Exporter confidence growing

Canadian exporters are more confident in the world economy and in their opportunities to do business abroad according to a recent survey conducted by Export Development Corporation (EDC) in conjunction with the Angus Reid Group. The survey of 501 leading companies with annual export sales totaling $11 billion found that the overall trade confidence index has jumped by 7.5 per cent since March 1999. The index is a summary measure that takes into account views on economic conditions and expected sales growth within Canada and throughout the world. Those surveyed represented a cross section of industrial sectors and companies of all sizes. Entitled Horizons, the survey is the first of its kind to gauge confidence in the Canadian export community. The results enable exporters to see how their company's views and plans compare to others' expectations of foreign markets and growth prospects and perceptions of the risks or impediments. Seventy-one per cent of exporters surveyed indicated that NAFTA has had a positive effect on their competitiveness and 88 per cent said that decreased corporate taxes would also benefit Canadian companies. Only 16 per cent of companies said that they had lost employees to U.S. employers, the "brain drain." A 20 per cent increase was noted in the number of companies that felt that international business opportunities would improve in the next six months. "This bodes well for our economy, which relies on the willingness of companies like these to tackle business in international markets in order to grow," says EDC president and CEO A. Ian Gillespie. Not surprisingly, the United States is still the market of choice for most exporters (71 per cent) and yet very few of these companies (four per cent) perceive much commercial risk in the U.S., which does not reflect market realities. Rolfe Cooke, senior vice-president of Short Term Financial Services at EDC advises caution. "The U.S. market is and will remain a highly attractive market for Canadian exporters. But, they should not underestimate the risks of doing business there. The credit risk is very real." Complete results of Horizons can be obtained on EDC's web site at www.edc.ca. Exporters interested in participating in the next survey should contact EDC at 1-888-336-9615. EDC is the only Canadian financial institution devoted exclusively to providing trade finance services in support of Canadian exporters and investors in up to 200 countries. Founded in 1944, EDC is a Crown corporation that operates as a commercial financial institution. Media contact:
Rod Giles
EDC Corporate Communications
(613) 598-2904
[email protected] http://www.edc.ca For further information, please contact:
Mike Colledge
Vice-President, Public Affairs
Angus Reid Group
(613)241-5802