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<html> <head> <meta name="Generator" content="Corel WordPerfect 8"> <title>GOVERNMENT OF CANADA TABLES LEGISLATION TO UPDATE CANADIAN COMMERCIAL CORPORATION ACT</title> </head> <body text="#000000" link="#0000ff" vlink="#551a8b" alink="#ff0000" bgcolor="#c0c0c0"> November 7, 2001 (3:25 p.m. EST) No. 151 GOVERNMENT OF CANADA TABLES LEGISLATION TO UPDATE CANADIAN COMMERCIAL CORPORATION ACT International Trade Minister Pierre Pettigrew today tabled in the House of Commons amendments to the Canadian Commercial Corporation (CCC) Act. These amendments will help the CCC become more commercially oriented and better equipped to respond to the needs of exporters and the changing competitive realities of international markets. The changes will allow the CCC to borrow funds in commercial markets as well as to charge an appropriate fee for services rendered to Canadian exporters. The position of Chair of the Board of Directors and President of the CCC will be separated in keeping with the government's guidelines for the management of Crown corporations. "These amendments will bring the Canadian Commercial Corporation's legislation up to date with current business practices and will give the Corporation the tools to become more self-sufficient and commercially oriented," said Minister Pettigrew. "The CCC provides valuable services to Canadian exporters by helping them access international government procurement markets worth US$5.3 trillion annually." Although most of its work is in the aerospace and defence markets, the CCC also helps Canadian companies to sell to buyers in important technology-based industrial sectors such as geomatics, transportation and information and environmental technology. Established as a Crown corporation in 1946, the CCC is responsible for the Canada-U.S. Defence Production Sharing Arrangement of 1956 which governs the procurement of products and services in Canada on behalf of the United States Department of Defense. The CCC has also developed expertise in helping Canadian exporters secure contracts in public procurement markets around the world. Over the years, the CCC has facilitated over $30 billion in contracts in more than 100 countries on behalf of Canadian companies, particularly small and medium-sized enterprises. - 30 - Backgrounders are attached. For further information, media representatives may contact: Sébastien Théberge Office of the Minister for International Trade (613) 992-7332 Media Relations Office Department of Foreign Affairs and International Trade (613) 995-1874 Backgrounder AMENDMENTS TO THE CANADIAN COMMERCIAL CORPORATION ACT On November 7, 2001, the Government of Canada tabled in the House of Commons amendments to the Canadian Commercial Corporation (CCC) Act. The following is a summary of those amendments. 1. Authorizing the CCC to borrow in commercial markets • Impact: This amendment will help the CCC to address short-term cash flow pressures. • Rationale: The CCC aims to pay Canadian suppliers for products and services rendered within 30 days or less. This is particularly helpful to small and medium-sized enterprises whose business cannot withstand extended payment delays. The CCC's commitment to timely payment to Canadian exporters can cause a liquidity problem when foreign buyer payments to the CCC are delayed beyond the 30-day payment period. Commercial borrowing authority will address this problem. 2. Permitting the CCC to charge an appropriate fee for services rendered on its non-Defence Production Sharing Arrangement business • Impact: This amendment will help the CCC to become more self-sufficient and commercially oriented. Fee revenue will help reduce the Corporation's dependency on public funds. • Rationale: The CCC needs an enhanced revenue stream in order to help defray the cost of delivering its valued-added services to Canadian exporters. 3. Separating the positions of Chair of the Board of Directors and President of the CCC • Impact: This amendment will establish a position and responsibilities for the Chair of the Board of Directors, separate from those of the President of the Corporation. • Rationale: The CCC's corporate governance structure needs to be brought into line with Treasury Board guidelines and other Crown corporations. Backgrounder CANADIAN COMMERCIAL CORPORATION: CORPORATE PROFILE The Canadian Commercial Corporation (CCC) was established as a federal Crown corporation in 1946. Its first mandate was to facilitate the export of Canadian goods and services to support the reconstruction of Europe following World War II. In 1956, with the signing of the Canada-U.S. Defence Production Sharing Arrangement (DPSA), the CCC became Canada's official contracting instrument for the supply of goods and services to the United States Department of Defense (DoD). Today, the DPSA accounts for approximately 60 percent of the CCC's business. The Corporation has, however, broadened its activities and is actively conducting business in 30 other countries around the world. The CCC is an export contracting agency. Its governmental status enables it to structure commercial sales and to facilitate Canadian export transactions with government agencies in many countries around the world. The CCC's contract facilitation services often complement the export financing services provided by Canada's Export Development Corporation. The CCC can act as both principal or agent on behalf of Canadian exporters. The Corporation provides buyers and sellers with a single point of contact for both multi-item purchases and multi-supplier offerings. In addition, the CCC provides a unique government-backed guarantee of contract performance on behalf of Canadian exporters. This guarantee assures foreign buyers that Canadian suppliers are capable of meeting bid specifications, contract terms and supplier warrantees. It also gives Canadian small and medium-sized enterprises (SMEs) more credibility, helping them win contracts on improved terms in difficult markets. The CCC is key to delivering on Canada's obligations under the 1956 DPSA with the U.S. It serves as a government-to-government contracting agency in support of the procurement needs of the U.S. DoD. The procurement regulations of the DoD specify that all defence purchases from Canada above US$100 000 must be transacted through the CCC. Under the DPSA, the CCC maintains special access for Canadian companies to the enormous and highly protected U.S. aerospace and defence markets. In addition, in cooperation with Canadian banks and financial institutions, through its Progress Payment Program (PPP), the CCC helps Canadian SMEs access vital pre-shipment working capital. Since 1995, the PPP has helped many small Canadian exporters gain access to commercial sources of trade financing resulting in sales of over $300 million. The CCC is headquartered in Ottawa and has regional representatives in major centres across the country. Additional documents are available on the Internet: Frequently Asked Questions on the Canadian Commercial Corporation Legislative Amendments: <a href="https://bac-lac.wayback.archive-it.org/web/20071123065800/http://www.dfait-maeci.gc.ca/news/CCC_FAQs-ENG.htm">http://www.dfait-maeci.gc.ca/news/CCC_FAQs-ENG.htm</a> Canadian Commercial Corporation: <a href="https://bac-lac.wayback.archive-it.org/web/20071123065800/http://www.ccc.ca/">http://www.ccc.ca</a> </body> </html>

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