Presentation to Senate Committee on Foreign Affairs

1. Presentation to Senate Committee on Foreign Affairs February 17th, 2004

2. EDC - Facilitating Canadian Trade • EDC is Export Development Canada (Exportation et développement Canada) Canada’s official export credit agency. • EDC helps Canadian firms complete international sales, foreign buyers to purchase Canadian goods and Canadian firms to invest with confidence • Founded in 1944, EDC is a Crown corporation that operates as a commercial financial institution.

3. EDC’s Services • Risk management services • Export credits insurance • Political risk insurance • Performance security insurance and guarantees • Financing Services • Direct buyer loans • Lines of credit • Note purchase agreements • Guarantees • Leasing arrangements • Structured finance solutions

4. EDC Credit Insurance CREDIT INSURANCE • Commercial and political risks covered • Increases export opportunities • Enhances competitiveness • Increases working capital • Access to EDC world-wide credit networks Example of Credit Insurance Claim Canadian Exporter Claim Payment 90% Buyer non-payment, insolvency, Buyer contract cancellation, or political risk event EDC Recourse Mexican Buyer

5. EDC Canadian Exporter FINANCING • To offer buyers a complete sales package • To meet foreign competition • To provide a cash sale for Exporter and Repayment terms for buyer Example of Financing Loan Agreement Mexican Buyer goods & services Direct Disbursement to Exporters

6. EDC Business Volume • Billions of Canadian Dollars

7. EDC’s Sector Teams EDC Regional Offices In Canada: - Vancouver - Winnipeg - Calgary - Toronto - London - Montreal - Quebec - Halifax - Moncton - St. John’s International Representations: Brazil China Mexico Poland Small Export sales < $1 million Emerging Exporters Team Centres of Expertise Large Export sales > $1 million Mining, Infrastructure Development & Services Economics Legal Project Finance Technical Int’l Markets Equity Surface Transportation Telecom Machinery , Equipment & Advanced Technologies Base & Semi Consumer Goods Energy Agri-Food Financial Institutions Forestry Aerospace

8. EDC and Mexico • Mexico is a priority market for Canada and EDC. • Recognizing the opportunities to build on its business in Mexico, EDC established direct representation in Mexico City in April of 2000, and a second representation in Monterrey in October of 2002. • Mexico is the most important market in Latin America for EDC. In 2003 alone, EDC support totalled over $C 2.4 billion.

9. EDC Business Volume in Mexico

11. EDC Support for Canadian Exporters in Mexico # of firms supported In 2003 over 65% of our clients were small and medium sized Exporters.

13. Priority Sectors for EDC in Mexico • Power • Oil and Gas • Industrial Equip. • Automotive • Telecom • Agri-Food

14. EDC's Relationships in Mexico EDC’s success in Mexico is built on its extensive relationships with key Mexican buyers, borrowers, government agencies, financial institutions and intermediaries. • Banks (private/public sector) • Industrial conglomerates • Private sector companies • Public sector agencies and departments • Trade Associations and other intermediaries

15. Scotiabank Inverlat (through EDC-Scotiabank facility in Canada, US20 million) Banamex, US$100 million (MOU) BBVA Bancomer, US$75 million Bancomext, US$75 million (MOU) Banco Inbursa, US$50 million (MOU) NAFIN, US$30 million BANORTE, US$20 million (MOU) Banobras, US$20 million Pemex, US$50 million US$200 million US$200 million CFE, US$50 million Telmex, US$400 million América Móvil, US$250 million (for subsidiaries in Latin America) Grupo IMSA, US$50 million EDC Credit Facilities in Mexico MOU :Memorandum of Understanding

16. Other important EDC Relationships CEMEX MABE NEMAK TFM FEMSA EMPAQUES NAVISTAR FEMSA COCA COLA INNOPACK GALVAK METALSA

17. EDC’s Structured Finance Solutions • Mexico is becoming one of the more active markets for EDC in terms of structured finance transactions, particularly in the power and telecom sectors. Examples of recent signings in project finance. Transalta Campeche S.A. de C.V. Mexico US$ 122,000,000 (EDC support included Political risk insurance and Financing) Gas fired power plant Joint Lead Arranger

18. EDC Market Representation in Mexico • Presence established in Mexico City in April 2000 and in Monterrey in October 2002 reflect importance of Mexican market. • EDC’s on the ground representation works in close collaboration with Canadian Embassy in Mexico City and Consulates in Guadalajara and Monterrey. • Support to EDC and Canadian Exporters through : • Relationship building • Transaction support • Market intelligence

19. EDC Market Representation in Mexico Mexican buyers, borrowers, and project sponsors as well as Canadian firms with an interest in EDC are invited to contact: Douglas Fortney Regional Manager, EDC (52-55) 5387-9316 Fax. (52-55) 5387-9317 mhough@edc.ca Miguel González EDC Assistant (52-55) 5387-9318 Fax. (52-55) 5387-9317 mgonzalez@edc.ca The Canadian Embassy in Mexico Schiller St., No. 529, Polanco, 11560 Mexico, D.F. Noé Elizondo Regional Manager, EDC (52-81) 8344-3200 ext. 3360 Fax: (52-81) 8340-7703 nelizondo@edc.ca Canadian Consulate Edificio Kalos 108-A Zaragoza 1300 Sur Monterrey, N.L. México 64000