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Atlantic Canada can become an Atlantic Tiger by increasingly taking advantage of the North American market and building on its regional successes, said Bill Downe, Deputy Chair, BMO Financial Group and CEO of BMO Nesbitt Burns.

Speaking today before the Saint John Board of Trade, Mr. Downe said that Atlantic Canada has been successful in taking advantage of its proximity to New England and building strong ties with this market, by understanding its economy, strengths, needs and culture.
He noted that Atlantic Canada's share of total Canadian merchandise exports to the U.S. Northeast has grown substantially over the past 10 years, from 21 per cent in 1993 to 37 per cent in 2003.

"Increasingly, New Brunswick's traditional resource exports are augmented by exports from the New Economy. You have an educated and bilingual workforce and dynamic universities. You have a world-class telecommunications infrastructure. You have the basic ingredients that can capture markets across the border, and use that as a launching pad for the rest of the world, said Mr. Downe. He also noted that Atlantic Canada can benefit from its close proximity to New England, a market whose GDP of $900 billion (Canadian) represents nearly 85 per cent of the entire Canadian economy.

Mr. Downe observed the global economy is made up of a multitude of regional economies and that the way to compete globally is to win regionally. In this environment, he emphasized the importance for businesses of knowing their customers and their competitive landscape that knowledge is a guiding principle for BMO, which has enhanced the local decision-making authority granted to its Commercial Relationship Managers in New Brunswick, and established a Corporate Finance Unit based in Halifax. He said "BMO would not be satisfied until it has established itself solidly as the number one small business lender in Atlantic Canada."

Reflecting on lessons learned by BMO that are applicable to businesses of any size,
Mr. Downe said that North American markets are best-consumed one bite at a time, with businesses establishing a niche within their region and then expanding to one region south of the border as a stepping-stone for future growth.

He also noted that businesses that actively seek out NAFTA opportunities are less likely to be vulnerable to competitors from elsewhere in the world in their regional market and that customer knowledge is a major competitive advantage for successful expansion.

"That's a lesson BMO is taking to heart as we expand our business with Atlantic SMEs. We believe this region can become an Atlantic Tiger. We want to be a player in helping make that happen," concluded Mr. Downe.

Established in 1817 as Bank of Montreal, BMO Financial Group (TSX, NYSE: BMO) is a highly diversified North American financial services organization. Its Canadian retail arm BMO Bank of Montreal operates 76 branches in Atlantic Canada, including 24 branches in New Brunswick, and is the number two small business lender in the region. BMO Nesbitt Burns, one of Canada's leading full-service investment firms, operates 15 offices in Atlantic Canada.

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