Objective 2b, International Strategy, Manitoba Competitiveness, Training and Trade


	Reaching BEYOND our Borders THE FRAMEWORK FOR MANITOBA'S INTERNATIONAL ACTIVITIES Objective 2: Promote Our Capabilities, Strengths and Advantages

Advance Trade & Investment

Trade

We have always been a trading province, doing business both within Canada and with the entire world. We are proud of the success of our entrepreneurs, the dedication of our workforce, and our diverse and modern industries.

We have one of Canada's most diverse economies and are home to a wide array of major industries, including:

Manufacturing;
Agriculture;
Biotechnology and life sciences;
Film and cultural industries;
Financial services;
Energy development;
Information technology; and
Gold, nickel, copper and zinc mining.

Agriculture, the primary economic driver of the past century, has changed with the times. Fifty years ago, prairie wheat kept our economy thriving. Today, innovation through biotechnology and genetics has renewed our international profile in agriculture. Similarly, diverse crops and livestock highlight a modern, responsive approach to market demands and a new understanding of sustainability. Our rural economy remains centred on agriculture; however, agri-food has evolved into a value-added sector that vertically integrates export-driven wealth into rural communities.

To support rural economic growth, the Province has introduced the Young Immigrant Farmer Program, which targets young farmers that are interested in immigrating to Manitoba and investing in a Manitoba farm. This program works with the Succeeding Generations Initiative and the Farm Mentorship Program so immigrant farmers succeed and rural communities prosper. While contributing to rural Manitoba, young immigrant farmers will harvest the rewards of contributing to revitalization.

Increasingly, we are being seen as leaders - not only in traditional resource development, manufacturing and skills - but also in knowledge-based industries that are driving the global economy. Our skills and talents are becoming internationally known.

Manitoba Foreign Exports - 2003

For example, we are proving ourselves as a growing centre for film, video and sound recording production excellence. Our film and sound recording industries are known nationally and internationally and Manitoba Film and Sound - a statutory corporation of the Province - actively promotes our film and sound industry at international conferences and events.

The Province works actively with the Government of Canada in trade development and investment attraction through Team Canada Inc. - a partnership of federal, provincial and territorial governments helping Canadian companies succeed in world markets. Team Canada Inc. offers a variety of services to businesses interested in the international marketplace, providing information on foreign markets, trade statistics, export financing, export contacts, logistics, trade shows and missions.

In addition, the Province works with local, Manitoba-based federal agencies as part of Trade Team Manitoba, a cooperative, single-window approach for the coordinated delivery of international business activities and programs.

The Province also partners with other provincial governments in international trade and investment promotion activities. For example, the Premiers of Manitoba and New Brunswick have jointly led missions of business delegates and partners to the United States to promote trade and investment opportunities in their respective jurisdictions. The two Premiers made a commitment to improve co-operation between their jurisdictions and improve Canada-U.S. relations in a 2002 Memorandum of Understanding and have demonstrated a cooperative, non-competitive approach to promoting the message that Canada is a natural investment and trading choice.

The Province has also introduced an Exporter Development Initiative that is designed to help our firms develop and grow their export business. International business consultants will work with small- and medium-sized companies in our province 'one-on-one' to assess strengths and preparedness for exporting. They will tailor their services to support new and emerging exporters and to assist experienced exporters to enter new international markets. They will provide services, including market intelligence on economic and political trends, market scanning, international business opportunities, and foreign contacts. These consultants also will provide opportunities to attract international buyers through "border busting" trade missions, trade shows, and targeted incoming missions. In addition, the Province will offer an improved Trade Assistance Program to support the development of promotional materials or web-enabled marketing.

Investment

There has been an increase in foreign direct investment in Manitoba from $1.1 billion in 2000 to $1.5 billion in 2002 (a 29% increase). The United States is the source of the largest amount of foreign direct investment, with $1.1 billion of capital investment made by companies with U.S. parents (a 34% increase from 2000 levels).

One factor that has attracted such investment is our low cost of doing business, as underscored in the results of KPMG's Competitive Alternatives study, released in February 2004. This study ranked Winnipeg as the third lowest-cost city in which to do business in the North American Midwest, with an overall cost-advantage of 9.5% relative to the U.S. average. Inexpensive office space and industrial land is available here, and our electricity and long distance phone rates are among the lowest in North America. Winnipeg's best rankings were in knowledge-based industries, such as biotechnology R&D, clinical trials, electronic systems testing, software design, web/multimedia, and corporate services.

An innovative program for attracting entrepreneurial foreign direct investment is the Provincial Nominee Program for Business. This program targets exceptional business people who are able and willing to make a capital contribution and be active in a new or existing business in the province. It has attracted interest from Argentina, Austria, Belgium, China, Germany, India, Iran, Korea, Nigeria, Switzerland, the United Arab Emirates, the United Kingdom, and Vietnam.

Demonstrating the Province's team-based approach to attracting investment, this program is delivered on a cross-departmental basis in partnership with the Government of Canada, Destination Winnipeg, and both the Winnipeg and Manitoba Chambers of Commerce. Since 2000, this program has generated 747 applications, with 466 approvals and total proposed investments of approximately $160 million.

Strategic Actions

chart - Provincial nominee program for business annual performance

The Government of Manitoba will:

Develop an International Trade and Investment Strategy, in consultation with industry and business interests, which will create a one-stop shopping approach to attracting capital investment. The strategy will prioritize target sectors and markets in a way consistent with the vision of Manitoba's Action Strategy for Economic Growth, the Community Economic Development framework, the Innovation Strategy, and the Northern Development Strategy. Manitoba Trade and Investment will work closely with other departments and government agencies involved in investment attraction to ensure the priorities of Manitobans lead this process. The International Trade and Investment Strategy will reflect the following principles:
- the U.S. is our most important market and it should be cultivated even while it is crucial to improve and diversify our trade with other countries;
- we must retain and grow Manitoba business by providing greater access to international capitalists and consumer markets;
- resources and activities will focus on promoting those sectors that demonstrate the greatest potential for growth;
- geographic targets will, in turn, be based on regional opportunities for growth within those specific sectors; and
- missions to target regions will be co-ordinated across departments and in concert with appropriate business, educational and research interests, in the context of supporting appropriate sector growth.
Implement the Exporter Development Initiative to assist Manitoba companies interested in exporting, particularly small-to-medium-sized businesses. The goal of the Exporter Development Initiative is to encourage and assist a new generation of export-ready companies pursuing markets in Canada, the U.S. and the world. The objective is to have 100 Manitoba companies achieving $5 million of new export sales in new markets one year after the Exporter Development Initiative is fully implemented. To achieve this, consultations will be held with stakeholders, such as industry associations, Chambers of Commerce, local development agencies and other government departments involved in exporting. A particular priority will be a higher level of support to businesses in northern and rural Manitoba. A cornerstone of the Exporter Development Initiative is a newly expanded Trade Assistance Program which helps Manitoba companies exhibit in trade shows and develop promotional material and websites.
Enhance the Provincial Nominee Program for Business by establishing a Business Immigrant Settlement Office that will assist new immigrant entrepreneurs by providing language-specific guidance with respect to regulatory requirements, local business practices, contacts and other support services.
Advance the Action Strategy on Economic Development's strategic investment objectives that have an international component, like working with leaders in the life sciences sector to double the level of available venture capital by 2007, and by promoting capital investment in rural Manitoba in areas such as agri-energy, bio-investments, food processing and value-added agriculture.

"Innovation is critical to Manitoba's future economic success. It directly affects competitiveness, productivity, standards of living and quality of life...

Innovation thrives in systems where high levels of interaction and collaboration take place among economic and community stakeholders. At the centre of this system of innovation are people, whose interaction through networks and relationships, drive innovation activities."

Manitoba - At the Forefront of Innovation
- An Innovation Framework for Manitoba.

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Objective 2: Promote Our Capabilities, Strengths and Advantages