Montreal's US Suburb

Substantial economic ties exist between the North Country and Québec

Story and photos by Jessica Shea

The city of Plattsburgh is 20 miles from the Canadian border and an hour's drive away from Montreal. It is the largest city in Clinton County and the hub of the North Country's economic activities. Plattsburgh's neighbor to the north has a substantial impact of the North Country's economy.

Economic relations between Northern New York and Québec are not a novel idea. Susan Matton, the Vice President for Economic Development at the Plattsburgh-North Country Chamber of Commerce, explained how the relationship between Quebec and New York goes back several hundred years.

“A significant part of our community here in the North Country is of French-Canadian origin.”

“Plattsburgh has been affected economically by Québec as long as there have been people in the area,” Matton said. “This relationship has a huge impact on not just our economy but also on our culture and our shared heritage.”

According to Dr. Martin Lubin, a Political Science professor at Plattsburgh State University College, this shared heritage is due in part to immigration from Québec to northern New York. “A significant part of our community here in the North Country is of French-Canadian origin,” he said. “They make up as high as 20 to 25 percent of the population in Clinton County.”

Cultural impact aside, economic ties between Northern New York and Québec are significant in the relationship between the state and province. New York is the state that Québec trades most with in the United States. Much of this trading moves through Clinton County.

The Plattsburgh-North Country Chamber of Commerce does a study of the economic relationship between Clinton County and Québec every two years. As of 2004, this relationship yielded $1.53 billion dollars for Clinton County. According to Matton, this is probably the biggest driver of the North Country economy.

Matton reports that over 200 Canadian businesses have a physical presence in Clinton County and 14 percent of the county's workforce is employed at one of these Canadian-based companies.

Québec also fosters a close relationship with New York State in general. According to Dr. Christopher Kirkey, Director of the Center for the Study of Canada at SUNY Plattsburgh, this relationship is important in terms of direct foreign investment that Québec-based companies make, for example, by locating branch plants in New York and hiring people. “It is also important in job creation and the amount and volume of trade that goes to New York,” Kirkey said.

The benefits reaped from these economic ties are felt differently in Québec. Canadian companies have access to the US market. “The United States has about 300 million people and Canada only has 30 million,” Matton said. “So if you were a Canadian company, you have 10 times more potential customers in the United States than you do in Canada.”

In addition, the impact of tourism on New York and Québec's economies are huge. Currently, the exchange rate between the US and Canadian dollars is just about equal. The Canadian dollar has risen in value and is worth about 90 cents in American money. This has promoted an increase in Québecers traveling across the border to shop.

According to Matton, retail sales in Plattsburgh were up over 200 percent this summer.

People in the United States travel to Montreal and Québec City because of the offerings they have as large, foreign, metropolitan cities. Matton explains that Québec has a large marketing campaign to attract US tourists. Plattsburgh is benefiting from that campaign because of people traveling through here on their way to Québec.

“The North Country is a region of transit.”

The exchange of economic factors and tourism are monitored by the governments of New York and Québec. Every two years there are economic summits between the governor of New York and the premier of Québec. “They meet to discuss issues of common concern, like border issues, related to facilitating the flow of goods while being consistent with homeland security requirements,” Lubin explained. “Since Québec is part of Canada and New York is part of the United States, they have to pay attention to what their respective federal governments are doing in areas like trade and border security.”

Interaction between New York and Québec occurs not only at the level of governor to premier, but with officials below the governor and the premier who also interact. “They try to facilitate and reconcile the requirements of smooth flowing trade across the border from one country to the other,” Lubin said. “The North Country is a region of transit for this trade.”

According to Kirkey, future plans to enhance the economic ties between the North Country and Québec are being spearheaded by the Plattsburgh-North Country Chamber of Commerce. “The Chamber of Commerce has really been championing efforts to provide much closer ties between our two countries, between our state and the province of Quebec economically.” Evidence of this is in the annual economical summit meetings that acts as coalition between New York and Québec.

Another way ties are being strengthened between the North Country and Québec is through PSUC's Canadian Studies program. “The Canadian Studies program at the college welcomes guests and dignitaries from Canada,” Matton noted. “It is an excellent ambassador from our region to Canadian officials.”

How does cross-border trade affect your life?

Main products exported from Québec to New York State in 2004:

Aluminum	12.5%
Copper Wire	5.1%
Electricity	3.8%
Newsprint	3.4%
Printed Circuits	3.3%

Main products imported to Québec from New York State :

Printed Circuits	17.4%
Computers	7.2%
Rough-sawn lumber	3.5%
Precious metals	1.9%
Silver	1.7%