World Report

he 19th largest economic powerhouse in the world, and the sixth largest in the Americas, Quebec is a force to be reckoned with. The Canadian province is also the gateway between Europe and the Americas.
In 1989, exports from Quebec accounted for nearly 40 per cent of gross domestic product (GDP). Today, exports account for nearly 61 per cent of GDP, or around US$140 billion.
The US is Quebec’s main market, followed by France, the UK and Germany. However, the North American Free Trade Agreement (NAFTA), now in its ninth year, has opened up new markets. Quebec looks to Latin America as a very promising region where it can expand trade.

The land is certainly rich. As North America’s major producer of pulp and paper from trees, Quebec is the appropriate place to hold the World Summit for Forest Products. The summit, to be held next year, will focus on global forestry management.
There is still considerable potential for investment in natural resources. Modern mining laws give investors considerable protection. In the last spring budget, a series of financial incentives were created to encourage businesses to set up in the remote areas of the province.

The province has among the lowest energy costs

One company, Falconbridge, has invested US$1 billion in a large nickel mine at Raglin. The mining business uses a great deal of power, and there is huge investment potential in hydropower in the lakes of northern Quebec.
More electricity will be needed as industry and the population grows. With some 34,000MW of installed capacity, Quebec is already the top electricity generator in North America, where it has some of the lowest energy costs. The only places which can compete on costs are Manitoba and British Columbia.
Meanwhile, the debate about Quebec sovereignty continues, says international relations minister Louise Beaudoin. “Ottawa still does not recognise the legitimate existence of our nation,” she says. “This is a source of frustration. With the notable exception of Haiti, Quebec is the only francophone nation in the Americas. Ninety per cent or more of francophone Canadians live in Quebec.”

She adds: “First and foremost, our nation ought to be recognised as representing a distinct and original historical experience. Like most others, our society is indeed multicultural and diverse, although English and German are linguistic minorities within the French-speaking nation of Quebec.”
Mrs Beaudoin, who hopes the Summit of the Americas will prove a turning point for Quebec, adds: “Globalisation brings about challenges, like that of building a common market of confederated nation states, wherein Quebec would be free to pursue its interests and find its niches, much like the strategy adopted by the UK within the framework of the European Union.”
Quebec’s infrastructure is also undergoing an overhaul. A master plan for Montreal’s Dorval International Airport, which covers the period 2001-09, includes the expansion of the terminal building and a new international baggage reclaim area.

The plan, which envisages 15 million passengers annually, calls for investments of C$716 million (US$450 million). Managed by Aeroports de Montreal (ADM, which also manages Montreal’s second international airport, Mirabel), the airport saw an increase of 3.4 per cent in passenger numbers in 2000, well above the Canadian average of 1.9 per cent for the year.
Together, Dorval and Mirabel handle nearly 10 million passengers a year. About 200,000 tonnes of freight is handled each year at Mirabel.

Of all the ports on North America’s eastern seaboard, Montreal offers the fastest and most direct access to key markets in Canada and the US Midwest and Northeast.
The port handles 700,000 TEU (tonne equivalent units) of containers a year. About half the containerised cargo originates from, or is destined for, Canadian markets, mainly Quebec or Ontario, and the other half is destined mainly for the US Midwest or Northeast. Some C$200 million will be invested over the next three years, most of it in container traffic facilities.