The business of Ontario is business. We often forget the province's enviable standard of living can only be funded by a prosperous economy that produces good jobs and the essential tax revenues that fund the health and education services and good infrastructure we all take for granted.
In addition, through billions in transfer payments, Ontario
also subsidizes the rest of the country with the exception of
Alberta.
However, the world is undergoing the most significant
economic transformation in recorded history. China, India,
Brazil and many other developing countries are rapidly
modernizing. Their industries will pose serious competition
with Ontario manufacturers, but these new affluent and growing
markets may also provide many opportunities.
Those issues are top of mind for Ontario Minister of
Economic Development and Trade, Joe Cordiano who seems to be
travelling non-stop raising this province's profile in the
global business community. He has one of the most important
jobs in cabinet and he certainly has many challenges.
Global foreign direct investment (FDI) is growing, but
Canada's share has declined from six percent in 1990 to three
percent in 2003. As Ontario is the largest recipiant of foreign
investment in this country, part of the decline must be
attributed to the closing of Ontario's 17 trade offices in 1993
as a foolish cost cutting measure of the Bob Rae NDP
government. Penny wise, pound foolish.
The province lost a decade of marketing and relationship
building with a new generation of business leaders and probably
lost billions in potential investment.
There are more than 1,500 jurisdictions competing abroad for foreign direct investment, as well as promoting their exports. American states alone maintain more than 200 overseas trade offices while Alberta has nine offices abroad.
Quebec promotes its economic benefits through 17 trade
missions.
The Conservative provincial government started re-opening
the trade offices, officially called International Marketing
Centres,  in 2002 with centres in New York, Munich and
Shanghai.
Cordiano has really got the ball rolling by opening four new
missions this year, located in Los Angeles, New Delhi, Tokyo
and most recently last week in London.
While officially opening the London trade mission, the
minister also led a trade delegation to the Farnborough
International Air Show, the aerospace industry's biggest event.
Four Ontario aerospace companies annouced new contracts that
will create high-value jobs in the province.
In a telephone interview the constantly jet-lagged Cordiano
said, "One of my biggest challenges while attending these
international trade missions is that the competition is stiff.
The province is competing with thousands of other cities and
regions and its very important we have a presence on the ground
in these key markets and ensure Ontario receives its share of
global investment."
The minister has certainly scored some early successes. It
is widely known Cordiano was instrumental in luring the
$1.1-billion Toyota plant currently being built in Woodstock.
He keeps hitting home runs with the recent announcement that
Toyota Boshuku Corp. will be investing $65 million for a parts
plant also in Woodstock that will create 330 jobs and the $154
million Honda investment at their Allison manufacturing site
that will create 340 jobs.
Cordiano continues,"During my recent trip to London and the
Netherlands, I found out our government's successful auto
strategy, which has garnered about $7 billion since we came to
power, has caused many global investors to seriously look at
the Ontario market place for future investment. I feel that the
reopened Tokyo trade office will be a significant help in
securing more Japanese auto investment in the province."
 
The International Marketing Centres are being co-located with
existing Canadian foreign missions such as embassies or
consulates. The advantages include cost savings but more
importantly will benefit from the "Canada brand" that already
exists on the ground. In addition, Ontario officials will have
access to business and media connections as well as commercial
information gathered through the Canadian embassies and
consulates.
Almost 90 percent of Ontario's exports go to the United States. There is no doubt that Ontario industry will always be closely linked to that enormous market. But re-establishing Ontario's international trade offices also sends an important message to the emerging global economic giants of Asia that Ontario is open for business.
Stan Sudol is a Toronto-based communications consultant who writes extensively on mining and Ontario issues. He can be reached at[email protected]
