Aéro Montréal, Quebec's aerospace cluster, is a strategic think tank created in 2006 that groups all the major decision makers in Quebec's aerospace sector, including companies, educational and research institutions, associations and unions. Aéro Montréal's mission is to mobilize industry players around common goals and concerted actions to increase the cohesion and optimize competitiveness of Quebec’s aerospace cluster. It aims to foster the growth and expansion of the cluster to ensure that it may continue to create wealth for Montreal, Quebec and Canada. Over the years, Aéro Montréal adopted a strategic action plan that includes the creation of working groups. These working groups are dedicated to six areas of intervention, namely supply chain development, branding and promotion, innovation, human resources, defense and national security and commercialization and market development. The US, and the State of New Hampshire, sent a delegation to the 4th edition of the Aerospace Innovation Forum, to explore their participation with the industry's global leaders and the latest developments in the lifecycle management of new aircraft platforms.

1. A Practical Guide to Doing
Business in Canada's
Aerospace Industry
Presentation for U.S. Firms Participating in
AeroMontreal's Aerospace Innovation Forum 2013
Gina Rebelo Bento
CS Canada – Aerospace Specialist

2. About Canada
Prime Minister: Stephen Harper
Conservative Party of Canada
Population: 35 Million
2nd Largest Country in the World
• 10 provinces & 3 territories
• 6 time zones
• 2 official languages
Rich in Natural Resources
2nd Largest Oil Reserves in the
World
Common border with the U.S.
Longest land border in the world

3. U.S.-Canada Partnership
• World’s largest trading relationship
• $1.3 Trillion Economic Relationship
• U.S. Exports to Canada surpassed $355B in
2012 (16% of total U.S. exports)
• Our Largest Trading Partner
• Canada and the United States trade $1.9B
in goods and services daily.
• Investment Partners
• Canada is the U.S.' 4th largest foreign
investor.
“No two nations match up more closely together, or are woven together more deeply,
economically, and culturally than the United States and Canada.” President Barack Obama

4. Where are the Opportunities?
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Aerospace
Automotive
Energy & Environment
Government Procurement
– Defense Products and Services
– Safety & Security Equipment
• Information and Communications Technology
• Mining
• Travel and Tourism

5. Moving Goods Across the Border
Two important documents required by U.S. Customs and Canadian Customs
alike for all shipments are:
1. Commercial Invoice
2. Certificate of Origin
A signed statement of origin on the invoice is sufficient for goods valued at
less than $2,500 when imported under NAFTA provisions.

6. Moving People Across the Border
• Options for Business Travel Between the USA & Canada
1. Business Visitor
2. Trade Agreements (NAFTA & TN Visas)
3. Intra-company Transfer
• Points of Inadmissibility
1. Criminal Record
2. Medical Condition

7. Product Certification
In aerospace, Transport Canada and the FAA work very closely together.
In general:
• Contact the Standards Council of Canada www.scc.ca.
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CSA International – A complete list of products that CSA certifies for Canada;
http://www.csa.ca
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ULC – A complete list of products that ULC certifies for Canada; http://www.ulc.ca/
Underwriters Laboratories (UL) in the United States and CSA have a memorandum to
accept each other's test results. However, each issues its own certification marks.
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CGSB – A complete list of products that CGSB certifies for Canada;
http://www.ihs.com/products/industry-standards/organizations/cgsb/index.aspx
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BNQ – A complete list of products and services that BNQ certifies for Canada;
http://www.bnq.qc.ca/

8. Export Finance Tools
• Small Business Administration
SBA Export Express offers financing up to $500,000.
• Export Import (Ex-IM) Bank
The official export credit agency of the United States.

9. Webinar Series
Upcoming:
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Selling Security Products to the Government of Canada, November 2, 2013
Temporarily Moving Technicians and other Service Exporters Across the Border, January 30, 2014
Temporarily Moving Capital Equipment & Tools Across the Border, February 30, 2014
Handling Duties and Taxes – NAFTA, HST & other Considerations, February 13, 2014
U.S. Export-Import Bank Financing
Recorded Webinars Available:
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Temporarily Moving “Tools of the Trade” Across the Border
Advantages of the Non-Resident Importer Program
Sending your Employees to Canada: Requirements for Temporary Workers
The Basics of Selling to the Government of Canada – Using the New GETS

10. Canada and U.S. Aerospace & Defense Trade
Defense Production & Development Sharing Agreements Since
WW1 & WW2
The Canadian ITAR Exemption
U.S. companies can bid on Canadian government military tenders

11. Selling into Canada's Aerospace Industry:
A Few Market Characteristics

12. Key Facts about Canada’s Aerospace Industry
General Overview
• In 2012, it generated approximately $22 billion
• 19 largest aerospace companies generate 87% of sales5
• Key clusters are Montreal, Quebec (approx. 60% of the Canadian market) and Ontario (approx.
27%)6
Civil Aircraft Sector
• 84 % of output is from civil aircraft manufacturing; military is 16% 7
• In the U.S., military is 52% of output, civil is 48% output 8
International Trade
• Over 82% of production is exported
• Canada buys 5% of the U.S aerospace exports, accounting for 50% of our imports
• Canada is the 2nd largest aerospace supplier to the U.S with 17% of their imports
The Canadian aerospace market is uniquely well positioned
to capture a significant portion of the next generation aircraft’s production

13. Global Aerospace Growth Markets: Canada is a Major Player

14. Global Aerospace Growth Markets – The Next Five
Fears…..

15. Canada is Home to Leading Aerospace Players
Canadian American European

16. Characteristic #1 – Supply Chain Integration /
Top Down Pressure from OEM

17. Characteristic #2 – Cluster Grouping in Quebec and Ontario
Montreal is the only place in the world where all of the components to build an aircraft can be
found within a 30 mile radius. Montreal, along with Seattle and Toulouse, is one of the world’s top 3
aerospace hubs.

18. Characteristic #3 – Wide Array of Sub-Sectors
Dominated by Aircraft/Aircraft Parts & MRO

19. Tailoring Your Sales Pitch….A Few Tips

20. Generally, Canadian Companies Are Looking For:
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Certifications (ISO 9000, NADCAP, etc..)
Quality Control & Reliability
Engineering / R&D Capacity
Financial Soundness & Management Vision
Risk Management & Capacity to Take On Risk
Presence in Low Cost Centers (i.e. Mexico)
Export Controls / ITAR Compliance Programs
For smaller Canadian aerospace companies, geographic proximity
also plays a role.

21. Market Entry Strategies
A few things to keep in mind…
 Importance of a local partner
 Seek partners/reps in more than one region
 Sensitivity to French business climate in Quebec
 Leverage the knowledge and network of the U.S. Commercial
Service in Canada
 Access the supply chain through systems integrators, in addition
to contacting the OEMs
 Risk-sharing partners > Suppliers
 Sign up with OEM supplier programs

22. Contact Information
Ottawa
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Richard Steffens, Minister-Counselor; Richard.Steffens@trade.gov
Enrique (Rick) Ortiz, Deputy Minister-Counselor; Rick.Ortiz@trade.gov
Lucy Cicero Latka, Sr. Commercial Specialist; Lucy.Latka@trade.gov
Tracey Ford, Commercial Specialist; Tracey.Ford@trade.gov
Luz Betancur, Commercial Specialist; Luz.Betancur@trade.gov
Louise Doré, Commercial Assistant; Louise.Dore@trade.gov
Montreal
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Enrique (Rick) Ortiz, Principal Commercial Officer; Rick.Ortiz@trade.gov
Connie Irrera, Commercial Specialist; connie.irrera@trade.gov
Gina Bento, Commercial Specialist; gina.bento@trade.gov
Sue Bissi, Commercial Assistant; sue.bissi@trade.gov

23. Contact Information
Toronto
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Frank Carrico, Principal Commercial Officer; Frank.Carrico@trade.gov
Doug Jacobson, D/Principal Commercial Officer; Doug.Jacobson@trade.gov
Ruth Williamson, Commercial Specialist, Ruth.Williamson@trade.gov
Stefan Popescu, Commercial Specialist, Stefan.Popescu@trade.gov
Pixie Irving, Commercial Assistant, Pixie.Irving@trade.gov
Calgary/Western Canada (Alberta, Saskatchewan, Manitoba, British Columbia)
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Cindy Biggs, Principal Commercial Officer; Cindy.Biggs@trade.gov
Crystal Roberts, Commercial Specialist; Crystal.Roberts@trade.gov
Connie Smith, Commercial Assistant; Connie.Smith@trade.gov
Jared Byrne, Commercial Assistant; Jared.Byrne@trade.gov

24. Questions & Answers ???
Thank You!