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A publication of The Canadian Council for the Please click on each headline for this week's top stories. Trade Missions, Seminars and Other Events Bogotá - Colombia 1. 2nd Andean and Central America Energy Congress 2008 Washington - United States of America 2. South American Productivity Leadership Forum Monterrey - Mexico 3. Women's Trade Mission to Monterrey, Mexico October 21 - 24, 2008
Special Announcements 4. Government of Canada expanding Trade Opportunities at Home and Abroad 5. Government of Canada Announces New Air Agreement with Panama
Regional News 2. Mexico ’s Modelo Seen Embracing InBev bid for Bud 3. Peru ’s Economy Grows 13 Percent in April 4. Ecuador Reaches Temporary Deal with Foreign Firms Over Oil Tax Row 5. Scotiabank Buys 47.5% Stake in Profuturo for US$ 33mn
Trade Missions, Seminars
and Other Events
Bogotá - Colombia July 9th to 11th For more information visit: www.acaec2008.com South American Productivity Leadership Forum "CATALYZING SOUTH AMERICAN COMPETITIVENESS" The South American Productivity Leadership Forum (SAPLF) hosts the projects that are integrating the continent, boosting continent-wide productivity and offering near-term development opportunities. As a part of the Leadership Forum series, the South American Productivity Leadership Forum is a dynamic combination of project presentations, private meetings and ‘deep dives’ into specific issues and CEO/political leadership presentations. Wednesday, July 23 & 24 2008 Monterrey - Mexico Organization of Women in International Trade Join Trade Mission to Mexico Deadline: June 30, 2008 (The earlier you register, the better, to ensure maximum time to plan most effective business matching for you.) Click here to view a complete invitation to the event. For information please contact: Gail Morris Special Announcements Government of Canada expanding Trade Opportunities at Home and Abroad Excerpt from original article: Canada is moving along its aggressive trade strategy by establishing 10 new trade offices in three countries and is expanding its Trade Commissioner Service in Canada with four new satellite offices. The announcement was made by the Honourable David Emerson, Minister of Foreign Affairs and International Trade and Minister for the Pacific Gateway and the Vancouver-Whistler Olympics, during a speech delivered for International Trade Day, in Mississauga. Minister Emerson announced that new trade offices will open in six cities across China ( Chengdu, Nanjing, Qingdao, Shenyang, Shenzhen, Wuhan), two in Mexico ( Tijuana, Villahermosa) and two in Brazil ( Porto Alegre, Recife). These are in addition to two new offices in India ( Hyderabad, Kolkata) and one in Mongolia ( Ulaanbaatar) announced in April. The government will also add new trade staff to existing offices in Brazil, Chile, China, Colombia, India and Panama. “Canadian business has been demanding more service in growing markets abroad as well as enhanced local service in Canada,” said Minister Emerson. “Today this government is delivering on our commitment to the business community to improve these services.” At home, new satellite offices will be established in Kitchener, Ottawa, Victoria and Windsor. Additional trade officers will also be added to existing regional offices. “These offices play a key role in encouraging small and medium-sized enterprises to seek international opportunities and succeed in new markets,” said Minister Emerson. “Expanding our domestic points of service means more Canadian businesses will be active on the world stage.” For the full article, please click here Government of Canada Announces New Air Agreement with Panama A new air transport agreement with the Republic of Panama, a long-standing bilateral partner in Central America, was announced on June 19 th by the Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities, and the Honourable David Emerson, Minister of Foreign Affairs and International Trade and Minister for the Pacific Gateway and the Vancouver-Whistler Olympics. “The new agreement will benefit passengers, businesses, air carriers and airports through a greater range of travel options," said Minister Cannon. "I am pleased to announce the conclusion of a new air transport agreement with the Republic of Panama, a close bilateral partner of Canada." With air travel, trade and investment between Canada and Panama growing, this agreement marks another step forward in Canada's engagement in the Americas. The agreement also complements Canada's recently launched exploratory discussions with Panama on a possible Free Trade Agreement. In 2007, bilateral merchandise trade between Canada and Panama totaled $115 million, with Canadian exports accounting for $86.4 million and imports totaling $28.7 million. From 2005 to 2007, Canadian merchandise exports to Panama increased 44 per cent. Air carriers from both countries have shown an interest in operating scheduled air services between Canada and Panama, and are currently reviewing their plans in light of the new agreement. For the full story, click here Regional News
With Canada’s re-engagement in the Americas a key foreign-policy priority of the federal government in 2008, last week’s presentation at the Canadian Council for the Americas on investing for positive returns in the Caribbean by Michael Lee-Chin, Chairman of Portland Holdings Inc., was a timely one indeed. Although Canada’s economic, social and political roots in the Caribbean are deep, they are often misunderstood. Mr. Lee-Chin, whose privately-held investment company owns a diversified collection of businesses from financial services (including the AIC Mutual Funds) to media, emphasized that the Caribbean is a “treasure trove of opportunities” due, in part, to a dearth of equity capital and to long-term growth prospects. Its close proximity to the U.S. and Canada, predominantly English-speaking population, common heritage as part of the British Commonwealth and respect for the rule of law make it an attractive market for Canadian companies to target, he said. His advice for doing business successfully in the Caribbean, which he stressed is poised for phenomenal growth, includes:
Having successfully intertwined his passion for the Caribbean and for Canada, this visionary entrepreneur has not only anticipated demands and developed highly profitable services to meet them, but has a strong belief that wealth creation comes with a philanthropic responsibility. “The question to ask is ‘How do we use our voice and power to ensure the many inequities in the world are addressed?”, he challenged the audience. In sharing the example of his launch of a telecom company in the Caribbean with a goal of sustainable development, he demonstrated the benefit of “thinking community first.” In this case, “doing good” by bringing telecom costs down to a range affordable to the masses has also resulted in “doing well” in terms of profitable business.
Excerpt from original article: Mexico's No. 1 brewer, Modelo, run by a family not known for risk taking, is expected to emerge from InBev's $46.3 billion takeover battle for Anheuser-Busch with only one major change -- a new partner. Modelo, already 50 percent owned by Anheuser, is expected to block any attempt by the brewer of Budweiser to buy full control as a defensive move. Neither does it want to take on billions of dollars of debt to buy back its stake in the St. Louis-based giant. "At the end of the day, if InBev buys Anheuser, Modelo is going to play safe. OK, now I don't have Anheuser causing me grief. I have InBev and everything remains the same," said Ixe brokerage analyst Marco Reyes. For the full story, click here Peru's Economy Grows 13 Percent in April Excerpt from original article: Peru 's economy grew more than 13 percent in April compared to April 2007 -- the largest monthly increase in 13 years, the government said. Peru has now had sustained economic growth for 82 consecutive months, according to the National Statistics and Information Institute, which released April's results on Monday. The economy grew 10.5 percent in the first four months of the year, compared with the same period in 2007, the institute said. The institute attributed April's strong growth to positive performances in the construction, fishing and manufacturing industries, while also noting that the month had more work days than April 2007, which included the Holy Week holidays. Construction was the sector that marked the most growth -- 33.9 percent -- while fishing, aided by the lifting of an anchovy-fishing ban, grew by 28.8 percent, and the manufacturing sector grew by 16.5 percent. The government had predicted year-on-year growth for the month of April at 12.1 percent, while the average prediction of banks and consulting agencies was 11.1 percent. Banco BBVA's Economics Studies Service said Tuesday that April's numbers will boost the government's economic-growth predictions for the whole year, now at 8 percent. But it warned that "the eventual impact of a global deceleration, especially in the United States ... and consumers' reduced spending capacity amid high food and fuel prices" could have a negative effect on growth. Ecuador Reaches Temporary Deal with Foreign Firms over Oil Tax Row elemex Excerpt from original article: Ecuadorian President Rafael Correa said on Saturday his government has reached a temporary agreement with most foreign companies that filed lawsuits against it over an oil tax. "Most of the companies have said yes" to a government proposal to offer them a tax cut for one year if they agreed to drop the lawsuits, Correa said during his weekly radio address. Ecuador last year raised its windfall tax from 50 percent to 99 percent, which allowed the government to grab nearly all the extra oil revenues generated by foreign firms above a set contractual price. Correa's government on Thursday offered to slash the windfall tax to 70 percent from 99 percent for one year if they agreed to drop lawsuits filed over the tax. "But in one year, they will have to sign service deals… that's the condition." Correa said. Ecuadorian Oil Minister Galo Chiriboga said the government will negotiate a new service contract model with companies during the year. Ecuador , South America's No. 5 oil producer, wants the foreign firms to switch from deals that allow them to keep part of the crude they extract to service contracts in which the state will keep all the crude in exchange for a fee. Scotiabank Buys 47.5% Stake in Profuturo fo US$33mn Excerpt from original article: Canada's Scotiabank (NYSE: BNS) has acquired a 47.5% stake in Peruvian pension fund manager Profuturo AFP for US$33mn, the bank said in a press release. Profuturo AFP is Peru's smallest pension player, controlling 13.8% of total assets under management held by the country's four private pension managers at end-May, according to financial sector regulator SBS data. Top player AFP Integra finished May with 31.9% of market share in terms of assets under management. Profuturo's existing shareholders partnered with Scotiabank to strengthen its position in the business, a Profuturo spokersperson told BNamericas, adding the pension fund manager will not change its name. Profuturo posted net profits of 10.3mn soles (US$3.5mn) in 2007, a 92% increase on 2006, the company's financial statements show. In Peru, Scotiabank runs the country's third largest commercial bank, which had a 16% loan market share at end-March. This newsletter has been brought to you in part by: CCACommunication Committee: David Medina and Andreia Santos For suggestions or comments about our CCA Bulletin feel free to contact us by email at cca@iecanada.com If you do not wish to continue receiving the CCA Update, contact us at: cca@iecanada.com. Type in Unsubscribe in the Subject line. Disclaimer – CCA Update
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