United Kingdom-Alberta Relations January 2005 by fdjerue7eeu


									                UNITED KINGDOM - ALBERTA RELATIONS

PROFILE                                                                     RELATIONSHIP OVERVIEW
                                                                            •    Traditionally, relations with Britain have been very
Capital: London                                                                  close, with many Albertans serving in Britain
                                                                                 during both the First and Second World Wars, and
Population: 60 million (2004)                                                    many more Britons making Alberta their new home
                                                                                 throughout the last century.
Language: English
                                                                            •    Alberta’s oldest foreign office opened in London in
                                                                                 1913, with a focus on immigration, trade and
Government: Constitutional Monarchy
Head of State: Queen Elizabeth II                                           •    Alberta’s relations with Britain ebbed somewhat
                                                                                 during the 1990s as the British closed their
Head of Government: Prime Minister Tony Blair                                    Consulate General in Edmonton and Alberta
                                                                                 closed its office in London. During this period
Currency: Pound, $1CDN = ₤ 0.43 (January 2005)                                   Britain focused increasingly on Europe and Alberta
                                                                                 intensified its ties with the US and Asia.
GDP: US$ 2,121 billion (2004 est.)                                          •    Reinvigoration of economic relations between the
      GDP (PPP): US$ 1,809 billion (2004 est.)                                   UK and Alberta started in the late 1990s when the
                                                                                 UK opened a trade office in Calgary and Alberta
GDP Per Capita (PPP): US$ 30,260 (2004 est.)                                     reopened its trade office in London in November
GDP growth rate: 3.2 (2004 est.)
                                                                            •    Premier Klein’s May 2002 and November 2003
                                                                                 investment missions to London are recognition of
Inflation: 1.2% (2004 est.)
                                                                                 the continued importance of British investments for
                                                                                 Canadian economic development.
Unemployment: 4.7% (2004 est.)
                                                                            •    Two-way trade and tourism continue to be a strong link
Key Industry Sectors: machinery, electric power                                  between the two economies, with tourism revenues
equipment, automation equipment, railroad equipment,                             actually exceeding the export earnings for Alberta.
shipbuilding, aircraft, motor vehicles and parts,                                In 2003, Alberta exports were worth $183 million,
electronics and communications equipment                                         compared to tourism revenues of $223 million.
                                                                            •    The United Kingdom was Alberta’s second largest
                                                                                 source of tourists with over 200,000 visitors in 2003.
                                                                            •    Approximately 8,000 British troops a year are
                                                                                 stationed in Alberta. About 5,500 of these are
                                                                                 stationed at CFB Suffield, with over 430
                                                                                 permanent staff and 150 to 300 temporary staff
                                                                                 throughout the year. Estimated British expenditure
                                                                                 at the base is approximately $40-80 million
                                                                                 per year.
Information Compiled by International Relations, Alberta International and Intergovernmental Relations                January 2005
                         Alberta Exports to the UK                                    Alberta's Merchandise Exports
                                (1999-2003)                                                  to the UK in 2003
                                                                                          35%                                    Nickel
                                  198.5                                                                                           39%
 $CDN millions

                  200                                                        Woodpulp
                  190                                181.1    183.7            3%
                  180                      175.5
                  170                                                                 Therapeutic
                                                                                                        Oil & Gas
                  160                                                                   Equip.           Equip.
                         1999     2000      2001     2002      2003                       4%                7%

UNITED KINGDOM OVERVIEW                                                     •     In October 2004, the United Kingdom launched its
•                Recent devolution has brought a new parliament to                International Energy Strategy. The Strategy
                 Scotland and a Welsh National Assembly.                          recognizes that although the UK is an important
•                Britain is a member of the EU but has chosen to                  exporter of oil and gas, it is likely to become a net
                 remain outside the Euro zone.                                    importer by 2010. By 2020, the UK is expected to be
                                                                                  importing about 75% of its primary energy needs.
•                London is Europe’s leader in the financial sector.
                 In 2004, the European Cities Monitor ranked                •     Britain has recently become Russia’s top foreign
                 London 1st among the leading cities in Europe to                 investor, with landmark oil and gas deals signed by
                 locate a business.                                               energy giants BP and Royal Dutch/Shell.
                                                                            •     In May 2002, Calgary-based BP Canada Energy
TRADE AND INVESTMENT                                                              Company officially opened a world-class
•                The UK serves as a preferred entry point for many                petrochemical facility in Joffre, Alberta.
                 Alberta companies seeking access to the EU, due            •     In 2004, 29 Alberta exploration and production, and
                 to the common language and similar business and                  drilling and service companies were reported to be
                 legal environments. Britain’s prominent role in the              active in the UK and in the North Sea.
                 EU and its ability to influence EU standards and
                 practices makes it an important ally for Alberta.          AGRICULTURE
•                Over the past five years, the UK was Alberta’s 7th         •    Alberta attaches great importance to reform of the
                 largest foreign trading partner and the largest in              EU’s Common Agricultural Policy (CAP) and to
                 Europe.                                                         agricultural trade liberalization. Subsidies
•                Alberta’s largest exports to the UK in 2003                     provided under the CAP distort world markets and
                 included nickel, wheat, oil and gas equipment,                  depress world prices.
                 mechano-therapeutic equipment (including                   •    Notwithstanding the EU’s potential as a market for
                 massage equipment), and woodpulp.                               Alberta agri-food exports, there are number of
•                Alberta’s imports from the UK over the last five                impediments that constrain trade. Among the
                 years have averaged almost $600 million,                        more serious are:
                 including pharmaceuticals, gas turbine parts, and                   o Limits on access (e.g., tariffs, regulatory
                 telecommunication equipment.                                            barriers);
                                                                                     o Restrictive practices applied to genetically
•                In 2003, the UK was Canada’s third largest source of
                                                                                         modified products, including canola;
                 foreign investment totalling $27.1 billion CDN, which
                 accounts for almost 8% of total FDI to Canada.
                                                                                     o The continued EU ban on hormone-treated
                                                                                         beef, despite a 1999 WTO ruling requiring
•                British investment in Alberta has been concentrated                     that the ban be lifted and no new scientific
                 in the fields of energy and real estate.                                evidence to justify it.
•                The UK receives 10% of Canada’s foreign direct
                 investment. In 2003, Canadian investment in the            EMERGING OPPORTUNITIES
                 UK totalled $40.7 billion. Alberta investors in the
                 UK include ATCO, Bow Valley and Talisman.
                                                                            •     Agri-Food: There exist marketing opportunities for
                                                                                  Alberta companies in natural and organic food
                                                                                  products. Alberta firms could benefit in the longer
ENERGY                                                                            term in the new emerging areas of supplying
•                The United Kingdom is the largest petroleum producer             components to the health, pharmaceutical and
                 and exporter in the EU, with production of about                 food/feed ingredient markets as well as the non-food
                 2.4 million barrels per day (bbl/d), and 4.7 billion             industry sectors, building on its expertise in the area
                 barrels of proven oil reserves.                                  of processes and packaging.
•                The UK is the also the largest producer of natural
                 gas in the EU, with annual production of 3.6 Tcf
                 ranking fourth worldwide. The UK has 22.2 trillion
                 cubic feet (Tcf) of natural gas reserves.
Input was provided from the departments of: Economic Development, Energy, Learning and Agriculture, Food and Rural Development
•    Information Technology: The UK is the second                           AGREEMENTS
     largest ICT market in Western Europe and there are                     •     In 1997, Canada and the UK signed the Towards The
     good opportunities for Alberta wireless and software                         Next Millennium a Joint Declaration to broaden the
     companies in areas such as e-learning, e-commerce,                           range and depth of bilateral ties in areas such as trade
     business solutions software and wireless LANs.                               and investment, science and technology, education,
•    Medical Equipment: Alberta firms can enter the                               defence, and parliamentary contacts.
     health sector market with product upgrades,                            •     Canada and the UK are both members of the
     specialty products and cost-effective cutting-edge                           Commonwealth, NATO, G8 and WTO.
•    Aerospace: The long-term outlook of the UK                             RECENT VISITS
     aerospace industry is good due to their                                •     The British High Commissioner is a regular visitor to the
     involvement in major international collaborative                             province, as is the Consul General from Vancouver.
     programs such as Airbus A380, the Joint Strike
     Fighter (JSF), and A400M (Future Large Aircraft)
                                                                            •     November 2003: Premier Klein and Minister Norris
                                                                                  (Economic Development) attended the official
     Tactical Transport Aircraft for a selection of
                                                                                  reopening of the Alberta-London office.
     European air forces.
•    Oil and gas Equipment: The UK’s expanding oil and
                                                                            •     May 2003: Alberta International & Intergovernmental
                                                                                  Relations Minister visited London during his Mission to
     gas production capacity offers promising opportunities
     for Alberta equipment and services suppliers.
•    Environmental Technology: There are
                                                                            •     June 2002: UK Chief of Defence Staff, Sir Michael
                                                                                  Boyce, visited Alberta (CFB Suffield) with British High
     opportunities for companies with environmental
                                                                                  Commissioner Burns.
     expertise such as soil remediation technologies.
                                                                            •     June 2002: Prime Minister Tony Blair visited Alberta
EDUCATION AND CULTURE                                                             during the G8 Summit in Kananaskis.
•    On average, 4-5 teachers per year participate in                       •     May 2002: Premier Klein visited London on an
     the League for the Exchange of Commonwealth                                  Investment Mission.
     Teachers.                                                              •     February 2002, the Minister of Alberta Economic
•    Twelve educators from Gloucestershire, UK will be                            Development visited London.
     visiting Edmonton for one week in February 2005                        •     2002: Britain’s Minister of Sport, Hon. Richard Caborn,
     to examine teaching and learning strategies, as                              visited Calgary.
     part of the LECT program which promotes the                            •     2001: The Hon. Dr. Kim Howells, Minister of
     international study of good practice.                                        Tourism and Broadcasting visited Alberta.
•    Both the University of Alberta and the University of                   •     1999: British Minister of State for Trade and Industry,
     Calgary have agreements with numerous British                                Hon. Brian Wilson, opened the new British trade office
     institutions, such as Edinburgh University and the                           in Calgary.
     University of Leeds.
•    Over 150 delegates from Canada and the UK met                          ROYAL VISITS
     at the University of Alberta for the 2nd Partnership
                                                                            •     Queen Elizabeth has visited Canada 20 times
     for Knowledge Forum (P4K) in 2001. The Forum’s
                                                                                  (3 times in Alberta) since her coronation in 1953:
     goal is to strengthen Canada-UK relationships in
                                                                                       o 1973: Calgary Stampede
     the academic arena and between universities and
                                                                                       o 1978: Commonwealth Games in Edmonton
     industry. The event was hugely successful and
                                                                                       o 1990: Queen Elizabeth II Cup show jumping
     follow-up is ongoing in a number of areas.                                                   championship at Spruce Meadows
•    Grant MacEwan College has a letter of
     understanding with the Liverpool Institute of the                      •     A Royal visit is expected between May 17-25, 2004 as
                                                                                  part of Alberta’s Centennial celebrations.
     Performing Arts (LIPA –a school started by Paul
     McCartney) that allows college music students to
     enter second year of a three-year Bachelor of                          DIPLOMATIC REPRESENTATION
     Music degree program. Edmonton is one of two                           •     His Excellency David Reddaway is the
     stops in Canada on LIPA’s audition tour.                                     High Commissioner of the United Kingdom in Ottawa.
                                                                            •     Mr. Mel Cappe, Canadian High Commissioner to the UK.
COMMUNITY                                                                   •     Mr. James Rawlinson is the British Consul General
•    Over 1.2 million Albertans claim English, Welsh or                           in Vancouver.
     Scottish ancestry. The English are the largest ethnic                  •     Mr. Rob Elgie heads the British trade office in Calgary.
     group in the province and the Scots are the third                      •     Co-located in the Canadian High Commission in
     largest.                                                                     London is Alberta’s office and its Commercial Affairs
                                                                                  Counsellor, Mr. Chris Heseltine.

Input was provided from the departments of: Economic Development, Energy, Learning and Agriculture, Food and Rural Development

To top