GDP Per Capita Constant 2000 US$ Country US$ Japan 38,609 United States 36,655 United Kingdom 26,363 Canada 24,688 Germany 23,705 France 23,432 Mexico 5,968 Russian Federation 2,286 China 1,323 India 538 Source: World Bank 2006
Exports of Goods and Services As Percent of GDP Country Percent Canada 38.3 Germany 38.0 Russian Federation 35.0 China 34.0 Mexico 30.1 France 26.0 United Kingdom 24.7 India 19.1 Japan 11.8 United States 9.6 Source: World Bank 2006
Exports to NAFTA Merchandise Exports Percent Change, Year Ago 40 30 Canada Mexico 20 10 0-10 -20 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Source: Global Insight
U.S. Imports on the Rise Level of Imports from Selected Countries US$ Billions 100 80 60 Mexico Canada Japan S. Korea China 40 20 0 86 88 90 92 94 96 98 00 02 04 06 Source: Global Insight
U.S. Imports on the Rise As Percent Share of all U.S. Imports Percent 25 20 15 10 5 Mexico Canada Japan S. Korea China 0 86 88 90 92 94 96 98 00 02 04 06 Source: Global Insight
U.S. Trade Balance With Mexico Merchandise Trade US$ Billions 50 US$ Billions 5 40 0 30 20 Exports to Mexico - L Imports from Mexico - L Trade Balance - R -5-10 10-15 0 86 88 90 92 94 96 98 00 02 04 06-20 Source: Global Insight
U.S. Imports from Mexico 2006 All Other 30% Electric Machinery; Sound & TV Equip 24% Source: ITA Nuclear Reactors, Boilers, Machinery 12% Vehicles and Parts 17% Mineral Fuel, Oil; Bitumin Subst.; Mineral Wax 17%
U.S. Agricultural Products from Mexico 2005 Other Agricultual Products 8% Peppers 7% Other Beverages, excl. fruit juice 4% Other Vegetables and Preparations 23% Livestock and animal products 10% Fruit and Preparations 19% Source: USDA Tomatoes 11% Beer 18%
Top World Oil Producers* 2005 Total Oil Production Rank Country (million barrels per day) 1 Saudi Arabia 11.1 2 Russia 9.5 3 United States 8.2 4Iran 4.2 5 Mexico 3.8 6 China 3.8 7 Canada 3.1 8Norway 3.0 9 United Arab Emirates 2.8 10 Venezuela 2.8 *Table includes all countries total oil production exceeding 2 million barrels per day in 2005. Source: EIA
Top World Oil Net Exporters* 2005 Net Oil Exports Rank Country (million barrels per day) 1 Saudi Arabia 9.1 2 Russia 6.7 3Norway 2.7 4Iran 2.6 5 United Arab Emirates 2.4 6 Nigeria 2.3 7Kuwait 2.3 8 Venezuela 2.2 9 Algeria 1.8 10 Mexico 1.7 *Table includes all countries with net exports exceeding 1 million barrels per day in 2005. Source: EIA
U.S. Trade Balance With Canada Merchandise Trade US$ Billions 100 80 60 40 20 Exports to Canada- L Imports from Canada- L Trade Balance - R US$ Billions 0-5 -10-15 -20-25 0 86 88 90 92 94 96 98 00 02 04 06-30 Source: Global Insight
High-Tech Exports As Percent of GDP Percent 6 5 United States Canada Mexico 4 3 2 1 0 90 92 94 96 98 00 02 04 Source: World Bank 2006
High-Tech Exports Level* US$ Billions 250 *Data is for most recent year available 200 150 100 50 0 U.S. China Japan Germany France U.K Canada India Mexico Russian Fed. Source: World Bank 2006
Foreign Direct Investment Net Outflows as a Percent of GDP Country Percent Canada 4.8 United Kingdom 3.8 France 2.3 United States 2.2 Russian Federation 1.8 Japan 0.7 Mexico 0.5 India 0.2 China 0.1 Germany -0.3 Source: World Bank 2006
Foreign Direct Investment Net Inflows as a Percent of GDP Country Percent United Kingdom 3.4 China 2.8 Mexico 2.6 Russian Federation 2.2 France 1.2 United States 0.9 India 0.8 Canada 0.6 Japan 0.2 Germany -1.3 Source: World Bank 2006
Current Account Deficit Increases United States US$ Billions 200 Percent 1 0-200 0-1 -2-400 -3-600 -800 Balance (L) Share of GDP (R) -4-5 -6-1000 80 85 90 95 00 05-7 Source: BEA
Comparison of Hourly Labor Cost Index Relative to U.S. U.S. = 100 120 100 80 60 40 20 0 India China Russian F. Mexico Canada Ireland U.K. Japan Source: McKinsey&Co.
Labor Productivity Output Per Hour in Manufacturing, 2004 1992 = 100 190 180 170 160 150 140 130 U.S. Japan France Germany Canada U.K. Source: BLS
Cost Advantage Relative to U.S. Manufacturing, (U.S.= 0) Percent 20 15 10 5 0-5 -10 Canada Singapore Netherlands France U.K. Italy Germany Japan Source: KPMG
Cost Advantage Relative to U.S. Research and Development, (U.S.= 0) Percent 40 30 20 10 0-10 -20 Netherlands Singapore Canada France Italy U.K. Japan Germany Source: KPMG
Cost Advantage Relative to U.S. Software, (U.S.= 0) Percent 40 30 20 10 0-10 -20 Canada France Singapore Netherlands Italy U.K. Japan Germany Source: KPMG
Cost Advantage Relative to U.S. All Sectors, (U.S.= 0) Percent 25 20 15 10 5 0-5 -10 Canada France Singapore Netherlands Italy U.K. Japan Germany Source: KPMG
Prevalence Rates of Entrepreneurial Activity Overall Business Owners (Nascent + New Established) Percent 30 25 20 15 10 5 0 Canada China Switzerland U.S. Italy U.K. Germany Japan Sweden France Source: Global Entrepreneurship Monitor
Supply of Offshore Talent McKinsey Global Institute According to Survey of 83 HR Professionals: In low-wage counties, on average only 13% of university graduates are suitable to work in a multinational company Driven by China and India, only 7% of the workforce in low -wage countries has at least a college degree Fewer than 10% of potential job candidates in China were suitable for work in a foreign company
Tertiary Education Attainment As Percent of Population Percent 60 50 40 30 20 10 0 Canada Russian Fed. U.S. Japan Korea U.K France Germany Mexico Italy Source: OECD
Burden of Government Regulation (1 = Burdensome, 7 = Not Burdensome) Score 4.0 3.5 3.0 Mean = 3.1 2.5 2.0 1.5 1.0 Japan U.S. Canada China Korea, Rep. India U.K. Germany Russian Fed. Mexico Source: The Global Competitiveness Report 06-07
Quality of Math and Science Education (1 = Lag Far Behind Most Countries, 7 = Among Best in the World) Score 6.0 5.5 5.0 Mean = 4.0 4.5 4.0 3.5 3.0 2.5 India Japan Korea, Rep. U.K. Canada Germany Russian Fed. Mexico U.S. China Source: The Global Competitiveness Report 06-07
Technological Readiness (1 = Lags Behind Other Counties, 7 = Is Among World Leaders) Score 6.5 6.0 5.5 5.0 4.5 4.0 3.5 3.0 2.5 Germany Japan U.S. Canada Korea, Rep. U.K. India Mean = 3.9 Mexico Russian Fed. China Source: The Global Competitiveness Report 06-07
Value Chain Presence (1 = Companies Primarily Involved in Resource Production, 7 = Do More than Just Produce) Score 7 6 5 4 Mean = 3.8 3 2 Japan Germany U.K. U.S. India Korea, Rep. Canada Russian Fed. Mexico China Source: The Global Competitiveness Report 06-07
Company Spending on R&D (1 = Do not Spend Money on R&D, 7 = Spend Heavily on R&D) Score 6.5 6.0 5.5 5.0 4.5 4.0 3.5 Mean = 3.4 3.0 Japan U.S. Korea, Rep. Germany U.K. Canada India China Mexico Russian Fed. Source: The Global Competitiveness Report 06-07
University Collaboration (1 = Minimal or Nonexistent, 7 = Intensive and Ongoing) Score 5.5 5.0 4.5 4.0 3.5 Mean = 3.3 3.0 Germany U.S. Japan U.K. Korea, Rep. Canada China India Russian Fed. Mexico Source: The Global Competitiveness Report 06-07
Availability of Scientists and Engineers (1 = Nonexistent or Rare, 7 = Widely Available) Score 6.5 6.0 5.5 5.0 4.5 Mean = 4.4 4.0 3.5 Japan India Germany Canada U.S. U.K. Russian Fed. China Korea, Rep. Mexico Source: The Global Competitiveness Report 06-07
Researchers Per Thousand Employed Per Thousand Employed 12 10 8 6 4 2 0 Japan U.S. Canada Germany China France Russian Fed. Korea, Rep Mexico India Source: OECD
Biotech Patents Issued in U.S. All Universities, Cumulative Thousands 12 10 8 6 4 2 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Capacity for Innovation (1 = Low, 7 = High) Score 6.5 6.0 5.5 5.0 4.5 4.0 3.5 Mean = 3.5 3.0 Japan Germany U.S. U.K. Canada Korea, Rep. India China Mexico Russian Fed. Source: The Global Competitiveness Report 06-07
Broadband Subscribers Per 1000 People Country Per 1000 People Canada 164.3 Japan 145.8 United States 129.0 France 108.2 United Kingdom 102.5 Germany 83.7 China 16.5 Mexico 3.1 Russian Federation 0.86 India 0.65 Source: World Bank 2006
U.S. Competitive Advantages Global Competitiveness Report, 2006-2007 Category Rank/125 Utility Patents 1 Brain Drain 1 Venture Capital Availability 1 Personal Computers 2 Quality of Scientific Research Institutions 2 Extent of Marketing 2 Company Spending on R&D 3 Time Required to Start a Business 3 Tertiary Enrollment 4 University/Industry Collaboration 4 Source: The Global Competitiveness Report 06-07
U.S. Competitive Disadvantages Global Competitiveness Report, 2006-2007 Category Rank/125 Business Costs of Terrorism 111 Government Surplus/Deficit 101 Government Debt 73 Organized Crime 55 Foreign Ownership Restrictions 43 Quality of Math and Science Ed. 42 Favoritism in Decisions of Government Officials 39 Prevalence of Trade Barriers 36 Judicial Independence 36 Real Effective Exchange Rate 35 Source: The Global Competitiveness Report 06-07
Mexico s Competitive Advantages Global Competitiveness Report, 2006-2007 Category Rank/125 FDI and Tech Transfer 20 Primary Enrollment 21 Cooperation in Labor-Employer Relations 27 Foreign Ownership restrictions 31 Value Chain Presence 38 Financial Market Sophistication 38 Extent of Marketing 40 University/Industry Collaboration 40 Laws Relating to ICT 42 Quality of Management Schools 43 Source: The Global Competitiveness Report 06-07
Mexico s Competitive Disadvantages Global Competitiveness Report, 2006-2007 Category Rank/125 Business Costs of Crime and Violence 117 Organized Crime 114 Reliability of Police Services 105 Agricultural Policy Costs 102 Quality of Math and Science Ed. 101 Burden of Government Compliance 94 Time Required to Start a Business 93 Availability of Scientist and Engineers 85 Public Trust of Politicians 85 Quality of the Education System 82 Source: The Global Competitiveness Report 06-07
Canada s Competitive Advantages Global Competitiveness Report, 2006-2007 Category Rank/125 Number of Procedures to Start a Business 1 Time Required to Start a Business 2 Soundness of Banks 5 Quality of Management Schools 4 Personal Computers 5 Extent of Marketing 8 Financial Market Sophistication 9 Availability of Scientist and Engineers 9 Utility Patents 10 Quality of Scientific Research Institutions 11 Source: The Global Competitiveness Report 06-07
Canada s Competitive Disadvantages Global Competitiveness Report, 2006-2007 Category Rank/125 Real Effective Exchange Rate 107 Government Debt 89 Business Costs of Terrorism 74 Extent and Effect of Taxation 66 Cellular Telephones 55 Flexibility of Wage Determination 50 Value Chain Presence 46 Cooperation in Labor-Employer Relations 42 Prevalence of Trade Barriers 39 Burden of Government Compliance 38 Source: The Global Competitiveness Report 06-07
Mexico - Map
The United States Has the World s Largest Economy and Growth Has Outpaced Other Developed Economies Source: Global Insight
The United States Leads All Major Economies in GDP Per Capita Source: Global Insight
More Diverse and Older Workers Are Driving Growth in the American Workforce Source: U.S. Bureau of Labor Statistics
Small and Medium-Sized Firms Create Most New Jobs Source: Office of Advocacy, U.S. Small Business Administration
American Businesses Lose Billions of Dollars Annually Due to Intellectual Property Violations Source: International Intellectual Property Alliance, 2004-2005 Estimated Trade Losses Due to Copyright Piracy (Sep. 18, 2006)
Higher-Order Skills Have Grown in Importance, Driven by Technological Change and Globalization Source: Updated version of Figure 1 in David H. Autor, Frank Levy, and Richard J. Murnane, The Skill Content Of Recent Technological Change: An Empirical Exploration, Quarterly Journal of Economics, 118(4), November 2003. See also Frank Levy and Richard J. Murnane, How Computerized Work and Globalization Shape Human Skill Demands, (May 31, 2006)
Immigrants, Women and Minorities Help Drive U.S. Entrepreneurship Source: Robert W. Fairlie, Kauffman Index of Entrepreneurial Activity: National Report, 1996-2005 (2005)
The United States Has High Levels of Job Churn Source: U.S. Bureau of Labor Statistics
U.S. Multinationals Sell Three Times More Through Foreign Operations Than Through Exports Source: U.S. Bureau of Economic Analysis
U.S. consumption has driven export-led growth around the world Source: Global Insight, Inc.
Energy expenditures are a growing share of U.S. economic output Source: International Energy Agency, Annual Energy Outlook 2006
Regional competitiveness (International Competitiveness Index: IMCO) 63.2 63.0 61.7 61.3 2004 2006 52.5 53.2 Asia EEC NAFTA Source : IMCO, Punto de Inflexi ón: Situaci ón de la Competitividad de M éxico, (2007)
Canada s Performance in the Global Economy Canada s economic performance has been strong over the past decade Canada s macroeconomic framework created the right conditions for improvement in living standards and sustained economic growth. Lowest debt burden among G7 Low and stable inflation Declining taxes Among the strongest employment growth in G7 Among the strongest real GDP growth per capita in G7 But the rest of the world has not stood still. Canada faces new pressures on our prosperity.
Competitiveness and Prosperity Pressures Trade, Investment, and Technology flows fuel productivity growth. These flows face new domestic and international challenges: Domestic Demographic challenges to expanding our highly skilled workforce Trade and investment barriers in service industries International Competitors rapidly improving business climates and increased efforts to attract FDI and innovation Emerging markets growing share of FDI and innovation China and India integrated into global economy and moving up global value chains Appreciating Canadian dollar
Regional Trade Integration Source of imports NAFTA EU ASIA Others NAFTA 34.90% 16.67% 32.03% 16.41% Importer EU 6.12% 61.99% 12.94% 18.95% ASIA 10.62% 10.84% 54.93% 23.61% Others 11.84% 37.43% 21.96% 28.77% Source: IMF DOTS for year 2005
Growth in Merchandise Trade 2000-2005 % 90 80 70 60 50 40 30 20 10 0 Exports Imports ASIA* (excl Japan) Exports Imports EU-25 Exports Imports North America * Asia includes China, India, Taiwan, Hong Kong, Thailand, Singapore, South Korea, Philippines, Malaysia, Vietnam and others Source: IMF
Geographical Distribution of China s Imports* (Share of Chinese Imports Sourced from Within Geographic Area Covered by Circle) 66.0% 59.4% 49.2% * Merchandise Imports Source: DFAIT calculations based on data from China Customs 60
North America s Share of World % 32 30 28 26 24 22 20 18 16 14 90 Imports Exports 92 94 Outward FDI 96 98 '00 '02 Inward FDI '04 '05 Source: UNCTAD and WTO