Canada June 2002 Think Dynamic Think Competitive Think Bottom Line Think Canada!

Canada Canada: a Dynamic, Competitive Economy — Open for Global Business 2 Canada's economic fundamentals and relative cost advantages provide a first-rate business environment. Canada provides: Excellent economic fundamentals Report Card Overall government budget in surplus. Low inflation and low interest rates. Easy access to markets Geography and NAFTA provide easy access to the world's most prosperous market. A cost-competitive business environment Large stock of skilled workers; low start-up costs; competitive tax system (particularly for R&D); strong technological environment; positive business climate. An excellent place to live Superb overall quality of life.

Excellent economic fundamentals Easy access to markets A cost-competitive business environment An excellent place to live and work Excellent economic fundamentals Canada Provides: 3 Canada 3

Canada’s strong fiscal situation C Canada's fiscal situation has turned around dramatically: -In 1994, Canada’s deficit (as a percentage of GDP) was 6.7%, the third highest in the G-7 and significantly above the U.S. rate. -However, by 1997, Canada became the first G-7 country to post a surplus in the 1990s, and is the only G-7 nation expected by the OECD to post three straight financial surpluses from 2001 to Federal government spending (as a % of GDP) reached a 50-year low in the fiscal year, the key source of the Canadian fiscal turnaround. * Includes federal, provincial/state and local ** Projections Source: OECD Economic Outlook, April 2002, Preliminary Edition Total Government Surplus* The Institute for Management Development ranked Canada as the best fiscally managed country in the G-7 in 2000 Federal Budgetary Balance Public Accounts Basis Canada 4 Source: Finance Canada % of GDP Surplus Deficit + Federal Program Spending Public Accounts Basis % of GDP Projected ** 2003** % of GDP

Canada A Strong Fiscal Surplus 5 Canada had the highest general government surplus as a percentage of GDP in the G-7 in The OECD expects Canada to be the only G-7 country with fiscal surpluses in 2002 and Total G-7 Government Fiscal Balance (% of GDP) Source: OECD Economic Outlook, April 2002, Preliminary Edition Canada France Germany Italy Japan U.K. U.S

Canada Low Inflation and Low Interest Rates 6 Canada’s targeted inflation rate is locked between 1% to 3%. -Over the past five years, Canadian inflation averaged 1.9% — 30% lower than the U.S. rate. Sources: Statistics Canada and the Federal Reserve Bank of St. Louis Inflation Long-Term Interest Rates Year-Over-Year % Change Canada's excellent fiscal situation and low inflation are reflected in low domestic interest rates. Source: Bank of Canada, Government long-term bond. U.S. Treasury, Constant Maturity long-term bond. Last data points plotted: Canada – May 31, 2002; U.S. – June 10, %

Canada A Growing Domestic Economy 7 Canada’s GDP grew at an annual rate of 6.0% in the first quarter, the best performance among the G-7. -The OECD and IMF both forecast Canada to lead the G-7 in economic growth in 2002 and Real GDP Growth Projections (%) U.S. Canada France Italy Germany U.K. Japan U.S. Canada France Italy Germany U.K. Japan Source: International Monetary Fund, May 2002 Source: OECD Economic Outlook, April 2002, Preliminary Edition

Easy access to markets Canada Canada Provides: 8 Easy access to markets A cost-competitive business environment An excellent place to live Excellent economic fundamentals

Canada Streamlined Border Flows 9 Since the enactment of the North American Free Trade Agreement (NAFTA) in 1994, Canada provides long-term assured access to the North American market — nearly 400 million people with a combined GDP of over $9.4 trillion ($U.S.). In addition to eliminating tariffs, NAFTA provides procedures for: -border facilitation; -movement of personnel; -investment and intellectual property protection; and -product certification. The North American market is serviced through a well integrated transportation system which is among world’s best. - Automated permit ports, transponder identification systems and joint processing centres are being tested and deployed. Source: Transport Canada and Statistics Canada, 2001 Annual Transborder Crossings - Total Number of Trucks and Canada-US Air Passengers Entering Canada Truck Air Brian McGill, Director of Transportation Pratt & Whitney Canada Inc. "Pratt & Whitney has a worldwide distribution network. Customs operations have been streamlined to the point that the Canada-US border plays no role in our distribution system."

Canada Smarter Borders 10 Efficient border crossing was restored within a week of the tragic events of Sept 11th –today, border wait times average less than 10 minutes In December, Canada and the USA signed a declaration to build a Smart Border for the 21st Century to accommodate the growth in trade and commerce –initiatives focus on improving existing border processes through the use of new technologies and infrastructure The December Budget also allocated $1.6 billion over the next five years for border initiatives

Canada …and Short Distances to Markets 11 Almost half of the U.S. population lives within a 10 hour drive of Toronto, and over 60 percent within a two hour flight. Business travel between Canada and the U.S. has increased considerably since the inception of the “Open Skies*” Agreement (February, 1995) Direct air service between major cities in Canada and the U.S. has nearly doubled in 6 years. *Under “Open Skies” Canadian Air Carriers gained unlimited rights to establish routes from any point in Canada to any point in the United States. Similarly, U.S. carriers also gained unlimited access to the Canadian market (with a phase in period for up to three years)

$ Billions Canada - U.S. Trade $700 Billion Source: Statistics Canada Canada Canada Is by Far the Largest U.S. Trading Partner 12 Canada and the U.S. have the world’s largest trade partnership, with two-way trade amounting to $700 billion in In fact, this averages to more than $1.3 million dollars a minute in trade. Between 1995 and 2000, trade between Canada and the U.S. grew at a compound average annual rate of 10.4%. The U.S. trades more with Canada than with any other country - the U.S. trade more with Canada than with all of the countries of the E.U. combined! Canada 20.3% Mexico 12.4% Japan 10.6% China 5.8% Germany 4.4% All Others 46.5% Distribution of U.S. Trade* — 2000 * Merchandise trade Source: World Trade Atlas

Canada Canada also has Strong Historical Trade Ties with Europe… 13 European markets continue to provide tremendous trade opportunities for Canada. Canada's Trade with Europe — Note: Merchandise trade Source: Statistics Canada Average Annual Growth, % U.K. Germany France Italy Belgium Netherlands Sweden Spain Ireland Denmark TOTAL E.U. Total Trade in Top Sectors ($ billions) Transportation Equipment 8.6 Electrical & Electronic Products 7.7 Machinery 6.9 Mining, Quarrying & Oil Wells 6.8

Canada... and Unique Access to Asian Markets 14 With its geographical location, its immigration links and its active involvement in APEC to reduce trade barriers, Canada is uniquely positioned to gain from the long- term potential of Asian economies. Canada's Trade with Asia — Average Annual Growth, % Note: Merchandise trade Source: Statistics Canada Japan China S. Korea Taiwan Malaysia Hong Kong Philippines Singapore Indonesia TOTAL Total Trade in Top Sectors ($ billions) Electrical & Electronic Products 19.1 Transportation Equipment 8.8 Machinery 3.7 Paper & Allied Products 3.5

Canada Canada Welcomes Foreign Investment Source: Statistics Canada Foreign direct investment in Canada has more than doubled since Increasingly more investment goes to knowledge-based industries in high-tech manufacturing and services sectors. The U.S. is the dominant source of foreign capital. - In 2001, the U.S. share of foreign direct investment (FDI) in Canada was 67%. Machinery & Transportation $321 Billion Distribution of Foreign Direct Investment by Industry 1990 $131 Billion Distribution of Foreign Direct Investment by Region/Country Source: Statistics Canada 2001 Gilles P. Ouimet, President and CEO Pratt & Whitney Canada Inc. "A knowledge based workforce, a competitive R&D tax structure, government support programs such as Technology Partnerships Canada, and well established infrastructure in Canada: these attributes make Canada the top choice for Pratt & Whitney Canada in considering future R&D investments in the ever increasing competitive world of aerospace."

$340 Billion Canada $ Billions Canada - U.S. Direct Investment Stock United States 57.4% U.K. 7.5% France 5.5% Netherlands3.5% Barbados 3.3% Japan 2.4% All Others 20.4% Source: Statistics Canada Distribution of Canadian Total Direct Investment Stock Canada and the U.S. have one of the world’s largest direct investment partnerships, with the stock of investment between the two countries totaling $340 billion in Between 1990 and 2000, U.S. foreign direct investment in Canada grew at an average annual rate of 6.9%. Over this period, Canadian direct investment abroad grew at an average annual rate of 8.2%. The United States is Canada’s Largest Source of FDI

A cost-competitive business environment Canada Canada Provides: 17 Easy access to markets A cost-competitive business environment An excellent place to live and work Excellent economic fundamentals

Superior Quality Workforce Canada The overall skill level of Canada's workforce ranks high among competing countries. According to the World Competitiveness Yearbook, Canada has the highest percentage of individuals achieving at least college or university education. * Percentage of the population that has attained at least tertiary education among 36 countries considered in the World Competitiveness Yearbook,

An Excellent Post Secondary System Canada 1998 U.S. Gourman report scored 10 Canadian electrical engineering programs in the top 22, and 18 in the top 40 Canada’s 67 universities and colleges produce more than 25,000 graduates per year in math, engineering and pure and applied sciences 19 Institution Score U.S. Cdn. Rank Rank M.I.T Stanford Berkeley Illinois Toronto UCLA McGill Cornell U.B.C McMaster Purdue Southern California Princeton Michigan Carnegie Mellon Polytechnic-Brooklyn Queen’s Alberta Calgary Polytechnique, Mtl Saskatchewan Manitoba RANKING OF ELECTRICAL ENGINEERING UNIVERSITY PROGRAMS Aldo Baumgartner President and CEO Wyeth-Ayerst Canada “The superior universities, availability of highly skilled workers, along with excellent tax incentives for research and development make Canada an ideal location for Wyeth-Ayerst Canada

Canada Skilled Management 20 * Standing among 75 countries. Index based on the availability of Management education in first-class business schools. Source: Global Competitiveness Report, Management Education* World Rank U.S. France Canada U.K Germany Japan Italy Index 1st 2nd 4th 6th 21st 31st 49th Canada ranks third among the G-7 and fourth overall in a 75-country study of locally available Management education in first-class business schools. - Eight Canadian business schools are ranked among the top 100 Management Schools in the world according to a January 2001 survey by the Financial Times (UK).

Canada Low Labour Costs Occupational Wages — Knowledge Workers, 1999 * Canadian data have been converted to full-year assuming a 52-week work year. ** Purchasing power parity for 1999 *** date for computer programmers based on average for 1997, 1998, 1999 Source: IC calculations based on Statistics Canada Labour Force Survey and U.S. Bureau of Labour Statistics Occupational Employment and Wage Estimates 21 According to the U.S. Bureau of Labor Statistics, labour costs in Canadian manufacturing (wage and non-wage) are the lowest in the G-7. Occupational wages are also lower in Canada for knowledge workers. * Figures are for Source: U.S. Bureau of Labor Statistics U.S.=100

Canada Low Production Costs 22 Growing productivity, skilled workers, and low labour costs make businesses competitive. -Canada's competitive position vis-à-vis the U.S. has improved substantially since Source: U.S. Department of Labor, Bureau of Labor Statistics, August 2001 “ Our records for safety and productivity place the TMMC team among the industry’s best. And when it comes to quality, vehicles built at our Cambridge facility are among the highest rated vehicles in North America.” Toyota Motor Manufacturing Canada Inc. Takanori (Tak) Sakaue, President

Canada Plenty of Natural Resources * Measured in terms of thousands U.S.$ per capita. Standing among 92 countries. Source: World Bank, Canada is extremely well endowed with natural resources. Canada ranks 3 rd in the world in natural resource endowments, well ahead of other G-7 countries. Natural Resource Endowments — World Rank* Canada U.S. France U.K. Germany Italy Japan 3rd 8th 20th 45th 50th 59th 72nd Index * Includes: crude fertilizers and crude minerals; metalliferous ores and metal scrap; iron and steel; and non-ferrous metals. Source: World Competitiveness Yearbook, Canada is the only G-7 country with a per capita trade surplus in non-energy raw materials.

Canada 24 A Tax Advantage for Firms to Expand in Canada Corporate Income Tax Rates including capital tax equivalents 44.9% 41.5% 38.6% 35.6% 34.6% 40.0% 46.6% Source: Finance Canada, December 2001 Canadian locations compare well internationally in terms of statutory corporate income tax rates. The federal government and some provinces have announced sharp cuts in corporate taxes, to take effect over a five- year period. The Economic Statement and Budget Update accelerated the pace of this tax relief. By 2005, firms in Canada will have a 5.0% corporate income tax rate advantage over U.S. firms (including capital tax).

Canada A Tax System to Encourage Investment 25 More businesses have access to tax free rollovers. -Rollover amount: $2 million -Eligibility size: $50 million The Canadian federal capital gains inclusion rate has been reduced to 50% from 75%. Among the G-7 countries, only Italy and Japan have lower tax rates on capital gains. Top Marginal Tax Rates on Capital Gains for Individuals (Federal plus provincial/state) Source: Finance Canada, October 2001

Canada Low Employee Benefits 26 Among the G-7, Canada has the lowest overall labour costs, including benefits. Total payments for Canadian statutory and other benefits are 25.6% of salary and wages compared to 34.2% in the U.S. -Lower medical insurance premiums are an important reason for this. Employee Benefits* as a % of wages G-7 Comparison, Average for 12 operations Source: KPMG Management Consulting, Germany France Italy Japan U.K U.S.A Canada Other BenefitsStatutory

Canada Quality Health Care at Low Cost 27 Canada's health care system is among the best and the cheapest in the industrialized countries: -Employer-paid health benefits as a percentage of workers' gross pay in Canada are about 22 percent of that in the U.S. (2.1% compared with 9.6%) % of Gross Annual Payroll Hospital, surgical, medical and major medical insurance premiums* Short term disability, sickness or accident insurance and long term disability or wage continuation Dental insurance premiums Other (vision care, physical and mental fitness, etc.) Employer-Sponsored Health Benefits Canada and the U.S. * U.S. value includes payments for retired employees Source: Employee Benefits, 1995, prepared by the Research Centre, Economic Policy Division, The U.S. Chamber of Commerce and KMPG, Employee Benefits Cost Survey, Adapted from KPMG report on Corporate Taxation and Employee Benefit Cost Guide for Large Service Firms, prepared for the ICT Branch, Industry Canada, March 2000 Total “The federal government’s medium-term budget position remains sound, even with full implementation of the major reforms to income taxation and new spending initiatives in priority areas such as health care and education that have been enacted or announced over the past year.” Statement of the IMF Mission on Canada, January 31, 2001

Canada Low R&D Costs 28 Canada offers the most favorable tax treatment for R&D among the G-7: - Canada’s combined federal and provincial tax credits reduce the after-tax cost of $100 of R&D expenditures to as low as $44. - In Canada, eligible costs include: capital equipment, overhead, process R&D, salaries, and materials. These tax-based incentives permit firms to significantly reduce R&D costs through direct investment or sub-contracting in Canada. Relative Competitiveness of R&D Tax System Canada 0.70 Korea U.S. France U.-K. Japan Mexico Italy Germany Australia Sweden The B-index represents a ratio of the after-tax cost of a $1 expenditure on R&D divided by 1 less the corporate tax rate. A lower B-index indicates a more competitive R&D tax system Source: Conference Board of Canada, November 1999.

Canada Low Energy Costs and Rates 29 Electricity rates in Canada are about 70%of those in the U.S. Canada has abundant oil, gas, coal and hydro-electric resources. Electricity costs for industrial users are significantly lower in Canada than in the U.S. -According to a recent study, the annual electrical costs for an average manufacturer are 30% lower in Canada than in the U.S. Source: KPMG Management Consulting, 2002 Average Electricity Rates Canada France U.K. Germany U.S. Italy Japan G-7 Comparison Average Electricity Costs Canada France U.K. Germany U.S. Italy Japan G-7 Comparison US cents per kWh (12 operations) $US (12 operations)

Canada Low Costs for Construction, Land, Office Lease Source: KPMG Management Consulting, Building construction costs in Canada are roughly 20% lower than those in the U.S. even after accounting for additional materials for climatic conditions. Construction Costs Land Costs Land costs in Canada are generally comparable with those in the U.S. Canadian office lease costs are 63% of those in the U.S. Lease costs include office space plus operating, utility, tax and insurance costs. Office Lease Costs Italy Canada France U.S. U.K. Germany Japan G-7 Comparison, Index: U.S. = 100 France U.S. Canada Italy U.K. Germany Japan G-7 Comparison, Index: U.S. = 100 Italy France Germany Canada U.K. U.S. Japan G-7 Comparison, Index: U.S. =

Canada First-Class Technological Infrastructure 31 Canada's technological infrastructure is second only to the U.S. among the G-7 — we rank above or very close to the U.S. in terms of: -internet users and internet hosts, -computers per capita, and -computer instructions per second. Building a universal, competitive, leading edge "Information Highway" is a government priority. * Standing among 49 countries. Index based on 12 characteristics including investment in telecommunications, computers in use, computer power, internet connections, number of telephone lines, cost of telephone calls and use of robotics. Source: World Competitiveness Yearbook, 2001 Technological Infrastructure* World Rank 1st 6th 14th 19th 15th 30th 23rd Canada U.S. U.K. JapanGermany ItalyFrance Index

Canada First in Internet Users and Among Leaders in PCs CanadaU.S.U.K.JapanGermanyItalyFrance Internet Users Per 1,000 Inhabitants Source: World Competitiveness Yearbook U.S. CanadaGermanyU.K. Japan France Italy Source: World Competitiveness Yearbook 2001 Personal Computers Per 1,000 Inhabitants Canada is tops among the G-7 countries in the share of its population that uses the Internet. Moreover, Canada is second only to the U.S. in the number of computers per 1,000 people.

Canada First in Internet and Wireless Affordability 33 Canada ranks first among the G-7 in terms of wireless communications costs and second in terms of internet access charges. Internet Access Charges* – France U.K. Germany Japan Italy U.S. Canada U.S. $ Based on PPPs Peak Rate 40 hrs. Online/Month * PSTN fixed charges include monthly rental fee and additional monthly charges related to discount plans, if applicable. Includes 40 one-hour calls. In France, ISP and PSTN usage charges are bundled and included under the ISP. Source: OECD, Boston Paris London Berlin TokyoRome Toronto Wireless Communication Costs Price per minute, 1999 in U.S. $ PPP Source: Yankee Group, Wireless/Mobile Communications Global Report, Volume 3, No. 16, May 1999 Source: The Yankee Group in Canada (Canadian Market Strategies) February 1999 “Indeed, in general, and across an entire range of services and business sizes, Canadian telecommunications costs are lower than they are in the United States.”

Canada First in Telephone Affordability Italy U.S. Germany France U.K. Japan Canada Annual Business Telephone Charges U.S. $ PPP Source: OECD Communications Outlook Italy France Germany U.K. Japan U.S. Canada Annual Residential Telephone Charges U.S. $ PPP Source: OECD Communications Outlook 2001 Business telephone charges are lower in Canada than in any other G-7 country. Canada ranks 2nd among the G-7 behind the U.K. in residential telephone charges.

Canada First in Telephone and Cable Penetration CanadaFranceItalyU.K.U.S.Germany Canada U.S.Germany U.K. France Italy % of Households with Telephone Service Source: World Telecommunication Development Report, ITU, 1999 % of Households with Cable TV Subscribers* *Estimates Source: OECD Communications Outlook 2001 Canadian households lead the G-7 in terms of telephone and cable penetration rates. 0.4 Japan

Canada A World Leader in Terms of Overall Connectedness 36 Connectedness Rankings 2000* Conference Board of Canada – 10 Country Comparison * The four components are defined as follows: (i) Availability is the supply, reflecting the potential to be connected. (ii) Reach is the demand. It refers to those people who already subscribe to the network. (iii) Use measures such factors as actual hours online, number of transactions and dollars of revenue generated on the internet. (iv) Price also comes into play insofar as it influences reach and availability. Source: The Conference Board of Canada, January AvailabilityPriceReachUsage U.S. Sweden Finland U.K. Australia Germany Japan France Italy Overall Connectedness Canada 2

Sound Financial Institutions 37 According to Moody’s Financial Strength ratings, Canadian Banks rank 1 st among the G-7 in terms of their intrinsic credit worthiness. EE+DD+CC+B Japan France Italy Germany U.K. U.S. Canada Average Bank Financial-Strength Rating B= strong intrinsic financial strength C= good D= adequate E= very weak Source: The Economist, March 2000 Statement of the IMF Mission on Canada, January 31, 2001 “Canada has a highly advanced financial system that is among the soundest in the world. The profitability, asset quality, and capitalization levels of Canadian financial institutions remain high.”

Canada 38 Positive Business Climate Canada understands the importance of its business community and has created an environment to encourage its success. Canadian laws are among the best in the world at promoting fair competition. Source: The Economist (EIU), August 24th, 2001 Source: World Competitiveness Yearbook 2001

Canada Solid Microeconomic Policies 39 According to The Economist, Canada ranks 2nd among 21 countries in a Lehman Brothers study pertaining to the effectiveness of microeconomic or structural policies. These rankings are based on three micro-policy categories: policies that increase an economy’s long-term potential growth rate. For example, spending on education and R&D. policies that affect labour market performance or reduce the lowest rate of unemployment at which inflation is stable (NAIRU). policies that increase product market competition. Economic Health* Index of structural policies, 0=worst, 10=best Source: The Economist, March 17th, 2001 *Based on a study of 21 countries.

Canada Less Paperwork for New Businesses 40 Canada makes it easier to set up a new business, with less paperwork than any other country. Canada is the most efficient place to pull together worldwide research or production teams. Total Number of Business Start-up Procedures* Source: The World Bank and Harvard University, taken from The Globe and Mail, November 14, 2000 *Procedures divided into five major categories: Safety & Health, Environment, Taxes, Labour, and Screening.

Canada Forward-Looking Framework Policies 41 The economic policies of the government of Canada are focused on making Canada a world leader in the global knowledge-based economy of the 21st century. Commitments include: -Making Canada the most connected Government to its citizens by Making high-speed broadband access available to Canadians in all communities by Becoming one of the top five countries for research and development by Shaping a "National System of Innovation“; and -Providing marketplace frameworks/services benchmarked against the best in the world. Government Policies/Programs Aimed at Building the Knowledge Infrastructure  21st Century Chairs for Research Excellence  Networks of Centres of Excellence  Canadian Foundation for Innovation  Canadian Institute for Health Research  Telecommunications Policy  Technology Partnerships Canada  Granting councils (NSERC, MRC, SSHRC)  Communications Research Centre  Industrial Research Assistance Programme (NRC)  Co-operative sectoral research programs (PAPRICAN)  Canadian Network for the Advancement of Research, Industry and Education (CANARIE)  SR&ED (Scientific Research & Experimental Development) tax credit for private sector research and development  Leading edge information systems: Strategis; CISTI (NRC); Cdn. Technology Network; Sector Competitive Frameworks

Canada Provides: Easy access to markets A cost-competitive business environment An excellent place to live Excellent economic fundamentals Canada 42

Canada Reasonable Cost of Living Canada has the lowest cost of living among the G-7. In particular, the cost of living in most large Canadian cities is better than or comparable to that in similar U.S. cities. -And, Canadian cities rank better than U.S. cities in terms of the level of crime, pollution, environment and leisure facilities. * Rank among 49 countries considered in the World Competitiveness Yearbook 2001 Source: IMD

Canada …A Good Environmental Record 44 Canada ranks highest among the G-7 countries in terms of the level of impact the environment has in shaping economic policies. Perfect=100 Country rank based on five criteria of environmental sustainability Source: Yale Center for Environmental Law and Policy, 2001 Environmental Sustainability Index* 2001

Canada …and a Safe and Just Society 45 Canada tops the G-7 as a safe place to live and conduct business. Canada also ranks well in providing equal opportunities for individuals. * Race, gender, family background does not pose a handicap for competitiveness. Rank among 49 countries considered in the 2001 World Competitiveness Yearbook Source: IMD * Confidence that person and property is protected. Rank among 49 countries considered in the 2001 World Competitiveness Yearbook. Source: IMD

J. David O'Blenis, President, Honeywell Aerospace Canada "Aerospace is truly a global business and these wins [move of Power Management and Generating systems to Toronto, expansion of plants in Montreal and Summerside, and investment of more than $50 million in a new headquarters, engineering and manufacturing facility] for Canada were made possible by the excellent business climate here: sound fiscal management in the public sector, attractive R&D tax incentives, and unique opportunities to partner with Governments to achieve growth. It is clear to me that the decisions taken at the Corporate level of our global business to focus our growth here show great confidence in Canada." Canada Offers Much Canada 46 Canada's economic fundamentals are excellent — government policies are geared toward competitiveness. Canada provides assured access to the world's richest economy, in addition to having a large and growing domestic market of its own. Canada provides a cost-competitive and future-oriented environment for business: -quality, productive workers; -a competitive tax system; -prime locations for R&D activities; -abundant energy at low prices; and -an excellent infrastructure. Canada is an outstanding place to live, invest and do business.

Any questions or comments? Canada 47 We welcome your questions, and comments. You can reach us by … sending us a letter:Renée St-Jacques Director General Micro-Economic Policy Analysis Industry Canada 235 Queen Street Ottawa, Ontario K1A 0H5 or faxing us at:(613) Think Canada! is prepared by Arif Mahmud, Micro-Economic Analysis Directorate, Industry Canada.