March 21, 2006
No. 25
International Trade Minister David L. Emerson today welcomed the results of 2006
Competitive Alternatives, KPMG’s guide to international business costs, which for the
sixth consecutive time has ranked Canada as the lowest-cost G7 country in which to do
business.
“In today’s global marketplace, companies continue to seek out the best, most
cost-competitive places in which to locate and invest,” said Minister Emerson. “The
KPMG study shows once again that Canada offers one of the most cost-effective
business and investment climates in the world.”
The 2006 Competitive Alternatives report represents the most thorough comparison
ever undertaken of G7 business operations, and those of Singapore and the
Netherlands. Canada ranked second overall after Singapore, a newly industrialized
country.
The eight-month international study of leading industrial countries compares the
after-tax costs of starting up and operating a business over a 10-year period. The
analysis takes into account labour, transportation, energy and facility costs, as well as
both income-based and non-income-based taxes.
The 2006 results show Canada having an overall 5.5 percent cost advantage over the
United States. When the results are broken down by municipality, Canadian cities rank
higher than many of their international counterparts, particularly those south of the
border.
For example, among large metropolitan areas in the G7, Montreal ranks first with a cost
advantage of between two and 18 percentage points over comparable U.S. cities. The
study also reveals that larger cities such as Toronto and Vancouver also offer
significant cost advantages over their U.S. counterparts. Sherbrooke, Quebec, is again
ranked first among all small and medium-sized cities included in the 2006 study.
The report also identifies Canada as the lowest-cost G7 country in 12 of the 17
industries examined, including important sectors such as aerospace, chemicals,
electronics, medical devices, pharmaceuticals, precision manufacturing,
telecommunications, biotechnology, software design, Web and multimedia, and back
office/call centres.
“Canada’s competitive business costs are complemented by one of the highest
standards of living in the world, a highly skilled workforce, access to abundant natural
resources, and its position as a gateway to the North American market,” added Minister
Emerson. “The message to global investors is clear—Canada is a location of choice for
international commerce and our doors are wide open for business.”
The full report, online cost model and KPMG news release can be viewed at
http://www.competitivealternatives.com. More detailed Canadian results and collateral
materials are available at http://www.investincanada.gc.ca.
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For further information, media representatives may contact:
Jennifer Chiu
Press Secretary
Office of the Minister of International Trade and Minister for the Pacific Gateway and
the Vancouver-Whistler Olympics
(613) 992-7332
Media Relations Office
International Trade Canada
(613) 995-1874
http://www.international.gc.ca
