OTN - Private Sector Trade Note - vol 4 2011


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Oppurtunities for Trade in Services with Canada

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OTN - Private Sector Trade Note - vol 4 2011

  1. 1. A product of the Private Sector Outreach of the Office of Trade Negotiations (OTN), formerly the+ CRNM Private Sector Trade Note Opportunities for Trade in Services with Canada1 TRADE IN SERVICES AND engineering services, computer and Canada had a services trade deficit with INVESTMENT BETWEEN CARICOM- CANADA OVERVIEW information services, management CARICOM (or CARICOM had a services services and research and development trade surplus with Canada). Canada’s Over the period 2003-2007, there was services. For the period 2003 – 2007, greatest deficit with CARICOM is seen active trading in services between Canada exported a total of Can$7,433 in the trade of commercial services, Canada and CARICOM (see table 1). million worth of services to CARICOM where Canada recorded a negative Canada had an overall trade in (2.23% of Canadian services exported to balance of Can$-953 million. services deficit with CARICOM over the world). Of these services exports, the period 2003-2007. This was driven travel services accounted for 7.26%, to a large extent by significant trade in commercial services accounted for insurance services between Barbados 84.91% and transportation and and Canada (mainly Ontario). Services government services 7.83% (see table 1). that were being traded between Canada and CARICOM included travel For this same period 2003 – 2007, services, commercial services, Canada imported a total of Can$9,448 transportation and government million worth of services from CARICOM services. (2.3% of all Canadian services imported from the world). Of these imported Of the services that were traded, trade services, travel services accounted for in commercial services was the most 13.9%, commercial services accounted dominant and generated the highest for 76.88%, and government and income for both parties. Apart from transport services 9.20%.Overall, the trade in insurance services, other data shows that for the period 2003-2007, commercial services of some Canada imported more services than it significance included architectural and exported to CARICOM, which means that www.crnm.org
  2. 2. The greatest potential for trade in is in Barbados, in financial services, which is The greatest numbers of refugees fromservices between CARICOM member Canada’s third largest destination for FDI CARICOM in Canada are from Haiti,states and Canada exists in the behind the United States (US) and the United followed by, St. Vincent & GrenadinesProvinces of Ontario, Quebec, Alberta Kingdom (UK). Similarly, the bulk of and Guyana. For the period 2003 toand British Columbia. CARICOM’s investment in Canada is from 2009, there was a movement of workers Barbados. from all CARICOM member states toThe greatest number of permanent Canada. Provinces receiving the highestresidents from CARICOM in Canada was Trade in goods between Canada and number of workers from CARICOM arerecorded from Jamaica, followed by CARICOM takes place mainly between Ontario, Alberta, Quebec, BritishGuyana and Haiti. The CARICOM CARICOM member states and the Canadian Columbia and Manitoba. Prince Edward Island, Yukon, North West territories and Table 1: Canada’s Trade in Services with CARICOM (2003‐2007) Nunavut recorded a small number of workers. SERVICES (CDN$’000) 2003 2004 2005 2006 2007 TOTAL % Categories of workers moving fromTotal Services Receipts (Exports) 1,832 1,477 1,140 1,433 1,551 7,433 100% CARICOM states to Canada ProvincesTravel 86 102 106 118 128 540 7.26% and Territories include:Commercial services 1,671 1,259 913 1,178 1,290 6,311 84.91%Transportation and government services 75 116 121 137 133 582 7.83% senior management occupations; management occupations in business, finance, natural andTotal Services Payments (Imports) 2,188 2,260 1,641 1,641 1,718 9,448 100% applied sciences, health, socialTravel 230 316 270 258 240 1,314 13.91% science, education, governmentCommercial services 1,839 1,809 1,179 1,192 1,245 7,264 76.88% services and religion, art, recreationTransportation and government services 119 135 192 191 232 869 9.20% and sports, sales and service occupations; paraprofessional occupations inTotal Exports - Total Imports -356 -783 -501 -208 -167 -2,015 100% law, social services, education andTravel -144 -214 -164 -140 -112 -774 38.41% religion;Commercial services -168 -550 -266 -14 45 -953 47.30% skilled and technical occupations inTransportation and government services -44 -19 -71 -54 -99 -287 14.24% business administration and finance, natural and appliedSource: Statistics Canada sciences and related professions, sales and service, and primary industry; processing, manufacturing countries mainly involved in trade in Provinces of Ontario, Quebec, Alberta and and utilities supervisors and services with Canada were Barbados, The British Columbia. Some correlation was skilled operators; Bahamas, Jamaica, and Trinidad & found between the movement of workers assisting occupations in support of Tobago; however StatsCan data reveal and/or immigrants from CARICOM member health services; that Guyana, Haiti, Grenada, Belize, states and the movement of goods to the clerical occupations in business Antigua & Barbuda, St. Lucia and Canadian Provinces and territories. and finance; Suriname were also engaged in trade in Generally, Canadian Provinces or Territories services over the period 2003-2007. No which recorded the greatest value of evidence of trade in services with Canada imported goods from an individual was provided for Dominica, Montserrat, CARICOM member state also recorded St. Kitts & Nevis, and St. Vincent & The higher numbers of workers and/or Grenadines. immigrants from that same state. With respect to foreign direct investment MOVEMENT OF CARICOM WORKERS (FDI), Canada is a major source of FDI for AND SKILLS SHORTAGES IN CANADA CARICOM member states, the bulk of which is invested in CARICOM’s financial The greatest number of economic residents sector. StatsCan data revealed that the from CARICOM in Canada are from Haiti, bulk of Canadian investment in CARICOM Jamaica, Trinidad & Tobago and Guyana. www.crnm.org
  3. 3. elemental sales and service Service Representatives for Financial Services, Customer Service, Information and occupations; Related Clerks and Survey Interviews and Statistical Clerks. intermediate occupations in transport, equipment operation, Natural and Applied Sciences and Related Occupations installation and maintenance; The most common occupations in which skills shortages exist across Canada include: trades helpers, construction labourers and related occupations; Civil, Mechanical, Computer, Electronic and Electrical Engineers, Software Engineers and labourers in processing Designers, Information Systems Analysts and Consultants, Computer Programmers and manufacturing and utilities. Interactive Media Developers and Biologists and Related Scientists; and Electrical and Electronics Engineering Technologists and Technicians, Computer NetworkSkills shortages in Canada exist across and User Support Technicians, Drafting Technologists and Technicians, and Mechanicalall Provinces and Territories in a number Engineering Technologists and Technicians.of areas. They are as follows: Health Occupations The most common occupations in which skills shortages exist across Canada include:Business, finance and administrative Specialists, General Practitioners and Family Physicians, Dentists, Pharmacists,occupations Physiotherapists, Occupational Therapists and Registered Nurses;The most common occupations in which License Practical Nurses, Medical Radiation Technologists, Medical Laboratoryskills shortages exist across Canada Technologists and Pathologists’ Assistants; andinclude: Nurse Aides, Orderlies and Patient Service Associates and Other Assisting Occupations in Support of Health Services. Financial Managers, Banking, Credit and Other Investment Social Science, Education, Government Service and Religion Managers; The most common occupations in which skills shortages exist across Canada include: Financial Auditors and Social Workers, College and Other Vocational Instructors, Lawyers, Quebec Notaries and Accountants, Human Resources Elementary School and Kindergarten Teachers; and Specialists, Financial and Community and Social Service Workers, Early Childhood Educators and Assistants and Investment Analysts, and Paralegal and Related Occupations. Professional Occupations in Business Services to Management; Art, Culture, Recreation and Sport Bookkeepers and Insurance The most common occupations in which skills shortages exist across Canada include: Adjusters and Claims Examiners; Authors and Writers and Professional Occupations in Public Relations and and, Communications; and General Office Clerks, Accounting Graphic Designers and Illustrators, and Programme Leaders and Instructors in and Related Clerks, Customer Recreation, Sport and Fitness. For More on Sales and Service Occupations The most common occupations in which skills shortages exist across Canada include: CARICOM- Canada Retail Trade Managers, Restaurant and Food Service Managers, Accommodation Service Managers and Sales, Marketing and Advertising Managers; Trade Relations Police Officers (Except Commissioned), Hairstylists and Barbers, Cooks, Chefs, Insurance Agents and Brokers, Food Service Supervisors and Retail Trade Supervisors; Sale Representatives – Wholesale Trade (Non-Technical), Retail Sale Persons and Sales Clerks, Hotel Front Desk Clerks, Food and Beverage Servers, Visiting Homemakers, Housekeepers and Related Occupations, and Aestheticians, Electrologists and Related Occupations; and Cashiers, Food Counter Attendants, Kitchen Helpers and Related Occupations, Security Guards and Related Occupations, Light Duty Cleaners, and Other Elemental Sales Occupations. Trade, Transport and Equipment Operators and Related Occupations The most common occupations in which skills shortages exist across Canada include: http://www.crnm.org/ “The greatest potential for trade in services between CARICOM and Canada exists in the Provinces of Ontario, Alberta and British Colombia” www.crnm.org
  4. 4. Readers are invited to suggest • Insurance services and other financial should more aggressively seek topics of interest for future trade services. Barbados has exploited this opportunities to promote and position through its tax laws, its Double Taxation themselves as viable destinations with notes. Treaties, and stable economic and which Canada can seek to increase its political environment. trade in services and increase its FDI (as in • Business and professional services the case of financial and other services in Construction Managers, Residential such as architectural and engineering Home-Builders and Renovators, services, computer and information Barbados). Given the shortage of labour in Transportation Managers and Facility services, management services and many (services) occupations in Canada, Operation and Maintenance research and development services CARICOM should negotiate aggressively to Managers; especially in those service areas and minimize barriers to trade such as the Electricians, Plumbers, Steamfitters, Provinces where there are shortages of “Canadian experience” requirement and the Pipefitters and Sprinkle System labour (identified earlier). lack of mutual recognition of qualifications. Installers, Welders and Related • Tourism related services such as tour The Pan Canadian Framework for the Machine Operators, Carpenters, operators and tour guides services. A Assessment and Recognition of Foreign Concrete Finishers, Plasters, Drywall significant opportunity is recognized for Qualifications should be observed closely Installers and Finisher and Lathers, CARICOM tour operators and tour and CARICOM should try to have the Heavy Duty Equipment Mechanics, guides. Canada is a vast and very and Automotive Service Technicians, recommendations in that Framework beautiful country with oceans to the east Truck and Bus Mechanics and and to the west and with impressive adopted where feasible. Mechanical Repairers; and mountains, rivers and lakes. Canada is Truck Drivers, Delivery and Courier now populated with a variety of people Those CARICOM countries that have no Service Drivers, Heavy Duty from all over the world including a large Double Taxation Treaties with Canada Equipment Operators (Except Crane) CARICOM Diaspora population so there should be encouraged to try to negotiate and Metal Handlers. are many cultures to be experienced. them and along with those that have such Tour operators and guides could offer Agreements should try to set up incentivesOccupations Unique to Primary their services to: (such as Offshore Business Centres) toIndustry: attract more investment and trade inThe most common occupations in which o Canadians who wish to visit services within the Region.skills shortages exist across Canada CARICOM, thereby competinginclude: with Canadian companies that Underground Production and currently provide most of Development Managers, and these services. This could Farmers and Farm Managers; help to reduce the leakages of General farm Workers and Nursery (potential) tourism earnings and Greenhouse Workers; and from the Region. Harvesting Labourers and o Members of the CARICOM Landscaping and Ground Diaspora living in certain Maintenance Labourers. areas of Canada some of whom would be favourably disposed to doing businessOccupations Unique to Processing, with entities from their RegionManufacturing and Utilities of origin. These services NOTESThe most common occupations in which would include tours toskills shortages exist across Canada CARICOM, within Canada, 1 Office of Trade Negotiations (OTN), CARICOMinclude: and to other parts of the world Secretariat. 2010. “Statistics on Trade in Services between Industrial Butchers and Meat Cutters, o CARICOM Nationals wishing Canada and CARICOM States,” prepared by Noel Watson, Poultry Preparers and Related PhD to enjoy holidays in Canada Workers, Fish Plant Workers, and (such as ski vacations given Aircraft Assemblers and Aircraft that Canada has some of the Assemblers Inspectors. Produced by the OTN Information Unit, 2009 best ski slopes and facilities in the world). This would prevent DIRECT ALL COMMENTS OR QUERIES CARICOM Nationals from STRATEGIC CONSIDERATIONS TO: having to obtain these services from non-CARICOM Mr. Lincoln PriceThere are numerous opportunities for entities. Private Sector LiaisonCARICOM countries to export more lincoln.price@crnm.orgservices to the Canada in areas such as: On the whole, CARICOM countries www.crnm.org