Why Invest in Canada

Canada is a globally competitive country with tremendous opportunity for investors. Not only does Canada boast a highly skilled and available work force, but also growing productivity, state of art infrastructure, energetic business climate and a positive legislative environment.

According to KPMG's most recent study - released January 29, 2002 - comparing business costs in North America, Europe and Japan, Canada is the most cost-effective country in which to do business. It surveyed 85 cities in the G7 nations plus Austria and the Netherlands and found that Canada offers cost savings for labour, energy, energy, taxes, transportation, land and construction

The study contains essential information for any company seeking a cost advantage in locating its business operations. It examines a number of industries in 86 cities in Austria, Canada, France, Germany, Italy, Japan, the Netherlands, the United Kingdom and the United States

Based on a cost index with the U.S. equal to 100, Canada is the lowest-cost country, as follows:

Cost Index
% Cost Advantage over the U.S.




United Kingdom






The Netherlands









United States .


0 0





Here are more reasons to invest in Canada:

  • Strong Financial Situation: In the past ten years, Canada has taken decisive and successful action to put itself on a sound fiscal foundation. In 1994 Canada was in a deficit position -- but by 2002 it had the biggest financial surplus of all G-7 countries, relative to GDP.

  • Low Inflation and Low Interest Rates: Canada's government has created winning conditions for the private sector to operate in. And a fundamental part of Canada's attractiveness to the international business community is its low inflation, low interest rate environment. Canada's low inflation and low interest rates mean that companies can do business in a stable, predictable and low-cost business environment.

  • Growing Domestic Economy: The Canadian economy has enjoyed strong growth so far in 2002, as evidenced by its 4.4% average growth rate over the past three quarters, still well above other G7 countries.

  • Foreign Direct Investment: Canada and the U.S. have one of the world's largest direct investment partnerships, with the stock of investment between the two countries totalling $413 billion in 2001.

  • Tax Advantages: Contrary to popular misconceptions, when it comes to business Canada is a low tax country. In 2000, the Canadian government announced the most progressive tax changes the country has seen in decades-and corporate tax rates will decline dramatically through 2005.

  • Superior Workforce: The Canadian workforce is unrivalled in terms of knowledge, education and skill level, and is also loyal and stable - Canadian labour turnover rates are quite low. Moreover, Canada is always seeking to make its labour force even better! Canada made it easier for skilled people to come from abroad and put their talents to work in Canada. Canada ranks 4th in skilled labour availability (the U.S. ranks 24th)

  • Easy Access to Global and North American Markets: Canadian companies have entry to the world's largest markets through the North American Free Trade Agreement (NAFTA) -- and are a vital presence in Asia, Europe and around the world as well.

  • First Class Infrastructure: Canada's business infrastructure is among the best in the world!
    Canada has the state-of-the-art infrastructure you need to do business in a stable, predictable and hassle-free environment:

    • First-class communications

    • World standard research and development capabilities

    • Reliable financial institutions, wired and responsive to the needs of businesses

    • Fair, dependable and transparent marketplace rules

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