OTTAWA — Canada’s cheap dollar has improved our export position.

A federal report on competitiveness in G7 countries placed Canada first, with an 18 per cent advantage in cost of production.

Food processing was one of the lesser lights in the overall picture with a 7.5 per cent advantage. Manufacturing had a 10 per cent advantage.

In a press release, Federal Minister of Agriculture Lyle Vanclief trumpeted Canada’s showing, saying Canadian agri-processors produce "quality products ... in a cost effective manner." However, much of the advantage comes from a low Canadian dollar which has plummeted below 63 cents in U.S. dollars.

According to the report by a consulting firm called KPMG, corporate income tax was lower in Canada than in any other G7 country as was cost of electricity.

The EU also had a high competitive rating for the 12 businesses but that is largely the result of a 24 per cent decline in its money value compared to the U.S.

Around the time the press release came out, finance minister Paul Martin was telling the public the Candaian dollar was too low on world money markets.

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