunities that exist to buy Canadian products and invest in Canada," he added.</font></p>
<p align="CENTER"><font face="Courier"></font><font face="Courier">- 30 -</font></p>
<p><font face="Courier">A backgrounder is attached.</font></p>
<p><font face="Courier">For further information, media representatives may contact:</font></p>
<p><font face="Courier">Leslie Swartman</font></p>
<p><font face="Courier">Office of the Minister for International Trade</font></p>
<p><font face="Courier">(613) 992-7332</font></p>
<p><font face="Courier">Media Relations Office</font></p>
<p><font face="Courier">Department of Foreign Affairs and International Trade</font></p>
<p><font face="Courier">(613) 995-1874</font></p>
<p><font face="Courier">This document is also available on the Department's Internet site:
http://www.dfait-maeci.gc.ca</font></p>
<p><font face="Arial" size="+1">Backgrounder</font></p>
<p align="CENTER"><font face="Arial" size="+1">TRADE AND INVESTMENT BETWEEN </font></p>
<p align="CENTER"><font face="Arial" size="+1">ATLANTIC CANADA AND NEW ENGLAND </font><font face="Courier"></font></p>
<p><font face="Courier">In 1989, the Canada-U.S Free Trade Agreement (FTA) went into effect, phasing out
nearly all tariffs and many non-tariff barriers to trade. Beginning in 1994, the
North American Free Trade Agreement (NAFTA) opened the Mexican market to Canada
and the United States. Two-way merchandise trade between Canada and the United
States was $378.5 billion in 1997, representing the largest bilateral exchange in
the world.</font></p>
<p><font face="Courier"><strong>Trade between New England and Canada </strong></font></p>
<p><font face="Courier">Canada is New England's major trading partner, exporting $16.5 billion worth of
Canadian goods (not counting services) to the region in 1997. The Canadian export
outlook to the New England states is very positive, partly due to a favourable
exchange rate and to the FTA and NAFTA.</font></p>
<p><font face="Courier">New England's exports to Canada were also significant, totalling $10.8 billion in
1997.</font></p>
<p><font face="Courier"><strong>Atlantic Canada and New England</strong></font></p>
<p><font face="Courier">In 1997, Atlantic Canada (New Brunswick, Newfoundland, Nova Scotia, Prince Edward
Island) and New England traded a total of $3.7 billion in goods, providing each
other`s consumers and industries with vital products and supporting thousands of
jobs on both sides of the border. </font></p>
<p><font face="Courier">In 1997, Atlantic Canada exported nearly $3.2 billion worth of goods to the New
England states, while New England merchandise exports to the Atlantic provinces
totalled nearly $500 million. (The disparity between the two trade figures is not
surprising given that New England`s total population is five times greater than
that of Atlantic Canada.)</font></p>
<p><font face="Courier"><strong>The New England-Atlantic Canada Link</strong></font></p>
<p><font face="Courier">Trade between New England and Atlantic Canada is diverse. In addition to the
traditionally active exporting sectors of lumber, fish processing and energy, many
high tech and high value-added industries are adding to the trade mix. These
include biotechnology, telecommunications and information technology.</font></p>
<p><font face="Courier">Because of the strong historical ties between the two regions, many New England
and Atlantic Canada businesses share their first exporting experience with one
another.</font></p>
<p><font face="Courier"><strong></strong></font><font face="Courier"><strong>Investment between New England and Canada</strong></font></p>
<p><font face="Courier">A healthy balance in direct investments exists on both sides of the border, with
72 Canadian affiliates in New England and 83 New England affiliates in Canada. </font></p>
<p><font face="Courier">New England investors have substantial investments in Atlantic Canada. During the
past year, three Massachusetts' biotechnology firms and one software firm have
established affiliates in Canada. In the United States, Canadian pharmacist Jean
Coutu became the second-largest pharmaceutical retailer in New England through an
acquisition. Two Canadian software developers also opened local offices in New
England. </font></p>
<p><font face="Courier">For more information about individual province and state trade please consult our
Web site at: www.dfait-maeci.gc.ca/~boston</font></p>
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