In January 1990, the City of Markham approved an economic development strategy that targeted the need to assist the business sector in creating world-wide trading and investment opportunities. It was acknowledged that to maintain the City's strong economic position, Markham must promote itself internationally and assist its businesses in capitalizing on global trading and investment opportunities. To address these opportunities, the City initiated a partnership comprising the Markham Board of Trade and the York Technology Association. To ensure a community economic focus, the partnership coined the concept of "Economic Alliance". An economic alliance is defined as an association between municipalities and business groups of two geographic jurisdictions with the purpose of establishing networks to develop business relations and opportunities.

The stated objective of Markham's Economic Alliance Program is to "create a global network of business relationships with communities and business groups in strategic market locations and to create an international awareness of Markham's business assets and locational benefits". Since its inception in 1990, over a dozen economic alliance agreements have been negotiated, of which at least 4 remain active:

The Economic Alliance program has provided Markham and its business community with a more diverse presence in the global marketplace, and a growing network of contacts. In particular, the benefits of the program include:

• A source of contacts for businesses wishing to expand export opportunities
• An economical promotional vehicle for Markham and Markham businesses in international markets
• A guarantee of positive/high quality business and government contacts/protocol in partnership communities
• A proactive and qualified source of investment leads
• An opportunity to learn and collect data on competitive global business and government issues of importance to Markham

Based on the experience learned from the economic alliance program, the City of Markham chose to elevate select relationships to a higher level of "twinning" or "sister cities". Whereas the City's Economic Alliance program was founded on the basis of trade and investment attraction potential, it has been recognized that there are also advantages for the City in forging ties to municipalities based on cultural, social, and political interests and affinities. In 1998, Markham Council endorsed a formal "twinning policy" and adopted a set of criteria for forging these new relationships between municipalities.

Twinning/Sister Cities Criteria
Overall factors to take into consideration:

1. Genuine interest on both sides
2. Long-term commitment for the relationship
3. Adequate financial support for exchanges and maintenance of the sister cities relationship
4. Realistic assessment of what makes a successful sister cities relationship
5. Look for best results which will capitalize on existing strengths
6. A desire to learn from and share with a sister city can, in many cases, balance the lack of any similar characteristics with a potential sister city.

Specific categories of factors to take into consideration:
General:

1. Population
2. Similar geographic location (e.g., port city, airport, mountains, etc.)
3. Comparison of key industries
4. Ethnic and cultural composition
5. Existing linkages (e.g., universities, businesses, etc.)
6. Role for City's community organizations in the relationship

Cultural/Civic/Educational (the presence of the following):

1. Museums, theatres, symphony/orchestra, libraries
2. Variety of civic organizations
3. Newspapers, television stations, sports teams, hospitals
4. Schools, colleges, universities

Economic:

1. Similar economic conditions
2. Level of government bureaucracy
3. Language/cultural patterns not creating barriers
4. Market analysis of industries
5. Investment climate and present investment levels
6. Branches of banks, factories, airlines present
7. Number of foreign residents locally

Commercial:

1. Trade and investment climate
2. If a port city; port connections
3. Trade in services (e.g., high-tech, education, business services, etc.)
4. Trade exchange potential, air links
5. Active Board of Trade or Chamber of Commerce
6. Diplomatic presence, Honorary Consuls
7. Number/flow of tourists
8. Presence of foreign businesses locally
9. Local businesses engaged in international activity

Political:

1. Geographic location
2. History of diplomatic relations
3. Present degree of cooperation in political, economic, commercial, and cultural fields

At this time, the City of Markham maintains one twinning agreement: that being with the City of Nordlingen, Germany (birthplace of Markham's founder, William Berczy).