Economic overview: Canada and Mexico - December 13, 2006

Canada: GDP: -0.3% in September; + 0.4% in Q3; +2.5% compared to Q3 2005 Industrial Production: - 1.7% in September Unemployment: 6.3% in November (6.4% a year ago) Consumer Prices: + 0.9% in Oct (+ 2.6% a year ago); consumer spending on durable goods grew 2.2% in Q3 – twice the rate of Q2. Sales of motor vehicles increased 2.5% in Q3 over Q2 Housing: New housing construction declined 3.3% in Q3, and the average resale value declined by 4.4% Trade Balance: + $53.7 billion at the end of September (latest 12 months) Exports: After two consecutive quarters of decline, exports grew 0.9% in Q3. Exports of automotive products declined 6.7% whereas imports of automotive products grew 4.4% - the third quarter in a row of growth Current Account: + $28.9 billion at the end of Q3 (latest 12 months) Automobile Production: A total of 227,584 units were produced in November -- 10.5% less than November 2005. Year-to-date at the end of November, 2,384,136 units were produced -- 4.2% behind last year's pace. Exchange Rate: CA$1.15 to US$1 as of Dec 6 (CA1.16 to US$1 a year ago) Steel production: 1.355 million mt in October and 13.325 million mt for the first 10 months of 2006. Both numbers are slightly ahead of last year's production. Mexico: GDP: + 4.6% in Q3 (compared to Q3 2005) Consumer Prices: + 4.3% in October (compared to October 2005). Preliminary numbers show a 0.52% increase for November with the core inflation rate going up 0.29%. The Central Bank of Mexico still believes that the inflation rate for 2006 will be less than 4.0% . Industrial Production: + 5.0% in September (compared to September 2005) Automobile Production: A total of 181,930 units were produced in November (almost identical to Nov 2005). In the January – November period of this year, 1,893,897 vehicles were produced, which is a whopping 23.2% ahead of last year's production Steel Production: 1.47 million mt (e) in October (1.42 million mt in September and 1.30 million mt in October 2005) Trade Balance: - $5.8 billion at end of Oct. (for the latest twelve months) Current Account: - $1.3 billion at end of Q3 (for the latest twelve months) Unemployment: 3.98% in September (3.70% in September 2005), slightly up from 3.96% in August Currency: Peso 10.9 to US$1 as of December 6 (Peso 10.4 a year ago to US$1)