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BMO Financial Group

April 02, 2012 14:45 ET

Canadian Businesses Well Positioned to Tap Foreign Markets-BMO

Governor of the Bank of Canada Urges Business Owners to Increase Exports

TORONTO, ONTARIO--(Marketwire - April 2, 2012) - With the Governor of the Bank of Canada, Mark Carney, today urging Canadian businesses to look to exports to emerging markets for growth, BMO Bank of Montreal released survey results showing the top foreign markets where Canadian business owners are looking to expand.

Mr. Carney's speech Exporting in a Post Crisis World comes on the heels of the Federal Budget, which signalled a commitment to various trade deals that will promote closer ties with faster-growing foreign markets.

Mr. Carney noted that by the end of last year, Canadian exports still remained about eight per cent below their pre-recession peak.

Foreign Markets - Canadian Businesses

According to a Leger Marketing survey commissioned by BMO Commercial Banking, the top foreign markets for Canadian businesses looking to expand include:

United States: 56 per cent
Europe: 34 per cent
Central and South America: 17 per cent
China: 15 per cent
India: 15 per cent
Mexico: 12 per cent

Doug Porter, Deputy Chief Economist, BMO Capital Markets, noted that emerging markets are currently growing almost four percentage points faster than the industrialized world with a six per cent jump expected for the year ahead, versus less than two per cent in the industrialized world.

"While exports to emerging markets currently account for about 12 per cent of Canada's export share - versus the five per cent share 10 years ago - there is significant potential for growth for Canadian businesses to these markets in the years ahead," said Mr. Porter.

"Coming out of the recession, many Canadian businesses sourced alternative suppliers and diversified to ensure they are not only reliant on a single customer, sector or market, while making strategic spending decisions to boost innovation and enhance productivity," said Cathy Pin, Vice President, Commercial Banking, BMO Bank of Montreal. "Canadian businesses are well positioned to grow here at home and capitalize on opportunities in emerging markets. It is one of the reasons we have made $10 billion in credit available over the next three years to help businesses grow and create new jobs," added Ms. Pin.

About BMO Financial Group

Established in 1817 as Bank of Montreal, BMO Financial Group is a highly-diversified North American financial services organization. With total assets of $538 billion as at January 31, 2012, and more than 47,000 employees, BMO Financial Group provides a broad range of retail banking, wealth management and investment banking products and solutions.

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