May 20, 1998 No. 128

MARCHI WELCOMES NEW DEALS BETWEEN

CANADIAN AND ITALIAN BUSINESSES

Minister for International Trade Sergio Marchi today welcomed the signing of a Memorandum of Understanding (MOU) between Aerospace Industries Association of Canada and the Association of Italian Aerospace and Defence Industries, along with a number of other Canadian business deals with Italy. Minister Marchi, accompanied by Alfonso Gagliano, Minister of Public Works and Government Services Canada, and 12 parliamentarians, is leading a Canadian business development mission comprised of 73 companies.

"This is a great opportunity to reaffirm the importance we attach to Canada-Italy relations," said Mr. Marchi. "And the time is ripe for Canadian business to take advantage of these strong cultural ties."

The delegation has attended a number of business seminars and working groups with their Italian counterparts and met up with Prime Minister Jean Chrétien during his official visit to Italy this week. Minister Marchi and the Information Communications Technologies group of Canadian participants also met with the Italian Minister of Communications, Antonio Maccanico, on May 19.

In addition to the MOU between Canadian and Italian aerospace associations, a number of business agreements were announced during the business sessions today. The aerospace MOU will provide a general framework for the joint promotion of Canada-Italy aerospace industry co-operation. The five other business agreements include: a contract between GE Canada and EH Industries Ltd. of Italy; the purchase of Italian machinery by Pasta D'Aurum of Saskatchewan to build a pasta plant in Swift Current; a cross-marketing agreement between Cipher New Media of Toronto, Ontario, and M3 Milano Multimediale; a joint venture between Advanced Cultural Technologies Inc. of Vancouver, British Columbia, and Intelfin S.p.A.; and an agreement between Northern Telecom and Finmeccanica to jointly develop and manufacture wireless communications technology in the south of Italy; and the opening of five offices by Italian companies to be represented by CO.DE.CI Corporation of Montreal, Quebec.

"These deals are a stepping stone for a new commercial relationship between Canada and Italy," Mr. Marchi said. "Ours is a relationship based on cultural roots, but enhanced by our complementary needs and international trade focus."

The Canadian business development mission will participate in a number of business activities in Milan, May 21 to 23.

Minister Marchi's participation in this mission follows his bilateral visit to Northern Italy from May 15 to 18, where he met with local officials and business leaders and addressed an automotive conference in Turin. On May 18 and 19, Mr. Marchi participated in the World Trade Organization Ministerial meeting and celebration of the 50th anniversary of the General Agreement on Tariffs and Trade in Geneva.

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A backgrounder is attached.

For further information, media representatives may contact:

Leslie Swartman

Office of the Minister for International Trade

(613) 992-7332

Media Relations Office

Department of Foreign Affairs and International Trade

(613) 995-1874

This document is also available on the Department's Internet site: http://www.dfait-maeci.gc.ca

Backgrounder

CANADA-ITALY BUSINESS AGREEMENTS

GE Canada Inc.

GE Aircraft Engines (GEAE) Canada signed a $60 million contract with European Helicopter (EH) Industries to supply its T700 engine, jointly manufactured with Fiat Avio, as part of the Comorant helicopter project.

Pasta D'Aurum

Pasta D'Aurum of Swift Current, Saskatchewan has purchased $40 million worth of machinery from Braibanti Golfetto S.p.A. for the creation of its pasta plant. When finished, the plant is expected to create more than 200 new jobs and will be the largest pasta producing plant in North America.

Cipher New Media

Cipher New Media of Toronto, Ontario has signed a cross-marketing agreement with M3 Milano Multimediale. This agreement, valued at $60,000 will allow M3 Milano Multimediale to market and distribute Cipher New Media's electronic commerce products in Italy. Cipher New Media will market and distribute M3 Milano Multimediale's products in North America.

Advanced Cultural Technologies

Advanced Cultural Technologies of Vancouver, British Columbia, has signed a joint venture agreement worth $500,000 with Intelfin S.p.A. for the adaptation and deployment of the ACT Cinemage multimedia client/server system and the NetXchequer subscription and royalty revenue management system.

Northern Telecom (Nortel)

Northern Telecom has signed an agreement with Finmeccanica whereby Nortel and Ansaldo Signal (a Finmeccanica subsidiary) will jointly develop and manufacture GSMR wireless railway communications and signalling systems; and Nortel and Alenia Aerospazio (a Finmeccanica subsidiary) will jointly develop and manufacture interactive multimedia satellite services and terminals for the Euroskyway project. These initiatives, brought about by Nortel's participation with TELON in the competition for Italy's third mobile licence, will bring jobs, significant investment and US$6 billion in export potential to the South of Italy.

CO.DE.CI Consulting Group

The CO.DE.CI Corporation of Montreal, Quebec, announced the permanent establishment in Canada of five Italian companies. The companies are: OMG - Officine Meccaniche Galileo; Modenplast-Brabor; Euroelettra; A.C.C. - FEMA Costruzioni Meccaniche; and Gamma Meccanica. CO.DE.CI is currently negotiating co-production and co-marketing partnerships with Canadian companies located in the Montreal area, on behalf of the five companies.