THINK CANADAFebruary 2012

2

Table of Contents

Page

I Excellent Economic Fundamentals 3II A Cost-Competitive Business Environment 12III A Dynamic Workforce 27IV A Solid Infrastructure 35V Easy Access to Markets 41

VI An Excellent Place to Live 46

I Excellent Economic Fundamentals

3

Canada has a Relatively Strong Economy Despite the Global Slowdown

Consensus EconomicsConsensus Economics

2012-13

According to Consensus Economics, Canada has been a top performer among the G-7 in GDP growth over the 2008-11 period and is expected to remain so through 2012-13.

Source: Consensus Forecasts, February 2012, Consensus Economics Inc.4

Real GDP Growth and Projections (%)

0.9

0.2

-0.6

0.1

-1.1

0.7

-0.8

2.22.4

1.2

0.5

-0.7

1.1

1.6

-2.0

-1.0

0.0

1.0

2.0

3.0

Canada

U.S.

U.K.

France

Italy

Germany

Japan

%

2008-11

5

Real GDP Growth and Projections (%)

0.8

0.2

-0.7

0.0

-1.0

0.6

-0.9

2.2 2.3

1.20.9

0.0

1.3

1.8

-2.0

-1.0

0.0

1.0

2.0

3.0

Canada

U.S.

U.K.

France

Italy

Germany

Japan

%

2008-11

2012-13

Similarly, recent OECD statistics rank Canada as a top performer among G-7 countries in terms of GDP growth from 2008-11 and during the 2012-13 forecast period.

Source: OECD Economic Outlook, No. 90, November 2011.

Other Forecasts also Highlight Canada’s Relatively Strong Economy

OECDConsensus Economics

66

Canada also has Superior Employment Growth….

• Strong economic growth and rising demand for Canadian commodities over the last decade, combined with provincial and federal policies to improve the flexibility and adaptability to the changing workplace, have helped generate healthy gains in employment.

Source: U.S. Bureau of Labour Statistics, OECD Economic Outlook, No.90, November 2011

Employment Growth (%) 2000-2010

0.11

0.57

0.62

0.62

0.76

1.45

-0.28Japan

U.S.

U.K.

Germany

France

Italy

Canada

7

Canada has enjoyed eleven consecutive annual federal budget surpluses ending in 2007-08; it has undertaken one of the largest stimulus packages among developed economies in the current global economic downturn.

Starting with Budget 2010, Canada chose to run short deficits to stimulate its economy without putting long-term prosperity at risk.

As a percentage of GDP, the budgetary deficit is projected to decline from 2.1% in 2010-11 to 0.2% in 2015-16. The savings targeted by the deficit reduction plan, which aims to produce at least $4 billion in ongoing annual budgetary savings by 2014-15 will allow the government to return to budgetary balance by 2015-16.

* Forecasts for both countriesSource Canada: Update of Economic and Fiscal Projections Finance Canada, November 8, 2011Source United States: United States Congressional Budget Office, January 31, 2012.

Federal Government Budgetary Balance(% of GDP)

-2.1 -1.8 -1.6-0.9

-0.4 -0.2

0.0

-8.7

-7.0

-3.7

-2.1-1.5 -1.6

-1.1

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2.0

2010-1

1

2011-1

2*

2012-1

3*

2013-1

4*

2014-1

5*

2015-1

6*

2016-1

7*

Canada U.S.

…a Sound Fiscal Advantage…

88

…Leading Most Other G-7 Countries…

• Despite posting a deficit of 5.6% of its GDP in 2010, Canada will still be in a better position than most G-7 countries during the 2011-2013 forecast period with an overall deficit of 4.0% of GDP.

Source: OECD Economic Outlook, No.90, November 2011

Total Government Budget Balance 2010-13 (% of GDP)

(National Accounts Basis)

-5.6

-4.5

-10.4

-4.3

-7.1

-10.7

-7.8

-4.0

-1.8

-8.5

-1.0

-4.4

-9.2 -9.1

-14.0

-12.0

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2.0

Cana

da

Italy

U.K.

Ger

man

y

Fran

ce

U.S.

Japa

n

2010

2011-13

9

• A low inflation environment provides business certainty for investors. Canada’s targeted inflation rate range between 1% and 3% has been extended until 2011. Over the past five years, Canada has enjoyed relatively low inflation –

averaging 1.7% compared to 2.2% for the U.S. and 1.7% for the G-7.Inflation

(Year-Over-Year % Change)

2.22.0 2.1

2.4

0.3

1.8

3.43.2

2.9

3.8

-0.3

1.61.9 2.0 1.9

3.0

0.3

1.5

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

2005 2006 2007 2008 2009 2010

Canada U.S. G-7

Source: OECD Economic Outlook, No. 90, November 2011

…a Low Inflation Rate Regime…

1010

…Low Interest Rates…

• Canada’s solid fiscal situation and low inflation has led to lower interest rates.• The sharp decline in interest rates in both Canada and the U.S. in early 2009 were

a consequence of the global economic downturn. Rates in the U.S. were lowered more than in Canada because of the greater severity of the slump in the U.S. economy.

Source Canada: Government of Canada 10-Year Bond: February 10, 2012Source U.S.: U.S. Treasury, Constant Maturity 10-Year Bond: February 10, 2012

Daily Yields (%)

1.6

1.8

2.0

2.2

2.4

2.6

Long-Term Bond Yields (%)

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

5.5

Jan-0

7Ja

n-08

Jan-0

9Ja

n-10

Jan-1

1Ja

n-12

Canada

U.S.

U.S.

Canada

11

…and Great Potential for Future Economic Prosperity

• According the Prosperity Potential Index*, Canada ranks 1st in the G-7 and 6th among 30 developed countries in terms of the likelihood for economic prosperity in the year 2020.

Prosperity Potential Index - Ranking of Top Ten Countries

10th9th

8th7th

6th5th

4th3rd

2nd1st

Ran

k

* The Prosperity Potential Index measures the likelihood of economic prosperity in the year 2020 for 30 developed countries. The ranking is based on data from the OECD on areas that spark future economic development: demographics, trade, energy, technology and education. Source: Canadian Business Magazine, October 26, 2009

12

II A Cost-Competitive Business Environment

13

Canada is Acclaimed for its Superior Business Climate by the EIU…

• Canada understands the importance of its business community and has created an environment to encourage its success.

• Canada is the best place for doing business among the G-7 over the next five years according to the Economist Intelligence Unit and it ranked fifth overall out of 82 countries in the Economist Intelligence Unit’s global business rankings for the forecast period (2012-16), down from fourth from the historical period (2007-2011).

• The country also ranks well for its infrastructure, market opportunities, low taxes, and foreign trade and exchange controls. Business Environment of Top Ten Countries,

Rank for Forecast Period 2012-2016

10th

9th

8th

7th

6th

5th

4th

3rd

2nd

1st

Ran

k

Source: The Economist Intelligence Unit, February 2012

1414

… and More Recently by Forbes

• Canada was ranked # 1in Forbes latest annual study on the Best Countries for Business, up from 4th place last year

• Canada ranked in the top ten in 7 of the 11 criteria used in the study, most notably personal freedom (1st); degree of red tape involved in starting a business (3rd); investor protection (5th) and low corruption (6th).

Top Ten Countries to Conduct Business in 2011

10th

9th

8th

7th

6th

5th

4th

3rd

2nd

1st

Ran

k

*Standing among 134 countries. Rankings based on the following eleven categories of quantitative and qualitative indicators: trade freedom, monetary freedom, property rights, innovation, technology, red tape, investor protection, corruption, personal freedom tax burden and market performance. Source: Forbes Publishing, October 2011

15

Canada is Considered a Safe Haven for Business Investment…

• According to Dun & Bradstreet’s Global Risk Indicator (GRI)*, Canada is considered one of the world’s safest countries to invest, due to the relatively mild slowdown experienced as a result of the global credit crisis.

• Despite being earmarked as having a deteriorating outlook, Canada ranks 1st in the G-7 and 2nd among the 131 countries evaluated in the GRI study.

Highest Ranked Countries in Terms of the Global Risk Indicator*

10th9th

8th7th

6th5th

4th3rd

2nd1st

Ran

k

• The Global Risk Indicator (GRI) assesses economic, commercial, external and political risk to provide risk ratings for 131 countries worldwide.

• Source: Dun & Bradstreet, August 2009

16

…Involving Relatively Few Steps in Establishing a Business..…

• Regulations pertaining to the creation of new businesses are considerably more flexible in Canada than those in the rest of the G-7.

• Canada ranks first among the G-7 and OECD countries for the lowest number of procedures required to establish a new business.

Number of Procedures*

1

5

6

8

9

5.0

66

0123456789

10

Canada France OECDAverage

U.S. Italy U.K. Japan Germany

Source: Doing Business in 2012 - The World Bank Group, 2011 * A "procedure" is defined as any interaction of the company founder with external parties (government agencies, lawyers, auditors, notaries, etc). Interactions between company founders or company officers and employees are not considered as separate procedures. For example, an inauguration meeting where shareholders elect the directors and secretary of the company is not considered a procedure, as there are no outside parties involved.

17

…and Relatively Less Time

• Canada ranks first among the G-7 for the fewest number of days required for establishing a new business.

Duration (days)

56 6

7

13 13

15

23

0

5

10

15

20

25

Canada U.S. Italy France U.K. OECDAverage

Germany Japan

Source: Doing Business in 2012- The World Bank Group, 2011

18

Canada also has Low Business Costs…

• For the eighth consecutive time, KPMG’s Competitive Alternatives study finds Canada leads the G-7 with the lowest business costs.

• Canada is the lowest-cost G-7 country in 14 of the 17 industries analyzed by KPMG’s Competitive Alternatives 2010 report: aerospace, agri-food, automotive, chemicals, electronics, medical devices, pharmaceuticals, precision manufacturing, telecommunications, back office/call centres, software design, web and multimedia, biotechnology and product testing.

Source: KPMG Competitive Alternatives 2010

Percentage Cost Advantage (Disadvantage) Relative to the United States

5.0

1.8 1.7

0.0 0.0

-2.6

-7.6

-10

-8

-6

-4

-2

0

2

4

6

Cana

da

U.K.

Fran

ce

Italy

U.S.

Germ

any

Japa

n

19

…and Offers an Overall Tax Advantage forFirms to Expand..…

International Comparison of Statutory General Corporate Tax Rates in 2012

39.237.9

34.4

30.2

27.526.0 25.0

10

15

20

25

30

35

40

45

U.S. Japan France Germany Italy Canada U.K.

% As a result of corporate income tax reductions introduced by the Government since

2006, Canada has the second lowest statutory corporate tax rate in the G-7 as of 2012. Canada’s overall tax rate on new business investment is substantially lower than all G-7

countries.

Source: Finance Canada, January 2012

20

…with Quality R&D as its Major Benefit

Relative Generosity of

R&D Tax Incentives*(Index: Canada = 100.0)

76.1

77.0

80.6

84.0

85.9

100.0

123.9

50 60 70 80 90 100 110 120 130

Germany

Italy

U.S.

U.K.

Japan

Canada

France

• Canada offers one of the most favorable tax treatments for R&D among the G-7. Canada provides a system

of tax credits and accelerated tax deductions for a wide-variety of R&D expenditures.

Eligible costs include: salaries, overhead, capital equipment, and materials.

• These tax-based incentives permit firms to significantly reduce R&D costs through direct investment or sub-contracting in Canada.

Source: Warda, Jacek, Rating Measuring Canada's R&D Tax Incentives: May 22, 2009. Data unchanged as of January 2012.Note: Relative generosity is determined by dividing the after tax cost of performing $1.00 of R&D by 1 less the corporate tax rate. Results are indexed to the relative generosity of Canada's system of tax-based support for R&D. The higher the ratio the more competitive the tax system.* Calculations based on large firms

21

Canada has Sound Financial Institutions…

• With the world in the midst of the current financial crisis, investors can take comfort in the fact that Canada has the soundest banking system in the G-7.

• Six of the 50 safest banks are in Canada, according to a recent study: Royal Bank of Canada (11th), Toronto Dominion Bank (13th), Scotiabank (18th), Caisse Centrale Desjardins (20th), Bank of Montreal (30th) and CIBC (31st).**

Soundness of Banks* World Rank

10th9th

8th7th

6th5th

4th3rd

2nd1st

Canad

a

South

Africa

Panam

a

Austra

lia

Singap

ore Chile

New Zea

land

Finland

Leba

non

Hong K

ong

Ran

k

*Standing among 142 countries. Ranking based on the degree of soundness of financial institutions. Source: Global Competitiveness Report, 2011-2012** Standing among 500 world banks based on total assets and long-term credit ratings. Source: Global Finance Magazine, August 2011

22

…and Easy Access to Capital

Canada was able to weather the storm as world credit markets collapsed in 2008 due to the stability of its equity markets and strength of its economic policy. In 2009, the Milken Institute ranked Canada 1st in its Capital Access Index.

*Standing among 122 countries. Milken Institute, April 2010

Capital Access Index (Maximum = 10)Top 10 Regions/Countries 2009

8.25

7.99 7.95 7.92 7.88

7.68

7.54 7.52 7.49 7.47

7

7.5

8

8.5

Canad

a

Hong K

ong

U.K.

Singap

ore U.S.

Switzerla

nd

Sweden

Austral

ia

Netherl

ands

Finland

23

Canada Offers Competitive and Affordable Business Telephone

Charges…• Canada’s business telephone charges are the lowest among G-7 countries.

Source: OECD Communications Outlook 2011

Monthly Business* Telephone Charges(US$ PPP**)

134.4

118.4

106.2

87.4

62.3

55.9

49.3

0 20 40 60 80 100 120 140

Japan

U.K.

Italy

France

U.S.

Germany

Canada

* Business basket of telephone charges include fixed access and 260 calls broken down according to distance, destination (fixed, mobile and international), time of day over a one-month period. **PPP = Purchasing Power Parity (equalization of purchasing power of different countries in their home countries for a given basket of goods)

24

…and Low Residential Telephone Charges

• Canada has the lowest residential telephone charges among the G-7 and OECD countries.

Monthly Residential* Telephone Charges(US$ PPP)

125.1

77.9

73.1

65.1

61.2

56.5

53.7

0 20 40 60 80 100 120 140

Japan

Italy

U.S.

U.K.

France

Germany

Canada

Source: OECD Communications Outlook 2011

* High usage basket of residential telephone charges include fixed access and 420 calls broken down according to distance, destination (fixed, mobile and international), time of day over a one-month period.** PPP = Purchasing Power Parity (equalization of purchasing power of different countries in their home countries for a given basket of goods)

25

Canada Stands Among Leaders in IT

Industry Competitiveness…• Canada ranks third behind the U.S. and the U.K. among the G-7 and seventh in a

66-country review of the countries best suited to provide an optimally competitive environment for information technology (IT) firms.

*Standing among 66 countries. Index based on the following six categories of quantitative and qualitative indicators: overall business environment; IT infrastructure; human capital; legal environment; R&D environment; and support for IT industry development. Source: Economist Intelligence Unit, September 2011

IT Industry Competitiveness Index* World Rank

10th9th

8th7th

6th5th

4th3rd

2nd1st

Ran

k

26

…and Consumer Internet Activity

Canada’s internet activity was ranked second in the G-7 and third globally in 2010 and is forecast to remain among the top to 2015.

Consumer Internet Traffic per CapitaTop 10 Countries (Gigabyte per month per person)

1.5

1.9

4.9

3.7

7.6

9.0

9.5

8.0

9.9

33.7

13.3

16.9

21.9

22.1

31.6

32.8

33.5

40.3

40.4

113.9

0 20 40 60 80 100 120

New Zealand

Australia

Japan

Italy

Germany

U.S.

Canada

U.K.

France

S.Korea

2010 2015

Source: CISCO Visual Networking Index IP Forecast, Cisco Systems Inc., June 2011

2727

III A Dynamic Workforce

28

Canada has one of the World’s Best

Educated Workforces…• The overall skill level of Canada’s workforce ranks high among competing

countries.

• Canada has the highest percentage of individuals achieving at least college or university education, among OECD member countries.

• Four Canadian universities are ranked among the top 100 in the world according to the UK-based Quacquarelli Symonds (QS) World University rankings for 2011: McGill University 17th; University of Toronto 23rd; University of British Columbia (UBC) 51st; and University of Alberta 100th.

Percentage of Individuals Aged 25-64 Having Attained Post-Secondary Education - Top 10 OECD Countries

50.0

45.0 44.041.0 40.0 39.0

37.0 37.0 37.0 37.0

0

10

20

30

40

50

60

%

Source: OECD, Education at a Glance 2011

29

…is a World Leader in Youth Academic Performance…

• Canadian schoolchildren ranked third among the 34 OECD countries and fifth among all 65 countries surveyed in the OECD Program for International Student Assessment (PISA).

• The PISA survey is conducted annually among 470,000 school pupils across 65 countries, and evaluates the capacity of 15-year old schoolchildren to understand and solve academic problems.

• It also provides insights into the reading ability and mathematical knowledge of schoolchildren.

PISA Score (points) - Top 10 OECD Countries

539 536

524 521 520515

508 506 503 501493

450

500

550

South

Korea

Finland

Canad

a

New Zea

land

Japa

n

Austra

lia

Netherla

nds

Belgium

Norway

Switzerla

nd

OECD averag

e

Source: OECD 2010

30

…and Manufacturing Sector InnovativePerformance

Canada ranked 3rd in the G-7 and 14th in a 110-country study measuring innovation performance in the manufacturing sector.

Canada stood in the top tier, ranking ahead of traditionally strong innovators such as Britain (15th), Israel (16th), Germany (19th), France (20th) and Australia (22nd).

International Innovation Index* World Rank

38th

20th19th

15th14th

9th8th

U.S. Japan Canada U.K. Germany France Italy

Inde

x

*Standing among 110 countries. Index based on government support for innovation - through tax and education policies, and the quality of infrastructure; the performance of innovative companies, measured by factors such as high-tech exports, the amount of intellectual property generated and employment growth. Source: The Innovation Imperative in Manufacturing – How the United States Can Restore its Edge, Boston Consulting Group, March 2009

31

Canada has Superior Management Training…

Five Canadian schools of management are ranked among the top 100 in the world according to the Financial Times (UK) Global MBA rankings for 2011. University of Toronto (Rotman) 46th; Western University (Ivey) 47th; York University in Toronto (Schulich) 51st; McGill University (Desautels) 57th and University of British Columbia (Sauder) 80th.

In addition, Canada ranked second in the G-7 in a study measuring the extent to which management education meets the needs of the business community. (see chart below)

Management Education Quality Index*

7.46 7.37

6.83

6.155.91

5.124.94

4.0

4.5

5.0

5.5

6.0

6.5

7.0

7.5

8.0

USA Canada Germany France U.K. Italy Japan

Ind

ex

Source: IMD, * Rank among 59 economies considered in the World Competitiveness Yearbook 2011.

32

…nearly the Highest Concentration of Entrepreneurs…

• From a global standpoint, Canada has the 2nd highest concentration of entrepreneurs within its working population.

• Businesses, including start-ups, develop new products and services and get them to market and conceive new types of organization and production and put them into practice.

• New companies also serve to remind existing firms of the need to adapt and continue innovating.

Source: Statistics Netherlands 2011

Number of Entrepreneurs as a Percentage of the Working Population

12.1 12.011.6 11.4 11.1

9.8 9.78.9 8.8 8.7

7.0

5

10

15

Netherla

nds

Canad

aIre

land

U.K.

Belgium U.S.

German

y

Austria

Finland

Sweden

Denmark

33

…PC and Internet Users…

• Canada has a technology savvy population and workforce. It leads the G-7 with respect to Internet users per capita and is second to the U.S. among the G-7 in terms of personal computers per capita.

Source: IMD, World Competitiveness Yearbook 2011

Internet Users Per 1,000 Inhabitants

831 827820

797

769

734 731

700

750

800

850

Canad

aJa

pan

U.S.U.K.

German

y

France Ita

ly

Personal Computers Per 1,000 Inhabitants

928

886

847829

802

741

718

650

700

750

800

850

900

950

U.S.

Canad

aU.K.

German

y

France

Japa

n Italy

34

…and a Readily Available Army of QualifiedEngineers

Canada ranks first in the G-7 in terms of the availability of qualified engineers in its labour market.

Source: IMD, * Rank among 59 economies considered in the World Competitiveness Yearbook 2011.

Qualified Engineers Availability Index*

7.987.87 7.81

7.62

7.12

6.95

6.41

6.0

6.5

7.0

7.5

8.0

Canada Japan U.S. France Italy U.K. Germany

Inde

x

35

IV A Solid Infrastructure

36

Canada’s Highly Globalized Infrastructure…

• Due to its rapidly growing prominence as an outsourcing market of choice, Canada ranked second in the G-7 and thirteenth among 208 countries profiled in the recent KOF Index of Globalization* which measures the economic, social and political dimensions of globalization.

KOF Globalization Index Rankings, 2011*

44th

27th23rd

21st

16th13th

7th

France Canada Germany U.K. Italy U.S. Japan

Ran

k

Source: KOF Swiss Economic Institute, Swiss Federal Institute of Technology, Zurich, 2011 * Standing based on 5 sub-indices: actual economic flows, economic restrictions, information flows, personal contact and cultural proximity under the economic, social and political dimensions of globalization.

37

…is Driven by a Dynamic Two-Way Investment Process…

Over the past decade, Canada has witnessed a substantial growth in both inward and outward FDI reflecting its strong connection to global supply chains.

Canada’s inward FDI stock reached C$562 billion in 2010, an almost 2-fold increase from C$319 billion in 2000.

As for Canada’s outbound FDI, the expansion of Canadian direct investment abroad (CDIA) has been equally spectacular, rising from C$357 billion in 2000 to C$617 billion in 2010.

Canada's Inward and Outward FDI Stock ($Billion)

200

300

400

500

600

700

CDIA

FDI

Source: Statistics Canada, April 15, 2011

38

The United States is Canada’s LargestSource of FDI…

• In 2010, the U.S. share of foreign direct investment (FDI) in Canada stood at 54.5%, demonstrating its confidence in Canada’s business climate.

Source: Statistics Canada, April 15, 2011

Geographic Distribution of Inward FDI Stock in Canada 2010

Netherlands 9.2%

United Kingdom 7.5%

Switzerland 3.6%

Japan 2.9%

France 3.4%

United States 54.5%

Others 18.9%

39

…and Companies from Other Countries are also Increasing their Investments in Canada

From 2000-2010, EU countries increased their FDI in Canada by C$77 billion and other non-EU countries together with the US increased their investment in Canada by C$165 billion, thus demonstrating their confidence as well in Canada.

Source: Statistics Canada, April 15, 2011

0

100

200

300

400

500

600

'90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10

Foreign direct investment in Canada by geographic area of origin 1990-2010

Billion$Cdn

EU

US

Others

40

Canada Welcomes Foreign Investment in Various Industries

• Increasingly more investment goes toward industries such as manufacturing, mining and oil and gas extraction and toward the management of companies and enterprises. Since 2000, significant growth in terms of FDI has occurred in mining and oil and gas extraction and in management of companies and enterprises.

Average Annual Growth Rates of Foreign Direct Investment by Industry (%) 2000-2010*

1.3

2.4

3.8

3.8

4.7

5.2

5.5

5.8

6.7

8.3

10.3

10.8

12.3

12.6

-4.7

10.6

-10 0 10 20

Real estate and rental and leasingAgriculture, forestry, fishing and hunting

ManufacturingWholesale trade

Professional, scientific and technical servicesInformation and cultural industries

Accomodation and food servicesTransportation and warehousing

OVERALLRetail trade

Finance and insuranceUtilities

ConstructionManagement of companies and enterprises

Mining and oil and gas extractionAll other industries

Source: Statistics Canada, April 15, 2011

3.0

16.4 13.1

1.0

1.1 14.6 2.9

100.0

0.9

0.5

2.3 1.9 6.2

34.8 0.2

1.0

2010 Distribution (%

)

* North American Industry Classification System (NAICS)

41

V Easy Access to Markets

42

Canada Offers Efficient Flow of Goods Across Borders…

• Canada leads the G-7 and ranks 8th among 125 countries in terms of the enabling trade index, which measures the effectiveness of the combined factors of market access, border administration, transport & communications infrastructure, and business environment towards the efficient flow of goods over borders and to their final destination.

Enabling Trade Index - Top 20 Countries

6.06

5.70

5.41 5.41 5.37 5.33 5.32 5.29 5.28 5.26 5.26 5.255.20 5.17 5.13 5.12

5.06 5.06 5.03 5.02

4.8

5.0

5.2

5.4

5.6

5.8

6.0

6.2

Singap

ore

Hong K

ong

Denmark

Sweden

Switzerla

nd

New Zea

land

Norway

Canad

a

Luxe

mbourg

Netherl

ands

Icelan

d

Finland

German

y

Austria

Austra

lia UAE UKChile USA

France

Inde

x

Global Enabling Trade Report 2010, World Economic Forum.

43

…a Streamlined Trans-Border Transportation System…

• The North American market is serviced through a well-integrated transportation system, which is among the world’s best. Automated permit ports, transponder identification systems and joint

processing centres are being tested and deployed for easy movement of goods.

Bottom line – the border system is one of the world’s most efficient.Annual Transborder Crossings

Total Number of Trucks and Canada-U.S. Air Passengers

(Two-way movements)

0.0

5.0

10.0

15.0

20.0

25.0

1983 1987 1991 1995 1999 2003 2007 2011*

Mill

ion

s

Source: Statistics Canada and Transport Canada, 2011 (* Preliminary data for 2011 .)

Truck

Air

10.5 million

22.0 million

44

…and Direct Access to the NAFTA Market

• Canadian-based businesses have access to one market of 456 million consumers with a combined GDP of about US$17.2 trillion.*

• Many Canadian production hubs are actually closer to U.S. markets than American production sites — of Canada’s 20 largest cities, 17 are within an hour and half drive of the U.S.

• Direct air service between major cities in Canada and the U.S. has nearly doubled in the last six years.

* Source: World Bank: World Development Indicators database, December 2011Mexico City

1000 km

500 km

Los Angeles

Denver

Houston

Atlanta

Seattle

Miami

New York

Boston

Philadelphia

WashingtonBaltimore

DetroitChicago Cleveland

St. LouisPittsburgh

Milwaukee

San Francisco

St. John's

Calgary

Vancouver

ReginaHalifax

Toronto

MontréalWinnipeg

Charlottetown

Edmonton

VictoriaOttawa

Windsor

Québec

Fredericton

Saskatoon

45

Canada has Efficient Transport Linkages Tying North America with Asia

A reliable and efficient transportation system is key to effective participation in global supply chains.

In October 2006, Canada has launched the Asia-Pacific Gateway and Corridor Initiative, an unprecedented alignment of public and private sector investments to strengthen Canada’s position as a fast, efficient and secure gateway between North America and Asia.

These investments will improve the flow of people, goods and services across Canadian rail, roads, bridges and through our ports and airports.

46

VI An Excellent Place to Live

47

Canada Overall Quality of Life is One of the World’s Best…

• Canada ranks highest in the G-7 and second among the 34 OECD countries in terms of overall living conditions and quality of life.

Source: Compendium of OECD Well-Being Indicators, OECD May 2011, * Index based on weighted average of 11 topics (housing, income, jobs, community, education, environment, governance, health, life satisfaction, safety and work-life balance) identified as essential by the OECD in the areas of material living conditions and quality of life.

Better Life Index* Top 10 OECD Countries

8.10 8.098.01

7.907.82

7.73

7.55 7.537.45 7.45

7.0

7.5

8.0

8.5

Austra

lia

Canad

a

Sweden

NewZea

land

Norway

Denmark U.S.

Switzerla

nd

Finland

Netherla

nds

Inde

x

48

…with Exceptional Quality of Life in Cities…

• According to a recent annual quality-of-life ranking of 221 world cities, four Canadian cities ranked among the top 25.

Source: Mercer Human Resources Consulting: November 2011

Overall Quality of Life Ranking (Top 25 Cities)

25th24

th22th

22th21

th20th19

th18th17

th16th15

th14th13

th12th11

th9th

9th8t

h7th6t

h

5th4t

h3rd2n

d1st

Ran

k

49

…Superior Eco-City* Standings…

• According to a recent Eco-City* ranking of 221 world cities, four Canadian cities ranked among the top 25 with Calgary topping the list and Ottawa ranking 3rd.

Source: Mercer Human Resources Consulting: May 2010* Includes the following criteria: Water availability, water portability, waste removal, sewage, air pollution and traffic congestion.

Eco-City* Ranking (Top 25 Cities) (Index: New York City = 100.0 )

145.

7

145.

1

139.

9

139.

9

138.

9

137.

8

137.

5

137.

4

135.

6

135.

6

135.

6

135.

3

133.

6

133.

6

133.

6

133.

6

133.

6

133.

6

133.

5

133.

5

133.

3

132.

4

131.

6

131.

6

131.

5

110

115

120

125

130

135

140

145

150

50

…and the Best Overall Reputation on the Global Stage

• The Reputation Institute ranks Canada as having the highest reputation ranking among 50 countries based on several indicators, including a good quality of life, a safe place to live, an advanced economy, an effective government and an appealing environment.

Global Reputation* - Ranking of Top Ten Countries

10th

9th

8th

7th

6th

5th

4th

3rd

2nd

1st

Ran

k

Ranking based on the Reputation Institute's 2011 Country RepTrak(TM), an annual study measuring the public perceptions of 50 countries around the world. The study measures the overall Trust, Esteem, Admiration and Good Feelings the public holds towards these countries, as well as their perceptions across 16 different attributes, including a good quality of life, a safe place to live and a strong attention to their environment.. Source: Reputation Institute, New York, January 2012

51

Canada is a Leader in Human Development*…

• In the latest United Nations Human Development Report, Canada ranked second among the G-7 countries and sixth among 187 countries surveyed.

*Standing among 187 countries. Index based on achievements in terms of life expectancy, educational attainment, and adjusted real income.Source: United Nations Human Development Report 2011, November 2, 2011

Human Development Index* World Rank

28th

24th

20th

12th9th

6th4th

U.S. Canada Germany Japan France Italy U.K.

Inde

x

52

…and Ranks Among Model Nations of Peace

• According to the Global Peace Index, a recently released measure by the Economist Intelligence Unit, Canada ranked second in the G-7 and eighth among 153 countries surveyed.

*Standing among 153 countries. Index ranking countries based on peacefulness, both domestically and abroad using 23 indicators, including the number of soldiers killed overseas, the level of violent domestic crimes and relations with neighbouring countries. Source: Economist Intelligence Unit, May 2011

Global Peace Index* World Rank

82nd

45th36th

26th

15th8th

3th

Japan Canada Germany U.K. France Italy U.S.

Inde

x

53

Canada is also a Safe and Just Society…

• Canada is a G-7 leader in terms of the safest place to live and conduct business with the most fairly administered judicial system.

Source: IMD * Confidence that person and property is protected. Rank among 59 economies considered in the 2011 World Competitiveness Yearbook.

**Degree of fairness of the judicial system in Society. Rank among 59 economies considered in the 2011 World Competitiveness Yearbook.

Security* — World Rank

9.08.8

8.6

8.2

7.87.5

6.4

5.0

5.5

6.0

6.5

7.0

7.5

8.0

8.5

9.0

9.5

Index

Justice** — World Rank

8.5 8.4

7.97.7

7.5

6.8

3.9

3.0

4.0

5.0

6.0

7.0

8.0

9.0

Index

54

…a Land of Equal Opportunity…

• Canada ranks first among the G-7 in providing equal opportunities for individuals.

Source: IMD * Race, gender, family background does not pose a handicap for competitiveness. Rank among 59 economies considered in the 2011 World Competitiveness Yearbook.

Equal Opportunity* — World Rank

7.6

6.76.4 6.4

6.1 6.0

5.0

4.0

4.5

5.0

5.5

6.0

6.5

7.0

7.5

8.0

Canada U.S. Japan Germany France U.K. Italy

Inde

x

55

…and a Society Rich in Multiculturalism

• Canada has one of the world’s most multilingual societies with over 200 languages identified as the mother tongue.

• While there has been a decline in the proportion of the Canadian population whose mother tongue is one of the two official languages, there has been an overall increase in the proportion of the population whose mother tongue is neither English or French from 18.0% in 2001 to 20.1% in 2006.

Source: Statistics Canada, 2001 and 2006 Census * based on mother tongue. ** includes Cantonese and Mandarin

Top Ten Spoken Languages in Canada* (% of Population)

0.7

0.9

0.9

1.2

1.21.5

1.53.3

22

.1

57

.8

0.8

0.7

0.7

0.9

1.01.5

1.72.9

22

.9

59

.1

0

10

20

30

40

50

60

%

2006 Census 2001 Census

56

Canada – We Take Care of Business

Canada’s economic fundamentals and relative cost advantages provide a first-rate business environment. Canada offers:

Excellent Economic Fundamentals Low inflation and low interest rates Strongest economy in the G-7

A Cost-Competitive Business Environment Ease in establishing a new business Competitive tax system

(particularly for R&D) Strong technological environment

A Dynamic Workforce One of the world’s best-educated

workforces Technology savvy workers

A Solid Infrastructure Highly globalized infrastructure and

technological connectivity Rapidly expanding foreign direct investment

linkages

Easy Access to Markets Geography and NAFTA provide easy access to

the world’s most prosperous market Highly efficient transportation linkages with

Asia

An Excellent Place to Live Superb overall quality of life A society rich in multiculturalism

57

Invest in Canada

• Through Canadian diplomatic missions around the world, and with direct access to investment contacts at national, provincial and municipal levels within Canada, the Invest in Canada Bureau of the Department of Foreign Affairs and International Trade Canada is well positioned to assist in attracting and expanding your investment. We invite you to explore all that Canada has to offer.

Please contact your local Canadian Embassy, High Commission or Consulate, or write to us at:

Foreign Affairs and International Trade CanadaInvest in Canada Bureau, 111 Sussex Drive, 3rd FloorOttawa, Ontario, Canada K1A 1J1E-mail: investincanada@international.gc.ca

www.investincanada.gc.ca

Think Canada! is prepared by Arif Mahmud, Invest in Canada Bureau.