Canada’s Airports Support House Committee Call for an International Business Strategy

Wednesday, May 2, 2007 -

Canada’s Airports Support House Committee Call for an International Business Strategy
Airports urge federal government to act on several Standing Committee on International Trade recommendations to improve competitiveness

OTTAWA (May 2, 2007) – The Canadian Airports Council today endorsed several key recommendations of the House of Commons Standing Committee on International Trade’s Ten Steps to a Better Trade Policy.The CAC joined the committee’s call to negotiate more international air service agreements, wrap up existing free trade agreement (FTA) negotiations, pursue more foreign investment protection and promotion agreements (FIPAs) and improve domestic policy to help Canadian companies compete globally.

“The world economy is becoming increasingly interdependent through international trade and the global competitiveness of Canada’s airports directly impacts the ability of Canadian communities to fully participate in this trade,” said CAC President and CEO Jim Facette.“For Canadian airports to be more competitive, it is important that the federal government recognise and address the domestic and international policy issues that saddle our airports with uncompetitive costs and restrict access to international opportunities.”

Among the committee’s ten steps of particular interest to Canada’s airports:

• Wrap Up Existing FTA Negotiations – It is important that Canada conclude outstanding negotiations with several key trading partners, which also represent important markets for Canadian air service with which there are very air regimes today.Central America, the European Union, Brazil, Singapore and South Korea are among the markets mentioned in the report.
  

• Pursue FIPAs and Other Bilateral Agreements – The committee calls on the government to “expand its network of air services agreements around the world, including with Singapore.”Transport Minister Cannon has secured several new air service agreements in the past year, and Canada’s airports are seeking an ambitious negotiating schedule of additional markets over the coming months.
  

• Improve Domestic Policy to Help Canadian Companies Compete Globally – Canada’s airports have been pursuing a reduction in airport rent and other policy initiatives that would make Canada’s airports more cost competitive with their global counterparts.
  

The CAC notes that several of the standing committee’s recommendations are consistent with the CAC’s Five Point Plan for Competitiveness of airports presented to the Standing Committee on Finance in the fall.During the CAC’s Airports Canada conference in Ottawa-Gatineau last week, global competitiveness of Canada’s airports was a recurring theme.

“During Airports Canada, Canada’s airports, airlines and other industry stakeholders examined “The Runway Ahead” for airports,” said Mr. Facette.“The Standing Committee on International Trade report reflects what airports have advocated for some time now; that Canada needs an aggressive and competitive international business policy that recognises that Canada doesn’t operate in isolation anymore.We are part of a global economy and competitiveness is key to success.”

About the Canadian Airports Council

The Canadian Airports Council (CAC) is the voice for Canada’s airports.Its 45 members encompass more than 150 airports, including all of the National Airports System (NAS) airports and most significant municipal airports in every province and territory. Together, CAC members handle virtually all of the nation’s air cargo and international passenger traffic and 95% of domestic passenger traffic.They create well in excess of $30 billion in economic activity in the communities they serve.And more than 150,000 jobs are directly associated with CAC member airports, generating a payroll of more than $8 billion annually.