October 8, 1998 (5:30 p.m. EDT) No. 240

MARCHI TO VISIT ATLANTA

TO PROMOTE TRADE AND INVESTMENT

International Trade Minister Sergio Marchi will visit Atlanta, Georgia, on October 13 to 15, and will meet with prominent business and political leaders from the Atlanta area to promote trade and investment.

"Business has never been better for Canadians in the southeastern U.S. states. The southeast is one of the fastest growing regions in the United States and offers Canadian businesses tremendous opportunities," said Mr. Marchi. "In fact, Canadian exports to the United States are slated to grow by at least $16 billion this year alone. We have every reason to be enthusiastic about our trading relationship with the U.S."

In his keynote luncheon speech to the Atlanta Women in International Trade, the Canadian American Society of the Southeastern United States and the Cobb County Chamber of Commerce, Minister Marchi will point out to U.S. business leaders that this is a good time to do business in Canada.

"Canada has a great deal to offer the United States both in terms of trade and investment," said Mr. Marchi. "Our high technology is cutting-edge and great value for U.S. firms and consumers. Canada remains a stable, profitable and excellent location for U.S. investment."

In addition to promoting trade and investment during this trip, Minister Marchi will discuss hemispheric trade development in his luncheon speech to Latin American experts at the Carter Center. The Minister will also promote the Canada-U.S. Women's Trade Summit, which will be held in Toronto in May 1999.

During his trip, Minister Marchi will meet with Georgia Governor Zell Miller and Atlanta Mayor William Campbell. He will also participate in a roundtable discussion with students from the Georgia Institute of Technology, meet with Georgia Investment Agency officials, and speak to representatives of some of the 150 Canadian companies located in Georgia.

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A backgrounder on trade between Canada and Georgia 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 RELATIONS BETWEEN CANADA AND GEORGIA

In 1989, the Canada-U.S. Free Trade Agreement (FTA) went into effect, phasing out almost 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 trade in goods, services and income between Canada and the United States totalled nearly $509 billion in 1997, the largest bilateral exchange in the world.

Canada and the state of Georgia exchange over $19 million worth of products every day of the year. In 1997, Canada sold Georgia $3.28 billion worth of goods and, in turn, Georgia sold $3.60 billion worth of goods to Canada. Amounting to $6.88 billion, the trade provided consumers and industries with vital products while supporting 76 000 jobs on both sides of the border.

Trade is Growing under Free Trade Agreements

Trade between Georgia and Canada continues to grow steadily and significantly. In the nine years since the FTA took effect, Canadian exports to Georgia have almost tripled, from $1.33 billion in 1989 to $3.28 billion in 1997, along with similar increases in imports. Increases in trade have also been apparent since the NAFTA took effect, with $4.46 billion of total Canada-Georgia trade in 1994 increasing to $6.88 billion in 1997. Even in the most recent one-year period from 1996 to 1997, two-way trade jumped 22 percent.

Forestry Products

Canada's leading exports to Georgia are forestry products. In 1997, Canada supplied Georgia with $825 million in forest products, which included $481 million in softwood lumber and $93 million worth of pulp. Forest products represented over 25 percent of Canada's sales to Georgia in 1997.

Transportation Equipment

The single largest sector of two-way trade between Canada and Georgia is transportation equipment. In 1997, Georgia sold Canada $1.15 billion worth of transportation equipment, including $208 million worth of engines and other motor vehicle parts, and $783 million worth of automobiles. This was Georgia's biggest export sector, accounting for a third of the state's total sales to Canada. In turn, Canada sold Georgia $472 million worth of transportation equipment in 1997, including $226 million worth of motor vehicle engines and other parts, and $118 million worth of aircraft. This was just over 14 percent of Canada's total exports to Georgia.

Other Notable Areas of Trade

Canada sold Georgia $367 million in equipment and tools, which was over 11 percent of Canada's total exports to Georgia. This included $77 million worth of electrical lighting and distribution equipment.

Canada sold $263 million in machinery to Georgia, while Georgia supplied Canada with $240 million worth of machinery, including $28 million worth of wheel tractors.

Georgia sold Canada $255 million worth of chemicals and allied products, including $48 million worth of unshaped plastic materials.

Canadians Go South -- and Georgians Go North

Tourism adds millions to the trade between Georgia and Canada. In 1996, 373 000 Canadians visited Georgia for one night or more and spent nearly $108 million, while 134 000 residents of Georgia spent almost $100 million in Canada.

Canadian Exports Canadian Imports

Year to Georgia from Georgia Total

1989 $1.33 billion $1.43 billion $2.76 billion

(FTA)

1994 $2.23 billion $2.23 billion $4.46 billion

(NAFTA)

1997 $3.28 billion $3.60 billion $6.88 billion

All figures are in Canadian dollars.