The Atlantic Region is strategically located at the north-eastern tip of the continent, acting as a North American gateway at the intersection of three powerful and shifting trade networks-the north-south NAFTA, the EU-NAFTA and the Suez Express route (from South and East Asia via the Suez Canal). Trade relationships between the region and the United States have been strengthened; there is a growing relationship with Europe and in particular with Norway and Ireland, and strong potential exists to diversify into new market opportunities, particularly in China, India, Brazil, Mexico and other high-growth emerging markets. Trade is integral to the economy of the Atlantic region, with the total value of international and interprovincial trade equivalent to almost 130% of GDP-higher than the national average.

An effective, efficient and safe multi-modal transportation system serving the Atlantic Provinces and beyond is critical to ensuring that the region can maintain and enhance its role as the Atlantic Gateway to Canada, contributing substantially to the economic competitiveness and success of this nation.

The Atlantic Region acknowledges that transportation is a primary force for economic development in all provinces and territories of Canada. Investments in transportation make the economy more competitive and productive and constitute one of the best ways that government can support Canada's economic well being. For less populated provinces and territories in this nation, transportation infrastructure and services take on an additional strategic dimension. Atlantic Canada, like much of the country, is characterized by two distinct economies-the rural economy and the urban economy. The difference in Atlantic Canada is that the share of population living in rural areas is significantly higher than the national average of 20%. In Newfoundland and Labrador the share of the population living in rural areas is 42%, in Nova Scotia 44%, in New Brunswick 50% and in Prince Edward Island 55%. The new rural economy, with its emphasis on exports, makes a significant contribution to the regional economy. Realization of new economic activity in rural areas is highly dependent on reasonable access to transportation.

The highway system is the backbone of the region's economy, providing the main mode for moving passengers and freight to and from the region. About 80% of Atlantic exports to the United States, for example, are transported by road. A well-maintained highway system is particularly important for Newfoundland and Labrador and Prince Edward Island, where there is no access to rail for surface shipping or traveling.

International and inter-provincial ferry services are a critical component of the core transportation network. These ferry services are, in effect, integral components of the national highway system. They provide vital direct transportation, tourism, and commercial links between provinces, as well as entry/exit points for the United States. Travelers and freight haulers realize enormous benefits and efficiencies through these marine routes, and they relieve pressure on major congested highways.

The network of airports, seaports and railways also provides access to external markets and makes an important contribution to economic prosperity in the Atlantic Region.

Major upgrades to the National Highway System are long overdue. The top transportation investment priority for the Atlantic Provinces is highways, including key trade corridors.