Index of "1996 Country Commercial Guides"
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U.S. Department of State
Canada Country Commercial Guide
Office of the Coordinator for Business Affairs



                       COUNTRY COMMERCIAL GUIDE

                               FCS CANADA

                                 FY96

This Country Commercial Guide (CCG) presents a comprehensive look at 
Canada's commercial environment through economic, political and market 
analyses.

The CCGs were established by recommendation of the Trade Promotion 
Coordinating Committee (TPCC), a multi-agency task force, to consolidate 
various reporting documents prepared for the U.S. business community.  
CCGs are prepared annually at U.S. Embassies through the combined 
efforts of several U.S. Government agencies.

     TABLE OF CONTENTS


Chapter I.     Executive Summary
Chapter II.     Economic Trends and Outlook
     A.     Major Trends and Outlook
     B.     Principal Growth Sectors
     C.     Government Role in the Economy
     D.     Balance of Payments Situation
     E.     Infrastructure Situation
          1.     Transportation
          2.     Telecommunications Infrastructure

Chapter III.     Political Environment
     A.     Nature of Political Relationship with the United States
     B.     Major Political Issues Affecting Business Climate
     C.     Political System

Chapter IV.     Marketing U.S. Products and Services
     A.     Distribution and Sales Channels
     B.     Use of Agents and Distributors; Finding a Partner
     C.     Franchising
     D.     Direct Marketing
     E.     Joint-Ventures/Licensing
     F.     Steps to Establishing an Office in Canada
     G.     Selling Factors/Techniques
     H.     Advertising and Trade Promotion
     I.     Pricing Product
     J.     Sales Service/Customer Support
     K.     Selling to the Government
     L.     Protecting Your Product from IPR Infringement
     M.     Need for a Local Attorney

Chapter V.     Leading Sectors for U.S. Exports and Investment
     A.     Best Prospects for Non-Agricultural Goods and Services
     B.     Best Prospects for Food/Agricultural Products

Chapter VI.     Trade Regulations and Standards
     A.     Trade Barriers
     B.     Customs Valuation
     C.     Import Licenses
     D.     Export Controls
     E.     Import/Export Documentation
     F.     Temporary Entry
     G.     Labelling, Marking Requirements
     H.     Prohibited Imports
     I.     Standards
     J.     Free Trade Zones/Warehouses
     K.     Special Import Provisions
     L.     Membership in Free Trade Arrangements

Chapter VII.     Investment Climate
     A.     Openness to Foreign Investment
     B.     Conversion and Transfer Policies
     C.     Expropriation and Compensation
     D.     Dispute Settlement
     E.     Political Violence
     F.     Performance Requirements/Incentives
     G.     Right to Private Ownership and Establishment
     H.     Protection of Property Rights
     I.     Regulatory System:  Laws and Procedures
     J.     Bilateral Investment Agreements
     K.     OPIC and Other Investment Insurance Programs
     L.     Labor
     M.     Foreign Trade Zones/Free Ports
     N.     Capital Outflow Policy
     O.     Major Foreign Investors

Chapter VIII.     Trade and Project Financing
     A.     Canadian Banking System
     B.     Foreign Exchange Controls Affecting Trading
     C.     General Financing Availability
     D.     Financing Exports/Methods of Payment
     E.     Export Financing and Insurance
     F.     Project Financing
     G.     List of Canadian Banks with Correspondent U.S. Banking 
Arrangements

Chapter IX.     Business Travel
     A.     Business Customs
     B.     Travel Advisory and Visas
     C.     Holidays
     D.     Business Infrastructure

Chapter X.     Appendices
     Appendix A.     Country Data
     Appendix B.     Domestic Economy
     Appendix C.     Trade
     Appendix D.     Investment Statistics
     Appendix E.     U.S. and Country Contacts
     Appendix F.     Market Research
     Appendix G.     Trade Event Schedule




  CHAPTER I.     EXECUTIVE SUMMARY

The U.S.-Canada trading relationship is the largest in the world, with 
well over US$300 billion in two-way trade taking place each year.  U.S. 
merchandise exports account for approximately 70 percent of the Canadian 
import market, and the United States remains by far Canada's largest 
export market.  Despite a recent softening of the Canadian economy, the 
Canadian import market, already the most favorable for U.S. goods and 
services of any in the world, should see annual growth of about 5 
percent in real terms through FY96.  Since the implementation of the 
North American Free Trade Agreement (NAFTA) in 1994, U.S exports to 
Canada have increased by over 30 percent.  Despite some well publicized 
trade disputes, overall market conditions are unlikely to experience any 
significant changes, and U.S. companies will continue to find Canada an 
extremely attractive and easily accessible place to do business.

With a population of about one tenth of that of the United States, the 
Canadian economy mirrors that of the United States in approximately the 
same ratio, and has developed in many ways along similar lines.  This 
has made Canada an ideal export and investment destination for many U.S. 
companies, who have found an environment and marketplace very similar to 
that of the domestic United States.  It also offers an ideal first stop 
for U.S. businesses seeking to begin export marketing, with business 
practices, attitudes, conditions and environments here more similar to 
those found in the United States than any other country in the world.  
Notwithstanding these similarities, however, significant cultural and 
linguistic differences, which vary across each of Canada's four 
distinctive regional markets, allow first-time U.S. exporters to develop 
an appreciation of the complexities of overseas marketing.  Experience 
gained here can provide as solid basis for success in markets worldwide.

Business opportunities in Canada fall within the full spectrum of 
industry sectors, and in virtually every business activity.  More 
specifically, however, the five top best prospects sectors for U.S. 
products over the next 12 months include: computer software; computers 
and peripherals; telecommunications equipment; pollution control 
equipment; and, automotive aftermarket parts.  Geographic proximity, 
cultural and historical ties, and strong awareness of business and other 
developments in the United States, are key accelerators for the sale of 
U.S. goods and services in the Canadian market.  Third-country 
competition tends to be far less prevalent in Canada than in most other 
international markets.  Third-country competition is most often found in 
product areas where labor constitutes a significant part of the cost 
production, and where domestic U.S. industries are less competitive.  In 
other sectors however, U.S. dominance remains almost a fact of life, and 
third-country competition is most prevalent in specific cases rather 
than across the board.

Generally, Canadians have strong national pride, and will often favor 
Canadian products, especially if they offer similar features at a 
similar cost to those from the United States.  This is especially true 
for any government procurement, local or federal, not covered under 
either World Trade Organization (WTO) or NAFTA rules.  Nevertheless, 
competition in Canada is generally fair, and as noted above, U.S. firms 
that can offer technical, cost or feature advantages over locally 
produced goods, can do as well in the Canadian market as they can in the 
domestic U.S. market.

For additional information on the Canadian market contact the U.S. 
Department of Commerce District Office serving your area or the Foreign 
Commercial Service of the U.S. Embassy in Ottawa Canada.  Country 
Commercial Guides (CCGs) are available on the National Trade Data Bank 
on CD-ROM or through the Internet.  Please contact STAT-USA at 1-800-
STAT-USA for more information.  To locate CCGs via the Internet, please 
use the following World Wide Web address:  WWW.STAT-USA.GOV.  CCGs can 
also be ordered in hard copy or on diskette from the National Technical 
Information Service (NTIS) at 1-800-553-NTIS.



  CHAPTER II.     ECONOMIC TRENDS AND OUTLOOK


     A.     Major Trends and Outlook

The Canadian economy grew by 4.6 percent in 1994, the best performance 
in six years.  Growth was fueled by exports, which reaped the benefits 
of a lower C$ and a strong U.S. economy; investment, most notably in 
machinery and equipment, and consumer spending, which recorded its 
largest growth since 1989.  However, the acceleration in the Canadian 
economy through the second half of 1994 began to taper off in 1995.  
Tighter monetary policy in the United States to stop potential 
inflationary pressures spilled into Canada.  This, combined with fiscal 
and political uncertainties, caused the Canadian dollar to depreciate 
and Canadian interest rates to rise.  A slowdown in the U.S. economy, 
evident in the first quarter of 1995, caused Canadian export growth to 
slow substantially, and rising interest rates put a damper on investment 
and consumer spending.  Consumer confidence was also eroded by 
employment insecurities as massive layoffs in the public and private 
sector were announced. This, combined with debt overhang and ongoing 
wage freezes, was enough for Canadians to stop spending their savings 
and retrench.  The general forecast consensus is calling for 3.5 percent 
real GDP growth in 1995, easing to under three percent in 1996.

The national unemployment rate is forecast to remain in the mid to upper 
nine percent range.  Employment gains are expected to be flat given 
private and public sector downsizing, slower export growth, weaker 
corporate profits, and flat to negative investment in residential and 
non-residential construction.  Inflation has been rising but is still 
expected to remain in the Bank of Canada's target range of between one 
and three percent. The increase in consumer price inflation has been 
attributed to a weaker C$ forcing up the price of imported goods; a 
surge in food prices due to weather conditions in the United States; 
higher gasoline prices because of a federal tax increase, and the end of 
the dampening effect major reductions in tobacco taxes and a drop in 
Quebec's provincial sales tax had on the CPI since early 1994. From 0.2 
percent in May 1994, the national inflation rate rose to 2.9 percent in 
May 1995.

On the fiscal side, the federal and most of the provincial governments 
remain committed to deficit reduction.  Only Quebec, which faces a 
sovereignty/separation referendum in the fall, calls for an increase in 
spending.  In addition, the Quebec government says it will raise taxes 
if the electorate votes against sovereignty.  In Ontario, Canada's 
largest province, the electorate voted the Tories into power on June 8, 
1995.  Some policy analysts have opined that the new government, led by 
Mike Harris with a conservative agenda stressing a balanced budget and 
less government, will have a significant impact at both the federal and 
provincial level.  In particular, they believe that harmonization of the 
federal Goods and Services Tax (GST) with provincial taxes, a federal 
Liberal party campaign promise as yet to be fulfilled, will become a 
reality since Harris' support of harmonization has signaled other 
provinces to come on board.


     B.     Principal Growth Sectors

The weaker North American economy precludes the strong growth pattern 
observed in the last few years in several sectors.  Nevertheless, some 
growth should be realized in non-energy machinery and equipment 
investment due to ongoing upgrading of Canadian manufacturing plants and 
equipment.  Services are expected to continue to grow in relative terms, 
with particular emphasis on tourism and transportation and storage.


     C.     Government Role in the Economy

Canada is the world's seventh-largest market economy.  Production and 
services are predominantly privately owned and operated.  However, the 
federal and provincial governments are significantly involved in the 
economy.  They provide a broad regulatory framework and engage in 
considerable redistribution of wealth from high income individuals and 
regions to lower income persons and provinces.  Federal government 
economic policies since the mid-1980s have emphasized the reduction of 
public sector interference in the economy and the promotion of private 
sector initiative and competition.  Both federal and provincial 
governments also privatized selected crown corporations.  Nevertheless, 
federal government regulatory regimes affect foreign investment and also 
U.S. firms in the financial services sector.


     D.     Balance of Payments Situation

Canada typically runs a large current account deficit even though its 
merchandise trade is in surplus.  As a traditional importer of services 
(especially tourism), Canada also hosts a very large amount of foreign 
investment on which dividends are paid, and has had to service a large 
foreign debt.  In 1994, Canada's current account deficit was C$22.3 
billion, and C$15.8 billion at a seasonally adjusted annual rate in the 
first quarter of 1995.  At the same time, Canada's global merchandise 
trade surplus was C$15 billion in 1994 and C$23.2 billion at a 
seasonally adjusted annual rate in the first quarter of 1995.

The bulk of Canada's current account transactions is with the United 
States.  Canada traditionally records a merchandise trade surplus with 
the United States, but generally has an offsetting non-merchandise trade 
deficit.  Canada's bilateral investment income account, which is 
composed of interest and dividends, holds the single largest deficit 
within the non-merchandise trade component.  Canada's large and growing 
external debt, much of which is held by U.S. residents, gives rise to an 
outward flow of debt service (interest) payments.  At the same time, 
there is a large amount of U.S. foreign direct investment in Canada that 
results in high dividend payments by Canadian subsidiaries to their U.S. 
parents.


     E.     Infrastructure Situation

     1.     Transportation

Canada's transportation systems are highly developed.  Canada's most 
important means of transportation for freight and bulk goods is its 
railways; however, long distance trucks now carry a substantial share of 
all merchandise.

     (a)     Railways

Railways are Canada's principal means of transport.  The two great 
transcontinental systems, the Canadian National Railway and the Canadian 
Pacific Railway Company, provide most of the rail transportation.  Both 
systems have extensive supplementary facilities for highway and waterway 
transport, telecommunications, and storage.  Regional lines supplement 
the transcontinental lines.

     (b)     Motor Freight

Aided by an expanding network of paved highways and  deregulation, truck 
transport is generally competitive with rail transport.  The provinces 
have jurisdiction over highways in Canada.  Common carriers are required 
to obtain a license from the Department of Highways and Transport of the 
province in which travel occurs.

In January 1988, the Motor Vehicle Transport Act went into effect, 
easing entry into the Canadian market for U.S. firms.  Truckers who wish 
to cross provincial and international borders no longer must prove that 
their service is consistent with public convenience and necessity.  
Until 1993, existing trucking companies could block new entrants.  
Beginning in 1993, new firms may enter the market or existing firms may 
expand if they are fit, willing, able, and meet basic insurance and 
safety requirements.

U.S. firms may ship goods of their own manufacture to destinations in 
Canada in their own trucks.  However, they may not carry other goods, 
back haul to the United States, or act in any way as a common carrier.  
However, some states have reciprocal arrangements with some Canadian 
provinces to do so.

To determine what arrangements are in effect, contact the local office 
of the U.S. Interstate Commerce Commission (ICC) or the appropriate 
Canadian provincial department or ministry of transportation.  Where no 
arrangement is in effect, the trucker will be required to purchase a one 
trip license at the first weigh station after crossing the border.

     (c)     Water Transport

Although seasonally restricted by frozen waterways, water transport is 
widely used as a consequence of Canada's unique geographical position.  
Canada is bordered by the Atlantic and the Pacific Oceans.  The St. 
Lawrence Seaway extends inward for more than 2,000 miles along its 
southern border.  U.S. firms carry about 25 percent of all Canadian 
water transported exports and about half of its water transported 
imports.

Canada has 25 large deep-water ports and about 650 smaller ports and 
multipurpose government wharves on the east and west coasts, along the 
St. Lawrence Seaway and Great Lakes, in the Arctic, and on inland lakes 
and rivers.  Transport Canada is responsible for planning and providing 
adequate public port facilities.

The leading Canadian ports listed in approximate order of tons of cargo 
loaded and unloaded are:  Vancouver, British Columbia; Sept-les-Pointe-
Noire, Quebec; Montreal, Quebec; Port Cartier, Quebec; Thunder Bay, 
Ontario; Halifax, Nova Scotia; Saint John, New Brunswick; Quebec City, 
Quebec; Prince Rupert, British Columbia; and Hamilton, Ontario.  
Container traffic can be handled at a number of these ports, including 
Montreal, Halifax, St. John, and Vancouver.

     (d)     Aviation

Air connections between the United States and Canada are extensive, with 
well-developed facilities for freight and passenger traffic.  Air 
transport on U.S. carriers from the United States and Canada is provided 
by several companies.  Domestic service is offered by a number of 
airlines.

On February 24, 1995 a new bilateral Air Transport Agreement was signed 
with Canada.  The new accord immediately eliminated most restrictions on 
air service between the two countries and will virtually deregulate the 
transborder market over the next three years.  While the Agreement gives 
Canadian airlines a head start at Toronto, Montreal and Vancouver of up 
to three years to put the Canadian airline industry in a better position 
to meet the full force of U.S. airline competition, major new 
opportunities are granted U.S. carriers during this phase-in period.  
After the three-year phase-in period, any U.S. or Canadian airline can 
serve any cross-border route.

Under a bilateral agreement signed in 1974, U.S. inspection agencies 
(Customs and INS) operate preclearance facilities at six airports in 
Canada (Toronto, Vancouver, Montreal, Calgary, Edmonton and Winnipeg).

     2.     Telecommunications Infrastructure

Communications are highly sophisticated in Canada, comparable with those 
of the United States.  Canada is integrated with the U.S. direct long-
distance dialing system (dial 1, area code and number).  All forms of 
communication are possible (including voice, text, data, and video), and 
worldwide telegraphic services are available.  Cellular and satellite 
communications are also possible in Canada.



CHAPTER III.     POLITICAL ENVIRONMENT


     A.     Nature of Political Relationship with the United States

The United States and Canada share a range of fundamental values such as 
commitment to democracy, tolerance, and respect for human rights.  It is 
no wonder that the two countries are close friends and allies.  Both 
also have dynamic market economies with sophisticated industrial, 
agricultural, resource and service sectors and a commitment to high 
living standards for their citizens.  These factors complement the 
obvious geographic facts and have combined to make each the other's best 
customer.  Despite occasional frictions, the bilateral relationship, 
probably the most intensive and complex in the world, is positive and 
cooperative.  It is often characterized as "never better".

     B.     Major Political Issues Affecting Business Climate

The Parti Quebecois (PQ), which advocates withdrawing Quebec from 
Canada, controls the provincial government after having won election in 
September 1994.  The PQ has stated that it will hold a referendum on 
Quebec sovereignty in the fall of 1995.

In the meantime, the federal and provincial governments face debts 
accumulated over the last several years of recession with concomitant 
low levels of revenue.  The Federal government has acted to cut 
spending, but many economists are still concerned that Canada is facing 
a debt crisis with very grave potential consequences.  Per capita debt 
ratios are among the highest in the world, and with taxes already at 
very high levels, the government's margin of manoeuver is severely 
constrained.  Governments at all levels are struggling to contain costs 
while maintaining as much as possible of the social welfare programs 
Canadians value.  A major effort to revamp such programs, including 
unemployment insurance, is underway but moving slowly. If successful, it 
could well reallocate premiums and benefits.

     C.     Political System/Schedule for Elections/Orientation of Major 
Political Parties

Canada is a parliamentary democracy and a federal state composed of ten 
provinces and two territories.  The current federal government was 
elected on October 25, 1993, when the Liberal Party won 178 of the 295 
seats in the House of Commons.  A government is elected for a period not 
to exceed five years, but normally calls elections before that date.

In Canada, the major political parties are:

      The Liberal Party -- a center-left party which has the majority of 
the House with 177 seats;

      The Bloc Quebecois -- a party which advocates the independence of 
Quebec, and which, with 53 seats in the House, is the official 
opposition party;

      The Reform Party -- a Western-based populist conservative party 
that saw its number of seats in Parliament rise from one (with the 
member sitting as an independent) to 52 in the last election, in 
reaction to the unpopularity of the then governing party;

      The New Democratic Party -- a social democratic party which holds 
nine seats in the House;

      The Progressive Conservative Party -- a center-right party, which 
governed from 1984 to 1993, but now has only two seats in the House.

Provincial elections were held in Quebec in September 1994, in Manitoba 
in April 1995, and in Ontario and Saskatchewan in June 1995.  Elections 
must be held in British Columbia by fall 1996.

 

CHAPTER IV.     MARKETING U.S. PRODUCTS AND SERVICES


     A.     Distribution and Sales Channels

In spite of Canada's vast size, sales to Canadian industries are 
characterized by relatively short marketing channels with direct 
producer-to-user distribution of primary importance.  Many Canadian 
industries tend to be dominated by a few large-scale enterprises that 
are highly concentrated geographically.  In many cases 90 percent or 
more of the prospective customers for an industrial product will be 
located in or near two or three cities.  Canada's consumer goods market 
is more diffused than its industrial market.  The use of marketing 
intermediaries is prevalent.  In many cases, complete coverage of the 
consumer market requires representation in several commercial centers in 
different regions across Canada.  For most product areas regional 
representation is considered the optimal marketing approach.

Toronto, the largest metropolitan area and the national center for 
distribution, is usually the logical location for establishing sole 
representation.  If the country is to be geographically divided into two 
markets, the natural division between east and west is on the western 
shore of Lake Superior at Thunder Bay, Ontario.  The primary 
distribution centers for Eastern Canada are Toronto and Montreal.  For 
Western Canada, the most appropriate distribution centers are Vancouver 
and Calgary.  If three regional markets are considered, Quebec and the 
Atlantic Provinces would comprise the first, with a distributor in 
Montreal; Ontario the second, with a distributor in Toronto; and the 
four western provinces the third, with a distributor in Vancouver or 
Calgary.

     B.     Use of Agents and Distributors; Finding a Partner

Distribution channels in Canada vary greatly according to the 
products/commodities involved.  For example, industrial equipment of 
considerable size and value is usually purchased directly by the end-
user.  Smaller equipment and industrial supplies, on the other hand, are 
frequently imported by wholesalers, acting in some cases as exclusive 
distributors, or by U.S. manufacturers' sales subsidiaries.  U.S. firms 
have historically preferred to appoint manufacturers' agents who 
regularly call on potential customers.

Many major distributors expect to work on a two-tier commission basis.  
For contract shipments, agents are offered a realistically low 
commission, but they receive a higher rate when purchases are made from 
the local agent's own stocks.  Consumer goods are purchased by importing 
wholesalers, department stores, mail-order houses, chain stores, 
wholesalers' and retailers' purchasing cooperatives, and many large, 
single-line retailers.  Manufacturers' agents also play an important 
role in the importation and distribution of consumer goods.  In 
addition, the importance of department stores, mail-order houses and 
cooperative purchasing organizations as direct importers has been 
increasing substantially.  Many of these groups have their own 
purchasing agents in the United States.

For assistance in identifying appropriate agents/distributors in Canada, 
U.S. companies are advised to contact the District Office of the U.S. 
Department of Commerce serving their area to request the 
Agent/Distributor Service (ADS).

     C.     Franchising

Franchised businesses of all varieties have enjoyed exceptional growth 
and success in Canada over the past decade.  Franchising is an 
increasingly attractive method of doing business in Canada, in part 
because no federal regulations currently exist which specifically 
restrict franchise activities.  Alberta is the only province to have 
established franchising legislation which stipulates that the franchise 
must be registered with the provincial securities commission.

Canada is one of the largest foreign markets for U.S. franchisers, with 
approximately 240 franchise firms operating over 11,000 franchise units 
country-wide.  A large proportion of franchise units are restaurants, 
non-food retail, convenience and food establishments, automotive 
products and services, and business services.  The steady growth in the 
Canadian market for franchises is expected to continue.  According to 
the Canadian Franchise Association, the best franchising prospects are 
for fast food type operations.  Do-it-yourself franchises are also 
expected to do well throughout the remainder of the decade, as are 
franchises which focus on housekeeping, landscaping, and residential 
maintenance.

The principle advantage U.S. franchisors have over third-country 
competitors in this sector is the strong recognition and familiarity of 
U.S. products and services by Canadian consumers.  The high volume of 
travel by Canadians to the United States combined with constant exposure 
to U.S. television media through cable networks results in a relatively 
high pre-disposition by most Canadians to U.S. products and services, 
even before they are introduced into the Canadian market.  Overall, U.S. 
companies seeking to introduce proven franchise operations supported by 
sufficient marketing and promotion can expect to be extremely well 
received by Canadian consumers.

     D.     Direct Marketing

     1.     Mail Order Sales

Mail order sales in Canada are big business.  In fact, Canadian 
consumers purchase more goods through the mail, per capita, than do 
their U.S. counterparts.  For many companies, tapping into this market 
can be as easy as placing an add in a magazine.  In general, Canadian 
audiences are targeted using the same techniques that are used in the 
United States.  However, shipping goods to Canadian customers involves 
additional preparation.

When mailing goods to Canada, properly completed paperwork will ensure 
the goods reach their destination without delay.  For most mail order 
shipments, the only paperwork needed is a standard business invoice.  
When completing the invoice, two elements are critical:

     (i)     the description of goods, and
     (ii)     the value of the goods.

The exact amount paid by the customer for the goods should be indicated, 
and the currency used should be stated (U.S. or Canadian dollars).  If 
the goods are shipped on a no-charge basis (samples or demos), the price 
(value) that would have been charged if the goods were sold must be 
shown.  Two copies of the invoice should be attached to the outside of 
the package.  Unlike shipments within the United States, shipments to 
Canada may be subject to customs duties and taxes.  Whether shipping via 
the U.S. mail or private firm, these additional charges are always paid 
by the Canadian customer.

Duties and taxes are not charged on a product when the value of the 
shipment is under C$20 Canadian (approximately US$15).  Nevertheless, a 
fully completed business invoice must accompany the package.  On 
shipments worth more than C$20, duties and taxes are applied to the full 
value of the goods.

Duties for a specific product are determined by the type of product and 
the country of origin.  Although duties are paid by the customer, 
exporters should be aware of the final cost to their customers to 
evaluate their price competitiveness.

In addition to duties, nearly all shipments to Canada valued at over 
C$20 are subject to the Goods and Services Tax (GST).  Canada Post (the 
Canadian Postal Service) charges a C$5 processing fee on all packages 
that owe duty or tax.  Since nearly all items owe at least the seven 
percent GST, the practical effect of this measure is to increase the 
cost of all mail order shipments into Canada by C$5.  The U.S. Postal 
Service maintains a similar US$5 processing fee on dutiable imports.  
Mail order companies can avoid having the C$5 fee assessed to their 
customers by registering to collect Canadian duties and taxes themselves 
as a non-resident importer.  Companies registering with Revenue Canada 
will be required to prepay duties and taxes monthly.  Companies can also 
arrange to put up a bond in the amount of the estimated duties and 
taxes.

Additional information on mail order rules is available in the U.S. 
Department of Commerce publication, "Mail Order Sales to Canada."

     E.     Joint-Ventures/Licensing

Under Canadian law there is no precise meaning for the term "joint 
venture".  In the broadest sense, any arrangement in which two or more 
businesses combine resources for some definable undertaking is 
considered a joint venture.  The Canadian legal system provides great 
flexibility, and imposes very few restrictions as to the form which 
joint ventures may take, such as equity or non-equity.  Some joint 
ventures require approval of the Government of Canada under the 
Investment Canada Act.  Such approval is based on whether the venture is 
likely to be of net benefit to Canada, taking into account the criteria 
of "benefit" specified in the Act.  Net benefit criteria applied to the 
review of joint ventures relates to issues such as:  the level of 
Canadian participation; the positive impact on productivity; 
technological development; product innovation; industrial efficiency and 
product variety in Canada.  The majority of joint venture proposals 
reviewed under the Act readily meet the test of net benefit.  In certain 
key industries, joint ventures with Canadian partners may prove to be 
the most effective or in some cases the only means of market entry for 
U.S. companies.

Canada is an attractive market for foreign licensors for a variety of 
reasons.  Most notably, Canada has no regulatory scheme governing 
licensing arrangements.  In some countries, licenses are not valid until 
government approval or registration has been completed and often 
registered licenses are available for public inspection.  Potential 
foreign licensors are usually pleased to learn that Canada does not 
require any such registration or public disclosure.  Moreover, the 
Investment Canada Act, has no direct application to licensing unless it 
relates in some way to the control of a Canadian enterprise.

Finally, Canada does not have any exchange controls or other 
restrictions on the payment of royalties.  As with many other countries, 
Canada taxes royalty payments to non-resident licensors.  A "withholding 
tax" on such royalties is set at 25 percent under the Canadian Income 
Tax Act, but is reduced to 15 percent or less if the payment is made to 
licensors in countries with which Canada has entered into tax treaties, 
like the United States.

     F.     Steps to Establishing an Office in Canada

The selection of the most appropriate form of business organization 
depends on the purpose of the business in Canada and the particular 
circumstances of its establishment, such as the type of business 
activity, location, scope of operations, etc.  Business is carried on in 
Canada in forms similar to those in the United States.  Public or 
private corporations, partnerships, and sole proprietorships are all 
familiar forms of doing business in Canada.

Although the corporate form of organization is often used by foreign 
investors in Canada, a foreign corporation is not obligated to 
incorporate its operation in Canada.  Corporations can be either 
federally or provincially incorporated.  Incorporating in Canada is 
considered to be a relatively simple and inexpensive procedure and can 
be accomplished federally under the Canada Business Corporation Act or 
under one of the ten provincial corporations acts.  The general 
requirements are similar for both federal and provincial incorporations.  
Incorporating under the Canada Business Corporations Act permits a 
company to do business in all ten provinces, although separate 
registration to carry on business is still necessary in most of the 
provinces.  Incorporating provincially permits a firm to conduct 
business only in the province where the incorporation takes place.  
However, a number of the provinces have reciprocal agreements under 
which the registration requirement is waived.

Canadian federal and some provincial legislation requires that a certain 
portion of companies' directors be Canadian citizens and/or residents of 
Canada or the province.  A flat fee of C$500 is charged to incorporate 
federally.  Fee structures vary among the provinces, depending in some 
cases on the authorized capital of the company to be incorporated.  An 
average of approximately three weeks, or sometimes less, is generally 
required to process an application of incorporation once the requisite 
documents have been received.  Information on incorporation federally 
under the Canada Business Corporations Act can be obtained from Industry 
Canada's Corporation Branch -- see contact section.

As identified above, a company incorporated under the laws of one 
province must take out a license to do business in each of the other 
provinces in which it contemplates carrying on business.  An important 
exception is the reciprocal arrangement between the Provinces of Ontario 
and Quebec, whereby licensing requirements do not apply to a company 
incorporated in the other province.  The Province of New Brunswick does 
not require registration of extra-provincial companies.  Information 
regarding the documents which must be submitted when applying for 
incorporation in one of the provinces may be obtained from the 
respective Canadian provincial ministries.  Companies applying for a 
provincial charter in the Province of Quebec must comply with special 
French language provisions.

Since obtaining a provincial license involves practically as much 
expense as incorporating, many U.S. firms have preferred to incorporate  
under federal procedures.  In addition, Canadian profits are more easily 
segregated in a local corporation, and the determination of liability 
for Canadian and U.S. income taxes is facilitated.

Whether or not to obtain a license in a Canadian province to do business 
as an extra-provincial company rather than to incorporate federally will 
depend on the nature, extent, and duration of the anticipated business 
activities.  For example, where the company's business activities can be 
conducted through a small sales office in one province without the 
necessity of opening an office in other provinces, registration as an 
extra-provincial company may be a suitable method of operation.

As noted above, firms established or operating in the Province of Quebec 
must comply with the requirements of Quebec's Charter of the French 
Language, which makes French the official language of the province.   
Firms considering establishing operations in Quebec are advised to 
contact a representative from the Office de la Langue Francaise, which 
routinely works with companies to develop plans for complying with 
Quebec's language laws, at the following address:

          Office de la Langue Francaise
          Public Relations Services
          Tour Place Victoria, 16th Floor
          Montreal, Quebec
          H4Z 1G8
          Tel:  (514) 873-6565
          Fax:  (514) 873-3488

     G.     Selling Factors/Techniques

Selling strategies in Canada can vary greatly depending on the type of 
product or service or regional market.  It is important for first-time 
marketers to note that distinct cultural differences between Canada and 
the United States require, in some cases, a wholly Canadian approach to 
selling, advertising and marketing.  However, marketing and advertising 
strategies employed by U.S. companies in the domestic market can 
sometimes be equally effective in the Canadian market.  U.S. companies 
are advised not to assume that selling in Canada is the same as selling 
in the domestic market and to carefully research the implications of 
marketing and promotion activities prior to implementation in Canada.

     H.     Advertising and Trade Promotion

A variety of media is used to advertise in Canada.  Television accounts 
for the largest percentage of net advertising revenues, followed by 
magazines and then newspapers.  Although a majority of Canadians speak 
English, the French-speaking market, concentrated in Quebec, should be 
considered as a distinct market.  Quebec is well served by French-
language press and radio and television stations.  Advertising directed 
toward this market should be specifically tailored to Quebec's distinct 
cultural identity, consumer tastes, preferences and styles.  Over 450 
advertising agencies operate throughout Canada.  A number of the larger 
dominant agencies are subsidiaries of U.S. companies.  Overall, Canadian 
advertising rates are generally comparable with U.S. rates.  Detailed 
information on rates as well as lists of media representatives and 
advertising agencies may be found  in a publication entitled "Canadian 
Advertising Rates and Data", published by Maclean Hunter, Ltd.

     1.     The Press

In the area of print media, there are more than 124 daily newspapers 
published in Canada.  Over 85 percent are english and approximately ten 
percent are French.  A few daily newspapers are published in languages 
other than English or French.  Trade magazines, most of which are sent 
to specific audiences without charge, typically carry heavy advertising.  
Trade magazines may be found which serve almost every major industry 
sector or cluster in Canada.  In 1994, the top four general interest 
Canadian magazines included "Readers Digest" (circulation 1,300,000), 
"Chatelaine" (circulation 900,000), "Maclean's" (circulation 600,000), 
and "Canadian Living" (circulation 520,972).  Canada's two largest daily 
national business newspapers are the "Globe and Mail" and "The Financial 
Post".

     2.     Radio and Television

More than 97 percent of Canadian households have at least one 
television.  More than 99 percent of Canadians also have radios in their 
homes.  Hundreds of public and commercial business firms operate cable 
television and major broadcasting stations in the metropolitan areas.  
More than 116 television stations (originating), 695 licensed and 
originating (362 a.m. and 333 f.m.) radio stations, 2022 cable 
television systems broadcast in Canada.

The Canadian Broadcasting Corporation (CBC) operates two national 
television networks, one in English and one in French.  A second 
national television network  (CTV) is private and broadcasts only in 
English.  A third private network (Global Television) operates in the 
heavily populated area of southern Ontario and some areas of Western 
Canada.  There are fifteen independent television stations in Canada.

Cable television use in Canada is expanding rapidly.  Over 70 percent of 
Canada's population is hooked into a cable television system.  The 
Canadian Radio-Television and Telecommunications Commission (CRTC) 
regulates publicly-owned broadcasting, commercial based radio and 
television, and cable television.

In addition to media advertising, a large proportion of trade promotion 
in Canada is conducted through national and regional trade shows.  
Almost every major industry sector in Canada is represented through one 
or more trade shows.  Detailed information on major trade events in 
Canada is available through the US & Foreign Commercial Service office 
of the U.S. Embassy in Ottawa.  Moreover, the U.S. & Foreign Commercial 
Service in Canada organizes a variety of trade events in key industry 
trade shows designed to facilitate participation by U.S. companies.  A 
listing of these events is included in Appendix G of this report.  
Information on participating in any of these events may be obtained by 
contacting any of the US & Foreign Commercial Service offices in Canada.

     I.     Pricing Product

As in the United States, product pricing is key to remaining competitive 
vis-a-vis Canadian and third-country producers in both the Canadian 
industrial and consumer markets.  In the retail sector for example, 
Canadian businesses have followed the successful U.S. trend toward 
larger stores and highly competitive pricing policies.  To date, 
retailers in sectors such as food, drugs, electronics, home improvement, 
general consumer goods, and office equipment and supplies have invested 
in large warehouse or discount-style operations to expand sales and 
market share in an increasingly competitive market.  The emergence of 
high volume warehouse merchandising in this market is the direct result 
of consumer demand for competitively priced quality goods.  Faced with 
increased economic uncertainty, Canadian consumers and businesses alike 
are now more than ever, concerned with competitive pricing and value in 
all purchasing decisions.

When determining appropriate product pricing levels U.S. firms should 
pay particular attention to the effects of exchange rates and applicable 
duty and taxes on the price charged to customers/end-users.  A survey of 
prices of competitor products available from domestic and third-country 
sources is a must in developing any pricing strategy.  Moreover, U.S. 
firms should be careful not to select pricing levels or to pursue 
pricing strategies which may constitute "dumping" or "predatory pricing" 
infringements under Canada's trade remedy and competition laws.

     J.     Sales Service/Customer Support

Canadian companies not only have a high awareness of U.S. products and 
services but also have a strong inclination towards them as well.  
Nevertheless, Canadian customers, whether corporate or individual, 
demand appropriate sales service and after-sales customer support, 
especially given the often significant distances involved between 
customers in Canada and sellers in the United States.  Corporate clients 
often expect the U.S. seller to have an agent or distributor whom they 
can contact immediately should any problems arise.  Like their 
counterparts in the United States, Canadian customers expect fast 
service and emergency replacement should the need arise.

A U.S. company entering Canada should evaluate the demand for after-
sales service and support in its domestic U.S. market, an try to 
replicate that network as closely as possible in the Canadian market.  
If the product demands a strong network of sales and after-sales service 
in the United States, it is likely that success in Canada will demand 
appointing agents who can provide that service.  There are many 
companies in Canada which can offer that service as an agent, a 
representative or on retainer.

If the domestic U.S. market can be served by a widespread customer-
support base, that same is likely to be a successful formula in Canada.  
Many U.S. companies have found that the relative ease of establishing an 
800 telephone number serving Canada and the United States may offer a 
solution to this problem, at little marginal cost.  This allows the 
Canadian customer instant access to the U.S. vendor whether for solving 
problems, answering questions, or just providing a higher "comfort 
level" with a new product.

     K.     Selling to the Government

     1.     General

The FTA expands the size of the government procurement markets which are 
open to free and fair (non-discriminatory) competition between U.S. and 
Canadian suppliers.  The Agreement requires clear, fair rules of bid 
selection and provides for an effective Bid Challenge System (BCS).  The 
FTA applies to certain federal procurement valued at C$25,000 or more.  
This means that a U.S. company bidding on a C$30,000 Government of 
Canada contract competes on an equal footing with its Canadian 
competitors; the company will be judged solely on its ability to deliver 
a low-cost, high-quality product.  As a result of these measures, U.S. 
suppliers successfully competed for 591 Canadian contracts worth over 
US$26 million from January 1989 through 1992.

NAFTA:

--     Extends coverage to listed government-owned corporations for 
goods and services contracts valued at above $250,000 and construction 
contracts valued at over $10 million.

--     Extends coverage to purchases of services valued over $50,000 by 
listed federal government agencies.

--     Adds Crown Corporations to the list of covered entities. (the St. 
Lawrence Seaway Authority, the Royal Canadian Mint, the Canadian 
National Railway (freight), and Via Rail (passenger service).

--     Canadian federal entity coverage to include Communications 
Canada, Transport Canada, and the Ministry of Fisheries and Oceans.



     2.     Services

The FTA is the first trade agreement to include trade in services.  The 
Agreement ensures that companies in over 150 service sectors can provide 
their services in the partner country without discrimination.  The 
Agreement requires that business regulations for services be clear and 
explicit.  The FTA does not change existing regulations governing 
services in the two countries but locks in current levels of protection.  
In effect, the Canadian Government is prohibited from passing new 
legislation which would further restrict the right of a U.S.-based 
engineering, advertising, or other covered service firm from doing 
business in Canada.  The services chapter of the FTA includes special 
provisions for the architecture, tourism, and telecommunications 
sectors.

NAFTA:

      Extends coverage to nearly all service sectors.

      Eliminates existing federal and local regulations restricting 
partner country access to services markets, unless reserved.

      Removes citizenship or permanent residency requirements for 
licensing of professional service providers.

     3.     Financial Services

The FTA removes virtually all discrimination on the basis of nationality 
in the financial services sector (commercial and investment banks, 
savings and loan institutions, and certain insurance activities).  
Specifically, the FTA eliminates Canadian restrictions on market share 
and asset and capital expansion for U.S. bank subsidiaries in Canada and 
gives U.S. financial institutions the same rights as Canadian financial 
institutions to establish insurance companies, trust companies, and 
certain types of banks in Canada.  The FTA also provides that the 
benefits of further liberalization in both countries be extended to the 
financial institutions of the partner country.

NAFTA:

      Establishes a comprehensive set of principles and rules governing 
trade and investment in financial services.

      Covers state/provincial and local, as well as federal, measures.

      Guarantees U.S. firms in Canada the right to process data in the 
United States.

      Provides access to the NAFTA dispute settlement mechanisms for 
NAFTA financial services firms.

     L.     Protecting Your Product from IPR Infringement

     1.     Patents

Patents in Canada are governed by the Patent Act.  The Act allows for 
patenting of processes as well as products.  Canada has a "first to 
file" system with an absolute novelty requirement.  The term of a patent 
is 20 years from the filing date.  Deferred examination is possible, and 
provisions exist for payment of maintenance for pending applications and 
issued patents.

In February 1993, Canada passed legislation eliminating compulsory 
licensing of pharmaceuticals, thereby extending patent protection to the 
standard 20 years.  The legislation provides for a statutory review 
after four years, but the governing party has resolved to monitor its 
effect on drug costs, and to discuss patent protection in public 
consultations on health care reform.

The Patent Cooperation Treaty came into force in Canada in January 1990.  
It provides for foreign patent protection in Canada for treaty 
signatories.  From the perspective of the Canadian inventor, the Treaty 
standardizes Canadian patent practices with those of Canada's principal 
trading partners and makes it easier for Canadians to acquire foreign 
patents through standardized filing and searching of prior art.


     2.     Copyrights

Canada is a member of the World Intellectual Property Organization 
(WIPO).  Canada acceded to the Berne Convention for the Protection of 
Literary and Artistic Works at the Rome (1928) revision level and is 
bound by the Universal Copyright Convention (UCC) 1952 text.  Thus, 
under its international agreements, Canada is required to provide 
national treatment as prescribed by the relevant UCC and Berne 
Convention texts.

The Canadian Copyright Act of 1924 was amended in 1989 to reflect the 
state of modern technology and to introduce adequate enforcement 
measures.  The Act granted explicit copyright protection for computer 
programs, and provided a right of payment for retransmission of 
broadcast programming as required by the FTA.  In 1993, additional 
legislation was implemented to protect emerging forms of technology, 
specifically integrated circuit design and biotechnology.  Further 
legislation passed in 1993 revised the definition of "musical work" and 
ensured that royalties are paid for all uses of the work.

In January 1994, the Copyright Act was amended to reflect the changes 
required by the NAFTA, such as rental rights for computer programs and 
sound recordings, protection for databases and other compilations, and 
increased measures against all categories of pirated works.  The 
government is still examining some remaining unresolved copyright 
issues, including a home copying regime, neighboring rights, and 
possible special treatment for schools and libraries.


     M.     Need for a Local Attorney

The population of attorneys in Canada is far less than that of the 
United States, and using an attorney for routine business practices is 
less prevalent.  U.S. companies should consult with an attorney for a 
variety of business activities in Canada, such as establishing a 
corporate investment or other presence, or marketing a product or 
service that requires copyright, patent or trademark protection.

The Canadian legal system is closer to the British model than to the 
U.S. system, although there are many similarities between Canadian and 
U.S. commercial law.  Most large Canadian law firms have partnerships or 
strong associations with counterpart firms in many parts of the United 
States, and are well experienced with matters that cross international 
lines, especially in trade and business.

Naturally, any legal problems, or difficulties with Canadian Customs or 
other government agencies, are likely to be best handled by an 
experienced local legal representative.  The U.S. Embassy and Consulates 
in Canada can provide lists of local attorneys experienced in a range of 
commercial and other legal matters.



CHAPTER V.  LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT


The following section describes and lists the leading trade prospects in 
Canada for U.S. exporters of both food and non-food products.  Detailed 
statistical and market data concerning each individual best prospect is 
also provided.

     A.     Best Prospects for Non-Agricultural Goods and Services
          for U.S. Exporters to Canada

The Canadian import market, already the most favorable for U.S. goods 
and services of any in the world, should see continued growth through 
FY96 and beyond.  U.S. goods and services account for an overwhelming 
share of the import market in Canada, and the United States remains by 
far Canada's largest export market and import supplier.  On the basis of 
current market trends and market conditions, the following sectors are 
considered to be best prospects for U.S. exports to Canada.

1.          CSF          Computer Software
2.          CPT          Computers and Perhipherals
3.          TEL          Telecommunications Equipment
4.          POL          Pollution Control Equipment
5.          APS          Automotive Aftermarket Parts
6.          FUR          Furniture
7.          MED          Medical Equipment
8.          ELC          Electronic Components
9.          SPT          Sporting Goods
10.         MTL          Machine Tools and Metalworking Equipment
11.         MHM          Materials Handling Machinery
12.         PMR          Plastic Materials and Resins
13.         APS          Automotive Parts and Service Equipment
14.         APP          Apparel
15.         TXF          Textile Fabrics
16.         BLD          Building Products
17.         AIR          Aircraft and Parts
18.         HCG          Household Consumer Goods


NOTES TO THE BEST PROSPECTS

(i)     All figures are expressed in millions of U.S. dollars, unless 
otherwise indicated.

(ii)     All growth rates are considered in real terms.

(iii)     Estimated inflation/exchange rates are as follows:


                                 1994          1995          1996

EXCHANGE RATE (C$1 = US$X)     0.7321        0.7250        0.7300

INFLATION RATE                    0.2           2.0           2.2


* All statistics are unofficial estimates.

  
PART I.     BEST PROSPECT SECTOR FOR U.S. EXPORTS AND INVESTMENT

A.     RANK OF SECTOR:          1
B.     NAME OF SECTOR:          COMPUTER SOFTWARE
C.     ITA INDUSTRY CODE:     CSF


PART II.     NARRATIVE

The Canadian software market is projected to grow at an annual rate of 
between ten and 12 percent during the 1996 to 1998 period.  Factors 
supporting this growth include increased use of computers in the 
workplace as well as the increased proliferation of computer 
technologies in non-business markets, such as the home consumer market, 
the educational market, the entertainment and in-house publishing 
industries, and the reference/information markets.  According to a 
recent Statistics Canada survey, almost half of the workforce - 48 
percent - is using computers on the job, compared to 33 percent in 1989, 
and this trend is expected to continue.

Price competition, particularly in the personal computer software area 
will continue as firms compete for market share in specific industry 
segments and platforms.  Sales of personal computer software is 
projected to be one of the fastest growing software categories, but due 
to price reductions, revenues will grow at about half of the projected 
gain in unit volume.  Corporate and home consumers continue to purchase 
a greater variety of software packages, and their hardware procurement 
decisions will increasingly be based on the available types of 
software/variety of applications, rather than on the types of hardware 
they own (the traditional purchase factor only a few years ago).

Development of new personal computer operating systems will also 
contribute to the demand for new applications software for personal 
computers.  Increasing demand for multimedia capabilities and 
applications will also substantially increase the demand for highly 
sophisticated software packages.

The proliferation of inter and intra company networks will boost demand 
for networking software, groupware software, and middleware software.  
This phenomenon will also contribute to increased demand for consulting 
services, particularly in client/server and networking systems 
integration.

Although U.S. companies continue to be the dominant suppliers of 
computer software in the Canadian market, Canada's software industry has 
a strong nucleus of companies that have achieved international 
recognition as technical and market leaders for their products.  Most of 
these products are niche-oriented, with well-known applications in 
computer graphics and animations, advanced programming tools and 
languages, geographic information systems, forms-processing software, 
and educational/computer-based training products.  Also noteworthy are 
Canadian achievements in specialty software areas like remote sensing, 
telecommunications network management, expert systems for mineral 
processing, real-time systems design, process and industrial control, 
geophysical engineering and power systems analysis.

Third-country competition for U.S. software and services firms in Canada 
are from such Third World nations as China and India, which supply 
programming and software services for a fraction of the cost of North 
America.  To maintain their dominant position, U.S. companies must 
supply quality products in multiple formats and utilize cost effective 
distribution channels.


PART III.     DATA TABLE
                                1994          1995          1996

A.     TOTAL MARKET SIZE       1,358         1,473         1,635
B.     TOTAL LOCAL PRODUCTION  1,228         1,311         1,438
C.     TOTAL EXPORTS             459           482           522
D.     TOTAL IMPORTS             589           644           719
E.     IMPORTS FROM THE U.S.     537           597           669


THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES.

  
PART I.     BEST PROSPECT SECTOR FOR U.S. EXPORTS AND INVESTMENT

A.     RANK OF SECTOR:          2
B.     NAME OF SECTOR:          COMPUTERS AND PERIPHERALS
C.     ITA INDUSTRY CODE:     CPT


PART II.     NARRATIVE

Demand for computer products and technologies is expected to increase 
approximately three to six percent annually during the 1996 to 1998 
period.  Recent strategic partnerships in the computer industry will 
further increase the already intense competition in this industry, thus 
resulting in further price reductions and marginal gains in revenue 
growth during the forecast period.  As a result, price and distribution 
channels continue to be critical success factors in the Canadian 
computer hardware and peripherals market. 

Relatively little value-added work is being done by the Canadian 
computer hardware manufacturing sector.  Most major components such as 
semi-conductors, disk drives and circuit boards are imported, with 
typically only final assembly or packaging done in Canada.  As a result, 
the majority of Canadian computer hardware and peripherals market demand 
is satisfied by imports.  Although the United States remains the 
dominant supplier of such products for the Canadian market, competition 
from third countries with low production costs (such as Southeast Asian 
countries) is expected to increase.  Nonetheless, since Canada 
represents a sophisticated market of consumers demanding superior 
quality technologically advanced products, U.S. companies with 
competitively priced products, effective distribution channels and 
strong customer service will likely remain the dominant import 
suppliers.

The trend to downsize computer systems from mainframes and mini 
computers to personal computers and personal workstations (a hybrid of 
personal computers and low-end workstations) will remain strong.  
Portable computer products are expected to represent a fast growing 
segment of the Canadian personal computer market, accounting for 25 
percent of all personal computer sales in Canada in 1995.

The home/consumer computer market is growing rapidly, and accounts for a 
significant part of Canadian demand for personal computers.  This market 
segment demands personal computers equipped with multimedia systems and 
good graphics.  This will also drive Canadian demand for associated 
products such as CD-ROM players, sound cards, and video accessories.  

In the business sector, computerization of Canadian companies will 
continue to increase and more companies will likely adopt advanced 
processing machinery requiring computer technologies.  According to a 
Statistics Canada survey, almost half of the Canadian workforce - 48 
percent - is using computers on the job, compared to 33 percent in 1989.

Demand for computer networking hardware products will also increase 
significantly as corporate re-engineering continues in search of 
operational efficiencies and includes the networking of corporate 
computer systems.


PART III.     DATA TABLE
                                        1994       1995          1996

A.     TOTAL MARKET SIZE               4,503      4,504         4,656
B.     TOTAL LOCAL PRODUCTION          3,116      3,081         3,171
C.     TOTAL EXPORTS                   2,834      2,840         2,927
D.     TOTAL IMPORTS                   4,221      4,263         4,412
E.     IMPORTS FROM THE U.S.           2,750      2,828         2,920


THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES.

  
PART I.     BEST PROSPECT SECTOR FOR U.S. EXPORTS AND INVESTMENT

A.     RANK OF SECTOR:          3
B.     NAME OF SECTOR:          TELECOMMUNICATIONS EQUIPMENT
C.     ITA INDUSTRY CODE:     TEL


PART II.     NARRATIVE

Valued at US$3.9 billion in 1994, the mature Canadian telecommunications 
equipment market is diverse and sophisticated.  Despite the dominance of 
several Canadian companies in the worldwide telecommunications market, 
the Canadian market remains extremely receptive to imports (primarily 
from the United States) which were just over US$2 billion in 1994.

Even though the number of users is not growing substantially, the market 
continues to grow due to increased competition.  Companies are forced to 
purchase new equipment in order to remain competitive with the new 
players who enter the market.  Progressive deregulation of the Canadian 
industry by its regulating body, the Canadian Radio-Television and 
Telecommunications Commission (CRTC), has set the stage for increased 
competition which is mainly from U.S. companies engaged in joint-
ventures with Canadian manufacturers.  Adding to this, Canada's largest 
manufacturer of telecommunications equipment, Northern, recently 
abolished it's long-standing preferred supplier arrangement which 
favored Canadian companies.  Consequently, improved market access for 
U.S. telecommunications equipment suppliers should result in greater 
sales opportunities.  Significant opportunities for U.S. exports remain 
in applications for asynchronous terminal mode (ATM) technology and 
integrated services network (ISDN) technology. 

Promising Subsectors/Estimated 1996 Total Market Size:

H.S. 8525.10          Voice processing equipment and systems  161
H.S. 8525.2050          Data communication systems 503
H.S. 8527.90          Cellular phones   159


PART III.     DATA TABLE

                                1994          1995          1996

A.     TOTAL MARKET SIZE       3,869         4,083         4,247
B.     TOTAL LOCAL PRODUCTION  3,254         3,343         3,384
C.     TOTAL EXPORTS           1,395         1,434         1,454
D.     TOTAL IMPORTS           2,010         2,089         2,169
E.     IMPORTS FROM THE U.S.   1,226         1,368         1,488


THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES.

  
PART I.     BEST PROSPECT SECTOR FOR U.S. EXPORTS AND INVESTMENT

A.     RANK OF SECTOR:          4
B.     NAME OF SECTOR:          POLLUTION CONTROL EQUIPMENT
C.     ITA INDUSTRY CODE:     POL


PART II.     NARRATIVE

The implementation and enforcement of stricter federal and provincial 
environmental legislation during the past three years has positively 
impacted demand for pollution control equipment in Canada.  This market 
sector is forecast to grow by at least two to three percent annually in 
real terms through 1997.  The primary Canadian end-users of such 
equipment are the pulp and paper, chemical, metallurgical and textile 
industries.

Implications for U.S. suppliers are positive, especially considering the 
fact that Canada currently imports about 37 percent of its needs for 
environmental technology.  Increasingly, Canadian companies are in need 
of products and services which focus on pollution prevention rather than 
"end-of-the-pipe" reactionary solutions.  Volatile organic compounds, a 
precursor to smog, are a problem throughout southern Ontario and Quebec, 
the Vancouver area, and New Brunswick.  The demand for environmental 
technology in western Canada is also expected to grow substantially, and 
environmental initiatives should represent increasing opportunities for 
U.S. firms.  Demand for water pollution equipment is also expected to 
increase as a result of increased public and political concerns about 
protecting and restoring Canada's aquatic environment.

In marketing pollution control equipment and services to Canada, U.S. 
suppliers also benefit from several advantages, including advanced 
technical know-how, proximity to the market, and reduced tariffs under 
the NAFTA. 


Promising Subsectors/Estimated 1996 Total Market Size: 

H.S. 8421.29     Filtering or purifying machinery/apparatuses 202
                 for liquids
H.S. 8421.39     Filtering or purifying machinery/apparatuses 515
                 for gases and scrubbers
H.S. 9030.10     Hazardous waste equipment                         437


PART III.     DATA TABLE

                                   1994          1995          1996

A.     TOTAL MARKET SIZE          3,970         4,088         4,280
B.     TOTAL LOCAL PRODUCTION     3,235         3,331         3,488
C.     TOTAL EXPORTS                724           744           779
D.     TOTAL IMPORTS              1,459         1,501         1,571
E.     IMPORTS FROM THE U.S.      1,180         1,214         1,271


THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES.

  
PART I.     BEST PROSPECT SECTOR FOR U.S. EXPORTS AND INVESTMENT

A.     RANK OF SECTOR:          5
B.     NAME OF SECTOR:          AUTOMOTIVE AFTERMARKET PARTS
C.     ITA INDUSTRY CODE:       APS


PART II.     NARRATIVE

[Note:  Although some automotive aftermarket parts (AAP) can also be 
installed in new vehicles, in which case they would be considered OEM 
and not "aftermarket" parts, for the purpose of this research, these 
products have not been included in the calculation of the market size 
for automotive parts and service (and they have therefore not been 
double counted).]

The demand for AAP is principally affected by the ages and types of 
vehicles on the road.  Current high demand is attributed to the record 
number (15.9 million) of vehicles on Canadian roads.  The AAP market is 
expected to show significant growth as the large volume of units sold in 
the late 1980s ages and requires aftermarket attention.  Other factors 
influencing demand of AAP is the state of the Canadian economy, and 
government regulation.

Canadian subsidiaries of U.S.-based companies account for 90 percent of 
domestic production in this market.  The remaining manufacturers in 
Canada are mainly specialized, smaller Canadian-owned companies.  The 
United States has historically been the dominant supplier of AAP imports 
into Canada.  However, in recent years the U.S. share of total imports 
declined due to the growing number of Japanese "transplant" cars making 
in-roads into the Canadian market, and due to North American 
manufacturers' increased sourcing of components from Japan as part of 
their "globalization" strategy for their product lines.  Nonetheless, 
U.S. suppliers of high-quality AAP will still find excellent 
opportunities in the Canadian market.  U.S. suppliers wishing to 
penetrate the Canadian market should pay particular attention to U.S. 
subsidiaries' dealer networks and market to them through their U.S. 
headquarters, stressing quality, service and just-in-time delivery 
capability, as well as concentrating on product areas where new demand 
is created through technological change.


PART III.     DATA TABLE

                                 1994          1995          1996

A.     TOTAL MARKET SIZE        3,412         3,616         3,944
B.     TOTAL LOCAL PRODUCTION   1,592         1,686         1,814
C.     TOTAL EXPORTS            1,162         1,230         1,326
D.     TOTAL IMPORTS            2,982         3,160         3,456
E.     IMPORTS FROM THE U.S.    2,151         2,280         2,489


THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES.

  
PART I.     BEST PROSPECT SECTOR FOR U.S. EXPORTS AND INVESTMENT

A.     RANK OF SECTOR:        6
B.     NAME OF SECTOR:        FURNITURE
C.     ITA INDUSTRY CODE:     FUR


PART II.     NARRATIVE

The Canadian furniture market (which includes household furniture, 
office furniture, and medical/hospital furniture) experienced renewed 
growth after mid-1994.  Industry experts are optimistic about continued 
growth throughout 1995 and 1996.  In fact, the Canadian furniture 
industry is projected to grow at a real rate of between seven and ten 
percent annually during the forecast 1996 to 1998 period.

More specifically, the Canadian office furniture market is estimated to 
grow at a real rate of nine to ten percent annually.  Emphasis on new 
design, and higher quality craftsmanship will provide opportunities for 
U.S. exporters of office furniture in the Canadian market, especially if 
they can provide quality items at a competitive price.  Opportunities 
exist for U.S. exports of metal and wooden office furniture, office 
seats, and swivel seats of variable height adjustments.

The Canadian household furniture market is estimated to grow at a real 
rate of seven to eight percent annually during the forecast period.  
Industry experts believe that since the consumer purchases of household 
furniture have not reached the same levels as housing sales, pent-up 
demand will significantly increase sales of household furniture in 1996.

Recent and ongoing changes in Canadian public health care legislation 
and cutbacks on funding given to hospitals by provincial governments 
have resulted in the implementation of cost reduction measures in 
hospitals throughout Canada.  While these cutbacks may somewhat slow 
future demand for medical/hospital furniture in hospitals, demand will 
continue for this type of furniture in clinics and other health care 
facilities as well as in residential homes for the elderly.  The 
projected growth for Canadian medical/hospital furniture market is 
estimated at a real rate of between one and two percent annually.

U.S. imports will continue to dominate Canada's total import market for 
furniture during the next few years.  Third-country competition is 
strongest in the segment of the market that supplies low-quality 
inexpensive items.  Export sales of Canadian furniture were a major 
contributor to the industry's growth in 1994 and this trend is expected 
to continue throughout 1996, mainly due to the low value of the Canadian 
dollar relative to the U.S. dollar.


PART III.     DATA TABLE

                                1994          1995          1996

A.     TOTAL MARKET SIZE       2,868         3,145         3,566
B.     TOTAL LOCAL PRODUCTION  3,163         3,589         4,161
C.     TOTAL EXPORTS           1,110         1,217         1,358
D.     TOTAL IMPORTS             815           773           763
E.     IMPORTS FROM THE U.S.     616           575           569


THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES.

  
PART I.     BEST PROSPECT SECTOR FOR U.S. EXPORTS AND INVESTMENT

A.     RANK OF SECTOR:        7
B.     NAME OF SECTOR:        MEDICAL EQUIPMENT
C.     ITA INDUSTRY CODE:     MED


PART II.     NARRATIVE

The Canadian market for medical equipment is dominated by foreign 
manufacturers who supply 80 percent of the market.  U.S. manufacturers 
traditionally account for 75 percent of Canadian imports of medical 
equipment.  U.S. suppliers face third-country competition from Asian 
countries (which benefit from low production costs) and from European 
countries, such as Germany and the United Kingdom, which focus on 
specialized products.

Socialized medicine has established Canada as of the world's strongest 
markets for medical equipment.  Several factors will continue to impact 
market demand for medical equipment in Canada in the coming years, 
foremost of which is the country's aging population.  As Canada's 
population ages, there will be increasing demand for products such as 
electronic cardiovascular and patient mobility devices.  Also, in a 
continuing effort to reduce healthcare costs, the Canadian industry will 
be using more specialized equipment to reduce the need for medical staff 
and professionals.  Therefore, despite the many recent hospital closures 
occurring in Canada, opportunities in a wide spectrum of product areas 
will continue to exist.

Promising Subsectors/Estimated 1996 Total Market Size:

H.S. 9018.11     Electrocardiographs                     6.0
H.S. 9018.19     Electro-diagnostic apparatus               18.1

PART III.     DATA TABLE

                              1994          1995          1996

A.     TOTAL MARKET SIZE      1,200         1,210         1,245
B.     TOTAL LOCAL PRODUCTION   483           486           503
C.     TOTAL EXPORTS            241           244           256
D.     TOTAL IMPORTS            958           968           998
E.     IMPORTS FROM THE U.S.    747           746           771


THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES.

  
PART I.     BEST PROSPECT SECTOR FOR U.S. EXPORTS AND INVESTMENT

A.     RANK OF SECTOR:        8
B.     NAME OF SECTOR:        ELECTRONIC COMPONENTS
C.     ITA INDUSTRY CODE:     ELC


PART II.     NARRATIVE

The total market value of the Canadian electronic components industry is 
difficult to estimate, given it's marked fluctuations and the breadth of 
the market.  None-the-less, with strong growth projected in the 
telecommunications and information technology sectors over the next 12 -
18 months (approximately ten to 12 percent annually), the electronic 
components industry should perform in the same range as well.  A 
considerable portion of the imports from the United States in this 
sector are brought to Canada for additional processing and are then re-
exported.  A strong domestic market exists with some major Canadian 
firms producing for export as well.  Innovative or cost-effective 
technologies employed by U.S. companies to introduce new components or 
improve existing ones, should allow them to compete effectively in this 
marketplace in areas such as satellite parts and components, semi-
conductors and electronic transformers.  



PART III.     DATA TABLE


                              1994          1995          1996

A.     TOTAL MARKET SIZE     4,119         4,492         4,784
B.     TOTAL LOCAL PRODUCTION  718           835           942     
C.     TOTAL EXPORTS         1,726         1,965         2,216
D.     TOTAL IMPORTS         5,129         5,622         6,057
E.     IMPORTS FROM THE U.S. 2,799         3,208         3,554


THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES.

  
PART I.     BEST PROSPECT SECTOR FOR U.S. EXPORTS AND INVESTMENT

A.     RANK OF SECTOR:        9
B.     NAME OF SECTOR:        SPORTING GOODS
C.     ITA INDUSTRY CODE:     SPT


PART II.     NARRATIVE

Demand for sporting goods and equipment in Canada is expected to remain 
strong during the next several years.  Sustained economic growth, 
coupled with increasing levels of personal disposable income and a 
growing awareness among consumers of the health benefits associated with 
increased physical fitness will all continue to stimulate demand for 
these products in Canada.

Although Canada's level of manufacturing is strong in certain segments 
of this market, imports represent approximately half of market demand 
and several opportunities exist for U.S. suppliers.  Although Asian 
suppliers possess low-cost production advantages, U.S. suppliers have 
the competitive advantages of reduced tariffs under the NAFTA, higher 
product safety standards, better product quality, and greater brand 
recognition over third-country products as well as geographic proximity 
to the Canadian market.  The growing concern among Canadians for product 
safety and performance standards in particular provides an edge for U.S. 
suppliers.  Total sporting goods imports and U.S. imports of these 
products are forecast to grow at respective average annual real rates of 
three to five percent and two to four percent, through 1998.


Promising Subsectors/Estimated 1996 Total Market Size: 

H.S. 9506.70.12     In-line skates attached to boots              60
H.S. 9506.91     General physical exercise, gymnasium athletics  200
               articles
H.S. 8712.00     Bicycles and other cycles, not motorized        174
H.S. 9506.31     Golf clubs                                       36
H.S. 9506.32     Golf balls                                       41
H.S. 9506.39     Golf equipment                                   66


PART III.     DATA TABLE

                              1994          1995          1996

A.     TOTAL MARKET SIZE       951         1,200         1,400
B.     TOTAL LOCAL PRODUCTION  567           580           585
C.     TOTAL EXPORTS           247           290           360
D.     TOTAL IMPORTS           631           662           695
E.     IMPORTS FROM THE U.S.   210           218           227


THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES.

  
PART I.     BEST PROSPECT SECTOR FOR U.S. EXPORTS AND INVESTMENT

A.      RANK OF SECTOR:       1
B.     NAME OF SECTOR:        MACHINE TOOLS AND METALWORKING EQUIPMENT
C.     ITA INDUSTRY CODE:     MTL


PART II.     NARRATIVE

Industry experts predict that competitive pressures will require 
Canadian companies to increase expenditures on capital goods and 
equipment.  This will lead to growth in demand in the machine tools and 
metalworking equipment market, as well as in other industrial markets.

Growth in this market is expected to remain during the forecast period 
of 1996 to 1998, however, it may not be as strong as it was in recent 
years.  Global and international competition have motivated Canadian 
companies to strive for improved quality while simultaneously reducing 
costs and this trend is expected to continue throughout 1996.  Canadian 
manufacturing strength resides in the development and production of 
high-quality, custom-built systems and metal-forming tools, primarily 
for the North American automotive industry.  The majority of Canadian 
machine tool companies serve the automotive and aerospace markets and, 
to a lesser degree, the heavy machinery and electrical/electronics 
sectors.

According to a recent survey, demand for computer-numerically-controlled 
machines in the Canadian machine tool industry is strong.  
Lathes/turning centers, boring/milling machines, milling machines, and 
machining centers also ranked as purchasing priorities among those 
surveyed.  Since some of this technically advanced equipment is not 
widely available in Canada, opportunities will exist for U.S. companies 
capable of supplying this equipment will grow.  While experts predict 
U.S. companies will continue to dominate Canada's import segment of this 
market, U.S. firms must be aware of the increased foreign competition 
from low-cost Asian producers.  Therefore, quality products must be 
supplied at reasonable prices.  Nonetheless, U.S. companies benefit not 
only from their proximity to the U.S. market, but also from the tariff 
reductions resulting from the implementation of the FTA and the NAFTA.


PART III.     DATA TABLE

                                1994           1995           1996

A.     TOTAL MARKET SIZE       3,507          3,408          3,536
B.     TOTAL LOCAL PRODUCTION  1,977          2,248          2,846
C.     TOTAL EXPORTS           1,196          1,349          1,573
D.     TOTAL IMPORTS           2,726          2,509          2,263
E.     IMPORTS FROM THE U.S.   1,965          1,898          1,861


THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES.

  
PART I.     BEST PROSPECT SECTOR FOR U.S. EXPORTS AND INVESTMENT

A.     RANK OF SECTOR:        11
B.     NAME OF SECTOR:        MATERIALS HANDLING MACHINERY
C.     ITA INDUSTRY CODE:     MHM


PART II.     NARRATIVE

Industry experts predict that as commercial and industrial activity in 
Canada continues to expand, Canadian companies will increase their 
capital expenditures.  This is expected to result in growth in demand in 
the materials handling machinery market, as well as in other industrial 
markets.

Demand trends in the materials handling sector in Canada require 
suppliers to provide increasingly sophisticated products, improved 
automation, and enhanced safety features.  Canadian companies are very 
successful in producing "niche" products to satisfy a growing domestic 
and export market; however, they do not have the economies of scale 
necessary to compete in standard items.  The Canadian market will, 
therefore, continue to rely on U.S. manufacturers to supply these 
products.  The dominance of U.S. companies in Canada's materials 
handling machinery import market is expected to continue throughout the 
forecast period of 1996 to 1998.


Promising Subsectors/Estimated 1995 Total Market Size

H.S. 8427.10     Self propelled work trucks powered               147
               by an electric motor

H.S. 8431.20     Parts of fork-lift and other work               113
               trucks fitted with lifting equipment


PART III.     DATA TABLE

                                1994            1995          1996

A.     TOTAL MARKET SIZE        2,018          2,276          2,321
B.     TOTAL LOCAL PRODUCTION   1,594          1,825          1,861
C.     TOTAL EXPORTS              364            415            423
D.     TOTAL IMPORTS              788            900            918
E.     IMPORTS FROM THE U.S.      568            654            667


THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES.

  
PART I.     BEST PROSPECT SECTOR FOR U.S. EXPORTS AND INVESTMENT

A.     RANK OF SECTOR:          12
B.     NAME OF SECTOR:          PLASTIC MATERIALS AND RESINS
C.     ITA INDUSTRY CODE:     PMR


PART II.     NARRATIVE

Canada's plastics industry is growing at a healthy real rate of 7.4 
percent annually.  In light of increasing competitive pressures and 
market demand, this sector is expected to invest an average of US$550 
million per year through the year 2000 on new machinery and equipment.

The Canadian plastic materials and resins industry currently imports 85 
percent of it's raw materials from the United States.  However, much of 
these materials are incorporated into final products which are exported 
abroad.  Recently, Canadian manufacturers have experienced a surge of 
international orders, due primarily to the low cost of the Canadian 
dollar.

The plastic materials and resins sector in Canada is controlled 
primarily by U.S.- owned subsidiaries.  The industry consists of an 
estimated 90 establishments which produce primarily commodity-grade 
thermoplastic and medium-volume thermosetting resins and compounds.  The 
Society of the Plastics Industry of Canada estimates Canada's resin 
capacity at 3.5 million tons.

Promising Subsectors:

H.S. 3901     Polymers, in primary forms
H.S. 3907     Polyacetals, polyethers, epoxide resins, polycarbonates in 
primary forms


PART III.     DATA TABLE

                                 1994           1995          1996

A.     TOTAL MARKET SIZE        3,576          4,104          4,438
B.     TOTAL LOCAL PRODUCTION   2,455          3,219          3,481
C.     TOTAL EXPORTS            3,358          4,272          4,619
D.     TOTAL IMPORTS            4,478          5,156          5,576
E.     IMPORTS FROM THE U.S.    3,832          4,376          4,733


THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES.

  
PART I.     BEST PROSPECT SECTOR FOR U.S. EXPORTS AND INVESTMENT

A.     RANK OF SECTOR:        13
B.     NAME OF SECTOR:        AUTOMOTIVE PARTS AND SERVICE EQUIPMENT
C.     ITA INDUSTRY CODE:     APS


PART II.     NARRATIVE

[Note:  For the purposes of this report, the automotive parts and 
service equipment market contains only OEM products not included in the 
aftermarket segment of the market.  Products have therefore not been 
double counted in the determination of the size of these two markets.]

The Canadian automotive parts and service equipment market can expect 
above average growth as a result of new vehicle sales in 1994.  Industry 
experts predict the new vehicle market in Canada (total car and truck 
sales) for the 1994-model year at 1.3 million units.  Car sales are 
expected to surpass 800,000 units, an increase of eight percent from the 
1993-model year, and truck sales are expected to continue to grow to a 
projected level approaching 500,000 units, an increase of more than 13 
percent.  Industry experts forecast average annual Canadian demand 
growth for automotive parts and service equipment at between seven and 
nine percent during the next three years (1996 to 1998).

U.S. suppliers wishing to penetrate the Canadian market should focus on 
dealer networks and, in the case of local firms which are subsidiaries 
of U.S. companies, approach these through company head offices in the 
United States.  In 1993, the Canadian automotive parts industry 
represented 12 percent of total North American automotive manufacturing.  
More than 90 percent of these sales were to Chrysler, Ford and General 
Motors with the remainder shared between Asian and European assemblers.  
During the 1993-model year, Japanese car sales dropped by 17 percent, 
compared with just one percent for the North American based firms.  At 
the same time, North American manufacturers have largely closed the gap 
in terms of quality and cost competitiveness.


PART III.     DATA TABLE

                                1994       1995       1996

A.     TOTAL MARKET SIZE      22,699     24,218     26,231
B.     TOTAL LOCAL PRODUCTION 10,967     11,701     12,497
C.     TOTAL EXPORTS           8,617      9,193      9,842
D.     TOTAL IMPORTS          20,349     21,710     23,576
E.     IMPORTS FROM THE U.S.  17,112     18,258     19,810


THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES.

  
PART I.     BEST PROSPECT SECTOR FOR U.S. EXPORTS AND INVESTMENT

A.     RANK OF SECTOR:      14
B.     NAME OF SECTOR:      APPAREL
C.     ITA INDUSTRY CODE:   APP


PART II.     NARRATIVE

While recent growth in the Canadian apparel industry has softened, 
increases are expected over the near-term.  In fact, recent economic 
indicators reveal increasing levels of personal disposable income and 
increasing retail sales which should lead to greater consumer spending 
on apparel products in Canada.  Nonetheless, Canadian consumers will 
remain price-sensitive, and will seek quality items at fair prices.

The key to success for U.S. exporters to the Canadian apparel market 
during the forecast 1996 to 1998 period will be to work closely with 
Canadian buyers.  U.S. companies must continue to respond to local 
demand preferences within the distinct regional markets in Canada.  The 
Canadian apparel industry has a reputation for producing a diversified 
range of fashionable high-quality items, mostly for the medium to high-
price retail market, and is concentrated in the provinces of Quebec, 
Ontario and British Columbia.  Although there is tremendous competition 
from third-country suppliers, U.S. suppliers of low-priced quality goods 
have excellent opportunities to penetrate the Canadian apparel market.  
The elimination of tariffs by 1998 on U.S.-origin goods, lower 
production costs, and market proximity provide significant competitive 
advantages for U.S. suppliers over third-country competition.


PART III.     DATA TABLE

                                  1994           1995           1996

A.     TOTAL MARKET SIZE         6,574          6,724          6,918
B.     TOTAL LOCAL PRODUCTION    5,128          5,110          5,262
C.     TOTAL EXPORTS               546            444            578
D.     TOTAL IMPORTS             1,992          2,058          2,234
E.     IMPORTS FROM THE U.S.       239            252            257



THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES.

  
PART I.     BEST PROSPECT SECTOR FOR U.S. EXPORTS AND INVESTMENT

A.     RANK OF SECTOR:        15
B.     NAME OF SECTOR:        TEXTILE FABRICS
C.     ITA INDUSTRY CODE:     TXF


PART II.     NARRATIVE

Economic indicators reveal improvements in consumer spending and in the 
level of personal disposable income which should translate into 
increased market demand in Canada for many products, including textile 
fabrics.  Although growth will be somewhat weaker than in recent years, 
experts predict positive growth figures throughout the 1996 to 1998 
forecast period.

U.S. suppliers will continue to dominate the import segment of this 
Canadian market.  In fact, U.S. suppliers are expected to continue 
making inroads into the Canadian market, with many displacing 
traditional European suppliers.  The strengthening position of U.S. 
suppliers in this market will only continue with the elimination by 1998 
of tariffs on U.S. goods, according to the NAFTA.  Furthermore, 
geographic proximity, product quality, and comparatively low-cost 
production through economies of scale are all advantages U.S. companies 
have over third-country competition.  U.S. companies should note that 
Canadian use of textile fabrics tends to be for small production runs 
incorporating high levels of quality and that successful textile sales 
to Canada depend on competitive pricing and quality products.


Promising Subsectors/Estimated 1996 Total Market Size:

H.S. 5208.52     Plain weave cotton fabrics, printed               121
H.S. 5209.42     Denim fabrics of cotton                         142
H.S. 5407.52     Woven fabrics of textured polyester               150
                 filaments, printed
H.S. 5701.10     Carpets of wool or fine animal hair knotted     145
H.S. 6002.92     Knitted or crocheted fabrics, of cotton or     193
                 man-made fibers


PART III.     DATA TABLE

                                  1994           1995           1996

A.     TOTAL MARKET SIZE         5,276          5,270          5,454
B.     TOTAL LOCAL PRODUCTION    3,481          3,431          3,551
C.     TOTAL EXPORTS               422            437            453
D.     TOTAL IMPORTS             2,216          2,276          2,356
E.     IMPORTS FROM THE U.S.     1,304          1,341          1,388


THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES.

  
PART I.     BEST PROSPECT SECTOR FOR U.S. EXPORTS AND INVESTMENT

A.     RANK OF SECTOR:        16
B.     NAME OF SECTOR:        BUILDING PRODUCTS
C.     ITA INDUSTRY CODE:     BLD


PART II.     NARRATIVE

Although growth in Canada's building equipment market has recently 
slowed, industry experts remain hopeful that certain segments of the 
market will continue to improve.  As sales of building supplies are 
entirely dependent on the level of building construction and renovation 
in Canada, a high level of activity in the residential, industrial, 
commercial and institutional sectors is critical to continued growth.  
Both the residential renovation segment and the institutional 
construction (for schools, in particular) segment of the market 
represent the most opportunity.  The renovation industry remains the 
principal outlet for new and innovative U.S.-made building supplies in 
Canada.  Consumers have indicated that products which support energy 
efficiency and which are environmentally friendly will remain high on 
the list of preferred features in new homes and renovation work.

Canada's revised National Building Code, expected by late 1995, may 
represent opportunities for U.S. suppliers of selected products.  Also, 
with the relatively low Canadian dollar, domestic producers have been 
able to maintain, and in some cases improve on, the levels of 1994 
production.  Building products manufactured in the United States 
continue to be regarded by Canadian buyers as superior quality than most 
other competing imported brands.  Although, Pacific Rim countries 
continue to export low-end products to Canada, buyers tend to avoid 
offshore products unless the quality satisfies consumer expectations and 
is appropriate for the Canadian climate.

Promising Subsectors/Total Estimated 1995 Total Market Size:

H.S. 3925.20     vinyl windows                    852



PART III.     DATA TABLE

                                   1994           1995           1996

A.     TOTAL MARKET SIZE          5,626          5,711          5,825
B.     TOTAL LOCAL PRODUCTION    10,022         10,273         10,478
C.     TOTAL EXPORTS              7,338          7,607          7,758
D.     TOTAL IMPORTS              2,942          3,045          3,105
E.     IMPORTS FROM THE U.S.      1,804          1,868          1,904


THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES.

  
PART I.     BEST PROSPECT SECTOR FOR U.S. EXPORTS AND INVESTMENT

A.     RANK OF SECTOR:        17
B.     NAME OF SECTOR:        AIRCRAFT AND PARTS
C.     ITA INDUSTRY CODE:     AIR


PART II.     NARRATIVE

Paralleling the situation in the U.S. market, Canada's aerospace 
industry faces difficult challenges throughout the remainder of the 
1990s.  Analysts agree that the current restructuring trend will 
continue as the long-term focus of the industry continues to move away 
from defense-related manufacturing.  The total defense component of the 
Canadian aircraft and parts industry stood at approximately 30 percent 
of the total Canadian market in 1994.  Consequently, this relatively 
high civil component has in part offset the impact on Canadian industry 
of a shrinking defense market.  In terms of scale, Canadian firms are 
typically not as large as their international rivals.  The competitive 
strengths of Canada's aerospace industry are rooted in its early 
conversion from defense to commercial production.  The local market is 
primarily dominated by several U.S. - owned subsidiaries which produce 
parts and components for export.  Local production of aircraft is 
limited to commuter aircraft, business jets and helicopters.  


PART III.     DATA TABLE


                                       1994          1995          1996
A.     TOTAL MARKET SIZE                2.1           2.2           2.7     
B.     TOTAL LOCAL PRODUCTION           3.4           3.6           4.4
C.     TOTAL EXPORTS                    3.2           3.7           4.0
D.     TOTAL IMPORTS                    1.9           2.1           2.3
E.     IMPORTS FROM THE U.S.            1.5           1.7           1.8


THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES.

  
PART I.     BEST PROSPECT SECTOR FOR U.S. EXPORTS AND INVESTMENT

A.     RANK OF SECTOR:          18
B.     NAME OF SECTOR:          HOUSEHOLD CONSUMER GOODS
C.     ITA INDUSTRY CODE:       HCG


PART II.     NARRATIVE

Although consumer demand has softened in recent years, gradually 
improving market conditions are expected increase Canadian demand for 
household consumer goods.  With real personal disposable income on the 
rise, Canadians, like their U.S. counterparts, will continue to demand a 
variety of household consumers goods.  Industry experts believe overall 
growth in this market will average a real rate of approximately one 
percent annually during the 1996 to 1998 period, although individual 
product areas are expected to experience significantly more growth.

U.S. manufacturers and suppliers have traditionally dominated Canada's 
import market for household consumer goods, and this is expected to 
continue.  In fact, U.S. manufacturers are expected to increase their 
share of Canada's imports in this market due to preferential tariffs 
under NAFTA.


Promising Subsectors/Estimated 1995 Total Market Size:

H.S. 8508.80     Tools,hand-held/self-contained electric motor          
168
H.S. 8509.80     Electro-mechanical home appliances/self-contained 360
                 electric motor


PART III.     DATA TABLE

                                 1994           1995           1996

A.     TOTAL MARKET SIZE        2,669          2,696          2,802
B.     TOTAL LOCAL PRODUCTION   2,136          2,157          2,273
C.     TOTAL EXPORTS            1,111          1,138          1,206
D.     TOTAL IMPORTS            1,644          1,677          1,735
E.     IMPORTS FROM THE U.S.      957            995          1,075


THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES.

       B. Best Prospects for Food/Agricultural Products
          for U.S. Exporters to Canada

In the five year period ending 1994, U.S. agricultural exports to Canada 
increased 31 percent to US$5.5 billion from US$4.2 billion.  Most of the 
increase over the period was attributable to the growth in exports of 
consumer-oriented agricultural products which rose from US$3.0 billion 
in 1990 to US$4.1 billion in 1994.  The value of exports of U.S. bulk 
agricultural products (coarse grains, raw cotton, etc.) to Canada 
slipped 5 percent during the same period to US$328 million.

Canadian imports of U.S. high value agricultural products, showed 
strong, consistent annual growth following the implementation of the FTA 
(now NAFTA) on January 1, 1989.  The FTA introduced a timetable for the 
phase out of tariffs and in some cases an accelerated move to zero duty.  
For most U.S. high value products, Canadian tariffs either are zero or 
have been reduced by 70 percent from their pre-FTA levels.  On January 
1, 1995 Canada implemented agricultural market access provisions of the 
World Trade Organization Agreement and converted its import controls on 
poultry, dairy, and barley to tariff rate quotas.  U.S. exports of these 
products to the Canadian market continue to grow at a slower rate than 
other food products because over quota exports are assessed high rates 
of duty.

The FTA/NAFTA has awakened many small to medium U.S. agricultural 
exporters to Canada's easily accessible market.  In addition, Canadian 
importers and distributors are anxious to source U.S. high value food 
products that Canadians have become familiar with through U.S. media 
advertising and frequent travel to the United States.  Most of the 
increase in Canadian imports of U.S. consumer-oriented agricultural 
products during 1990-1994 coincided with a steady decline in the value 
of the Canadian dollar against the U.S. dollar reflecting the offsetting 
benefit that lower FTA tariffs had on the demand for U.S. food products.

1.               Fresh Vegetables                              BP
2.               Baked Goods                                   BP
3.               Sauces and Condiments                         BP
4.               Breakfast Cereal,Pancake Mix, Dough           BP 
5.               Pet Food (Dog and Cat)                        BP
6.               Sugar Candy and Confectionery                 BP
7.               Chocolate and Chocolate Confectionery         BP
8.               Snack Food                                    BP

  
PART I.     BEST PROSPECT SECTOR FOR U.S. EXPORTS AND INVESTMENT

A.     RANK OF SECTOR:          1
B.     NAME OF SECTOR:          FRESH VEGETABLES


PART II.     NARRATIVE

Canada is the largest export market for U.S. fresh vegetable sales.  The 
value of U.S. fresh vegetable exports to Canada in 1995 is expected to 
be close to US$800 million, about a 15 percent increase from the year 
earlier.  Adverse weather conditions in California and related price 
hikes particularly for cabbage, broccoli, lettuce and celery will 
account for most of the increase.  Canadian fresh produce wholesalers 
maintain a close relationship with U.S. shippers of horticultural 
products.  An efficient transportation system results in excellent 
accessibility to major Canadian markets.  The Canadian growing season 
for fresh vegetables is short, enhancing the demand for fresh U.S. 
produce throughout the year. On a per capita basis, Canada has one of 
the highest consumption rates of fresh vegetables in the world.  In 
Canadian retail grocery stores, more space is devoted to fresh produce 
than to any other food sector.  The trend to healthy diets has increased 
the demand for fresh vegetables in Canadian retail and food service 
markets.  Canada applies higher seasonal duties on fresh vegetable 
imports during the local marketing season but for perishables they are 
in effect for a relatively short period.  The duty levels are being 
lowered in annual increments under the FTA and will fall to zero by 
January 1, 1998.


PART III.     DATA TABLE

                                  1994           1995           1996

A.     TOTAL MARKET SIZE         1,230          1,350          1,315
B.     TOTAL LOCAL PRODUCTION      630            640            640
C.     TOTAL EXPORTS               190            200            215
D.     TOTAL IMPORTS               790            910            890
E.     IMPORTS FROM THE U.S.       672            775            750


THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES.

  
PART I.     BEST PROSPECT SECTOR FOR U.S. EXPORTS AND INVESTMENT

A.     RANK OF SECTOR:          2
B.     NAME OF SECTOR:          BAKED GOODS


PART II.     NARRATIVE

From 1990-1994 the value of U.S. exports of baked goods to Canada 
increased 226 percent.  The trend to annual, double digit increase is 
expected to continue into 1996.  Canada no longer requires import 
licenses on wheat and flour products (including bread, buns, bagels, 
rolls, pastry, cakes, and muffins) from the United States.  Diminishing 
tariff rates under the FTA is increasing the competitiveness of U.S. 
bakery products in Canada.  U.S. fast food chains that expand to Canada 
are able to competitively supply their Canadian outlets with bakery 
products from U.S. manufacturing centers.  Many large Canadian grocery 
chains offering house-brand baking products are turning to U.S. 
manufacturers for their finished baked goods.  Canadian consumers are 
demanding a wide range of ready-to-eat baked goods.  Independent studies 
indicate that a trend to healthier diets has also led to an increase in 
consumer demand for indulgence desserts as a reward to healthy main 
course choices.  As a result, there is a growing demand for many ready-
to-eat U.S. prepackaged bakery products.


PART III.     DATA TABLE

                                   1994          1995          1996

A.     TOTAL MARKET SIZE          1,945         1,980         2,210
B.     TOTAL LOCAL PRODUCTION     1,918         1,930         1,935
C.     TOTAL EXPORTS                250           260           265
D.     TOTAL IMPORTS                277           310           340
E.     IMPORTS FROM THE U.S.        214           240           265


THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES.

  
PART I.     BEST PROSPECT SECTOR FOR U.S. EXPORTS AND INVESTMENT

A.     RANK OF SECTOR:          3
B.     NAME OF SECTOR:          SAUCES AND CONDIMENTS


PART II.     NARRATIVE

Sauces and condiments are among the fastest growing categories of U.S. 
exports of high value foods to Canada.  Exports in this sector posted a 
217 percent increase during the 1990-1994 period.  Reduced tariffs under 
the FTA coincided with increased demand in Canada for a wide variety of 
U.S. tomato-based sauces and salad dressings.   The rise in popularity 
of corn chips as a snack food in Canada has spurred increased demand for 
U.S. salsa.  Likewise, a trend to health conscious eating among 
Canadians has led to greater demand for imports of U.S. salad dressings.  
Prospects point to further gains in the sector for U.S. exporters into 
1996.


PART III.     DATA TABLE

                                       1994          1995          1996

A.     TOTAL MARKET SIZE                392           425           455
B.     TOTAL LOCAL PRODUCTION           300           320           330
C.     TOTAL EXPORTS                     33            35            35
D.     TOTAL IMPORTS                    125           140           160
E.     IMPORTS FROM THE U.S.            103           120           140


THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES.

  
PART I.     BEST PROSPECT SECTOR FOR U.S. EXPORTS AND INVESTMENT

A.     RANK OF SECTOR:          4
B.     NAME OF SECTOR:          BREAKFAST CEREAL, PANCAKE MIX, DOUGH


PART II.     NARRATIVE

Led by sales of breakfast cereals, premixed dough and pancake and cake 
mixes, U.S. exports in this prepared cereal grain category demonstrated 
96 percent growth during the 1990-1994 period.  Reduced tariffs under 
the FTA, combined with strong demand for U.S. cereal grain products for 
the consumer and bakery market point to continued significant increases 
for U.S. exports to Canada into 1996.


PART III.     DATA TABLE

                                       1994          1995          1996

A.     TOTAL MARKET SIZE                510           540           580
B.     TOTAL LOCAL PRODUCTION           475           500           530
C.     TOTAL EXPORTS                     78            85           100
D.     TOTAL IMPORTS                    113           125           150
E.     IMPORTS FROM THE U.S.            110           122           146


THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES.

  
PART I.     BEST PROSPECT SECTOR FOR U.S. EXPORTS AND INVESTMENT

A.     RANK OF SECTOR:          5
B.     NAME OF SECTOR:          PET FOOD (DOG AND CAT)


PART II.     NARRATIVE

The total market for pet food in Canada showed strong growth throughout 
the early 1990s.  As a result of accelerated tariff removal under the 
FTA, dog and cat food from the United States has entered duty-free since 
April 1990.  The action, combined with steady demand in Canada for 
premium pet and special diet foods, has resulted in U.S. exporters 
consistently capturing nearly one-third of Canada's growing pet food 
market.  In addition to the demand for premium pet foods, the Canadian 
market for dog and cat snacks has shown steady growth. More than half of 
the Canadian pet food sales are through retail grocery stores, but the 
emergence of specialty pet food retail stores has enhanced sales of 
premium pet foods. According to a major marketing research company, the 
retail sale of pet foods in Canadian grocery stores is split about 
evenly between dog and cat food.


PART III.     DATA TABLE

                                       1994          1995          1996

A.     TOTAL MARKET SIZE                500           535           555
B.     TOTAL LOCAL PRODUCTION           400           410           425
C.     TOTAL EXPORTS                     77            85            90
D.     TOTAL IMPORTS                    177           202           220
E.     IMPORTS FROM THE U.S.            171           202           210


THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES.

  
PART I.     BEST PROSPECT SECTOR FOR U.S. EXPORTS AND INVESTMENT

A.     RANK OF SECTOR:          6
B.     NAME OF SECTOR:          SUGAR CANDY AND CONFECTIONERY


PART II.     NARRATIVE

Sales of sugar candy and confectionery to Canada grew by 67 percent in 
the five-year period ending in 1994.  Canadian demand is expected to 
push total U.S. sales in the sector to the $100 million level by 1996.  
The Canadian sugar candy trade is active, with many medium size 
companies serving regional markets with a wide variety of candy from 
domestic and imported sources.  With lower tariffs under the FTA, 
Canadian candy buyers can now source products in the United States that 
were formerly protected by prohibitively high rates of duty (averaging 
above 15%).  U.S. exports in the category are led by sugar candy (not 
containing cocoa), bubble gum, and marshmallows.  Prospects for future 
increases in the U.S. share of the Canadian import market for sugar 
candies are bright.


PART III.     DATA TABLE

                                       1994          1995          1996

A.     TOTAL MARKET SIZE                362           330           395
B.     TOTAL LOCAL PRODUCTION           330           330           340
C.     TOTAL EXPORTS                     85            90            95
D.     TOTAL IMPORTS                    117           130           150
E.     IMPORTS FROM THE U.S.             75            85           100


THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES.

  
PART I.     BEST PROSPECT SECTOR FOR U.S. EXPORTS AND INVESTMENT

A.     RANK OF SECTOR:          7
B.     NAME OF SECTOR:          CHOCOLATE AND CHOCOLATE CONFECTIONERY


PART II.     NARRATIVE

U.S. exports of chocolate and chocolate confectionery to Canada grew at 
more than twice the pace of imports from other suppliers in the five 
years following the FTA.  Further growth in U.S. sales to Canada is 
anticipated into 1996.  Of the total category of chocolate and cocoa 
foods and preparations, the growth in U.S. sales to Canada is led by 
retail chocolate confectionery including boxed chocolates and individual 
retail chocolate products.


PART III.     DATA TABLE

                                   1994           1995           1996

A.     TOTAL MARKET SIZE          1,300          1,340          1,390
B.     TOTAL LOCAL PRODUCTION     1,271          1,310          1,350
C.     TOTAL EXPORTS                183            190            200
D.     TOTAL IMPORTS                212            220            240
E.     IMPORTS FROM THE U.S.        108            120            140


THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES.

  
PART I.     BEST PROSPECT SECTOR FOR U.S. EXPORTS AND INVESTMENT

A.     RANK OF SECTOR:          8
B.     NAME OF SECTOR:          SNACK FOOD


PART II.     NARRATIVE

Moderately strong growth is forecast for Canada's snack food market into 
1996.  According to a major market research company, the potato chip 
remains the undisputed leader with an estimated market share of about 50 
percent, but down slightly from nearly a 55 percent share in 1992.  In 
recent years, Canadian consumers began to purchase a wider range of 
salted snacks, a trend which has benefitted U.S. snack food exporters.  
Popcorn leads U.S. snack food exports to Canada, followed by potato 
chips.  In 1994, U.S. exports of popcorn to Canada reached $26.5 
million, nearly double the level of 1990 and the sharpest rate of 
increase among snack food sales to Canada.  U.S. potato chip sales 
showed more modest growth, increasing about 3 percent annually from 1990 
to 1994.  U.S. sales of pretzels to Canada jumped from $3.6 million in 
1990 to $6.7 million during 1994.  Growth in U.S. corn chip exports to 
Canada averaged almost 10 per year during the 1990-1994 period.


PART III.     DATA TABLE

                                       1994          1995          1996

A.     TOTAL MARKET SIZE                637           668           688
B.     TOTAL LOCAL PRODUCTION           575           600           615
C.     TOTAL EXPORTS                      2             2             2
D.     TOTAL IMPORTS                     64            70            75
E.     IMPORTS FROM THE U.S.             63            68            73


THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES.

  CHAPTER VI.     TRADE REGULATIONS AND STANDARDS


     A.     Trade Barriers

     1.     General Trade Barriers

As a result of the 1988 U.S.-Canada Free Trade Agreement (FTA), many 
Canadian tariffs on U.S. products have been, or will soon be, 
eliminated.  The North American Free Trade Agreement (NAFTA) removes 
some remaining barriers and expands specific provisions of the FTA.  
However, non-tariff barriers at both the federal and provincial levels 
continue to impede access of U.S. goods and services to Canada or retard 
potential export growth.  The issues identified below constitute a 
partial list of areas which will be addressed in FY96 at post in concert 
with USDOC, USTR, State and other Washington agencies.


     (a)     Standards

The FTA provided that testing facilities, inspection agencies and 
certification bodies of each country have access to the accreditation 
systems of the other country without obligation to establish facilities 
in the other country.  While provincial practices do not fall under the 
FTA discipline, U.S. government agencies at post and in Washington will 
closely monitor provincial requirements and press for fair treatment of 
U.S. organizations.


     (b)     Government Procurement

The NAFTA provides even greater access to the Canadian Government 
procurement market through expansion of coverage to Canada's remaining 
federal departments, some government-owned enterprises (Crown 
corporations) and selected services and construction contracts.  
Coverage of government-owned enterprises and services and construction 
under the NAFTA represents the first time that such procurement will be 
subject to international rules of open and competitive bidding.  
Finally, under the NAFTA all three parties have agreed to further 
negotiations before the end of 1998 to expand the coverage of the 
agreement.  This will include coverage at the sub-federal levels.


     (c)     Provincial Liquor Boards

Canadian provincial government liquor boards have exclusive control over 
Canada's alcoholic beverage retail pricing, listing, distribution and 
sales.  The FTA requires Canadian provinces to accord national treatment 
to U.S. wines and spirits in their listing policies and, with certain 
well-defined exceptions, their distribution practices.  The United 
States has questioned several provinces' implementation of these 
obligations.


     (d)     Telecommunications

In response to industry concerns, the U.S. General Accounting Office 
(GAO) was asked by Congress to conduct a comprehensive assessment of 
whether or not the Canadian market was closed to U.S. telecommunications 
equipment exports.   Effective March 31, 1994, Bell Canada and Northern 
Telecom agreed to cancel their preferred supplier relationship, and the 
GAO investigation was therefore not continued.  The USTR noted at the 
time that, as a result of the change, U.S. exports will have new 
opportunities in Canada, and Northern Telecom's U.S. subsidiary will be 
eligible for U.S. Government support under the Commerce and State 
Departments' export advocacy program.


     (e)     Services

Services exports constitute the fastest growing component of the U.S.-
Canada bilateral trade relationship, producing a US$15.3 billion export 
surplus in 1994.

The NAFTA covers all service sectors unless specifically excluded, and 
applies guiding principles to services trade.  A party can retain an 
existing law, measure, or practice that does not conform to the 
agreement's principles, by formally lodging an exception or reservation 
for the measure.  All federal government reservations were listed during 
negotiations and cannot be amended.  However, states and provinces must 
list nonconforming measures within two years after the NAFTA's entry 
into force.  Both the Canadian and U.S. governments will be working 
closely with their respective sub-federal governments to identify non-
conforming measures.  This "barrier inventory" exercise provides an 
opportunity to press for further liberalization in services.

NAFTA parties must also remove citizenship requirements affecting the 
licensing and practice of professionals within two years of entry into 
force of the Agreement.  If a state or province fails to remove 
citizenship requirements within the allotted time frame, the other 
countries have the right to maintain equivalent restrictions in their 
own countries.


     (f)     Prohibition of Special Edition Magazines

Special edition U.S. split run publications (using the same editorial 
content but different advertising content) are prohibited from 
importation into Canada.  Time-Warner, publisher of Sports Illustrated, 
is avoiding the ban from importation by electronically transmitting the 
magazine which is subsequently printed in Canada.  Customs authorities 
have no jurisdiction over electronic transmissions.

A Government of Canada task force set up to investigate the special 
edition magazines issue recommended that measures be taken to protect 
the Canadian magazine industry.  On June 20, 1995, legislation was 
tabled to impose an 80 percent excise tax on the value of all 
advertisements in split run editions.  


     2.     Investment Barriers

Under the Investment Canada Act and related Canadian regulations, Canada 
maintains laws and policies which restrict new or expanded foreign 
investment in the energy, publishing, telecommunications, 
transportation, film, music, broadcasting, and cable television sectors.


     (a)     Investment Canada Act

The Investment Canada Act requires the federal government to review 
proposed acquisitions by U.S. and other foreign investors to ensure "net 
benefit to Canada".  The Act exempts from prior government approval 
foreign investments in new ("greenfield") businesses and smaller 
acquisitions (worth less than C$5 million for direct acquisitions and 
C$50 million for indirect acquisitions).

Under the FTA, Canada raised the threshold level for review of direct 
acquisitions by U.S. investors to C$150 million on January 1, 1992, with 
the threshold level to be indexed for inflation in subsequent years.  
Under NAFTA, this threshold is further increased in line with real 
economic growth.  Screening of indirect acquisitions by U.S. investors 
was phased out altogether in 1992.  The thresholds for reviewing 
investors' acquisitions also apply to sales by U.S. investors of their 
Canadian investments to third country nationals.


     (b)     Investments in "Cultural Industries"

The exemption from review does not apply to foreign investments to 
establish new businesses or acquire existing ones in "culturally 
sensitive sectors" such as newspapers, magazines, periodical and book 
publishing and distribution, film and video, audio music recordings, and 
music in print or machine readable form.  As a result, foreign 
investment in these sectors is potentially subject to review regardless 
of size or whether the investment is new or through direct or indirect 
acquisition.  This protection for "cultural industries" will continue to 
be an issue for U.S. investors.

In January 1992, Canada announced proposals to amend its book publishing 
and distribution policies.  Under the new guidelines, Canadian firms 
that fall into foreign hands as a result of indirect acquisitions will 
not have to be divested to Canadian control, but the foreign investor 
will have to negotiate specific commitments to promote Canadian 
publishing if it wishes to maintain control.  Foreign investors will be 
able to acquire directly Canadian book publishing and distribution forms 
under limited circumstances that also involve providing guarantees of 
benefits to Canada.

The Investment Canada Act also permits special policies on foreign 
investment in the film distribution sector.  Canadian policies provide 
that:  takeovers of Canadian-owned and controlled distribution firms 
will not be allowed; investment to establish new distribution firms in 
Canada will only be allowed for importation and distribution activities 
related to proprietary products; and indirect or direct takeovers of 
foreign distribution firms operating in Canada will be allowed only if 
the investor undertakes to reinvest a portion of its Canadian earnings 
in accordance with national and cultural policies.

The Broadcasting Act sets out the broadcasting policy for Canada, which 
lists among its objectives, serve to safeguard, enrich and strengthen 
the cultural, political, social and economic fabric of Canada.  The 
federal regulator, the Canadian Radio-television and Telecommunications 
Commission (CRTC), is charged with implementing the broadcasting policy.  
Under current CRTC policy, in cases where a Canadian service is licensed 
in a format competitive with that of an authorized non-Canadian service, 
the Commission can drop the non-Canadian service, if the new Canadian 
applicant requests it to do so.  In June 1994, the CRTC de-listed a U.S. 
country music cable-TV service when it licensed a new Canadian specialty 
country music channel.  While this particular case was resolved when the 
parties involved agreed to a commercial settlement, the U.S. Government 
remains extremely concerned that the CRTC's competitive services policy 
remains in place.


     B.     Customs Valuation

Canada has acceded to the GATT Customs Valuation Code which provides 
that the customs value of imported goods shall be the transaction value 
-- the price actually paid or payable for the goods.  Under the 
transaction value system, the value for duty is the total payment for 
the goods made by the buyer to the seller.  The transaction value 
generally will be accepted by Canada Customs if the goods are sold for 
export to Canada and if the price paid or payable for the goods can be 
determined.  Under the transaction value system, the value for duty of 
imported goods will normally be determined from data submitted by the 
importer.  However,  preparation of proper documentation by the exporter 
significantly contributes to expeditious entry.


     C.     Import Licenses

There are no general licenses required for importing goods into Canada.  
There are, however, provisions related to a variety of prohibited, 
controlled and restricted goods.  For more information regarding 
restrictions on the importation of these types of goods see the 
Prohibited, Restricted, Controlled Goods section below.


     D.     Export Controls

Canada controls exports under authorization of the Export and Import 
Permits Act (EIPA), the Export Control List (ECL) and the Area Control 
List (ACL).  The ECL is an itemized list of goods subject to export 
control.  The ACL is a list of specific countries which require export 
permits for all goods (whether or not they are on the ECL).

The EIPA utilizes these lists in order to exercise export controls over 
natural resources to encourage further processing in Canada; to limit 
the export of goods in circumstances of surplus supply or depressed 
prices; to restrict the export of softwood lumber products; to ensure 
that there is an adequate supply and distribution of any article; to 
enact intergovernmental arrangements or commitments, and to ensure that 
military or strategic goods are not exported to countries or 
destinations representing a strategic threat to Canada.

Under a bilateral agreement with the United States, the requirement for 
an export permit to the United States is waived for all goods included 
in the ECL except for goods in Groups 3 and 4, as well as some goods in 
Group 5.  United States origin goods are controlled for re-export from 
Canada under Item 5400 of Group 5.  All non-strategic U.S. export origin 
goods require permits.  Exporters may benefit, though, from the 
provisions of the General Export Permit No. Ex. 12.

For further information see the annual "Guide to Canada's Export 
Controls"  published by the Department of Foreign Affairs and 
International Trade.  The Export Controls Division can be reached by 
phone at (613) 996-2387 or by fax at (613) 996-9933, or by mail at the 
following address:

     Department of Foreign Affairs and International Trade
     Export Controls Division (EPE)
     Lester B. Pearson Building
     125 Sussex Drive - C-4
     Ottawa, Ontario
     K1A OG2


     E.     Import/Export Documentation

A properly completed Canada Customs Invoice or its equivalent is 
required for all commercial shipments valued over C$1,200 exported to 
Canada.  In addition to the Canada Customs Invoice, shipments must be 
accompanied by a completed exporters Certificate of Origin which is 
required in order to obtain specialized tariff treatment under the 
provisions of the NAFTA.  For details regarding documentation 
requirements or to obtain sample invoices, and other forms, contact 
Revenue Canada.


     F.     Temporary Entry

Revenue Canada has made specific provision for the temporary entry of 
certain goods into Canada for various purposes such as testing, 
demonstration, and display.  Such goods may enter under an ATA 
(Admission Temporaire -- Temporary Admission) Carnet or under a 
Temporary Admission Permit (Revenue Canada, Customs and Excise Form 
E29B) and may require either a refundable deposit or a proportional duty 
deposit, depending on the appropriate classification determined by 
Canadian customs regulations.  Firms wishing to bring machinery and 
equipment, display equipment, and other items covered under Canadian 
temporary importation regulations are advised to contact Revenue Canada 
well in advance of shipment or arrival in Canada.


     G.     Labelling, Marking Requirements

The three main pieces of legislation which regulate almost all product 
labelling and marking in Canada include: the Consumer Packaging and 
Labelling Act; the Weights and Measures Act; and the Agricultural 
Product Standards Act.  Canada requires bilingual labelling (English and 
French) for most products.  Bilingual designation of the generic name on 
most prepackaged consumer products is required by the federal Consumer 
Packaging and Labelling Act identified above.  Under this act the 
following information must appear on the label of a consumer good sold 
in Canada:

      Product Identity Declaration -- describes a product's common or 
generic name, or its function.  The declaration must be in both English 
and French;

      Net Quantity Declaration -- should be expressed in metric units of 
volume, when the product is a liquid, gas, or is viscous; or in metric 
units of weight, when the product is solid; or by numerical count.  Net 
quantity may be expressed in other established trade terms.

      Dealer's Name and Principal Place of Business -- where the pre-
packaged product was manufactured or produced for resale.  In general, a 
name and address sufficient for postal delivery is acceptable.  The 
declaration should be in both English and French.


The agency responsible for inspection of imports, Canada Customs, also 
requires an indication of the country of origin, such as "Made in the 
USA" on several classes of imported goods and on all printed matter.  
Goods not properly marked cannot be released from Customs until suitably 
marked.  The goods can be marked, at the importer's expense, either on 
Canada Customs premises or on the importer's own premises under the 
supervision of Canada Customs officials.  Moreover, Canadian regulations 
require that declarations of net content of all packaged consumer goods 
be stated in metric units in both English and French, although British 
or imperial units may also be shown.  Most products may be packaged in 
random English measure size containers with the metric equivalents 
expressed on the label.  However, specified metrically dimensioned 
packaging is required for some products, mainly foods, personal care 
products, and detergents.

The Province of Quebec requires that all products sold in that province 
be labelled in French and that the use of French must be given equal 
prominence with other languages on any packages or containers sold in 
Quebec stores.  The Charter of the French Language requires the use of 
French on product labelling, warranty certificates, directions for use, 
public signs and written advertising.  Further information on French 
labelling requirements is available from the Office de la Langue 
Francaise.

Finally, with respect to the use of environmental claims, industry is 
charged with ensuring that any environmental claims are accurate and in 
compliance with relevant legislation.  In general, environmental claims 
that are ambiguous, vague, incomplete, misleading, or irrelevant and 
that cannot be substantiated through credible information and/or test 
methods should not be used.  In all cases, environmental claims should 
indicate whether they are related to the product itself or to the 
product's packaging materials.  The Canadian government has issued a set 
of guiding principles governing the use of environmental labelling and 
advertising which may be obtained by contacting Industry Canada -- see 
contact list.


     H.     Prohibited Imports

The majority of U.S. products shipped to Canada enter the market free 
from any import restrictions.  However, under the provisions of the 
Canadian Customs Tariff regulations certain commodities cannot be 
imported such as oleomargarine, reprints of Canadian copyrighted work, 
and some game birds.  Other goods are controlled, regulated, or 
prohibited under legislation falling within the jurisdiction of other 
government departments.  Examples of regulated goods include:  food 
products, clothing, drug and medical devices, hazardous products, some 
offensive weapons and firearms, endangered species, and motor vehicles.

Other items are regulated under the Export and Import Permits Act and 
require an import permit or certificate to be eligible for importation 
into Canada.  The Act lists various agricultural products, a number of 
clothing and textile items, and certain steel products.  Goods 
originating in certain countries such as Haiti and Iraq cannot be 
imported into Canada.  Enquiries regarding the issuance of import 
permits or certificates and quota allocations should be directed to the 
Department of Foreign Affairs, Export and Import Permits Bureau.


     I.     Standards

Canada's standards are not identical to those in the United States.  
This does not mean that Canadian standards are more or less stringent 
than those in the United States, merely that they are different.  Like 
the U.S. government, the Canadian government is concerned with 
protecting its citizens from faulty or unsafe products.  However, in 
delineating the precise technical specifications that are required to 
ensure that safety, the two countries often use slightly different 
standards.

Under the aegis of the Standards Council of Canada (SCC), several 
private standards-writing organizations administer technical codes and 
standards for areas ranging from electrical and plumbing products to 
health care technology.  These organizations include:

     The Canadian General Standards Association
     Underwriter's Laboratories of Canada
     The Canadian General Standards Board
     The Canadian Gas Association

The Canadian federal government also has numerous commodity standards to 
safeguard the public welfare.  The standards organizations try to avoid 
duplication of responsibility, but there is some overlap.

U.S. manufacturers and exporters should determine what standards are 
applicable to their products.  If certification is required, it 
generally must be obtained before the goods are imported into Canada.  
The process can be time-consuming, therefore certification should be of 
the first steps taken in establishing and export market in Canada.

Information on which standards or organization(s) administer standards 
applicable to the firm's product can be obtained from the Standards 
Council of Canada.


Standards and the NAFTA:  The basic NAFTA rule is simple -- standards 
must not create unnecessary barriers to trade.  To reduce such barriers, 
the NAFTA applies basic principals to bilateral trade:

(a)     testing facilities and certification bodies are treated in a 
nondiscriminatory manner

(b)     federal standards related measures will be harmonized to the 
greatest extent possible

(c)     greater openness will be provided in the regulatory process.

Greater standards compatibility removes structural barriers to the 
Canadian and U.S. markets and increases the competitiveness of the U.S. 
and Canadian manufacturers.  Significant progress toward greater 
compatibility between U.S. and Canadian technical standards is taking 
place under the aegis of the NAFTA.

Standards organizations in the United States and Canada continue to work 
cooperatively in the development of joint standards and have made 
progress in several areas.  For example, the Air Conditioning and 
Refrigeration Institute (ARI) and the CSA have harmonized performance 
standards for air conditioners and heat pumps, packaged water chillers, 
and water-source heat pumps.  Underwriters Laboratories (UL) and CSA 
have established common electrical safety standards for air 
conditioners, heat pumps, and refrigerant motor-compressors.

During 1992, two U.S. testing and certification organizations, UL and 
the American Plywood Association (APA), received accreditation in 
Canada.  Also in 1992, the Canadian Standards Association (CSA) was 
officially recognized by the U.S. Occupational Safety and Health 
Administration (OSHA) as a Nationally Recognized Testing Laboratory.  
SCC and OSHA accreditations mean U.S. manufacturers can gain product 
approval for both the United States and Canada from one source, thereby 
eliminating the time and expense of pursuing separate certification for 
each market.  Several other U.S. testing and certification organizations 
have accreditation applications pending before the SCC.

The NAFTA strengthens FTA technical standards obligations; expands 
coverage to include Mexico; sets up a committee on standards-related 
measures; establishes an Automotive Standards Council; identifies 
specific products for standards harmonization efforts through the 
creation of subcommittees on land transportation and telecommunications 
standards, and on labelling of textiles and apparel goods.


     J.     Free Trade Zones/Warehouses

Goods may be cleared at customs ports on the border or, if intended for 
inland destinations, may be forwarded in bonded carriers to the port 
city nearest the destination at which customs examination may be made 
and duties and taxes paid.  With the exception of one special trade zone 
at the Sydport Industrial Park in Cape Breton, Nova Scotia, Canada has 
no free ports or free trade zones.  At present, there are no federal or 
provincial laws specifically governing the establishment and operation 
of such zones.  Sufferance warehouses under private ownership have been 
established for the storage and deposit of all imports received by 
various transportation modes, pending customs examination and clearance.  
An entry for consumption or into bonded warehouse must be presented to 
Customs within 30 days.  Goods may be entered into customs bonded 
warehouses without the payment of duty but must be cleared either for 
export or Canadian consumption within two years.  Additional periods are 
provided for certain goods by regulation.

Goods taken from bonded warehouses for consumption are dutiable at rates 
of the Customs Tariff then in effect, and the value for duty purposes is 
the value at the time of entry for warehousing.  Goods exported from 
bonded warehouses to third countries are subject to Canadian export 
regulations.  Repacking and sorting can be carried out in customs bonded 
warehouses with the permission of Canada Customs, but assembly or other 
industrial activity is prohibited.


     K.     Special Import Provisions

Canada's special import provisions deal with the temporary importation 
of goods, as described previously in this Chapter, in Section G.


     L.     Membership in Free Trade Arrangements

The FTA, implemented in 1989, created vast opportunities for U.S. 
exporters and investors in Canada.  As a result of the FTA, trade 
barriers have come down, investment rules have been liberalized, and 
bilateral cooperation on a wide range of issues has been expanded.  The 
FTA has since been enhanced further through the implementation of the 
NAFTA which took effect on January 1, 1994.  This historic Agreement 
brings Mexico into the North American free trade area and expands the 
scope of the FTA in some key areas.  For example, the NAFTA contains 
provisions relating to intellectual property, land transportation and 
the environment, which were not provided for in the FTA.  Many of the 
improvements to the FTA, now reflected in the NAFTA, are the direct 
result of experience gained by the United States and Canada in 
implementing that bilateral accord.  Since the FTA has served as the 
model for the NAFTA, many U.S. firms who are already familiar with the 
FTA are well positioned to reap early benefits from the NAFTA.

Like the United States, Canada is a member of the World Trade 
Organization (WTO) and was a founding member of its predecessor, the 
General Agreement on Tariffs and Trade (GATT).



  CHAPTER VII.     INVESTMENT CLIMATE


With few exceptions, Canada offers foreign investors full national 
treatment within the context of a developed open market economy 
operating with democratic principles and institutions.  Canada is, 
however, one of the few OECD countries that still has a formal 
investment review process, and foreign investment is prohibited or 
restricted in several sectors of the economy.

Canada's economic development has depended a great deal on foreign 
investment inflows.  Four foreign-owned firms rank among the top ten 
firms in Canada in terms of revenue, and the Canadian government 
estimates that foreign investors control about one-quarter of total 
Canadian non-financial corporate assets.  The stock of foreign direct 
investment in Canada in 1994 was equivalent to 20 percent of GDP.  Net 
foreign direct inflows in 1994 amounted to roughly one percent of GDP.

Canada has no restriction on outward foreign investment, and Canadian 
firms have a significant presence in the United States

Since the beginning of 1994, investment relations between the United 
States and Canada have been governed by the NAFTA negotiated by the 
United States, Canada and Mexico.  The FTA, which entered into force at 
the beginning of 1989, has been suspended as long as the two countries 
remain parties to the NAFTA.  The NAFTA builds on the investment 
relationship created in the FTA.  In the FTA, the United States and 
Canada agreed on important foreign investment principles, including 
right of establishment and national treatment.  The FTA recognized that 
a hospitable and secure investment climate was indispensable if the two 
countries were to achieve the full benefits of reducing barriers to 
trade in goods and services.

The FTA established a mutually beneficial framework of investment 
principles sensitive to the national interests of both countries, with 
the objective of assuring that investment flowed freely between the two 
countries and that investors were treated in a fair and predictable 
manner.

The FTA provided higher review thresholds for U.S. investment in Canada 
than for other foreign investors, but it did not exempt all U.S. 
investment from review nor did it override specific foreign investment 
prohibitions, notably in the cultural area.  The NAFTA incorporates the 
gains made in the FTA, expands the coverage of the Investment Chapter to 
several new areas and broadens the definition of investors with rights 
under the agreement, and creates the right to binding investor-State 
dispute settlement arbitration under limited circumstances.


     A.     Openness to Foreign Investment

     1.     General Attitude

Canada has long been considered a stable and remunerative environment 
for foreign investment, and its economic progress has been made possible 
to a large extent by a sustained inflow of foreign capital.  Since 1985, 
foreign investment policy in Canada has been guided by the Investment 
Canada Act which replaced the more restrictive Foreign Investment Review 
Act.  The Investment Canada Act liberalized Canadian policy on foreign 
investment by recognizing that investment is central to economic growth 
and new employment opportunities and is the key to technological 
advancement.  At the same time, it provided for a review of large 
acquisitions in Canada by non-Canadians and imposed a requirement that 
they be of net benefit to Canada.  For the vast majority of small 
acquisitions and the establishment of new businesses, non-Canadian 
investors need only notify the Canadian government of their investment.

While the Investment Canada Act provides the basic legal framework for 
foreign investment in Canada, foreign investment in specific sectors may 
be covered by special legislation.  For example, foreign investment in 
the financial sector is governed by laws administered by the federal 
Department of Finance, and the Broadcast Act governs foreign investment 
in radio and TV broadcasting.  Under provisions of Canada's new 
Telecommunications Act, foreign ownership of transmission facilities is 
limited to 20 percent, while in the case of holding companies that wish 
to invest in Canadian carriers, two-thirds of the holding company's 
equity must be owned and controlled by Canadians.

Canada's federal system of government subjects investment to provincial 
as well as national jurisdiction.  Provincial restrictions on foreign 
investment differ by province, but are largely confined to the purchase 
of land and to certain types of provincially-regulated financial 
services.  In addition, provincial government policies in the areas of 
labor relations and environmental protection, for example, can have an 
important impact on foreign investors.


     2.     Investment Canada Act

Under the Investment Canada Act, the Minister of Industry is responsible 
for encouraging and facilitating investment and assuring that foreign 
investment is of net benefit to Canada.  To this end, the federal 
department known as Industry Canada manages the foreign investment 
notification and review process to ensure conformity with the 
legislation.


     What is reviewable?

Where control of a foreign investor ultimately rests in a country that 
is a member of the World Trade Organization (WTO), the direct 
acquisition of control of a Canadian business that has assets of C$160 
million or more is a reviewable transaction.  Where control of the 
foreign investor is ultimately in a country that is not a WTO member, 
the direct acquisition of control of a Canadian business that has assets 
greater than C$5 million is reviewable, and the indirect acquisition of 
control of a Canadian business with assets greater than C$50 million is 
reviewable.  As a result of Canada's implementation of its Uruguay Round 
commitments, NAFTA treatment was extended to all WTO investors in all 
sectors except those excluded under the NAFTA.

Acquisitions in cultural industries (i.e., publication and distribution 
of books, magazines, videos, music recordings, etc.) below the 
thresholds listed above and the establishment of new businesses in these 
cultural industries may be reviewable if the federal government so 
decides.  Acquisitions in which the Canadian business is in one of three 
other sectors (financial services other than insurance, transportation 
services and uranium production) are subject to the lower thresholds 
regardless of nationality of the investor.


     If the transaction is not reviewable, does the government require 
anything from the Investor?

Yes, in the case of a direct acquisition of a Canadian business with 
assets under C$160 million by a WTO-investor, or under C$5 million in 
the case of a foreign, non-WTO investor, the investment is notifiable.  
All indirect acquisitions by WTO investors are notifiable as are 
indirect acquisitions by non-WTO investors where the Canadian assets to 
be acquired are less than C$50 million.


Also notifiable is the establishment of a new business in Canada by an 
investor making its first investment in Canada or the establishment of a 
new business by an existing investor where the new business is unrelated 
to any existing business in Canada.  In these cases, the investor must 
notify Industry Canada and provide some details of the investment.  For 
convenience, investors can use a 2-page Notification Form.


     What is not reviewable or notifiable?

There are many types of investments to which the Investment Canada Act 
does not apply.  For example, purchases of Canadian bonds, stocks or 
other investment instruments that do not involve the acquisition of 
control are not reviewable or notifiable, nor are the acquisition of 
assets that do not constitute a business. Investments in related 
businesses are neither reviewable nor notifiable.  Thus, for example, a 
manufacturing business can expand a plant or a mining company can open a 
new mine, without either review or notification.  For greater certainty, 
investors and others should consult Section 10 of the Investment Canada 
Act.


     How are the thresholds set?

For WTO investors, the review threshold is adjusted annually to reflect 
economic growth and inflation in Canada.  For non-WTO investors, the 
review thresholds are fixed.


     On what basis are investments reviewed?

Reviewable investments are allowed to proceed if they are likely to be 
of net benefit to Canada.  Set out below are the six factors of net 
benefit:

     (a)     The effect of the investment on the level and nature of 
economic activity in Canada, including the effect on employment; 
resource processing; on the utilization of parts, components and 
services produced in Canada; and on exports from Canada;

     (b)     The degree and significance of participation by Canadians 
in the Canadian business and in any industry in Canada of which it forms 
a part;

     (c)     The effect of the investment on productivity, industrial 
efficiency, technological development, product innovation and product 
variety in Canada;

     (d)     The effect of the investment on competition within any 
industry or industries in Canada;

     (e)     The compatibility of the investment with national and 
provincial industrial, economic and cultural policies; and,

     (f)     The contribution of the investment to Canada's ability to 
compete in world markets.


     Who makes the decision on whether an investment can proceed?

Industry Canada makes a recommendation to the Minister of Industry, who 
in turn, makes the final decision.  Since the passage of the Investment 
Canada Act in 1985, the Canadian Government has not formally rejected 
any reviewable foreign investment proposal.  On several occasions the 
government required the foreign investor to re-work the proposal to meet 
Investment Canada's net benefit test.  The mere existence of a review 
process, as well as SECTORAL restrictions, presumably discourages some 
foreign investors.


     How long does the review process take?

The legislation gives the Minister an initial 45 days to make a 
decision.  Most cases are decided within this time frame.  However, 
there are provisions in the legislation to extend the review period.


     World Trade Organization (WTO) Countries as of January 1, 1995

Antigua & Barbuda     EC          Lesotho     Romania
Argentina             Finland     Luxembourg  St. Lucia
Australia             France      Macau       St.Vincent & the 
                                              Grenadines
Austria               Gabon       Malaysia    Senegal
Bahrain               Germany     Malta       Singapore
Bangladesh            Ghana       Mauritania  Slovak Republic
Barbados              Greece      Mauritius   South Africa
Belgium               Guyana      Mexico      Spain
Belize                Honduras    Morocco     Sri Lanka
Botswana              Hong Kong   Myanmar     Surinam
Brazil                Hungary     Namibia     Swaziland
Brunei Darussalam     Iceland     Netherlands Sweden
Canada                India       New Zealand Tanzania
Chile                 Indonesia   Nigeria     Thailand
Columbia              Ireland     Norway      Uganda
Costa Rica            Italy       Pakistan    United Kingdom
Cote d'Ivoire         Japan       Paraguay    United States
Czech Republic        Kenya       Peru        Uruguay
Denmark               Korea       Philippines Venezuela
Dominia               Kuwait      Portugal    Zambia



     3.     Special Treatment for U.S. Investment

U.S. foreign investment in Canada is subject to the Investment Canada 
Act, but the NAFTA further defines the investment relationship between 
the two countries and adopts the principle of national treatment.

The basic obligation assumed by the two countries in Chapter Eleven of 
the NAFTA is to ensure that future regulation of Canadian investors in 
the United States and of U.S. investors in Canada results in treatment 
no different than that extended to domestic investors within each 
country -- "national treatment."  Both governments are completely free 
to regulate the ongoing operation of business enterprises in their 
respective jurisdictions under, for example, anti-trust law, provided 
they do not discriminate.  This basic principle is qualified on the 
basis of existing practice and is translated into the following specific 
undertakings:

Canada retains the right to review the acquisition of firms in Canada by 
U.S. investors, but agreed to phase in higher threshold levels for U.S. 
investors.  For 1992 and thereafter (adjusted for inflation) the review 
threshold for direct acquisitions is C$150 million; the review threshold 
for indirect acquisitions was phased out entirely beginning in 1992.  
Canada agreed to extend these review thresholds for the acquisition of 
service-sector firms to all signatories of the General Agreement on 
Trade in Services.

These undertakings are prospective; for example, they apply to future 
changes in laws and regulations only.  Existing laws, policies and 
practices are "grandfathered", except where specific changes are 
required.  The practical effect of this was to freeze the various 
exceptions to national treatment provided in Canadian and U.S. law (such 
as restrictions on foreign ownership in the communications and 
transportation industries). Additionally, both governments remain free 
to tax foreign-owned firms on a different basis than domestic firms, 
provided this does not result in arbitrary or unjustifiable 
discrimination, and to exempt the sale of crown (government-owned) 
corporations from any national treatment obligations.  Finally, the two 
governments retain some flexibility in the application of the national 
treatment obligations.  They need not extend identical treatment, as 
long as the treatment is "equivalent."

The NAFTA  also deals more specifically with the financial services 
sector.  Chapter Fourteen on financial services eliminates 
discriminatory asset and capital restrictions on U.S. bank subsidiaries 
in Canada.  It also exempts U.S. firms and investors from the federal 
"10/25" rule such that they will be treated the same as Canadians.  The 
rule continues to prevent any single non-U.S. non-resident from 
acquiring more than ten percent of the shares, and all such non-
residents in the aggregate from acquiring more than 25 per cent of the 
shares of a federally-regulated Canadian-controlled financial 
institution.  Both the ten percent and the 25 percent limitation were 
eliminated for U.S. investors as regards acquisitions of federally-
chartered non-bank financial institutions.  Several provinces, however, 
including Ontario and Quebec, have similar "10/25" rules for 
provincially-chartered trust and insurance companies which were not 
waived under the FTA.  The ten percent limitation on any individual 
shareholder -- whether Canadian or foreign -- will continue to apply to 
investments in Canadian banks.

Bilateral services trade is largely free of restrictions.  The NAFTA 
ensures that restrictions will not be applied in the future; however, 
existing restrictions were not affected by the NAFTA.  The services 
agreement is primarily a code of principles which establishes national 
treatment, right of establishment, right of commercial presence, and 
transparency for a number of service sectors specifically enumerated in 
Annexes to the NAFTA. The NAFTA also pledges both parties to expand the 
list of covered service sectors.

The NAFTA grants U.S. firms operating from the U.S. national treatment 
for most Canadian federal procurement opportunities.  However, 
INTERPROVINCIAL trade barriers exist which often exclude U.S. firms 
established in one Canadian province from bidding on another province's 
procurement opportunities.  However, as a first step in the ongoing and 
difficult process or reducing trade barriers within Canada, the federal, 
provincial and territorial governments negotiated an Internal Trade 
Agreement in 1994 that came into effect on July 1, 1995.  The Agreement 
provides a framework for dealing with trade in ten specific sectors and 
establishes a formal process for resolving trade disputes.  The 
structure of the Agreement was inspired by the models provided by GATT, 
the FTA and the NAFTA.

Besides the areas described above, the NAFTA includes provisions that 
enhance the ability of U.S. investors to enforce their rights through 
international arbitration; prohibit a broader range of performance 
requirements, including forced technology transfer; and expand coverage 
of the investment chapter to include portfolio and intangible 
investments as well as direct investment.


     4.     Ownership Restrictions by Sector

Although most sectors of the Canadian economy are open to foreign 
investment, there are several sectors where foreign investment is 
limited or prohibited.  In addition, there are several sectors where 
private investment is not permitted at all.  Two sectors subject to 
special investment rules of particular concern to U.S. investors are 
cultural industries and financial services.


     (a)     Cultural Industries

Canada's fear that its own cultural identity will be overwhelmed by 
neighboring and powerful U.S. cultural influences has resulted in 
restrictions on foreign investment in Canadian cultural industries.  At 
Canada's insistence, cultural industries were exempted from the 
provisions of the FTA, but the United States also obtained the right to 
take measures of "equivalent commercial effect" against measures which 
would have been inconsistent with the FTA except for the cultural 
exemption.  Both of these features were retained in the NAFTA.

Book publishing and distribution:  Since 1985, foreign investment in the 
book publishing and distribution sector has been governed by the "Baie 
Comeau" policy.  Under this policy, direct foreign acquisitions of 
Canadian-owned firms in this sector were forbidden, new foreign 
investment was limited to a minority position, and foreign investors who 
acquired Canadian firms in the sector through an indirect acquisition 
were required to divest the Canadian operation to Canadian ownership 
within two years.

In January 1992, the government of Canada modified the Baie Comeau 
policy.  Now, indirectly-acquired Canadian firms in the sector will not 
necessarily have to be spun off to Canadian ownership; the foreign owner 
was given the option of negotiating a transaction that is of "net 
benefit" to Canada, such as a commitment to publish Canadian authors.  
In addition, the policy now permits direct foreign acquisition of a 
Canadian firm in the sector, provided that the firm is in financial 
distress and no Canadian buyers can be found.  Finally, the government 
announced its intention to establish rules to assure that when 
indirectly acquired firms are divested as a result of the Baie Comeau 
policy, Canadians assume de facto control of the enterprise.

Newspapers and periodicals:  All investments in this sector, regardless 
of size, are reviewable by Investment Canada.  Canadian income tax laws 
do not permit Canadian advertisers to claim a deduction for advertising 
placed in publications that do not have 75 percent Canadian ownership 
and 85 percent Canadian content.  In 1993 the Canadian government ruled 
that any new foreign magazine title published in Canada would be 
reviewable as a new investment.  Under current policy guidelines, 
approval would be denied.  On June 20, 1995 the Canadian government 
introduced legislation to place a prohibitive tax on advertising in 
magazines published in Canada with Canadian advertising but little 
Canadian editorial content ("split-run" editions).

Television and Radio Broadcasting:  Licenses will not be granted or 
renewed to firms that do not have at least 80 per cent Canadian control, 
represented both by shareholding and by representation on the Board of 
Directors.  This requirement applies retroactively.

Cable Television and Other Broadcast Services:  Under current policy, in 
cases where a Canadian service is licensed in a format competitive with 
that of an authorized non-Canadian service, the Canadian Radio-
Television and Telecommunications Commission (CRTC) can drop the non-
Canadian service, if the new Canadian applicant requests it to do so.  
In June 1994, the CRTC de-listed a U.S. country music cable-TV service 
when it licensed a new Canadian specialty country music channel.  While 
this particular case was resolved when the parties involved agreed to a 
commercial settlement, the U.S. Government remains extremely concerned 
that the CRTC's competitive services policy remains in place.


Sound Recording:  All investments reviewable.

Film and Video:  All investments reviewable; new investments may be 
subject to performance requirements.


     (b)     Financial Sector

The banking industry in Canada is governed by the federal Bank Act, 
which imposes a number of limitations on foreign direct investment in 
this sector.  The Bank Act establishes two categories of banks:  
Schedule I banks, in which no single investor can own more than ten 
percent of the shares, thus excluding the possibility of a foreign 
acquisition; and Schedule II banks, for which the ten percent 
restriction does not apply.  A foreign bank wishing to conduct business 
in the Canadian banking industry must establish as a subsidiary 
(Schedule II bank); it cannot enter as a direct branch.  The Bank Act 
also requires that any Schedule II bank in Canada with more than C$750 
million (approximately US$600 million) in capital must be "widely-held", 
therefore, at least 35 percent of its shares must be publicly traded on 
Canadian stock exchanges. The government could grant an exception to 
foreign-owned banks which exceed the ceiling due to internal growth.  
Finally, the Bank Act imposes several restrictions on investments by 
non-U.S. foreign banks, including an individual capital ceiling and a 12 
percent market-share quota on assets.

Foreign insurance companies, unlike banks, may operate in Canada as 
branches.


     (c)     Other Sectors

Commercial Aviation:  Foreigners are limited to 25 percent ownership of 
Canadian air carriers.

Energy and Mining:  Foreigners cannot be majority owners of uranium 
mines.

Telecommunications:  Under provisions of Canada's new Telecommunications 
Act, foreign ownership of Type I carriers (owners/operators of 
transmission facilities) is limited to 20 percent.  Ownership and 
control rules are more flexible for holding companies that wish to 
invest in Canadian carriers, because of the often international nature 
of their operations and sources of capital.  Under these rules, two-
thirds of the holding company's equity must be owned and controlled by 
Canadians.

Fishing:  Foreigners can only own 49 percent of companies that hold 
Canadian commercial fishing licenses.

Electric Energy Generation and Distribution:  In all provinces except 
Alberta and Nova Scotia, this is a provincial monopoly.  Exceptions are 
being opened in some provinces to allow for private electric energy 
production, either through co-generation or non-utility power 
generation.

Health Services:  Hospitals in Canada are integral parts of a public 
health system administered by the provinces.  Private hospitals would 
not be eligible to receive payments from provincial health insurance 
funds, and therefore would not be financially viable in most cases.

Real Estate:  Prince Edward Island and Saskatchewan limit real estate 
sales to out-of-province parties.

Privatization:  Each specific privatization (at the federal provincial 
levels of government) is considered on a case-by-case basis and there is 
no overall limitations policy with regard to foreign ownership.  As an 
example, the federal Minister of Transport has stated he does not intend 
to impose any limitations in the privatization of Canadian National (CN) 
railway.



     5.     Investment Incentives

Both federal and provincial governments in Canada offer a wide array of 
incentives (municipalities are legally prohibited from offering tax 
incentives).  None of the federal incentives, however, is specifically 
aimed at promoting or discouraging foreign investment in Canada.  
Rather, the incentives are designed to accomplish broader policy goals, 
such as research and development, investment in machinery and equipment, 
and promotion of regional economies.  They are available to any 
qualified investor, Canadian or foreign, who agrees to use the funds for 
the stated purpose.

Provincial incentives tend to be more investor-specific and are 
conditioned on applying the funds to an investment in the granting 
province.  Provincial incentives may also be restricted to firms 
established in the province or who agree to establish in the province.

Incentives for investment in cultural industries, at both the federal 
and provincial level, are generally only available to Canadian-
controlled firms.

Incentives may take the form of grants, loans, loan guarantees, venture 
capital, or tax credits.  Incentive programs in Canada generally are not 
oriented toward the promotion of exports.


     6.     Export/Import Policies

There is no discrimination against foreign investors in any aspect of 
import or export trade.  Foreigners can engage in all import and export 
activities permitted to a Canadian national.  However, permits are 
required for the import or export of certain commodities, including 
armaments and strategic goods, some agricultural products, most textile 
and clothing items, and oil and gas.


     B.     Conversion and Transfer Policies

The Canadian dollar is fully convertible.  Canada has no restrictions on 
the movement of funds into or out of the country.  Banks, corporations 
and individuals are able to deal in foreign funds or arrange payments in 
any currency they choose.  An investor may liquidate his Canadian 
investment at any time and transfer the proceeds from Canada in whatever 
currency desired. During the life of the investment, profits, dividends 
and royalties may be remitted at will.


     C.     Expropriation and Compensation

Canadian federal and provincial laws recognize both the right of a 
government to expropriate private property for a public purpose, and the 
obligation to pay compensation.  The federal government has not 
nationalized any foreign firm since the nationalization of Axis property 
during World War II.  Both the federal and provincial governments have 
also assumed control of private firms -- usually financially-distressed 
ones -- after reaching agreement with the former owners.


     D.     Dispute Settlement

Canada is a member of the New York Convention of 1958 on the Recognition 
and Enforcement of Foreign Arbitral Awards.  The Canadian government has 
made a decision in principle to become a member of the International 
Center for the Settlement of Investment Disputes (ICSID).  However, 
since the legal enforcement mechanism for ICSID would be the provincial 
court system, the federal government must also get agreement from all 
the provinces that they will respect ICSID decisions.  It is unlikely 
that this will happen in the foreseeable future.

Canada accepts binding arbitration of investment disputes to which it is 
a party only when it has specifically agreed to do so through a 
bilateral or multilateral agreement such as a Foreign Investment 
Protection Agreement.  The resolution of investment disputes between the 
United States and Canada is guided by the provisions of the NAFTA 
Chapter 11.

The NAFTA encourages parties to settle disputes through consultation or 
negotiation, but the NAFTA also establishes special arbitration 
procedures for investment disputes separate from the NAFTA's general 
dispute settlement provisions (Chapter 20).  Under the NAFTA, a narrow 
range of disputes between an investor from a NAFTA country and a NAFTA 
government (those dealing with government monopolies and expropriation) 
may be settled, at the investor's option, by binding international 
arbitration.  An investor who seeks binding arbitration in a dispute 
with a NAFTA party gives up his right to seek redress through the court 
system of the NAFTA party.


     E.     Political Violence

Political violence is almost non-existent in Canada. There has been no 
violence directed at foreign investment in recent memory.  There have 
been some violent incidents related to environmental disputes, but these 
were directed against Canadian-owned natural resource companies or 
against the Canadian government.


     F.     Performance Requirements/Incentives

Canada does not explicitly negotiate performance requirements with 
foreign investors.  For investments subject to review, however, the 
investor's intentions regarding employment, resource processing, 
domestic content, exports, and technology development or transfer can be 
examined by the Canadian Government.  A special duty remission scheme 
exists for the automotive sector that makes certain benefits contingent 
on trade performance.  The FTA prohibits the United States or Canada 
from imposing export or domestic content performance requirements.

Government officials at both the federal and provincial levels expect 
investors who receive investment incentives to use them for the agreed 
purpose, but no mechanism exists for enforcing any statement made by the 
investor during the review process.


     G.     Right to Private Ownership and Establishment

Except as noted, Canadians and foreigners have the right to establish, 
own and dispose of business enterprises and engage in all forms of 
remunerative activity.  In those sectors where private enterprise co-
exists with public enterprise (for example, petroleum), the firms 
compete on a generally equal basis.  The major exception is that public 
enterprises do not have to rely solely on self-generated funds or funds 
raised in the capital markets; they also have access to transfers from 
government budgets.


     H.     Protection of Property Rights


Private property rights are fully protected by Canada's legal system.  
Foreigners have full and fair access to Canada's legal system.  Property 
rights are limited only by the rights of governments to establish 
monopolies and to expropriate for a public purpose.


     I.     Regulatory System:  Laws and Procedures

Canada's regulatory system is similar to that of the United States in 
terms of its transparency, comprehensiveness and in the array of 
institutions involved.  Proposed laws are subject to parliamentary 
debate and public hearings.  Regulations are issued in draft form for 
public comment prior to implementation.  The allocation of financial and 
real resources is generally accomplished by market forces rather than 
regulation. While federal and/or provincial licenses or permits may be 
needed to engage in economic activities, this kind of regulation is 
generally for prudential, statistical or tax compliance reasons rather 
than for resource allocation.  Governments enter into the allocation of 
resources only in those sectors where resources are located in the 
public domain, such as logging on public land or commercial fishing.

Canada has an anti-trust law and an agency, the Bureau of Competition 
Policy, to enforce it.  The Competition Tribunal, a quasi-judicial body, 
rules on anti-trust cases.


     J.     Bilateral Investment Agreements

While the terms of the FTA and the NAFTA guide investment relations 
between the United States and Canada, Canada has two kinds of 
international investment agreements with non-NAFTA parties, Foreign 
Investment Protection Agreements (FIPA's) and Foreign Investment 
Insurance Agreements (FIIA's).  A FIPA is a comprehensive bilateral 
investment promotion and protection agreement containing, inter alia, 
the broad principles that should guide investment between the two 
partners.  Canada negotiated five FIPA's under a 1988 model, with 
Poland, Czechoslovakia, Hungary, USSR, and Argentina.  While these 
agreements continue in force (for Russia only in the case of the former 
Soviet Union), the model was revised in 1994 to bring it into conformity 
with the NAFTA.  Agreements under the new model have been signed with 
Ukraine and Latvia, and agreement has been reached with several 
additional countries on new FIPA's under the 1994 model, although they 
have not yet been signed.

FIIA is essentially an agreement that allows the Export Development 
Corporation (EDC) to pursue any claims arising from a Canadian 
investment insured by the EDC.  Canada has signed 42 FIIA's, and others 
are awaiting final confirmation.  Canada also has tax agreements with 55 
countries, including the United States.


     K.     OPIC and Other Investment Insurance Programs

Overseas Private Investment Corporation (OPIC) programs are not 
available for U.S. investors in Canada.  Canada is a signatory to the 
World Bank's Multilateral Investment Guarantee Agency (MIGA). The 
Export-Import Bank is not off-cover for Canada.


     L.     Labor

Labor, at all skill levels, is generally available in Canada.  There are 
occasional reports of spot shortages of certain categories of labor.  
Canadian wage and benefit levels for most non-executive job categories 
are roughly equivalent to levels paid in the United States.  Currently, 
provincial hourly minimum wages in Canada range from a high of C$6.70 in 
Ontario to a low of C$4.75 in Newfoundland and Prince Edward Island.  
The minimum wage for employees under federal jurisdiction (banking, 
shipping, air transport, broadcasting, railways, grain elevators and 
pipelines) has remained unchanged at C$4 since 1986.

As a percentage of the civilian labor force, union membership has 
remained fairly constant since 1985 when it stood at 29.8 percent.  The 
figure for 1993 is 29.5 percent, significantly higher than the 
comparable U.S. figure of 15.8 percent, due in large part to higher 
unionization levels in the Canadian public sector.

Labor is strongly critical of some Canadian government policies and has 
focused most strongly on the FTA and the NAFTA, alleging that these 
agreements jeopardize Canadian jobs and threaten the country's social 
programs.  The labor movement in Canada is closely associated with the 
New Democratic Party (NDP).  The NDP currently controls provincial 
governments in Ontario, British Columbia and Saskatchewan.


     M.     Foreign Trade Zones/Free Ports

Detailed information regarding foreign trade zones/free ports can be 
found in Chapter VI, Section J.


     N.     Capital Outflow Policy

As discussed in the "Transfer Policy" section, the Canadian dollar is 
fully convertible.  The Canadian Government provides some incentives for 
Canadian investment in developing countries through Canadian 
International Development Agency programs.  Canada's official export 
credit agency, the EDC provides OPIC-like insurance coverage for 
Canadian foreign investment.

       O.     Major Foreign Investors

     MAJOR FOREIGN INVESTORS
     (ranked by 1993 revenues in
     billions of Canadian dollars)


RANK          NAME                         NATIONALITY          REVENUE

1          General Motors of Canada        American          21.8
2          Ford Motor Company of Canada    American          15.9
3          Chrysler Canada                 American          13.6
4          Imperial Oil (Exxon)            American           7.8
5          IBM Canada                      American           6.7
6          Shell Canada                       Dutch           4.7
7          Canada Safeway                  American           4.5
8          Amoco Canada Petroleum Co.      American           4.1
9          Sears Canada                    American           3.9
10         Maple Leaf Foods                 British           2.3
11         Total Petroleum                   French           3.0
12         Great Atlantic & Pacific Tea     American          2.7
13         Mitsui & Company                 Japanese          2.4
14         Honda Canada            Japanese/American          2.3
15         BC Telecom                       American          2.2
16         Cargill Ltd.                     American          2.1
17         Consumers Gas                     British          1.8
18         Canadian Ultramar                American          1.7
19         Price Costco Canada              American          1.7
20         Medis Health & Pharmaceutical    American          1.7
21         Pepsi Cola                       American          1.6
22         DuPont Canada                    American          1.6
23         McDonald's Restaurants           American          1.5
24         General Electric                 American          1.5
25         Pratt & Whitney Canada           American          1.4



Source:  "Financial Post"

  CHAPTER VIII.     TRADE AND PROJECT FINANCING


     A.     Canadian Banking System

As of March 1995, there were 63 banks with licenses to operate in 
Canada, but the banking sector is dominated by the six largest "Schedule 
I" banks (widely-held Canadian-owned institutions with capital in excess 
of C$750 million).  In descending asset size, these banks are the Royal 
Bank of Canada (Royal), Canadian Imperial Bank of Commerce (CIBC), Bank 
of Montreal (BMO), Bank of Nova Scotia (Scotiabank), Toronto Dominion 
(T-D) Bank, and National Bank of Canada (National).  These institutions 
accounted for 91 percent of total banking system assets as of March 31, 
1995.  The remaining 57 banks are Schedule II banks (closely-held 
institutions with capital not exceeding C$750 million).  The Schedule II 
banks include 52 foreign bank subsidiaries, of which 12 are U.S. bank 
subsidiaries.


     B.     Foreign Exchange Controls Affecting Trading

The Canadian dollar is fully convertible.  Canada has no restrictions on 
the movement of funds into or out of the country. Banks, corporations 
and individuals are able to deal in foreign funds or arrange payments in 
any currency they choose.


     C.     General Financing Availability

The financial markets in Canada are stable, mature and accessible to 
everyone.  There are two primary methods of financing a business:  
equity financing and debt financing.  Most businesses obtain their 
financing using these two sources of funds.  However, there are a number 
of other sources of financing, such as leasing, fixed asset financing, 
accounts receivable financing, and inventory financing.  There are also 
extensive government financial assistance programs available to business 
at the federal and provincial levels.

In addition, consumer credit is used extensively, and several systems 
facilitate consumer borrowing in Canada.  Revolving charge plans are 
issued on approximately the same terms as in the United States.  As 
well, Canadian banks have become sensitive to the growing financial 
needs of franchised operations.  Various loan and repayment plans for 
franchise operations are now offered by Canadian chartered banks.  
Depending on the need of the franchise or business in question, bank 
services can also include payroll and cash management services.


     D.     Financing Exports/Methods of Payment


     1.     Export Financing

     (a)     Sources of Financing

There are no U.S. Government programs available for financing U.S. 
exports to Canada.  Neither EXIM Bank nor OPIC maintain programs for the 
Canadian market.  However, the political, economic and commercial 
systems in Canada are so stable and similar to those in the United 
States, that the lack of government financing should pose virtually no 
problem to the overwhelming majority of U.S. firms seeking to export to 
Canada.  Private financing should be easily available from a U.S. firm's 
own bank in the United States, or from a Canadian bank with branch 
operations in the United States or associations with U.S. banks, under 
terms similar to what that firm would find in the general U.S. financing 
market.

Venture capital is not readily or easily available in Canada, especially 
to non-Canadian firms.  U.S. firms seeking sources of funding are more 
likely to find success with those efforts in the United States.  In 
general, U.S. exporters may find the financing of exports to Canada in 
many ways similar to financing of shipments to another state in the USA.


     (b)     Credit Information

Credit information on Canadian firms is available in World Traders Data 
Reports (WTDRs) provided by the U.S. and Foreign Commercial Service of 
the U.S. Department of Commerce.  WTDRs include information on the type 
of organization, year established, relative size, number of employees, 
general reputation, territory covered, language preferred, product lines 
handled, principal owners, financial references, and trade references.  
Each WTDR also contains a general narrative as to the reliability of the 
foreign firm.  The fee is currently US$100 per report.  For more 
information on WTDRs, contact the nearest U.S. Department of Commerce 
District Office.  Many private firms, such as Dun and Bradstreet, 
provide credit information or other market research data on potential 
Canadian clients.


     (c)     Consumer Financing

Consumer credit is used extensively, and several systems facilitate 
consumer borrowing in Canada.  Revolving charge plans are issued on 
approximately the same terms as in the United States, and all major U.S. 
credit card companies are active in Canada.  Canadian banks have become 
sensitive to the growing financial needs of franchised operations, with 
various loan and repayment plans for franchise operations are now 
offered.


     2.     Methods of Payment

Although terms vary from one industry to another and among trading 
channels, U.S. manufacturers exporting to Canada generally give a 
discount for cash purchases of one or two percent of the invoice if paid 
within ten days.  U.S. firms exporting to department stores tend to 
offer 8.5 percent to ten percent cash discounts for settlement within 
ten days.  Normal precautions in dealing with a first-time customer 
should be exercised, and safeguards instituted wherever possible at 
least until a satisfactory relationship has been established over time.  
The many bank branch offices on both sides of the border should help 
maintain maximum flexibility of methods of payment and facilitate the 
settlement of accounts.

The disposition of charges on export collections or letters of credit 
through normal banking channels should be resolved between the exporter 
and the buyer at the time of sale.  Canadian buyers will often accept 
these charges, but an unexpected bill may cause irritation and, if there 
has been no prior consent to the charge, the foreign buyer has the right 
to refuse to pay.  When this happens, banks are entitled to deduct the 
collection charges from the remittance under the terms of the "Uniform 
Rules for the Collection of Commercial Paper" developed by the 
International Chamber of Commerce.


     E.     Export Financing and Insurance


U.S. firms exporting to Canada will not find any strong need for 
government operated or backed financing and insurance against exigencies 
that may be typically found in many third country markets.  The U.S. 
Export-Import Bank is not active in financing U.S. exports to Canada, 
nor are Overseas Private Investment Corporation (OPIC) programs 
available in Canada.  With proper application of sound business 
principles, however, U.S. firms should be able to avoid most of the 
problems that require extensive export financing insurance, and rely on 
commercial banks much as they do in the domestic U.S. market.

U.S. firms established in Canada are eligible to participate in the 
export credit and insurance programs of Canada's official export credit 
agency, the EDC.


     F.     Project Financing

Canada is not eligible to receive financing from multilateral 
development banks.


     G.     List of Canadian Banks with Correspondent U.S. Banking 
Arrangements

All of Canada's largest banks have branches in the United States.  
Twelve U.S. banks have subsidiaries in Canada.  With this kind of 
physical presence, correspondent banking relationships are less 
important.  A list of Schedule I banks in Canada can be found in 
Appendix E.

  CHAPTER IX.     BUSINESS TRAVEL


     A.     Business Customs

Business customs in Canada closely mirror those of the United States.  
This is not to say, however, that doing business in Canada is exactly 
the same as doing business in the United States.  U.S. business 
travelers to Canada should be sensitive to cultural and language 
differences and allow adequate time for the development of personal 
contacts in business dealings.


     B.     Travel Advisory and Visas

Citizens or legal, permanent residents of the United States do not 
require passports or visas and can usually cross the United States-
Canada border with minimal difficulty or delay.  However, to assist 
officers in expediting border-crossing, and particularly to re-entering 
the United States, native-born U.S. citizens should carry some 
identification papers showing their citizenship, such as a birth, 
baptismal, or voter's certificate.  A driver's license is not 
acceptable.  Proof of residence may also be required.  Naturalized U.S. 
citizens should carry a naturalization certificate or some other 
evidence of citizenship.  Legal permanent residents of the United 
States, who are not U.S. citizens, are advised to carry their Alien 
Registration Receipt Card.

The FTA facilitates the movement of U.S. and Canadian business persons 
across each country's borders through streamlined procedures.  The 
streamlined border-crossing procedures assure that qualified persons 
will be permitted entry on a temporary basis.  Business persons applying 
under any of the four categories (Professional, Trader/Investor, 
Business Visitor, and Intra-Company Transferee) must be U.S. citizens.  
At the time of entry a verbal declaration of citizenship may be 
sufficient.  In those cases where business travelers are required to 
show proof of citizenship, a passport, citizenship certificate, or a 
birth certificate is acceptable.  Business persons and dependents also 
must meet other admission requirements of the Canadian Immigration Act.

U.S. citizens and other visitors to Canada may bring certain personal 
goods into Canada duty and tax-free, provided that all such items are 
declared to Canada Customs upon arrival and are not subject to 
restriction.  The temporary entry of business related material (printed 
material, commercial samples, blueprints, charts, audio-visual material, 
and play back or projection equipment) may be subject to the full rate 
of duty and tax, a portion thereof, or may be duty and tax-free.  The 
amount of duty and tax payable depends on the length of the visit, the 
items entered, and the end use.  If the goods are eligible for free 
entry, a refundable security deposit -- in the form of cash or bond -- 
may be required by Canada Customs.


     C.     Holidays

Following are the Canadian holidays in FY96, through December 1996:

     Monday, October 9, 1995            Thanksgiving Day
     Monday, November 13, 1995          Remembrance Day
     Monday, December 25, 1995          Christmas Day
     Tuesday, December 26, 1995         Boxing Day
     Monday, January 1, 1996            New Year's Day
     Monday, February 19, 1996          Family Day (Alberta only)
     Friday, April 5, 1996              Good Friday
     Monday, April 8, 1996              Easter Monday
     Monday, May 20, 1996               Victoria Day
     Monday, June 24, 1996              St. Jean Baptiste Day (Quebec 
only)
     Monday, July 1, 1996               Canada Day
     Monday, August 5, 1996             Civic Holiday (most provinces)
     Monday, September 2, 1996          Labor Day
     Monday, October 14, 1996           Thanksgiving
     Monday, November 11, 1996          Remembrance Day
     Wednesday, December 25, 1996       Christmas Day
     Thursday, December 26, 1996        Boxing Day


     D.     Business Infrastructure

The Canadian economy is highly developed, giving Canadians one of the 
highest standards of living in the world.  Manufacturing is concentrated 
in transportation and communications equipment, engineering, steel, and 
consumer goods.  Most manufacturing is concentrated in Ontario and 
Quebec.  Primary industries built on Canada's abundant natural resources 
remain an important part of the economy and a major source of exports.  
The Canadian economy is closely linked by trade and investment with 
other countries, especially the United States.


     1.     Transportation

Except in remote areas of the north, Canada possesses an advanced 
transportation system comparable to that of the United States.  An 
extensive air network links all major and many minor traffic points with 
adequate connections to the United States and the rest of the world.  
Travel between the United States and Canada has been enhanced with the 
implementation of the Open Skies Agreement between the two countries.  
Domestic air fares per mile in Canada are generally higher than U.S. 
fares, and distances between population centers are considerably 
greater.  Likewise, a good highway system (with somewhat less emphasis 
on interstate roads) exists within 200 miles of the U.S. border and 
supports extensive truck, bus and automobile traffic.  Canada also has 
an extensive railway system connecting the country from sea to sea.  The 
Canadian National Railway deals exclusively with cargo, whereas VIA Rail 
offers passenger service.  Furthermore, all large cities have a public 
transit system, generally buses.  The operation of public transport is 
frequently subsidized by provincial and local governments, making most 
fares reasonable.

In spite of extensive public transport arrangements, Canada is as much 
an automobile society as is the United States.  All U.S. automobile 
manufacturers have plants in Canada, producing standard North American 
vehicles.  Gasoline is sold in liters in Canada, and Canadian safety 
standards for cars are similar to those in the United States.  Left-
hand-drive vehicles are standard; traffic moves on the right side of the 
road.  International highway symbols are used in Canada, and distances 
are in the metric (or metric and miles) system.  Seat belts and 
infant/child seat restraints are mandatory in all Canadian provinces.  
Fines are imposed for non-use of seat belts and child restraints.


     2.     Language

Canada is a bilingual country with two official languages, English and 
French.  English is the language spoken in the geographical majority of 
the country.  It is also the generally accepted language of business.  
French is spoken primarily in Quebec and is the official language of 
that province.  The province of New Brunswick is a bilingual province 
with the largest French speaking population outside of Quebec.

     3.     Communications

Communications are highly sophisticated in Canada, comparable with those 
of the United States.  Canada is integrated with the U.S. direct long-
distance telephone system (dial 1, area code and number).  All forms of 
communication and transmission are possible (including voice, text, 
data, and video), and worldwide telegraphic services are available.


     4.     Housing

Canadians, in general, enjoy a high standard of living, and housing 
comparable to that found in the United States is readily available.  
Generally, relative costs of housing in Canada are, at minimum, 
approximately 40 percent higher than those in the United States, and in 
some urban centers housing costs are double.


     5.     Health and Food

Canada has no special health risks.  Standards of community health and 
sanitation are comparable to those in the United States.  Competent 
doctors, dentists, and specialists of all types are available, and 
medical training is equivalent to that in the United States.

Most food and other consumables available in the United States can be 
found in Canada.  No food shortages/problems exist in Canada.  Canadian 
prices for food and general consumer goods are often higher than those 
in the United States, but this may be offset by a favorable exchange 
rate.



CHAPTER X.     APPENDICES


     APPENDIX A.     Country Data

     Population:             29,529,800 (April 1, 1995)
     Population Growth Rate: 1.3% (estimate)
     Religions:              Catholic (42%); Protestant (40%) estimate
     Government System:      Confederation with Parliamentary Democracy
     Prime Minister:         Mr. Jean Chretien (Liberal Party)
     Official Languages:     English and French
     Work Week:              Monday to Friday, 9:00 am to 5:00 pm


Source:  Statistics Canada

  
     APPENDIX B.     DOMESTIC ECONOMY


     CANADIAN DOMESTIC ECONOMY
     (in billions of U.S. dollars unless otherwise indicated)


ECONOMIC INDICATOR                  1994           1995*          1996*

GDP (Real)                         437.8          447.9          463.5
(Based on 1986 C$)                    

GDP Growth Rate (%)                  4.6            3.6            2.8

GDP Per Capita (Real)             12,696         13,213         13,812
(US$ 000s)

Government Spending                 24.8           21.5           20.6
(as a percent of Real GDP)

Inflation (%)                        0.2            2.0            2.2

Unemployment (%)                    10.4            9.7            9.7

Foreign Exchange Reserves           12.5           15.0**          N/A

Average Exchange Rate              73.21          72.50          73.00
(C$1 = US$X)

Total Federal Debt                 371.9          395.9          422.7

Debt Service Ratio                   N/A            N/A            N/A
(Ratio of principal and interest
on foreign debt to foreign income)

U.S. Economic/Military Assistance    N/A            N/A            N/A


*     estimate

**     Most recent is June 30, 1995

Source:  Statistics Canada and The Bank of Canada

  
     APPENDIX C.     TRADE


     CANADIAN TRADE STATISTICS
     (in billions of U.S. dollars unless otherwise indicated)


                                   1994           1995           1996

Exchange Rate (C$1 = US$X)        73.21          72.50          73.00

Total Canadian Exports            194.8          223.6          234.8
(merchandise and non-merchandise)

Total Canadian Imports            211.1          235.1          246.9
(merchandise and non-merchandise)

Canadian Exports to the
 United States                    149.3          166.8          175.1
(merchandise and non-merchandise)

U.S. Imports into Canada          145.5          162.7          170.8
(merchandise and non-merchandise)

U.S. Share of Total Canadian 
Imports                            68.9           69.2           69.2
(%) (merchandise and non-merchandise)

Total Trade With the World        405.9          458.7          481.7
(merchandise and non-merchandise)

Total Trade With the
 United States                    294.8          329.5          345.9
(merchandise and non-merchandise)

U.S. Share of Manufactured
 Imports (%)                         70             70             70

Projected Average Annual           14.1           11.4            5.0
Growth Rate of Total Imports (%)

Projected Average Annual Growth    19.0           11.8            5.0
Rate of U.S. Imports (%)

Total Canadian Imports of           9.2            9.0            9.0
Agricultural Goods

Canadian Imports of U.S.            5.3            5.1            5.1
Agricultural Goods

Canadian Agricultural Goods        +1.4           +1.3           +1.3
Trade Balance With the United States

Canadian Merchandise Trade               United States     +19.3
Balance with Three Leading               Japan               -1.3
Trading Partners in 1994               United Kingdom     -1.4

Principal Canadian Exports         H.S. 87 Motor vehicles and parts 38.6
to the United States in 1994       H.S. 27 Mineral fuels 14.2
(top five, by 2-digit H.S. Code)   H.S. 84 Machinery  11.5  H.S. 44 
Wood products                7.8   H.S. 48 Paper products  6.7



Principal Canadian Imports         H.S. 87 Motor vehicles and parts 23.9
from U.S. in 1994                  H.S. 84 Machinery  19.4
(Top five, by 2-digit H.S. Code)   H.S. 85 Electrical prods  11.0
                                   H.S. 39 Plastics 3.8
                                   H.S. 90 Optical/precision 3.4


Source:  Statistics Canada

  
     APPENDIX D.     INVESTMENT STATISTICS



     TABLE 1
     FOREIGN DIRECT INVESTMENT STATISTICS
     Stock of FDI In Canada By Country of Ownership
     1984 - 1994
     (in billions of Canadian dollars)


YEAR          U.S.          BRITAIN          OTHER               TOTAL

1984          59.7           8.4               12.8                86.0

1985          67.9           8.6               13.9                90.4

1986          69.2          11.3               15.6                96.1

1987          74.2          13.1               18.8               106.1

1988          76.3          16.5               21.7               114.5

1989          80.9          16.5               25.7               123.1

1990          84.4          18.2               28.5               131.1

1991          86.8          17.1               31.6               135.5

1992          89.0          17.6               31.9               138.5

1993          90.6          17.1               32.3               140.0

1994          96.0          18.7               33.3               148.0



Source:  Statistics Canada

       TABLE 2
     FOREIGN DIRECT INVESTMENT STATISTICS
     Stock of FDI In Canada By Industry Group
     1989 - 1994
     (in billions of Canadian dollars)

SECTOR                 1989     1990     1991     1992     1993     1994

Finance/Insurance      22.5     24.7     25.8     26.6     26.5     29.2

Energy                 20.7     21.5     21.6     20.2     20.8     21.2

Chemicals/Chemical 
Products               12.1     13.6     14.2     15.3     16.3     17.8

Transportation 
Equipment              12.8     13.1     12.9     12.7     14.6     17.1

Food/Beverages/Tobacco  8.1      9.2     10.4     11.6     11.7     12.5

Minerals/Metal Products 8.4      9.8      9.7      9.5      9.5      9.7

Wood and Paper          7.3      7.6      7.9      8.8      8.6      8.7

Electrical/Electrical 
Products                7.2      7.3      7.7      7.6      7.3      7.1

Construction            7.4      7.0      7.3      7.1      5.4      5.1

Consumer Goods/Services 4.8      5.1      5.4      6.2      5.9      5.3

Machinery and Equipment 5.1      5.2      5.3      5.5      6.0      6.4

Transport/Communications 2.6     3.2      3.3      3.7      4.0      4.1

Other                    4.0     3.7      3.9      3.6      3.6      3.8

Total                  123.1   131.1    135.5    138.5    140.0    148.0



Source:  Statistics Canada

       TABLE 3
     FOREIGN DIRECT INVESTMENT STATISTICS
     Stock of U.S.-Owned FDI In Canada By Industry Group
     1989 - 1994
     (in billions of Canadian dollars)

SECTOR                 1989     1990     1991     1992     1993     1994

Energy                 14.0     14.1     13.7     12.0     13.0     14.0

Finance and Insurance  10.8     11.9     12.5     12.9     12.6     13.2

Transportation
       Equipment       10.4     10.6     10.5     10.4     12.1     14.6

Chemicals/Chemical 
 Products               8.6      8.9      9.6     10.6     11.4     12.8

Food/Beverage/Tobacco   4.9      5.6      6.7      7.5      7.7      8.3

Electrical/Electrical 
Products                6.1      6.1      6.0      6.0      5.9     5.5

Wood and Paper          5.2      5.5      5.5      6.1      5.9     6.1

Minerals/Metal Products 4.5      5.3      5.2      5.4      5.4      5.3

Consumer Goods/Services 3.4      3.5      4.1      4.7      4.1      3.5

Machinery and Equipment 3.9      4.0      3.9      4.1      4.5      4.8

Transport/Communications 2.2     2.6      2.8      3.1      3.3      3.5

Construction            4.2      4.0      4.0      4.1      2.4      2.1

Other                   2.7      2.4      2.4      2.1      2.0      2.3

Total                  80.9     84.4     86.5     89.0     90.6     96.0


Source:  Statistics Canada

  
     TABLE 4
     FOREIGN DIRECT INVESTMENT STATISTICS
     Stock of Canadian Direct Investment Abroad By Location
     1984 - 1994
     (in billions of Canadian dollars)

Year    U.S.    U.K.   Europe   Japan   Industrial     Other   Total
                        (total)         Countries
                                        (total)

1984   34.7    3.5     6.3       0.3      42.1          8.0     50.1

1985   39.6    4.4     8.3       0.3      48.9          8.3     57.2

1986   42.0    4.7     8.7       0.5      52.3          9.2     61.5

1987   46.1    6.7    11.8       0.4     59.6          11.1     70.6

1988   48.8    7.6    13.3       0.5     64.6          11.6     76.2

1989   52.6    9.7    17.0       0.5     72.1          12.1     84.3

1990   55.5   11.7    19.9       0.9     78.5          13.0     91.5

1991   58.3   13.4    22.8       2.3     85.3          15.9    101.1

1992   61.8   11.4    21.8       2.6     88.4          18.9    107.2

1993   61.6   12.0    25.1       3.0     92.0          22.1    114.1

1994   67.7   12.0    27.1       3.0    100.1          25.2    125.2


Source:  Statistics Canada

  
     TABLE 5
     FOREIGN DIRECT INVESTMENT STATISTICS
     Stock of Canadian Direct Investment Abroad By Industry Group
     1989 - 1994
     (in billions of Canadian dollars)


SECTOR                  1989     1990     1991     1992     1993    1994

Finance and Insurance   19.4     21.8     24.6     27.5     29.9    32.5

Minerals/Metal Products 11.9     13.1     13.7     15.1     17.0    18.6

Communications           7.9      7.5     8.3       9.5     10.7    11.8

Food/Beverages/Tobacco   7.0      7.6     8.1       8.4      7.9     8.7

Energy                   6.5      7.0     7.5       8.1      8.8     9.6

Electrical/Electrical 
Products                 4.4      5.0     7.0       8.6      7.2     8.1

Chemicals/Chemical 
Products                 6.2      6.9     7.9       7.8      9.6     9.9

Transportation           4.1      4.5     4.7       4.9      4.7     4.9

Construction             5.8      6.8     7.1       4.7      4.3     5.2

Wood and Paper           3.3      3.5     3.5       3.6      3.7     3.8

Consumer Goods/Services  1.9      1.4     2.7       2.7      2.9     4.0

Transportation Equipment 2.0      2.1     2.2       2.6      3.1     3.3

Accommodation/Restaurants 1.9     1.8     2.1       2.1      2.2     2.2

Other                    1.1      1.1     1.1       1.1      1.1     1.2

Machinery and Equipment  1.0      1.1     0.5       0.5      0.9     1.5

Total                   84.3     91.5   101.1     107.2     114.1  125.2


Source:  Statistics Canada

  
     TABLE 6
     FOREIGN DIRECT INVESTMENT STATISTICS
     Stock of Canadian Direct Investment In the U.S. By Industry Group
     1989 - 1994
     (in billions of Canadian dollars)


Sector                 1989     1990     1991    1992     1993    1994

Finance and Insurance    8.5     9.3     9.8     10.7     10.7     12.2

Minerals/Metal Products  6.4     7.1     7.7      8.5      9.2     10.5

Communications           6.2     5.7     6.2      6.6      6.5      7.5

Chemicals/Chemical 
Products                 5.5     6.0     6.5      6.0      6.8      7.0

Electrical/Electrical 
Products                 3.5     3.8     4.3      6.0      4.6      4.9

Food/Beverages/Tobacco   4.0     4.5     4.3      4.7       3.7     3.8

Energy                   4.4     4.7     4.6      4.4       4.7     4.6

Construction             4.4     4.6     4.5      4.0       3.6     4.3

Transportation Services  3.4     3.8     3.3      3.4       3.3     3.4

Wood and Paper           2.1     2.2     2.0      1.9       2.1     2.4

Consumer Goods/Services  1.1     0.5     1.8      1.9       2.2     2.9

Accommodation and 
Restaurants              1.4     1.4     1.6      1.5       1.7     1.6

Transportation Equipment 0.6     0.8     1.0      1.4       1.7     1.7

Other                    0.5     0.5     0.5      0.5       0.4     0.5

Machinery and Equipment  0.5     0.5     0.2      0.4       0.4     0.4

Total                   52.6    55.5    58.3     61.8      61.6    67.7


Source:  Statistics Canada

  
     APPENDIX E.     U.S. AND COUNTRY CONTACTS


     (a)     U.S.-Based USG Contacts


TPCC Trade Information Center
1-800-USA-TRADE


U.S. Department of Commerce
International Trade Administration
Office of Canada
Room 3033
14th and Constitution Avenue
Washington, D.C.
20230
Tel:  (202) 482-3101
Fax:  (202) 482-5865

U.S. Information Agency
Attestation Officer of the United States
Patrick Henry Building, Room 5118
301 - 4th Street, S.W.
Washington, D.C.
20547
Tel:  (202) 501-7203

Multilateral Development Bank Office
14th and Constitution Avenue N.W.
Washington, D.C.
20007
Tel:  (202) 482-3399
Fax:  (202) 482-5179
Contact:  Brenda Ebeling, Director

U.S. Department of Agriculture
Foreign Agricultural Service
Trade Assistance and Promotion Office
Tel:  (202) 720-7420



     (b) U.S. Embassy/Consulate Trade Related Contacts

U.S. Embassy -- Ottawa
Foreign Commercial Service
100 Wellington Street
Ottawa, Ontario
K1P 5T1
Tel:  (613) 238-5335
Fax:  (613) 233-8511
Contact:  Richard Lenahan, Senior Commercial Officer (until 08/95)
        Dale Slaght, Senior Commercial Officer (arriving 08/95)

U.S. Consulate General -- Calgary
Foreign Commercial Service
Suite 1000, 615 Macleod Trail S.E.
Calgary, Alberta
T2G 4T8
Tel:  (403) 265-2116
Fax:  (403) 266-4743
Contact:  Sharon Atkins, Commercial Specialist (FSN)

U.S. Consulate General -- Halifax
Foreign Commercial Service
2000 Barrington Street
Suite 910, Cogswell Tower, Scotia Square
Halifax, Nova Scotia
B3J 3K1
Tel:  (902) 429-2482
Fax:  (902) 423-6861
Contact:  Richard Vinson, Commercial Specialist (FSN)

U.S. Consulate General -- Montreal
Foreign Commercial Service
455 Rene Levesque Boulevard
Montreal, Quebec
H2Z 1Z2
Tel:  (514) 398-0673
Fax:  (514) 398-0711
Contact:  Andrew Tangalos, Principal Commercial Officer

U.S. Consulate General -- Toronto
Foreign Commercial Service
Suite 602, 480 University Avenue
Toronto, Ontario
M5G 1V2
Tel:  (416) 595-5406
Fax:  (416) 595-5419
Contact:  Dan Wilson, Principal Commercial Officer (until 08/95)
        Stephan Wasylko, Principal Commercial Officer (arriving 08/95)

U.S. Consulate General -- Vancouver
Foreign Commercial Service
1095 West Pender Street
Vancouver, British Columbia
V6E 2M6
Tel:  (604) 685-3382
Fax:  (604) 687-6095
Contact:  Jere Dabbs, Principal Commercial Officer


     (c)     Chamber of Commerce/Bilateral Business Councils


Canada-U.S. Relations Committee of the
U.S.-Canadian Chambers of Commerce
1615 H Street N.W.
Washington, D.C.
20062
Tel:  (202) 463-5463

Canadian-American Business Council
1629 K Street N.W., Suite 1100
Washington, D.C.
20006
Tel:  (202) 785-6717
Fax:  (202) 331-4212

Central North American Trade Corridor
P.O. Box 1356
Minot, North Dakota
58702
Tel:  (701) 857-3832

Pacific Corridor Enterprise Council (PACE)
720 Olive Way
Suite 1300
Seattle, Washington
98101
Tel:  (800) 800-PACE
Fax:  (206) 223-8984

Pacific Northwest Economic Region
999 - 3rd Avenue, Suite 1080
Seattle, Washington
98104
Tel:  (206) 464-7298
Fax:  (206) 464-6859

Red River Trade Corridor
University of Minnesota -- Crookston
Business Division
121 Kiehle Hall
Crookston, Minnesota
56716
Tel:  (218) 281-6510

Rocky Mountain Trade
2030 - 11th Avenue
Helena, Montana
59601
Tel:  (406) 443-8316


     (d)     Canadian Trade/Industry Associations

Aerospace Industries Association of Canada
60 Queen Street, Suite 1200
Ottawa, Ontario
K1P 5Y7
Tel:  (613) 232-4297
Fax:  (613) 232-1142

Automotive Industries Association of Canada
1272 Wellington Street
Ottawa, Ontario
K1Y 3A7
Tel:  (613) 728-5821
Fax:  (613) 728-6021

Canada-U.S. Business Association
191 The West Mall
Suite 1105
Etobicoke, Ontario
M9C 5K8
Tel:  (416) 621-1507
Fax:  (416) 620-5392

Canadian Advanced Technology Association 
388 Albert Street
Ottawa, Ontario
K1R 5B2
Tel:  (613) 236-6550
Fax:  (613) 236-8189

Canadian Chamber of Commerce
55 Metcalfe Street, Suite 1160
Ottawa, Ontario
K1P 6N4
Tel:  (613) 238-4000
Fax:  (613) 238-7643

Canadian Exporters' Association
99 Bank Street, Suite 250
Ottawa, Ontario
K1P 6B9
Tel:  (613) 238-8888
Fax:  (613) 563-9218

Canadian Importers Association Inc.
210 Dundas Street West
Suite 700
Toronto, Ontario
M5G 2E8
Tel:  (416) 595-5333
Fax:  (416) 595-8226


Canadian Manufacturers' Association
75 International Boulevard, 4th floor
Etobicoke, Ontario
M9W 6L9
Tel:  (416) 798-8000
Fax:  (416) 798-8050

Packaging Association of Canada
2255 Sheppard Avenue E.
Suite E-330
Willowdale, Ontario
M2J 4Y1
Tel:  (416) 490-7860
Fax:  (416) 490-7844


     (e) Federal Canadian Government Contacts

Department of Agriculture and Agri-Food
Sir John Carling Building
930 Carling Avenue
Ottawa, Ontario
K1A 0C5
Tel:  (613) 759-1000
Fax:  (613) 759-6643

Environment Canada
Terrasses de la Chaudiere
11 Wellington Street, 28th Floor
Hull, Quebec
K1A 0H3
Tel:  (819) 997-2800
Fax:  (819) 953-2225

Department of Fisheries and Oceans
200 Kent Street
Ottawa, Ontario
K1A 0E6
Tel:  (613) 993-0999
Fax:  (613) 990-1866

Department of Foreign Affairs and International Trade
Lester B. Pearson Building
125 Sussex Drive
Ottawa, Ontario
K1A 0G2
Tel:  (613) 944-4000
Fax:  (613) 944-6500

Health Canada
Brooke Claxton Building
Ottawa, Ontario
K1A 0K9
Tel:  (613) 957-2991
Fax:  (613) 941-5366

Industry Canada
235 Queen Street
Ottawa, Ontario
K1A 0H5
Tel:  (613) 954-2788
Fax:  (613) 954-1894

Public Works and Government Services Canada
Place du Portage, Phase III
11 Laurier Street
Hull, Quebec
K1A 0S5
Tel:  (819) 956-2300
Fax:  (819) 994-8404

Revenue Canada -- Customs, Excise and Taxation
Connaught Building
MacKenzie Avenue
Ottawa, Ontario
K1A 0L5
Tel:  (613) 995-2960
Fax:  (613) 952-6608

Standards Council of Canada
45 O'Connor Street
Suite 1200
Ottawa, Ontario
K1P 6N7
Tel:  (613) 238-3222
Fax:  (613) 995-4564

Statistics Canada
R. H. Coats Building
Tunney's Pasture
Ottawa, Ontario
K1A 0T6
Tel:  (613) 951-8116
Fax:  (613) 951-0581

Transport Canada
Transport Canada Building
Place de Ville
330 Sparks Street
K1A 0N5
Tel:  (613) 990-2309
Fax:  (613) 995-0351


     (f) Provincial Canadian Government Contacts

Following are the telephone numbers for general inquiries in each of the 
Canadian provinces and territories.


Alberta                    (403) 427-2711

British Columbia           (604) 387-6121

Manitoba                   (204) 945-3744

New Brunswick              (506) 453-2525

Newfoundland               (709) 729-3610

North West Territories     (403) 873-7110

Nova Scotia                (902) 424-5200

Ontario                    (416) 326-1234

Prince Edward Island       (902) 368-5050

Quebec                     (514) 873-2111

Saskatchewan               (306) 787-0222

Yukon                      (403) 667-5811


     (g) Canadian Government Contacts in the United States


Embassy of Canada
501 Pennsylvania Avenue N.W.
Washington, D.C.
20001
Tel:  (202) 682-1740
Fax:  (202) 682-7726

Territory:     Delaware and Eastern Pennsylvania, Maryland, Virginia and 
the District of Columbia

Canadian Consulate General -- Atlanta
Suite 400, South Tower
One CNN Center
Atlanta, Georgia
30303-2705
Tel:  (404) 577-6810
Fax:  (404) 524-5046

Territory:  Alabama, Florida, Georgia, Mississippi, North Carolina, 
South Carolina, Puerto Rico, Tennessee, U.S. Virgin Islands

Canadian Consulate General -- Boston
Three Copley Place, Suite 400
Boston, Massachusetts
02116
Tel:  (617) 262-3760
Fax:  (617) 262-3415

Territory:  Maine, Massachusetts, New Hampshire, Rhode Island, and 
Vermont

Canadian Consulate General -- Buffalo
One Marine Midland Center,
Suite 3000
Buffalo, New York
14203-2884
Tel:  (716) 858-9500
Fax:  (716) 852-4340

Territory:  Western, Central and Upstate New York, West Pennsylvania, 
and West Virginia

Canadian Consulate General -- Chicago
Suite 2400, Two Prudential Plaza
180 N. Stetson Avenue
Chicago, Illinois
Tel:  (312) 616-1860
Fax:  (312) 616-1877


Territory:  Illinois, Missouri, Wisconsin and the Quad-Cities - Five 
Northwest counties of Indiana, and the Counties of Wyandotte, Johnson 
and Douglas in Kansas

Canadian Consulate General -- Dallas
St. Paul Place, Suite 1700
750 North St. Paul Street
Dallas, Texas
75201-9990
Tel:  (214) 922-9806
Fax:  (214) 922-9815

Territory:  Arkansas, Kansas, Louisiana, New Mexico, Oklahoma and Texas

Canadian Consulate General -- Detroit
600 Renaissance Center, Suite 1100
Detroit, Michigan
48243-1798
Tel:  (313) 567-2340
Fax:  (313) 567-2164

Territory:  Michigan, Indiana (except the five N.W. Counties), Kentucky, 
and Ohio

Canadian Consulate General -- Los Angeles
300 South Grand Avenue
10th Floor
California Plaza
Los Angeles, California
90071
Tel:  (213) 346-2700
Fax:  (213) 620-8827

Territory:  Arizona, California, Hawaii, Nevada, and Utah

Canadian Consulate General -- Miami
Suite 1600, First Union Financial Center
200 South Biscayne Boulevard
Miami, Florida
33131
Tel:  (305) 579-1600
Fax:  (305) 374-6774

Territory:  Florida

Canadian Consulate General -- Minneapolis
Suite 900, 701 Fourth Avenue South
Minneapolis, Minnesota
55415-1899
Tel:  (612) 333-4641
Fax:  (612) 332-4061

Territory:  Colorado, Iowa (except the Quad-Cities), Minnesota, Montana, 
Nebraska, North Dakota, South Dakota, and Wyoming

Canadian Consulate General -- New York
1251 Avenue of the Americas
New York City, New York
10020-1175
Tel:  (212) 596-1600
Fax:  (212) 596-1793

Territory:  Southern New York State, Connecticut, and New Jersey

Canadian Consulate General -- Seattle
412 Plaza 600
Sixth and Stewart Streets
Seattle, Washington
98101-1286
Tel:  (206) 443-1777
Fax:  (206) 443-1782

Territory:  Alaska, Idaho, Oregon, and Washington


     (h)     Canadian Market Research Firms

Following are some of the major market research firms in Canada, listed 
alphabetically.  A more complete list of firms can be obtained by 
contacting the Canadian Professional Marketing Research Society, also 
listed below.

Angus Reid Group, Inc.
160 Bloor Street East, Suite 610
Toronto, Ontario
M4W 1B9
Tel:  (416) 324-2900
Fax:  (416) 324-2865

The Coopers & Lybrand Consulting Group
145 King Street West, Suite 2300
Toronto, Ontario
M5H 1V8
Tel:  (416) 869-1130
Fax:  (416) 863-0926

Decima Research
1 Eglinton Avenue East, 7th Floor
Toronto, Ontario
M4P 3A1
Tel:  (416) 483-1724
Fax:  (416) 483-4441

Deloitte & Touche -- Consulting and Market Research
98 Macdonell Street, Suite 400
Guelph, Ontario
N1H 8L1
Tel:  (519) 822-1090
Fax:  (519) 822-0247

Dun & Bradstreet Canada
Dun's Marketing Services
5770 Hurontario Street
Mississauga, Ontario
L5R 3G5
Tel:  (905) 568-6000
Fax:  (905) 568-6197

Environics Research Group Limited
45 Charles Street East
Toronto, Ontario
M4Y 1S2
Tel:  (416) 964-1397
Fax:  (416) 964-2486

Gallup Canada Inc.
180 Bloor Street West
Toronto, Ontario
M5S 2V6
Tel:  (416) 961-2811
Fax:  (416) 961-3662

Goldfarb Consultants
4950 Yonge Street, 17th Floor
North York, Ontario
M2N 6K1
Tel:  (416) 221-9200
Fax:  (416) 221-2214

Professional Marketing Research Society
2175 Sheppard Avenue East, Suite 110
Willowdale, Ontario
M2J 1W8
Tel:  (416) 493-4080
Fax:  (416) 491-1670

Southam Marketing Research Services
1450 Don Mills Road
Don Mills, Ontario
M3B 2X7
Tel:  (416) 445-6641
Fax:  (416) 442-2248


     (i)     Canadian Commercial Banks

Following is the contact information for the Canadian Schedule I Banks.

Bank of Montreal
55 Bloor Street West
Bank of Montreal Tower
4th Floor
Toronto, Ontario
M4W 3N5
Tel:  (416) 927-2740

Bank of Nova Scotia
44 King Street West
Toronto, Ontario
M5H 1H1
Tel:  (416) 866-6161

Canadian Imperial Bank of Commerce (CIBC)
Commerce Court Postal Station
Toronto, Ontario
M5L 1A9
Tel:  (416) 980-2211

National Bank of Canada
50 O'Connor Street, Suite 1224
Ottawa, Ontario
K1P 6L2
Tel:  (613) 238-8385

Royal Bank of Canada
200 Bay Street
Royal Bank Plaza
Toronto, Ontario
M5J 2J5
Tel:  (416) 974-5151

Toronto Dominion Bank
P. O. Box 1
Toronto Dominion Center
55 King Street
Toronto, Ontario
M5K 1A2
Tel:  (416) 982-7730

       APPENDIX F.     MARKET RESEARCH

Market research is available from a wide variety of sources including:  
federal and provincial governments; advertising agencies; accounting 
firms, government relations consultants and market research companies.  
Lists of firms specializing in market research firms activities may be 
obtained by contacting the Canadian Professional Marketing Research 
Society.  In Canada, the primary source of federal government statistics 
is Statistics Canada, which is roughly comparable to the U.S. Bureau of 
the Census.  Statistics Canada collects a wide variety of detailed 
statistical data on national income accounts, balance of payments, 
industrial production, imports and exports, demographics, inflation 
rates, wages, etc.  As a starting point for collecting detailed market 
research on specific industry subsectors and market intelligence on 
emerging business developments in Canada, U.S. companies should contact 
their local District Office of the U.S. Department of Commerce, or the 
US&FCS office of the U.S. Embassy in Ottawa, Canada.

A complete list of all USDOC market research reports on Canada is 
available on the National Trade Data Bank.

     1.     USDOC/FCS Commercial Reports

          (a)     Industry Subsector Analyses

During FY96, FCS Canada will prepare a minimum of 20 Industry Subsector 
Analyses covering a variety of topics classified among FCS Canada's Best 
Prospects.  Sectors identified for study along with expected completion 
dates for each ISA are listed below:

Industry Subsector:   Pollution Control Equipment - Oil and Gas Industry
ITA Industry Code:    POL
Submission Date:      October 1995

Industry Subsector:   Skincare Products
ITA Industry Code:    COS
Submission Date:      November 1995

Industry Subsector:   Robotics
ITA Industry Code:    ROB
Submission Date:      December 1995

Industry Subsector:   Outdoor Decoratives
ITA Industry Code:    HCG
Submission Date:      December 1995

Industry Subsector:   Distribution and Warehouse Equipment
ITA Industry Code:    MHM
Submission Date:      January 1996

Industry Subsector:   Non-Food Retail Franchising     
ITA Industry Code:    FRA
Submission Date:      January 1996

Industry Subsector:   Women's Apparel
ITA Industry Code:    APP
Submission Date:      February 1996

Industry Subsector:   Windows and Doors
ITA Industry Code:    BLD
Submission Date:      February 1996

Industry Subsector:   Dental Equipment
ITA Industry Code:    DNT
Submission Date:      February 1996

Industry Subsector:   Alarms and Other Detection Equipment
ITA Industry Code:    SEC
Submission Date:      March 1996

Industry Subsector:   Office Furniture
ITA Industry Code:    FUR
Submission Date:      March 1996

Industry Subsector:   Mining Equipment
ITA Industry Code:    MIN
Submission Date:      April 1996

Industry Subsector:   Compressors
ITA Industry Code:    PVC
Submission Date:      May 1996

Industry Subsector:   Food Franchising
ITA Industry Code:    FRA
Submission Date:      June 1996

Industry Subsector:   Games and Toys
ITA Industry Code:    TOY
Submission Date:      June 1996

Industry Subsector:   Computer-Aided Manufacturing
ITA Industry Code:    CSF
Submission Date:      July 1996

Industry Subsector:   Multimedia Software
ITA Industry Code:    CSF
Submission Date:      July 1996

Industry Subsector:   Direct Marketing
ITA Industry Code:    GSV
Submission Date:      August 1996

Industry Subsector:   Machine Tools - CNC
ITA Industry Code:    MTL
Submission Date:      August 1996

Industry Subsector:   Hazardous Materials Management for Site 
Reclamation
ITA Industry Code:    POL
Submission Date:      August 1996

  
          (b)     International Market Intelligence/Insight Reports 
(IMI)


FCS Canada has substantially increased its market intelligence reporting 
over the last few years.  The total number of IMIs for FY96 is expected 
to surpass that of FY95 with nearly more than 100 reports submitted to 
Washington by the end of the fiscal reporting year.  FCS Canada will 
maintain this high level of reporting by providing key market 
opportunities and regulatory developments which impact on U.S. business.

FCS reports are accessible through the National Trade Data Bank (NTDB).  
A copy of the NTDB CD-ROM can be obtained from the U.S. Department of 
Commerce through the:     National Trade Data Bank
               Economics and Statistics Administration
               Office of Business Analysis
               Room 4885, HCHB
               Washington, D.C.
               20230


     2.     USDA/FAS Commodity Reports and Market Briefs

To obtain a copy of Marketing in Canada:  A Guide for U.S. Food and 
Agricultural Products Exporters contact:
               Office of Agricultural Affairs
               c/o U.S. Embassy
               P.O. Box 5000
               Ogdensburg, N.Y.
               13669-0430
               Tel:  (613) 238-5335
               Fax:  (613) 233-8511


Following is a list of upcoming USDA/FAS Commodity Reports and Market 
Briefs scheduled for submission in FY96, which can be obtained by 
contacting:

               The Reports Office
               USDA/FAS
               Washington, D.C.
               20250

As Available     Grain & Feed Export Trade Data Monthly
As Available     Oilseed Export Trade Data Monthly
As Available     Oilseeds Import Trade Data Monthly

01/01/95          Fresh Deciduous Fruit Semi-Annual
01/31/95          Grain Voluntary Updates February Lockup
01/31/95          Oilseeds Voluntary Updates February Lockup

02/01/95          Livestock Semi-Annual
02/28/95          Grain Voluntary Updates March Lockup
02/28/95          Oilseeds Voluntary Updates March Lockup

03/15/95          Foreign Buyer List Annual Report
03/15/95          Seafood Semi-Annual
03/15/95          Strawberry Annual
03/31/95          Grain Voluntary Updates April Lockup
03/31/95          Oilseeds Voluntary Updates April Lockup

04/05/95          Grain & Feed Annual
04/10/95          Sugar Annual
04/30/95          Grain Voluntary Updates May Lockup
04/30/95          Oilseeds Voluntary Updates May Lockup

05/01/95          Oilseeds & Products Annual
05/01/95          Tobacco Annual
05/15/95          Dairy Semi-Annual
05/31/95          Grain Voluntary Updates June Lockup
05/31/95          Oilseeds Voluntary Updates June Lockup

06/20/95          Poultry Annual
06/30/95          Grain Voluntary Updates July Lockup
06/30/95          Oilseeds Voluntary Updates July Lockup

07/15/95          Annual Marketing Plan Information Report
07/31/95          Grain Voluntary Updates August Lockup
07/31/95          Oilseeds Voluntary Updates August Lockup

08/01/95          Livestock Annual
08/25/95          Honey Annual
08/31/95          Grain Voluntary Updates September Lockup
08/31/95          Oilseeds Voluntary Updates September Lockup

09/10/95          Fresh Deciduous Fruit Annual
09/15/95          Seafood Annual
09/30/95          Agricultural Situation Annual
09/30/95          Grain Voluntary Updates October Lockup
09/30/95          Oilseeds Voluntary Updates October Lockup

10/01/95          Sugar Semi-Annual
10/15/95          Forest Products Annual
10/15/95          Frozen French Fry Annual
10/31/95          Grain Voluntary Updates November Lockup
10/31/95          Oilseeds Voluntary Updates November Lockup

11/20/95          Poultry Semi-Annual
11/30/95          Dairy Annual
11/30/95          Grain Voluntary Updates December Lockup
11/30/95          Oilseeds Voluntary Updates December Lockup

12/10/95          Brandy Annual
12/10/95          Planting Seed Annual
12/10/95          Wine Marketing Annual
12/10/95          Seeds Annual
12/31/95          Grain Voluntary Updates January Lockup
12/31/95          Oilseeds Voluntary Updates January Lockup

       APPENDIX G.     TRADE EVENT SCHEDULE

Please note that because Trade Event schedules may change, firms should 
consult the Export Promotion Calendar on the NTDB or contact the post 
for the latest information/schedule.

     1.     Commercial Events

     (a)     Trade Events

(a)  Event:          WORLD TRADE '95
     Event Type:     Trade Fair -- Catalog Show 
     Sector:         GIE  (Horizontal, consumer & industrial)
     Date:           October 26, 1995
     Location:       Toronto, Ontario
     USG Involvement: Post recruited

(b)  Event:          U.S. STATES MEDICAL MATCHMAKER
     Event Type:     Matchmaking Trade Mission 
     Sector:         MED  (Medical equipment)
     Date:           November 6-7, 1995
     Location:       Toronto, Ontario
     USG Involvement: State recruited

(c)  Event:          VANCOUVER INDUSTRIAL TECHNOLOGY EXHIBITION
     Event Type:     Trade Fair -- Catalog Exhibition               
     Sector:         MTL, MHM, GIE (industrial technologies)
     Date:           November 7-9, 1995
     Location:       Vancouver, British; Calgary, Alberta
     USG Involvement: Post recruited

(d)  Event:          CONSTRUCT CANADA
     Event Type:     Trade Fair --  U.S. Pavilion 
     Sector:         BLD  (construction & building products)
     Date:           November 29-31, 1995
     Location:       Toronto, Ontario
     USG Involvement: Post recruited

(e)  Event:          COMDEX VANCOUVER               
     Event Type:     Certified Trade Fair -- Catalog Exhibition
     Sector:         CPT, CSF  (computers & software)
     Date:           January 1996
     Location:       Vancouver, British Columbia
     USG Involvement: USDOC Certified, Post recruited     

(f)  Event:          CANADIAN HARDWARE/HOUSEWARE/
                     HOME IMPROVEMENT SHOW
     Event Type:     Trade Fair --  U.S. Pavilion 
     Sector:         BLD (hardware products)
     Date:           February 4-6, 1996
     Location:       Toronto, Ontario
     USG Involvement: Post recruited

(g)  Event:          CSGA ANNUAL INTERNATIONAL CONVENTION &
                     EXHIBITION               
     Event Type:     Gold Key Mission 
     Sector:         SPT (sporting goods)
     Date:           February 1996
     Location:       Montreal, Canada
     USG Involvement: Post Recruited

(h)  Event:          GLOBE'96
     Event Type:     Certified Trade Fair, Business Information Booth
     Sector:         POL, ENV, (environmental technologies)
     Date:           March, 1996
     Location:       Vancouver, British Columbia
     USG Involvement: USDOC Certification

(i)  Event:          EASTERN CANADA MULTI-STATE TRADE DAYS
     Event Type:     Trade Mission 
     Sector:         Horizontal
     Date:           April 1-5, 1996
     Location:       Toronto, Ontario; Montreal Quebec, with spin-off
                     exhibitions in Ottawa and Halifax
     USG Involvement: State recruited

(j)  Event:          WESTERN CANADA MULTI-STATE TRADE DAYS
     Event Type:     Trade Mission 
     Sector:         Horizontal
     Date:           April 8-12, 1996
     Location:       Vancouver, British Columbia; Calgary, Alberta     
     USG Involvement: State recruited

(k)  Event:          CANADIAN INTERNATIONAL AUTOMOTIVE SHOW
     Event Type:     Trade Fair -- U.S. Pavilion
     Sector:         APS     (automotive aftermarket)
     Date:           April 13-15, 1996
     Location:       Montreal, Quebec
     USG Involvement: Post Recruited

(l)  Event:          TORONTO ENVIRONMENTAL TRADE SHOW
     Event Type:     Matchmaker & Conference 
     Sector:         POL  (environmental products)
     Date:           May 7-8, 1996
     Location:       Toronto, Ontario
     USG Involvement: Post recruited

(m)  Event:          MONTREAL FABRICATING & MACHINE TOOL SHOW
     Event Type:     Gold Key Mission
     Sector:         MTL (machine tools and metal fabrication)
     Date:           May 14 - 16, 1996
     Location:       Montreal, Canada
     USG Involvement: Post Recruited

(n)  Event:          PMDS'96
                     (PLANT MAINTENANCE/DESIGN ENGINEERING SHOW)
     Event Type:     Trade Fair -- Catalog Exhibition & Gold Keys
     Sector:         GIE, MHM, PCI, POL, ROB               
     Date:           May 14 - 16, 1996
     Location:       Montreal, Quebec
     USG Involvement: Post Recruited

(o)  Event:          EQUIFAIR
     Event Type:     Trade Fair -- U.S. Pavilion
     Sector:         SPT (equine products)
     Date:           September 1996          
     Location:       Calgary, Alberta
     USG Involvement: Post Recruited     

(p)  Event:         CANADIAN HIGH TECH SHOW/
                    WEST VIRGINIA MATCHMAKER
     Event Type:    Trade Fair --  U.S. Pavilion/Matchmaker 
                    Computer Products/Equipment
     Sector:        CPT  (computers & electronics)
     Date:          September 17-18, 1996
     Location:      Toronto, Ontario
     USG Involvement: State/Post recruited

(q)  Event:          TECHNOLOGY IN GOVERNMENT SHOW (G-TEC)
     Event Type:     Trade Fair -- Catalog Exhibition
     Sector:         GSV, CPT, CSF, TEL (information technologies)
     Date:           September 17-18, 1996
     Location:       Ottawa, Ontario
     USG Involvement: Post recruited     

(r)  Event:          12TH ANNUAL BUSINESS WORLD EXHIBITION
     Event Type:     Trade Fair --  U.S. Pavilion
     Sector:         Horizontal
     Date:           September 26-29, 1996
     Location:       Montreal, Quebec
     USG Involvement: Post recruited


NOTE:  As event schedules are subject to change interested companies are 
advised to consult the U.S. Department of Commerce Export Promotion 
Calendar available through the National Trade Data Bank or Contact the 
Commercial Service Office of the U.S. Embassy in Ottawa, Canada (613) 
238-4470 ext. 219.


     (b)     International Buyer Program Events


FCS Canada will promote and facilitate participation by Canadian 
business visitors in the following major U.S. trade shows.

(a)     Event:          Automotive Aftermarket Industry Week '95
     Event Type:        International Buyer Program
     Sector:            APS
     Date:              October 24-27, 1995
     Location:          Las Vegas, NV
     FCS Contact:       Madellon Lopes, FCS Toronto; Rick Tachuk, FCS 
Ottawa

(b)     Event:          World Engineering Congress
     Event Type:        International Buyer Program
     Sector:            Engineering
     Date:              November 8-10, 1995
     Location:          Atlanta, GA
     FCS Contact:       Robert Decent, FCS Toronto

(c)     Event:          Medtrade/NHHCE
     Event Type:        International Buyer Program
     Sector:            MED
     Date:              November 15-18, 1995
     Location:          Atlanta, GA
     FCS Contact:       Pierre Richer, FCS Montreal

(d)     Event:          The Builder's Show
     Event Type:        International Buyer Program
     Sector:            BLD
     Date:              January 26-29, 1996
     Location:          Houston, TX
     FCS Contact:       Richard Vinson, FCS Halifax; Rita Cilia, FCS 
Toronto

(e)     Event:          MAGIC International (Men's Apparel Guild 
California)
     Event Type:        International Buyer Program
     Sector:            APP
     Date:              January 30 - February 2, 1996
     Location:          Las Vegas, NV
     FCS Contact:       Madellon Lopes, FCS Toronto; Jere Dabbs, FCS 
Vancouver
          
(f)     Event:          California Farm Equipment Show 
     Event Type:        International Buyer Program
     Sector:            Farm Equipment
     Date:              February 13-15, 1996
     Location:          Tulare, CA
     FCS Contact:       Sharon Atkins, FCS Calgary

(g)     Event:          American International Toy Fair
     Event Type:        International Buyer Program
     Sector:            TOY
     Date:              February 16-19, 1996
     Location:          New York, NY
     FCS Contact:       Jacquie Hazan, FCS Montreal; Robert Decent, FCS 
Toronto

(h)     Event:          International Franchise Expo
     Event Type:        International Buyer Program
     Sector:            FRA
     Date:              March 8-10, 1996
     Location:          Washington, DC
     FCS Contact:       Richard Vinson, FCS Halifax

(i)     Event:          CONEXPO-CON/AGG '96
     Event Type:        International Buyer Program
     Sector:            Construction
     Date:              March 20-24, 1996
     Location:          Las Vegas, NV
     FCS Contact:       Jacquie Hazan, FCS Montreal; Rita Cilia, FCS 
Toronto

(j)     Event:          Intermedia
     Event Type:        International Buyer Program
     Sector:            Media
     Date:              April 1-3, 1996
     Location:          Las Vegas, NV
     FCS Contact:       Viktoria Palfi, FCS Toronto; Jere Dabbs, FCS 
Vancouver

(k)     Event:          NetWorld + Interop '96
     Event Type:       International Buyer Program
     Sector:           Computer Networks
     Date:             April 2-4, 1996
     Location:         Las Vegas, NV
     FCS Contact:      Andrew Tangalos, FCS Montreal

(l)     Event:        Offshore Technology Conference
     Event Type:      International Buyer Program
     Sector:          Offshore Oil Exploration Equipment
     Date:            May 6-9, 1996
     Location:        Richardson, TX
     FCS Contact:     Sharon Atkins, FCS Calgary

(m)     Event:        WasteExpo '96
     Event Type:      International Buyer Program
     Sector:          POL
     Date:            May 20-24, 1996
     Location:        Las Vegas, NV
     FCS Contact:     Robert Decent, FCS Toronto

(n)     Event:        International Fashion Boutique
     Event Type:      International Buyer Program
     Sector:          APP
     Date:            June 1-4, 1996
     Location:        New York, NY
     FCS Contact:     Jacquie Hazan, FCS Montreal

(o)     Event:        COMDEX/Spring and Windows World '96
     Event Type:      International Buyer Program
     Sector:          CPT, CSF
     Date:            September 9-12, 1996
     Location:        Las Vegas, NV
     FCS Contact:     Jere Dabbs, FCS Vancouver; Connie Irrera, FCS 
Montreal

(p)     Event:        HazMat International
     Event Type:      International Buyer Program
     Sector:          POL
     Date:            June 5-7, 1996
     Location:        Philadelphia, PA
     FCS Contact:     Madellon Lopes, FCS Toronto

(q)     Event:        MINExpo International '96
     Event Type:      International Buyer Program
     Sector:          Mining
     Date:            September 9-12, 1996
     Location:        Las Vegas, NV
     FCS Contact:     Pierre Richer, FCS Montreal; Sharon Atkins FCS 
Calgary

(r)     Event:        1996 IEEE/PE Transmission and Distribution 
Conference
     Event Type:      International Buyer Program
     Sector:          ELP
     Date:            September 15-20, 1996
     Location:        Los Angeles, CA
     FCS Contact:     Andrew Tangalos, FCS Montreal

(s)     Event:        Personal Communication Industry Association
     Event Type:      International Buyer Program
     Sector:          TEL
     Date:            September 26-28, 1996
     Location:        San Francisco, CA
     FCS Contact:     Connie Irrera, FCS Montreal



     2.     Agricultural Events

(a)     Canadian Produce Marketing Convention & Trade Show

     Date:          Annual Trade-Only Show
                    1996 - January 31 - February 3
                    1997 - January 29 - February 1

     Locations:     1996 - Vancouver, British Columbia
                    1997 - Banff, Alberta

     Sponsor:       Canadian Produce Marketing Association
                    310-1101 Prince of Wales Drive
                    Ottawa, Ontario
                    K2C 3W7

     Contact:       Tel:  (613) 226-4187
                    Fax:  (613) 226-2984


(b)     Grocery Showcase Canada (Central Canada grocery show)

     Date:          Annual Trade-Only Show
               1995 - October 22-24
               1996 - October 27-29
               1997 - October 26-28

     Locations:     Toronto, Ontario

     Sponsor:     Canadian Federation of Independent Grocers
               2235 Sheppard Avenue, East
               Suite 902
               Willowdale, Ontario
               M2J 5B5

     Contact:     Tel:  (416) 492-2325
                  Fax:  (416) 492-2347

     Grocery Showcase West (Western Canada grocery show)

     Date:          Annual Trade-Only Show
               1996 - April 21-22
               1997 - March 9-10

     Locations:     1996 - Calgary, Alberta
                    1997 - Vancouver, British Columbia

     Sponsor:     Canadian Federation of Independent Grocers
               2235 Sheppard Avenue, East
               Suite 902
               Willowdale, Ontario
               M2J 5B5

     Contact:     Tel:  (416) 492-2325
                  Fax:  (416) 492-2347


(c)     Canadian Fine Food Show (Specialty Foods Show)
     
     Date:          Annual Trade-Only Show
               1996 - May 26-28
               1997 - May 25-27

     Locations:     Toronto, Ontario

     Sponsor:     Canadian Association of Specialty Foods
               1 Eva Road, Suite 409
               Etobicoke, Ontario
               M9C 4Z5

     Contact:     Meteor Show Productions Inc.
               298 Sheppard Avenue, East
               Willowdale, Ontario
               M2N 3B1
               Tel:  (416) 229-2060
               Fax:  (707) 223-2826


(d)     Canadian Food & Beverage Show (Food Service Show)
          
     Date:          Annual Trade-Only Show
               1996 - February 28-30
               1997 - February 16-18

     Sponsor:     Canadian Restaurant & Food Service
               316 Bloor Street West
               Toronto, Ontario
               M5S 1W5

     Contact:     Tel:  (416) 923-8416
                  Fax:  (416) 923-1450
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