Welcome to the new Monitor, a concise and insightful look at the U.S.-Canada business and economic relationship. This collection of news articles, scholarship and thoughts from leading economists, journalists, academics and members of the business community is meant to provide you with an overview of the various perspectives on the dynamic and interconnected nature of the U.S.-Canada economic relationship. Each month we will also focus on a core subject of importance to both economies; this month features a look at the state of the Canadian economy in times of economic uncertainty.
We welcome your feedback and hope to highlight some of your comments each month. Write to us and tell us what you think at: connect2canada@canadianembassy.org.
Regards,
The Monitor Staff
Voices "It’s very important, if you look at Canada – just north of us – there are a lot of opportunities for growth.”
-Mike Michaud, U.S. Congressman, Maine
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Perspectives: The Canadian Economy in Uncertain Times
 Slowing U.S. economy hits Canada
Bloomberg News
February 13, 2008
The impact of the U.S. housing slump is spreading in western Quebec's sparsely populated Antoine-Labelle county, where 17 plants have closed since residential construction began to plummet two years ago. The region has lost more than 10 percent of its 18,000 jobs, prompting Kanenda's former workers to buy the bankrupt facility and try to reopen it.
Stock market outlook glum; Canadian economy shows surprising strength
The Canadian Press
February 8, 2008
Recession clouds continued casting gloom over financial markets earlier this month with Wall Street index futures pointing to losses followed three days of declines. However, investors were confronted with data showing surprising strength in the Canadian economy.
Hollowing out not a problem in Canada: Conference Board study
The Canadian Press
February 6, 2008
Corporate Canada is not being hollowed out by foreign takeovers and is giving as good as it gets in the area of mergers and acquisitions around the world, according to a new report by the Conference Board of Canada. The 36-page report released Wednesday concluded that domestic companies have been acquiring foreign businesses at a faster pace than foreigners have been buying up Canadian companies over the last 15 years.
Read the original study from the Conference Board of Canada here.
In The News
Canada to become next OPEC – pipeline into U.S. gets regulatory approval
WorldNetDaily News
February 1, 2008
The United States' oil dependence on Canada, already America's largest supplier, is about to grow under a plan to build a new pipeline to transport oil from the tar sands of Alberta into the central part of the nation.
Budget 2008: Responsible Leadership for Uncertain Times
Department of Finance Canada
February 27, 2008
Building on the Government’s 2007 Economic Statement, the Honourable Jim Flaherty, Minister of Finance, today tabled a balanced, focused and prudent budget to strengthen Canada amidst global economic uncertainty. Budget 2008 continues reducing debt and taxes, focuses government spending, and provides additional support for sectors of the economy that are struggling in this period of uncertainty.
China top U.S. importer, Canada loses trade title held since 1991
Financial Post
February 15, 2008
Canada has lost its place as the world's No. 1 exporter to the United States, with China triumphantly taking the crown; however, the U.S. trade deficit with China ballooned to over US$250 billion last year, creating the largest bilateral trade imbalance ever.
Labour Force Survey
Statistics Canada
February 8, 2008
Employment grew by an estimated 46,000 in January, boosting the employment rate to a record high (63.8%). These gains pushed the unemployment rate back down to 5.8%, matching the 33-year low reported in October 2007.
Porsche revs up to expand Canadian business
Globe and Mail
February 13, 2008
Porsche AG is set to announce a major expansion of its operations in Canada Wednesday, including the appointment of a president of Porsche Cars Canada Ltd. who will report directly to the company's head office in Germany instead of the U.S. office in Atlanta.
Regional Focus: The I-75 Corridor of Jobs
With almost $115 billion in bilateral trade between Canada and these three states that count Canada as their largest export market, Michigan, Ohio, Kentucky and Canada are important partners.
Using the automotive manufacturing industry only as a measuring stick, 300 automotive companies and plants that export to Canada employ over 114,000 in Ohio alone.
Other notable facts include:
- Michigan
- • 581 Canadian owned businesses in Michigan employ 25,301 people.
- • 650 automotive manufacturing companies and plants across Michigan, that export to Canada, create over 365,000 jobs.
- • 221,492 jobs across Michigan are supported by Canada-U.S. trade.
- Ohio
- • 684 Canadian owned businesses in Ohio employ 17,557 people.
- • Over 300 automotive manufacturing companies and plants across Ohio, that export to Canada, create over 114,000 jobs.
- • 276,621 jobs in Ohio are supported by Canada-U.S. trade.
- Kentucky
- • 220 Canadian owned businesses in Kentucky employ 12,274 people.
- • Over 80 automotive manufacturing companies and plants across Kentucky, that export to Canada, create more than 28,900 jobs.
- • 95,927 jobs in the state of Kentucky are supported by Canada-U.S. trade.
Canadian Embassy, Washington, D.C.
Innovation
ZENN Cars
The earth-friendly future is here with ZENN -- Zero Emission, No Noise fully-featured electric vehicle. Requiring no gasoline, the ZENN is affordable and can be recharged anywhere by simply plugging into a standard electrical outlet and is ready to go in as little as four hours. What is more, the ZENN is a sizable car, not merely a beefed up golf cart.
Read more about ZENN Cars
Publications
The University of Waterloo Department of Geography and Environmental Studies
Assessment of Affordable Housing Options using Collaborative Geospatial Software
The scale of the affordable housing problem in Canada is enormous and the situation is worsening due to a number of recent social trends. New and innovative methods of public participation are needed in dealing with the challenges of affordable housing development and this paper, from the University of Waterloo, employs spatial information technology to improve the public participation process and attempts to create a set of potential affordable housing options for effective implementation in a real-world setting.
Blogs
Worthwhile Canadian Initiative
Read Worthwhile Canadian Initiative, a blog by Stephen Gordon a professor of economics at l'Université Laval in Quebec City, Canada. Mr. Gordon underscores the title of his blog with: "Who would have thought an economics blog could be this exciting?"
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Multimedia
Economic Forecast for 2008
Profit Magazine Editor, Ian Portsmouth interviews Michael Gregory, Managing Director and Senior Economist with the Economics Department at BMO Nesbitt Burns. Michael speaks to Ian from his office in Toronto about how the U.S. recession will affect Canada’s businesses, and what the forecast looks like over the short- and the long-term in 2008.
This podcast comes courtesy of BMO Bank of Montreal in cooperation with PROFIT Magazine as part of Business Coach Podcast, an advice-oriented series for Canada’s entrepreneurs.
People
Who is Mark Carney?
CBC News
Young and smart; Harvard and Oxford educated; successful Goldman Sachs investment banker; and now Bank of Canada Governor. In a recent podcast from CBC News, Anna Maria Tremonti attempts to probe the psyche of Canada's new Bank of Canada governor, Mark Carney, who took over from David Dodge earlier this month. Among other things, Termonti elucidates what change in direction, if any, Carney plans to make as Canada wrestles with turmoil in the financial markets and the threat of recession-spread from the US.
State Trade Fact Sheet
New Jersey: The Garden State
In 2006, New Jersey-Canada trade climbed to $12 billion, 11% more than the previous year. The state exported $4.2 billion in merchandise to Canada and imported $7.8 billion worth. In fact, the state’s exports to Canada, its leading foreign partner, surpassed NJ sales to its next three export markets, namely the United Kingdom, Japan and Mexico combined.
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