Export Development Canada (EDC) has reported a 30% increase in its business volume during the first half of this year, reaching US$37.4bn. Almost a third of this, around US$12bn was in trade in emerging markets, marking a 58% increase from last year.

Commenting on these latest statistics, EDC’s president and CEO, Eric Siegel says: “EDC’s efforts to help Canadian exporters and investors in opportunity-rich but often higher risk emerging markets is directly driving this significant increase in our overall business volume. These numbers are very encouraging as they show Canadian companies are globalising their business to compete and grow internationally.”

Mexico tops EDC’s emerging markets statistics with US$1.12bn-worth of business completed in the first six months of 2007, followed by China at US$872mn, Brazil at US$637mn, and Russia at US$597mn, Chile at US$559mn and India with US$550mn-worth of trade.

Companies in Ontario account for the largest proportion of EDC’s business volume with US$13.8bn -worth of trade.  This was followed by Western Canada, Quebec, and Atlantic Canada.

Overall EDC’s operating income, excluding debt relief, increased by 63% in the first six months of 2007 compared to the same period in 2006. This is mainly due to previously impaired aerospace loans returning to performing status during the first six months of the year as a result of successful airline restructurings.
When including debt relief, EDC’s operating income has actually decreased from US$523mn in the first half of 2006 to US$426mn for the same period in 2007.
This is due to EDC receiving US$261mn in debt relief in the first half of 2006 compared to US$1mn received this year. Debt relief payments occur when the Canadian government forgives sovereign debts to highly indebted developing countries for debts incurred in previous years. EDC is then reimbursed for an amount equal to the debt relief granted by the government. These payments impact on both operating and net income.