Q1. What has been the series of events that have taken place in the past year in the Province of Ontario on the economic and trade front? What is the road ahead?

A. Ontario's economy is strong and in 2007 our province's economic performance has exceeded expectations.

However, 2007 brought significant unanticipated changes in the economic environment. The Canadian dollar climbed above parity with the U.S. dollar and oil prices reached a recent high of close to $100 us per barrel. Global financial turmoil and credit tightening have recurred as a result of the sub-prime mortgage crisis in the U.S.

Despite these challenges, Ontario's economy continues to be resilient and Ontario's real GDP is expected to grow by 1.9 per cent in 2007. Employment is expected to grow by 1.6 per cent in 2007 with Ontario creating an additional 82,000 jobs in 2008. Incomes have grown strongly and corporate profits are expected to expand by 7.0 per cent in 2007.

Over the past five years, merchandise exports to U.S. have declined by 7.4 per cent while exports to other countries nearly doubled (93.8 per cent). Weaker growth in the U.S. as well as a stronger Canadian dollar will dampen export expansion in the near term, but the opening of the new Toyota plant in Woodstock in 2008 should give our exports a strong boost.

Q2. India has been the focal point for Ontario as a trading partner, how do you see it growing? What is the agenda in your visit during January 2008? Who are the accompanying delegates from various companies?

A. An excellent example of the potential for future growth in Ontario-India investment and trade is the auto sector. Almost a dozen Ontario auto parts companies will be attending the Auto Expo 2008 to showcase their products, as well as seeking potential business partnerships.

Ontario produced 2.6 million vehicles in 2006 and the companies who will be represented at Auto Expo 2008 are only a few of the hundreds of auto sector parts manufacturers in the province of Ontario.

As well as attending Auto Expo 2008, I will be following up with many governments officials and companies in New Delhi and Mumbai as a follow-up to last year's mission to Indian by our the Premier of our province.

These are the companies joining us on our mission to India:

• ABC Group Inc. (auto parts)
• Algonquin Automotive (auto parts)
• Aon Corporation (risk management/insurance brokers)
• Automotive Parts Manufacturers' Association
• CANMET Materials Technology Lab (fed. gov. metals and materials laboratory)
• Export Development Canada (export credit agency)
• Georgian College of Applied Arts and Technology (education)
• Leggett & Platt Automotive Group (auto parts)
• M.A. Jans & Associates (business consultancy)
• Matcor Automotive (auto parts)
• Pioneer Development Corp. (contract manufacturing/innovation funding)
• Prodomax Automation Inc. (automotive manufacturing systems for auto sector)
• R P S Industries Inc. (auto parts)
• Sheela Woodbridge Urethanes Pvt Ltd. (polyurethane foam processor)
• Starlim North America Corporation (injection molding equipment)

Q3. As you are aware there is an ever-increasing number of immigrants mainly coming from India who are adding to both employment and the economic growth of Ontario. How are you coping with this influx and also how do you see them gradually weaving into the fabric of the economic growth that is happening in Ontario?

A. It's not a matter of coping. We welcome the multifaceted skills people from India bring to Ontario. Ontario is home to more than 500,000 people of Indian origin, joining the many hundreds of thousands who have already emigrated here. Indian immigrants have become part of the rich, cultural diversity of our province and play an increasingly vibrant role in our economy and the fabric of our society. Our population growth will continue to come mainly from immigration.

Q4. Private sector analysts predicted that Ontario's average growth during 2005-2007 would exceed that of the UK, Japan, France, Italy and Germany. Has this been the case? If so what were the reasons for this growth rate?

A. The Ontario economy grew at a more rapid pace in 2005 than the U.K., Japan, France, Italy and Germany. This was not the case in 2006 and 2007 as the Ontario economy slowed, whereas Germany and UK growth expanded at a much stronger pace.

In the latest forecast from the Ontario Ministry of Finance, real GDP growth is expected to expand by 1.9 per cent in 2007, 1.8 per cent in 2008 and 2.4 per cent in 2009.

We expect moderate growth is expected to continue through 2008 as U.S. demand remains soft and the higher Canadian dollar and oil prices present challenges to economic expansion.

Q5. Ontario's proximity to NAFTA markets and Windsor/Detroit gateway has always been a boon for the province. How has Ontario benefited this year round and how do you see this helping India?

A. The creation of NAFTA in 1994 has resulted in a strong increase in trade among the three member countries.

Ontario exports are projected to rise by 1.5 per cent in 2007. In 2008, export growth is expected to grow by 1.0 per cent, but the forecast looks for exports to strengthen in 2009 and 2010, averaging 2.7 per cent.

The Windsor-Detroit border crossing is the busiest trade corridor in North America. Every year, more than 16 million trucks and cars, and $140 billion in goods pass through gateway.

In addition, Ontario is part of the affluent $15 trillion NAFTA market, which allows Ontario products to enter the U.S. and Mexico duty-free when 62.5 per cent of their content is manufactured here.

Indian, as well as other countries, come to Ontario because of this market access.

Q6. On the educational front what has been the progress and further are there any educational tie-ups with any Indian educational institutes recently concluded? Presently what is the percentage of Indians students aspiring for advanced education in Ontario and also Canadian students aspiring to come to India as exchange students?

A. The Ontario government will invest $600,000 in a York University led international exchange. The $600,000 is part of the province's commitment to the internationalization of Ontario's postsecondary education system.

York signed the Ontario-Maharashtra-Goa Student Exchange Agreement on behalf of 15 Ontario universities and up to 10 Indian institutions during Premier Dalton McGuinty's trade mission to India last January 2007. The agreement was one of the 26 Ontario-India pacts signed during the mission to create opportunities for student and faculty exchanges, research collaboration and joint programs.

The agreement will help up to 50 students participate in the new international exchange program and the opportunities will be available to students as early as January 2008.

Q7. Ontario is highly advanced in the areas of ICT, Automotive, Life Sciences, Chemical/ Plastics and Aerospace, what is level of collaborative activities envisaged for India especially in these areas? Besides, the above mentioned areas, which would be other sectors where you would like India and Ontario to work together?

A. A significant percentage of the members of last year's trade mission led by Premier Dalton McGuinty represented Ontario's educational institutions. They saw great potential between Ontario and India to expand partnerships in education that will benefit both our province and India. The education sector continues to hold promise for future growth.

Ontario also has a long, successful history in exporting our infrastructure technology to other countries requiring assistance in upgrading transporting, roads, airports, etc.

However, the sectors you already mentioned - auto, ICT, Life Sciences Aerospace, etc. - will continue to be the main focus of our efforts to increase investment and trade between our province and India.

Q8. With India facing some of the worst disasters both natural and man-made, in the recent past, how do you see India and Ontario collaborating in this crucial area as well?

A. Many Ontario architects, engineers and infrastructure designers are already working on new infrastructure products in India, and continue to develop new technologies and methodologies that can help repair the damage of floods, earthquakes and other natural disasters that affect infrastructures. Our national expertise in communications systems is another reason that Canadian technology is often in demand to help repair damage from these phenomenon.

Q9. Finally what is your message to both India's youth and business community that could help connect more effectively than at present?

A. We look forward to expanding investment and trade that will not only solidify existing business between Ontario and India, but help create more opportunities for an increasing number of our youth who are entering the general workforce. New investment and trade are key to ensuring that both of our jurisdictions continue to offer meaningful career options.

Sources:

Q1. Ontario Ministry of Finance, Fall Economic Review, 2007; Quarterly Economic Accounts.

Q4. Ontario Ministry of Finance, Fall Economic Review, 2007; Quarterly Economic Accounts.

Q5. Ontario Ministry of Economic Development and Trade, Trade and Investment Division, Marketing Branch.

Q6. Ylife (York University Newsletter for Students; Asia-Pacific Foundation of Canada