NEWS RELEASESNovember 3, 1998 (4:00 p.m. EST) No. 253 MARCHI ANNOUNCES EDC LEGISLATIVE REVIEW 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. The review comes five years after the most recent amendments to the Act which governs the activities of EDC (Export Development Corporation). "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." 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. 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: Halifax November 19 Winnipeg November 23 Calgary November 24-25 Vancouver November 26-27 Montreal November 30-December 1 Toronto December 7-8 Ottawa December 14-15 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). - 30 - 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 THE EXPORT DEVELOPMENT ACT AND THE EXPORT DEVELOPMENT CORPORATION 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. 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. 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. 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. 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. The contractor will engage in stakeholder consultations and will conduct focus groups during November and December. The deadline for written submissions is December 21. 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. 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. November 1998 |