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<title>MARCHI ANNOUNCES EDC LEGISLATIVE REVIEW</title>
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<p><font face="Arial"></font><font face="Arial" size="+1"></font><font face="Arial" size="+1">November 3, 1998 <em> (4:00 p.m. EST)</em> No. 253</font></p>
<p align="CENTER"><font face="Arial" size="+1">MARCHI ANNOUNCES EDC LEGISLATIVE REVIEW</font></p>
<p><font face="Arial">International Trade Minister Sergio Marchi today announced that Gowling, Strathy & Henderson (Gowlings) has
been awarded a contract to review the provisions and operations of the Export Development Act. The contract
was awarded following a competitive bidding process.</font></p>
<p><font face="Arial">The review comes five years after the most recent amendments to the Act which governs the activities of EDC
(Export Development Corporation). </font></p>
<p><font face="Arial">"EDC is an integral part of Canada's export promotion efforts," said Minister Marchi. "This review process is a
timely opportunity to ensure the agency continues to meet Canadian public policy objectives in a global
context."</font></p>
<p><font face="Arial">Amendments made to broaden the terms of the Export Development Act in 1993 included a requirement that
the Minister for International Trade, in consultation with the Minister of Finance, report to Parliament on these
changes by June 1999. The purpose of the review is to provide advice and recommendations to Parliament on
options to better assist Canadian companies to succeed in the export marketplace. </font></p>
<p><font face="Arial">In order to examine issues related to the Canadian trade financing system and EDC's role in both domestic and
international marketplaces, the reviewer will conduct a survey of EDC clients and prospective clients and will
undertake stakeholder consultations across Canada as follows:</font></p>
<p><font face="Arial">Halifax November 19</font></p>
<p><font face="Arial">Winnipeg November 23</font></p>
<p><font face="Arial">Calgary November 24-25</font></p>
<p><font face="Arial">Vancouver November 26-27</font></p>
<p><font face="Arial">Montreal November 30-December 1</font></p>
<p><font face="Arial">Toronto December 7-8</font></p>
<p><font face="Arial">Ottawa December 14-15</font></p>
<p><font face="Arial">To participate in the consultation process, contact Guy David, Gowling, Strathy & Henderson, at: telephone
(613) 786-0132; fax (613) 563-9869; or through the Internet (http://www.gowlings.com). </font></p>
<p align="CENTER"><font face="Arial">- 30 -</font></p>
<p><font face="Arial">For further information, media representatives may contact:</font></p>
<p><font face="Arial">Leslie Swartman</font></p>
<p><font face="Arial">Office of the Minister for International Trade</font></p>
<p><font face="Arial">(613) 992-7332</font></p>
<p><font face="Arial">Media Relations Office</font></p>
<p><font face="Arial">Department of Foreign Affairs and International Trade</font></p>
<p><font face="Arial">(613) 995-1874</font></p>
<p><font face="Arial">This document is also available on the Department's Internet site: http://www.dfait-maeci.gc.ca</font></p>
<p align="CENTER"><font face="Arial" size="+1">Backgrounder </font><font face="Arial"></font></p>
<p align="CENTER"><font face="Arial" size="+1">THE EXPORT DEVELOPMENT ACT AND THE </font></p>
<p align="CENTER"><font face="Arial" size="+1">EXPORT DEVELOPMENT CORPORATION</font></p>
<p><font face="Arial"></font><font face="Arial">The Export Development Corporation (EDC) was created under the Export Development Act of 1969 as an
instrument of Canadian public policy to support and develop trade between Canada and other countries. </font></p>
<p><font face="Arial">As a financially self-sustaining agency, EDC is an integral part of Canada's trade promotion infrastructure. The
Agency works in close co-operation with domestic and international financial institutions including development
banks and others with extensive linkages to world markets. </font></p>
<p><font face="Arial">In 1997, EDC backed 3711 Canadian exporters in more than 145 global markets and did a record business
volume of $28 billion -- a 30 percent increase over the previous year. In recent years, EDC has significantly
increased its small business base and currently supports more than 3200 small and medium-sized businesses
in 133 export markets.</font></p>
<p><font face="Arial">The Export Development Act was amended in June 1993 to broaden EDC's operating mandate. The
amendments included a requirement to review the results of these changes in five years time. To meet the
review requirement, the Minister for International Trade issued a public request for proposals for a consultant to
assist with the review process. A contractor has been selected and the review process is underway. </font></p>
<p><font face="Arial">The contractor will consult Canadian exporters and investors to gather views on trends in export financing and
to assess the capacity of the existing financial system to meet the needs of Canadian exporters. The process
will consider EDC's use of its mandate to support the government's broader public policy agenda including
support for small business, expanding the export base, and support for sustainable development and human
rights. The review will also look outside Canada in order to compare Canada's position relative to its
international competitors.</font></p>
<p><font face="Arial">The contractor will engage in stakeholder consultations and will conduct focus groups during November and
December. The deadline for written submissions is December 21.</font></p>
<p><font face="Arial">The review process will be guided by a Steering Committee co-chaired by senior officials from the Department
of Foreign Affairs and International Trade and the Department of Finance. A final report with recommendations
will be submitted to the Minister for International Trade by the end of March. </font></p>
<p><font face="Arial">The ultimate goal of the review is to provide recommendations to Parliament on an appropriate role for EDC as
an integral part of Canada's trade promotion network and to lay the groundwork for any necessary changes to
the Export Development Act. </font></p>
<p><font face="Arial">November 1998</font></p>
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