We often hear our European clients say: “We want to focus on USA!”






To which we reply; if you are wishing to move from Europe to North America, and your main market focus is USA, due to it being 10 x larger in market size, we often advice to begin in Canada. Why? Well, simply because Canada has less competitors, litigation risk and a similar european business mentality along with the lowest corporate tax. 
Further, logistically it is possible to reach most large Eastern US cities by cheap road transport within a few hours, from either Toronto, Montreal or Ottawa, and there are no Custom Duties due to NAFTA. 
Below are some facts to support the argument*:
ECONOMIC
Canada’s prudent fiscal policy, low inflation, interest and unemployment rates, and a corporate tax framework is among the best in the world.  Canada has a status as an emerging energy and resource superpower, and strategic investments in technology, education and healthcare.
AAA credit rating: In response to Canada’s improved fiscal balance sheet and excellent long-term growth prospects, the country has enjoyed a AAA international credit rating (the highest rating) from Moody’s Investors Services since 2002.
The global economic crisis may be deepening, but Canadian financial institutions remain resilient. For the second year in a row, the World Economic Forum’s Global Competitiveness Report has found that Canada has the soundest banking system in the world. 
The Canadian dollar strong and stable, due to it being backed by natural resources like; water, gold, oil and uranium etc...
TAXES
Canada offers lower businesses tax rates. Canada has the lowest payroll taxes among the G7 countries with a corporate income tax rate of 15 percent, less than half of the U.S. rate.
Canada’s combined federal and provincial-territorial statutory corporate tax is 27.2% as of 2012. Canada has a statutory corporate tax rate advantage over the United States of almost 12 percentage points.
NAFTA (North American Free Trade Agreement)
Access to more than 442 million consumers and a combined GDP of more than US$17.0 trillion. Many Canadian production hubs are actually closer to target U.S. markets than American production sites. Of Canada's 20 largest cities, 17 are within an hour and a half drive of the United States. As an example, Vancouver, Windsor, and Montréal, are only minutes away and currently app 70% of goods made in Canada are exported to USA.
CETA
On 18 October 2013, EU and Canada reached a political agreement on the key elements of a trade agreement (CETA). The agreement will remove over 99% of tariffs between the two economies and create sizeable new market access opportunities in services and investment..
HUMAN RESOURCE
Canada is #2 in the OECD in higher education achievement—More than half of Canadians between the ages of 25 to 35 have a post-secondary education, either at university, college or technical school. 

*Source: http://investincanada.gc.ca/eng/advantage-canada.aspxhttp://trade.ec.europa.eu/doclib/press/index.cfm?id=973http://investincanada.gc.ca/eng/advantage-canada.aspxshapeimage_1_link_0shapeimage_1_link_1