September 8, 1998 No. 206

MARCHI TO VISIT HALIFAX AND BOSTON

ON ATLANTIC CANADA TRADE PROMOTION TRIP

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.

"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."

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.

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.

"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.

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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

TRADE AND INVESTMENT BETWEEN

ATLANTIC CANADA AND NEW ENGLAND

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.

Trade between New England and Canada

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.

New England's exports to Canada were also significant, totalling $10.8 billion in 1997.

Atlantic Canada and New England

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.

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.)

The New England-Atlantic Canada Link

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.

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.

Investment between New England and Canada

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.

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.

For more information about individual province and state trade please consult our Web site at: www.dfait-maeci.gc.ca/~boston