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Puts & Calls: Roger O. Cranville O, Canada
Canadian economic ties to Western Pennsylvania substantial, important
Sunday, January 09, 2005

Canada has been in the news lately, particularly the relationship between Canada and the United States. Protesters raised their voices against President Bush and his foreign policies during his recent visit to Ottawa and Halifax, the first by a U.S. president in 10 years. Canada's Parliament struggles over the issue of gay marriage. Debate rages over the shipments of Canadian beef and lumber into this country.

While these stories may stir varying degrees of attention and indignation among Pennsylvanians, it's important to remember the significant and positive influence that Canada exerts upon our daily lives, and the beneficial role that Canada will play -- indeed must play -- in our collective future.

So just how strong is the U.S.-Canadian partnership? Here are a few facts and figures that emphasize the strength of the relationship:

Trade between the United States and Canada totals $1.8 billion per day, constituting the largest bilateral economic relationship in the world.

Canada buys nearly 20 percent of U.S. exports of goods -- amounting to $203 billion in 2003.

In 2003, Pennsylvania exported $5.8 billion worth of goods to Canada, more than it did to its next eight international trading partners combined. That's more than one-third of Pennsylvania's total exports.

Canada ranks second in U.S. investment abroad; in 2002 alone, a record $152 billion in new direct investment flowed into Canada from the United.

The United States has sold more goods to Canada than to any other country in each of the last 58 years. Great progress has been made in speeding up the border crossings for truckers as well as tourists, all while enhancing necessary security measures.

The United States has a surplus in services trade with Canada -- Canada continues to be a top customer with purchases of $26 billion in 2003.

And finally, U.S.-Canadian trade has more than doubled under the North American Free Trade Agreement. That's good news for the U.S. economy.

Canada has led new foreign investment in the United States in recent years, with Canadian investors spending billions to acquire or establish businesses in the United States.

Canadian firms have made important investments in this region. Eckerd Drug, which employs 2,000 locally, was acquired last year by the Jean Coutu Group of Quebec.

Nova Chemicals recognized the benefits of moving their North American headquarters from Calgary, Alberta, to Pittsburgh in 1999. Senior Nova executives are now within two hours' flying time to the majority of their customers and investors.

Bombardier Transportation, which has main offices in Quebec and Ontario, acquired Adtranz in West Mifflin to strengthen its position as a global provider of transportation systems.

Canadian-born entrepreneur Louis Malafarina chose the Pittsburgh region to establish Ripple Effects Interactive, an innovative designer of Web pages and provider of online marketing services. He is one of many Canadians bringing new ideas and new investments into the region.

Altogether, 22 Canadian-owned companies operate in the region, employing more than 5,000. They are part of a network of more than 390 overseas operations in the Pittsburgh region with more than 35,000 employees, which have been attracted in part by the efforts of the Pittsburgh Regional Alliance, an affiliate of the Allegheny Conference on Community Development.

This underscores the following two facts regarding the impact of overseas investment: Overseas investors employ an average of 145 compared with 18, the regional average; overseas investors in our region pay an average salary of $51,000 compared with $32,000, the regional average salary.

And our cultural links with Canada also are strong. In recent years, Pittsburgh has seen a wealth of wonderfully talented artists from Canada, including Cirque du Soleil and Cirque Eloize, and thousands of area residents travel north of the border every year to enjoy dramatic productions at the Shaw and Shakespeare festivals in Ontario, and world-class performances of all kinds in Toronto and Montreal.

Ongoing efforts to market the region for more overseas investment and high-paying jobs, and assisting our regional companies to invest and compete globally are critical components of this region's future economic prosperity; and it all starts with Canada.

With increased security concerns since 9/11, the Canadian government has recognized the need to further strengthen the partnership between the United States and Canada, whose Expanded Representation Initiative increases the number of Consular offices from 13 to 21, and the number of honorary consuls from zero to 20.

It's important to note that Western Pennsylvania was chosen this year as the location for the first Canadian honorary consul to be established in the United States.

Canadian Consul General Roger Marsham, based in Buffalo, has made it clear that he regards Western Pennsylvania as a critical region for bilateral growth initiatives.

The honorary consul's tasks include increasing Western Pennsylvania's awareness of the strong partnership between the two countries, supporting the expansion of bilateral trade and investment opportunities between Western Pennsylvania and Canada, and fostering more academic, technology and cultural links between Western Pennsylvanian organizations and Canadian counterparts.

Part of this effort has been the formation of the Western Pennsylvania Canada Forum, which is a group of leaders in the Canadian-American community who are committed to promoting activities and connections linking this region with Canada. These representatives of the region's business, academic and cultural communities embody an energetic cross-section of Western Pennsylvania.

The Forum publishes a bimonthly e-newsletter called CanadaConnect News, and will soon unveil a new Web site at www.canada-connect.org. Both will update readers on the Forum's activities along with articles about individuals and companies with ties to Canada, information about business links between Western Pennsylvania and Canada, cultural offerings, tourism opportunities and services available through the Canadian Consulate in Buffalo.

The future prosperity of our region, like any other region in the United States and worldwide depends not only upon innovation and global competitiveness, but also on economic and cultural diversity. Canada has been and will continue to be a top bilateral partner for this region.

Even though we face challenges, it's worthwhile to recognize the value of this relationship between Canada and the United States, and essential that we commit ourselves to solving problems and moving forward so that we can continue to enjoy the mutual benefits it provides.

First published on January 9, 2005 at 12:00 am
Roger O. Cranville is Canada's honorary consul for Western Pennsylvania, the first of 20 Canadian honorary consuls in the United States; senior vice president, business investment at the Pittsburgh Regional Alliance; and president of the British-American Business Council's Pittsburgh Chapter.