December 16, 1998 (12:45 p.m. EST) No. 294

MARCHI TO LEAD TRADE MISSION TO THE MIDDLE EAST

International Trade Minister Sergio Marchi will lead a trade mission to the Middle East from February 22 to 28. The visit will include stops in Saudi Arabia, the United Arab Emirates, the West Bank and Israel, and will highlight a range of sectors, including information technology, telecommunications, education, agri-food, engineering and construction.

"These four markets together accounted for more than $1 billion of Canadian exports in 1997," said Mr. Marchi. "I welcome this opportunity to support Canadian companies active in the region and help them gain a competitive edge."

In Riyadh, Minister Marchi will participate in the ninth session of the Canada-Saudi Joint Economic Commission and meet with a number of Saudi government officials. In the United Arab Emirates, he will open the new Canadian Embassy building in Abu Dhabi. On his first visit to the West Bank, Minister Marchi will officially open the Canadian Representative Office in Ramallah.

Mr. Marchi will also review the two-year-old Canada-Israel Free Trade Agreement (CIFTA) and explore ways to further improve trade with Israel. Under the CIFTA, two-way trade has increased more than 34 percent, with exports to Israel surpassing $243 million in 1997.

In 1997, Canadian exports to Saudi Arabia reached over $545 million, and over $257 million to the United Arab Emirates, a four-fold increase since 1992.

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A backgrounder is attached.

For further information, media representatives may contact:

Leslie Swartman Media Relations Office

Office of the Minister for Department of Foreign Affairs and

International Trade InternationalTrade

(613) 992-7332 (613) 995-1874

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

Backgrounder

TRADE FACTS -- MIDDLE EAST

The Middle East region offers growing opportunities for Canadian companies.

Canada's 1997 merchandise exports to the Middle East were more than $1.3 billion, while imports from the region totalled approximately $1 billion. The region has a great demand for Canadian high-technology products.

In 1997, Canadian exports to Saudi Arabia reached $545.6 million, with two-way trade nearing $1.2 billion. Exports to the United Arab Emirates totalled $257.6 million in 1997, a four-fold increase since 1992. Two-way trade with Israel is roughly balanced, with Canadian exports reaching $243.4 million in 1997 and imports totalling $311.7 million that same year. Canada is a significant importer of Middle East oil and commodities, as well as manufactured goods mainly from Israel.

Priority sectors in the Middle East offering the greatest opportunities for Canadian exporters include: telecommunications, environmental technologies, agri-food, engineering and construction, oil and gas, and power generation and transmission. Opportunities also exist in the education and training sector.

Service exports form a significant portion of Canadian exports to the Middle East; as a rule of thumb, they represent approximately 70 percent of the value of total merchandise exports. Consulting and engineering services in the oil and gas, power generation, and telecommunications sectors traditionally make up most of these exports. Canada also exports manufactured goods and advanced-technology goods and services.

New exports of services are taking place in diverse sectors such as environmental technologies, dairy genetics and livestock management, architecture, education and training, geomatics, telecommunications, government services and procurement, transportation, and finance.

Israel and the West Bank/Gaza Strip are increasingly targeted by Canadian companies familiar with the region and aware of the significant opportunities existing there for Canadian construction, energy, and telecommunications products and services. The Canada-Israel Free Trade Agreement, signed in January 1997, also serves as a catalyst to boost our exports into the region.

Investment opportunities for Canadian companies exist as well in the region's tourism, infrastructure, oil and gas, and mining sectors.