REPORT

REPORT TO: Chair and Members of The Corporate Affairs Committee

REPORT FROM: Mayor Rick Bonnette

DATE: January 8, 2016

REPORT NO.: ADMIN-2016-0005

RE: A Delegation to People‟s Government of Chengdu City of China

RECOMMENDATION: THAT REPORT ADMIN-2016-0005 regarding a delegation to The People‟s Government of Chengdu City be received; AND FURTHER THAT Council direct the Mayor and staff to move forward and organize a trade mission to Chengdu; AND FURTHER THAT the Mayor and staff look into alternate ways to raise funding to assist with financing the trade mission to Chengdu; AND FURTHER THAT the Mayor and staff report back to Council on the outcomes of the trade mission upon their return; AND FURTHER THAT Council formally acknowledge the City of Chengdu‟s request for a City/Town Twinning and respectfully request time to further consider this relationship subject to the trade mission(s) outcomes.

BACKGROUND: In September 2015, I participated in the second official Mayor‟s delegation and Trade Mission to China. This 10 day mission was organized by the Canada China Investment Association (CCIA). The goal of the Trade Mission was to further develop relationships between China and Canada and to enhance economic and tourism trade exchanges between the two nations.

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The 2015 Mission focused on specific trade sectors which included agriculture, natural resources, education, cultural exchange, manufacturing and transportation. As a result of this trade mission, relationships were established in many Chinese cities. Since returning, the Town of Halton Hills has been honoured to host two delegations from China with the first being on October 19, 2015 with delegates from Changning County of China and then Chengdu City, China. (maps of both Changning County attached as Appendix “A” and Chengdu City as Appendix “B”) On November 19, 2015, the Town of Halton Hills hosted a delegation from The People‟s Government of Chengdu City of China. During this delegation Ms. Tian Rong, Vice Mayor of Chengdu City invited me to lead a delegation to visit Chengdu City and to consider entering into a formal City/Town Twinning partnership. A formal letter of invitation from Vice Mayor Tian Rong is attached at Appendix “D”.

COMMENTS: The purpose of this report is to identify the benefits associated with trade missions and to outline the general characteristics of “City/Town Twinning” relationships. As identified in the background section of this report, Vice Mayor Tian Rong‟s requests to the Mayor and Council are two distinct considerations. The first being an invitation to visit Chengdu City in the form of a trade mission, while the second is for Council to consider a City/Town Twinning partnership. Given that these considerations are mutually exclusive, the report will discuss both requests separately, i.e. Council can consider one without entertaining the other.

Economic Benefits of Trade Missions Council would benefit from collaboration with international high ranking elected officials, as well as the opportunity to meet other firms in the same sectors. It‟s also anticipated that it could create synergies through market-sharing and valuable networking. The potential fostering of relationships with executive international decision-makers would allow the Town to highlight the opportunities for foreign direct investment in our Premier Gateway. To ensure a maximum benefit, a relationship with Chengdu would align with our existing economic development priorities. A trade mission supports Economic Development Strategy Goal 4: “to establish Halton Hills as a competitive location for new business investment”; and Goal 6: “to create a healthy, vibrant, connected community”. An endevour such as this could also lead to untapped opportunities for our municipally-owned utility. It could create opportunities that support our local businesses interested in investment and business opportunities by facilitating access to each other‟s markets.

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This could encourage business links between the Chambers of Commerce of the two communities. The trade mission‟s initial focus would be business growth and co-operation in agricultural production, food processing and environmental technologies and policies. It would also foster and encourage tourism links between our respective areas involving joint tourism and development agencies wherever possible. The Town‟s delegation would consist of the Mayor, CAO, select Members of Council and staff from Economic Development and Sustainability. A trade mission involving the Town‟s politicians and staff would enable representatives of our local business community to access Chinese markets. In addition, Chengdu is home to more than 40 universities specializing in areas of agriculture, digital media, science & technology, medicine which could allow the Town to work with local schools to implement a potential student exchange program. We can also further promote Toronto Premium Outlets™ as a tourism destination bringing additional visitors to the Town of Halton Hills annually. Chengdu City has a population of more than 14 million residents and is the fifth most populous city in China. The city is one of the most important economic, financial, commercial, cultural, transportation and communication centres in western China. Chengdu has become a popular city for investment with more than 260 Fortune 500 companies having branches in the city. Its GDP growth rate was more than five percentage points higher than the national rate of growth, which stood at 7.8 percent last year. Economic growth, job creation and increased tourism opportunities could be a direct outcome of the partnership. Chengdu City, like the Town of Halton Hills, is rich in history, culture and agriculture. Chengdu Region was inhabited over 4000 years ago and even then was an important area of unique culture. Chengdu prides itself in local tourism and is home to the Giant Panda Breeding Centre which attracts over 100,000 visitors annually. They are leaders in terms of rural tourism claiming to have first practiced a business model of converting their homes into restaurants and bed in breakfasts to attract city dwellers into the rural communities. Festivals are also a large part of their local culture and they are host to a number of festivals which celebrate their traditional customs and cultural heritage and showcase their local food. Chengdu has rich agricultural lands and produces very high quality products as a result. We could foster partnerships by establishing relationships between businesses and respective chambers of commerce and economic development departments. This could create cohesive, comprehensive shared growth and expanded opportunities between the two markets. An international partnership with Chengdu City would also directly complement Councillor Clark Somerville’s role as First Vice President of the Federation of Municipalities furthering our presence at the international stage.

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FCM has a number of international development programs. there is multiple value to FCM and participating municipalities in these programs including:

Improve municipal services by learning new methods and best practices from municipal experts from across the globe

Enhance municipal staff skills by increasing the capacity of team to work in new, innovative and emerging economic ventures while strengthening intercultural communication and project management skills

Builds the Town's reputation and puts the Halton Hills community on the map by contributing to the development of effective, sustainable services in other countries

Find new trade linkages by discovering new opportunities for the Town's businesses and institutions at the global level

osters community engagement and pride by developing new friendships, which strengthens civic engagement and increases cultural understanding .

These are the objectives that drive CM‟S involvement in international development and they are consistent with the Town's objectives. With Councillor Somerville as President of FCM in 2016 there will be additional synergies, shared objectives and opportunities to enhance the engagement and development of a relationship with Chengdu.

Sustainability Benefits of Trade Missions The Town's leadership in sustainability was of particular importance and interest to the Chengdu City officials. The delegation was especially interested in the variety of actions Halton Hills has taken on environmental protection, sustainable development and stormwater management. These efforts are captured in the Town's Green Development Standards, Mayor's Community Energy Plan, Community Sustainability Strategy, stormwater management policies and the upcoming Climate Change Adaptation Plan. The delegation's recognition of the Town's leadership in sustainability underscores its sustainability achievements at the local, regional, provincial, national and international levels Leveraging sustainability, a trade mission to the City of Chengdu followed by a City/Town Twinning partnership, has the potential to:

Showcase the Town's leadership on the international stage, thereby elevating awareness of the Town across global markets

Open access to the rapidly growing Asian market in business sectors of particular interest to Halton Hills, including energy generation, renewable energy, energy efficiency and sustainable development

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Fast track the exchange of knowledge, capacity and technology related to tackling climate change, greenhouse gas emissions, renewable energy and air quality. This is especially relevant and timely given the Halton Hills Mayor's Community Energy Plan, the approval of the recent global climate change agreement in Paris and anticipated federal and provincial climate change objectives

Establish connections with Chinese businesses that may invest in Halton Hills, especially in the fields of renewable energy and energy generation, considering that China is a major global investor in renewables

Share innovation in fast tracking a shift to a green economy, providing Halton Hills with a competitive advantage in this rapidly growing sector of the global economy, and

Provide opportunities for Halton Hills to share insights with Chengdu on effective sustainability governance and community engagement models.

City/Town Twinning Partnership

It would benefit the Town of Hills to directly focus on the Economic Development and Tourism Development partnerships that a City/Town Twinning Agreement with the Chengdu City of China would enhance. City/Town Twinning partnerships encourage international trade and tourism and can be used to form international business links between the two communities. If Council were to proceed with a City/Town Twinning partnership they would be one of 28 City/Town Sister Cities to Chengdu City. Entering into a formal partnership with Chengdu City would greatly benefit the Town of Halton Hills and open Cultural, Economic and Tourism opportunities that are not currently in place. We could leverage this relationship to increase tourism promotion to the Town as well as promote the development opportunities that exist in the Premier Gateway. Other Halton communities have successfully forged twinning agreements. The Town of Oakville has three Twinning partnerships with the first being established in 1957 with Dorval, Quebec, and a second in 1984 with Neyagawa, Japan. In June 2015, the Town of Oakville entered into a Twinning Agreement with Huai‟an China. A copy of their Letter of Intent and their Agreement are attached as Appendix “C”. Oakville‟s twinning relationships were initiated to promote understanding, cooperation, friendship and economic development opportunities. They participate in a number of exchange programs with their sister cities such as:

Citizen exchanges

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Student/teacher exchanges

Service Club exchanges

Sports Organization exchanges

Artwork exchanges

Economic Development

Tourism Development Burlington also has formal relationships with Itabashi, Japan, having entered into a twinning agreement with them in 1989 and then more recently with Apeldoorn, Netherlands in 2005. Since Burlington entered into these twinning partnerships, relations between the cities have flourished. To commemorate their relationships the City of Burlington named a road “Itabashi Way” and Itabashi donated the Itabashi Bridge to the City. There have been many exchanges between Itabashi and Burlington. Itabashi donated the „ riendship ireworks” at a cost of $250,000 to the residents of Burlington. Burlington and Apeldoorn, Netherlands have exchanged original pieces of art to commemorate their relationships.

RELATIONSHIP TO STRATEGIC PLAN: These recommendations directly support the Strategic Plan:

Foster a Prosperous Economy GOAL - To maintain and enhance the economic vitality of the Town through the provision of a wide range of opportunities for economic development. C.10 To promote opportunities for tourism that are linked to the Town‟s natural and cultural heritage and countryside character. C.11 To pursue partnerships across the Town‟s public and private sectors that enhance the community‟s economic wellbeing.

FINANCIAL IMPACT: Staff will look into alternate forms of funding a trade mission if Council supports the report.

COMMUNICATIONS IMPACT: None

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SUSTAINABILITY IMPLICATIONS: The Town is committed to implementing our Community Sustainability Strategy, Imagine Halton Hills. Doing so will lead to a higher quality of life. The relationship between this report and the Strategy is summarized below: Do the report‟s recommendations advance the Strategy‟s implementation? Yes Which pillar(s) of sustainability does this report support? Cultural Vibrancy and Economic Prosperity

In summary, the Sustainability Implications of this report are as follows: The trade mission and City/Town Twinning partnership would advance Halton Hills' Economic Prosperity and Environmental Health focus areas and wellbeing as described in the Community Sustainability Strategy and earlier in this report. Overall, the alignment of this report with the Community Sustainability Strategy is: Very Good

CONSULTATION: Staff from the Town of Oakville and the City of Burlington were consulted to discuss the process of entering into a twinning agreement as well as to discuss some of the tangible benefits they have experienced as a result of their relationships with their respective international cities.

CONCLUSION: A trade mission to Chengdu City would initiate a partnership and be the beginning of fostering a relationship that could increase opportunities that could significantly benefit the Town’s Economic Development and Tourism & Cultural Development portfolios. Chengdu City officials could directly benefit from learning about our development processes, tourism initiatives from a rural community perspective, and sustainability leadership. Our Green Development Standards go beyond minimum Building Code requirements and has led to energy efficiencies and lower greenhouse gas emissions. Our standards for environmental and waste water treatment are initiatives that the Town excels in and sharing these success stories can benefit Chengdu City. This partnership could provide the Town of Halton Hills with a competitive advantage and provide the Town with a very valuable international platform.

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The trade delegation and City/Sister Twining are unique opportunities that could provide great benefits to our community and builds on our reputation as a community that thinks beyond our borders. Respectfully submitted,

Rick Bonnette

Mayor, Town of Halton Hills

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