CANADA'S COMPETITIVE ADVANTAGES
(Source: Invest in Canada, May 2016)
Canada is open for business and welcomes foreign investment:
- Canada is the best country in the G-20 for business according to both Forbes and Bloomberg.
- Canada ranks 1st in the G-20 for doing business over the five-year period 2016-2020, says the Economist Intelligence Unit (EIU).
- Canada is the easiest place to start a business in the G‑20, according to the World Bank.
- Canada was the largest recipient of FDI inflows per capita in the G-7 over the 2010-2014 period.
- Canada’s growth in business investment has been by far the strongest in the G-7 during the recession of 2008 - 2009.
Canada provides a top performing economy for businesses to innovate, grow and succeed:
- Canada led all G-7 countries in economic growth over the past decade (2005-2014).
- Canada has posted the second fastest employment growth in the G-7 from 2005-2014.
- Canada’s economy has recouped more than all of the output and jobs lost during the recession.
- Since June 2009, over 1.3 million jobs have been created in Canada, an increase of 8.0% with over 80% of new jobs being in the private sector and full time.
Canada’s Fiscal strength provides operational certainty for business:
- Canada currently has the lowest net debt-to-GDP ratio in the G-7, according to the International Monetary Fund (IMF).
- Canada has balanced its budget in 2015-16, with a federal debt-to-GDP ratio that is projected to decline to 27.9% in 2017-18 and to meet its target of 25% of GDP by 2021.
- Canada’s sound fiscal strength is reflected by its triple A credit rating from Standard & Poor’s, Moody’s and Fitch.
Canada’s strength is reinforced by the world’s most stable financial sector:
- For the seventh consecutive year, the World Economic Forum (WEF) has declared Canada's banking system to be the soundest in the world.
- During the financial crisis, no Canadian bank or insurer failed and none required bailouts.
- Five major Canadian banks are ranked among the 10 safest banks in North America by Global Finance Magazine.
Canada offers a low cost, low tax environment:
- Overall business costs in Canada are the lowest in the G‑7 and 7.2% lower than the U.S., according to KPMG’s 2014 Competitive Alternatives Report.
- KPMG’s Focus on Tax 2014 also places Canada as the most tax competitive country in the G-7.
- Canada has been first among G-20 countries to make itself a tariff-free zone for manufacturers, by having decreased since 2010, tariffs on machinery, equipment and industrial inputs to zero in 2015.
- The federal statutory corporate income tax rate in Canada – at 15% in 2014 - is 20 percentage points lower than that of the United States.
- Canada's combined federal-provincial general corporate income tax rate of 26.3% in 2014 is below the level of most other G‑7 countries and about 13 percentage points lower than the U.S.
Canada offers a world leading cost effective R&D environment:
- Canada’s leads the G-7 in R&D spending in higher education as a share of GDP.
- Canada combines one of the best R&D tax incentives in the G-7 with increased certainty of eligibility and reduced administrative costs for businesses.
- R&D-intensive sectors in Canada also enjoy the lowest costs in the G-7, these being 15.8% lower than in the U.S. according to KPMG’s 2014 Competitive Alternatives Report.
Canada provides business with a highly educated and competitive workforce:
- Canada offers business the most educated talent pool among countries of the Organization for Economic Co-operation and Development (OECD), with more than half of its population aged 25 to 64 having a tertiary level education.
- Canada is the second most talent-competitive country in the G-20, according to the Institute for Management Development (IMD).
- Canadians are linguistically diverse, with 1 in 5 Canadians speaking one of over 200 languages in addition to either of Canada's official languages of English and French.
Canada is a great place to live and prosper:
- In 2013, Canadians enjoyed the second highest standard of living in the G-7, as measured by GDP per capita, according to the World Bank.
- The OECD’s Better Life Index shows Canada as best in the G-7 in terms of overall living conditions and quality of life, based on a variety of indicators including housing, income, jobs, environment, education and health.
- Canada ranks 1st in the G-7, according to The Heritage Foundation, in providing the economic freedom for a prosperous society.
Canada is your gateway to the world:
- 16 of Canada’s 20 largest cities are located within a 90-minute drive of the Canada‑U.S. border, anchoring trade valued at more than US$2.0 billion crossing the Canada‑U.S. border each day.
- Canada’s status as a NAFTA member offers foreign investors in Canada preferential access to a North American market of nearly $20 trillion (GDP) with over 480 million consumers.
- Once CETA comes into force, foreign investors in Canada will have guaranteed preferential access to both the EU and North American markets; this represents nearly 980 million consumers with a combined GDP of almost US$38 trillion, or nearly one-half of the world’s output of goods and services.
- Canada's major free trade negotiations, with the Trans-Pacific Partnership (TPP) and bilaterally with India and Japan, mean further enhanced market access is on the way for firms investing in Canada.
- Through tax and tariff export-related programs, Canada provides benefits to businesses comparable to those found in Foreign Trade Zones (FTZ) in other countries, while having the advantages of not being site-specific.