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Opportunities at our Doorstep - doing business in Canada and Mexico

Opportunities at our Doorstep - doing business in Canada and Mexico



When you are thinking of growing your business, are you thinking over the border? Learn about the opportunities available to businesses in Minnesota for doing business in Canada and Mexico. ...

When you are thinking of growing your business, are you thinking over the border? Learn about the opportunities available to businesses in Minnesota for doing business in Canada and Mexico.

Ana Luisa Fager, consul general of Mexico, St. Paul;
Michael Flaherty, senior trade commissioner, Consulate General of Canada



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    Opportunities at our Doorstep - doing business in Canada and Mexico Opportunities at our Doorstep - doing business in Canada and Mexico Presentation Transcript

    • MN Chamber of Commerce“Opportunities at our Doorstep” September 25, 2012.
    • Mexico has 112 million inhabitants Canada The median age of the population is The median age of the population is USA 26 years. MexicoMexico shares aMexico shares a Mexico has1,864 67 deep sea ports thatMile border withMile border with connect us to thethe US.the US. world.
    • Mexico 14th largest largest country in surface country in surface area in the world. area in the world.= 3X / 8X
    • Why México? México ranks as a low-risk country in the Market Overheating Index, published by The Economist, which grades 27 countries. Mexico International Reserves Almost 1.5 billion USD. Czech Republic South Africa Mexico Venezuela Saudi Arabia Egypt Vietnam Colombia Chile Argentina Hong Kong Peru Turkey Brazil Thailand Singapore India Malaysia South Korea Poland Indonesia Taiwan Pakistan Russia China Philippines HungarySource: The Economist, http://www.economist.com/node/21522520 / OECD/ Mexico’s Central Bank
    • Why México?We are champions of free trade• Part of the world’s largest economic block (NAFTA). FTA• NAFTA market= 18 trillion USD.• And we are the gateway to Latin America.• The 13th largest economy in the world.Source: IMF, OMC
    • Why México?*Includes Africa, Oceania and other European countriesSource: 2011 Data. Mexico’s Central Bank and Global Trade Atlas.
    • Why México?
    • Why México?
    • Why México?Source: FDI Benchmark (Labor Availability & Quality/ Skills), 2011.
    • Why México?Source: Goldman Sachs. The N-11: More Than an Acronym. Global Economics Paper No: 153. March, 2007/ HSBC.1/ Goldman Sachs forecast / International Monetary Fund.
    • Why México?México’s strategy
    • Why México?México’s Top Exports Facts• Mexico is the 7th supplier to the US aerospace industry.• Mexico is the 8th vehicle producer in the world and the 5th exporter globally.• The leading two-door refrigerator and freezer exporter.• The 7th global exporter of mobile phones.• Mexico is the 5th global exporter of medical instruments and devices. Mexico is the leading producer and exporter of silver in the world.• Mexico has the largest film and videogame market in Latin America.Source: ProMexico
    • Why México?México and the USA USA Top Trading Partners•We trade 1 billion USDon any given day.•6 million U.S. jobsdepend on trade withMexico.•Mexico is the first andsecond market for 28states of the USA.Source: FTDWebMaster, Foreign Trade Division, U.S. CensusBureau
    • Why México?México – Minnesota Partnership Mexico was the 4th business partner of Minnesota in 2011. Minnesota exported 1.2 billions to Mexico. $ 2.73 billion was the trade between Mexico and Minnesota in 2011. 117,000 jobs in Minnesota depend on trade with Mexico. Source: MN Trade Office
    • Why México? México – Minnesota PartnershipMexico:• Export value, 2011: $1.2 billion.• State trend, 2010-2011: up 24 percent. Source: MN Trade Office
    • Why México?MN exports to Mexico Source: MN Trade Office
    • Why México? México – Minnesota Partnership Minnesota companies with presence in Mexico: Best Buy, 3M, Carlson, Cargill, Dairy Queen, Medtronic, Ecolab, Polaris, Cummins, General Mills, C.H. Robinson, H.B. Fuller, Toro. Source: MN Trade Office
    • THANK YOU!
    • Opportunities in CanadaMinnesota Chamber ofCommerce Mike FlahertyTuesday, September 25, 2012 Senior TradeMinneapolis, MN Commissioner 20
    • Consulate General of Canada in Minneapolis• Part of network of Canadian offices across the United States• Programs – Trade, Investment and S&T Partnerships: Trade Commissioners – Political/Economic Relations & Public Affairs – Consular• Over 40 Years in Minneapolis
    • Consulate General of Canada in Minneapolis
    • The Canada-US Partnership• We make things together• Job creation, global competitiveness and innovation• Energy – safe, secure and reliable supplier• Beyond the Border Action Plan
    • Canada and the US are each other’s most important trading partner...• $708 billion of trade in goods and services in 2011, $2 billion crossing border every day• Biggest two-way trading relationship in world; U.S. sells 3 times more to Canada than to China• Trade with Canada supports over 8 million U.S. jobs• Canadian-owned companies in 17,000 locations across United States employ more than 619,000 Americans
    • Canada is Minnesota’s #1 Partner• Minnesota exported $5.9 billion in goods to Canada in 2011• Canada bought more than next 4 countries combined, 3 times China• Minnesota imported $13.7 billion from Canada• Canada is largest supplier of energy to MN• 157,200 jobs in Minnesota depend on Canada–U.S. trade
    • Minnesota Companies in Canada 26
    • Excellent Economic Fundamentals Consensus Economics Consensus Economics According to Consensus Economics, Canada has been a top performer among the G-7 in GDP growth over the 2008-11 period and is expected to remain so through 2012-13. Real GDP Growth and Projections (%) 3.0 2.4 2.2 2012-13 2.0 2008-11 1.6 1.2 1.1 0.9 1.0 0.7 0.5 % 0.2 0.1 0.0 -0.6 -0.7 -1.0 -0.8 Fra Ita Ca U.S U.K Ge Jap -1.1 ly na rm nce an . . da an -2.0 y 27 Source: Consensus Forecasts, February 2012, Consensus Economics Inc.
    • Canada also has Superior Employment Growth….• Strong economic growth and rising demand for Canadian commodities over the last decade, combined with provincial and federal policies to improve the flexibility and adaptability to the changing workplace, have helped generate healthy gains in employment. Employment Growth (%) 2000-2010 Canada 1.45 Italy 0.76 France 0.62 Germany 0.62 U.K. 0.57 U.S. 0.11 Japan -0.28 Source: U.S. Bureau of Labour Statistics, OECD Economic Outlook, No.90, November 2011 28
    • … and More Recently by Forbes • Canada was ranked # 1in Forbes latest annual study on the Best Countries for Business, up from 4th place last year • Canada ranked in the top ten in 7 of the 11 criteria used in the study, most notably personal freedom (1st); degree of red tape involved in starting a business (3rd); investor protection (5th) and low corruption (6th). Top Ten Countries to Conduct Business in 2011 1st 2nd 3rd 4th 5th Rank 6th 7th 8th 9th 10th ad a nd ng lan d ar k or e en wa y K. A. an ala Ko nm ap ed or U. S. Ze ng Ire ng Sw N U. C De Si New Ho*Standing among 134 countries. Rankings based on the following eleven categories of quantitative and qualitative indicators: trade freedom, monetaryfreedom, property rights, innovation, technology, red tape, investor protection, corruption, personal freedom tax burden and market performance. 29 Source: Forbes Publishing, October 2011
    • Opportunities in Canada• Aerospace • Bio Products• Cleantech • Business Services• ICT • Chemicals and Plastics• Life Sciences • Financial Services• Defense and Security • Functional Foods • Machinery and Equipment • Medical Devices • Renewable Energy 30
    • Aerospace•Canada is the third largest manufacturer of civil aerospaceproducts (by revenue) behind only the U.S. and France.•Montreal is the third largest aerospace cluster in the world 31
    • Cleantech• The Canadian environment market is valued at more than $29 billion and generates sales worth more than $18.4 billion.• The majority of environmental companies are located in Ontario (43.4%), Quebec (18.8%), Alberta (15.2%) and British Columbia (12.6%). 32
    • Information & Communication Technology (ICT)• Many ICT companies have shifted the focus of their Canadian production toward research and development of technologies.• Multinationals such as IBM, Alcatel-Lucent, Ericsson, Research In Motion, AMD, Electronic Arts and SAP have major development centres in Canada• ICT is the highest performing R&D sector, accounting for 38.5 percent or $6.2 billion of all Canadian private-sector expenditures in R&D in 2009. 33
    • Life Sciences• Canada has one of the largest life sciences industries in the world• Businesses based on biotechnology are estimated to contribute around $87 billion to Canadian GDP• The pharmaceutical industry in Canada generates upwards of $23 billion annually and employs over 30,000 people 34
    • Bio Products• Canada is one of the world’s top five biotechnology markets.• Almost 100 foreign companies established greenfield FDI projects in the renewable energy, chemicals and plastics sector in Canada between 2003 and 2011.• Preliminary gross domestic expenditure on R&D in Canada in 2011 is $30 billion, one of the highest levels in the world.• Scientific Research & Development tax credits 35
    • Business Services• Consulting engineering is a $21.8-billion-a- year industry that employs over 100,000 Canadians.• Canada is globally recognized for its engineering services and is the fourth-largest exporter of engineering services in the world• Edmonton is an important manufacturing and service centre, and the gateway to northern Alberta’s oil and gas resources.• Quebec’s expertise is concentrated in health, human resources, management, logistics, finance and government online.• Ontario’s business and professional services cluster is among the largest in North America, comprised of law and accounting firms; advertising and marketing agencies; customer care centres; management, technical, and design consultancies; and human resources services. 36
    • Chemicals and Plastics• The industry in Canada generated revenues of $61 billion in 2010• Canadian research and development expenditures in the chemical and plastics industry totalled $1.1 billion• Canada is the first G-20 country to eliminate tariffs on all manufacturing inputs.• Ontario is Canada’s largest producer of chemical products, the leading petroleum-refining region, and the hub of the nation’s plastics industry.• Alberta’s chemical industry has four main segments: petrochemicals, fertilizers, inorganic chemicals, and specialty and fine chemicals• Montréal is the hub of Québec’s chemical industry, supplying the consumer market with products as diverse as adhesives, textiles, paint, maintenance and cleaning products, electronics and cosmetics. 37
    • Financial Services• The Canadian banking system was ranked the soundest in the world by the World Economic Forum in 2011.• The financial services industry is one of the largest sectors for employment in Canada, with a workforce of nearly 700,000.• Montréal is known for its pioneering expertise in derivative and commodity trading, wealth management, and pension fund asset management• Ontario’s key strengths include financing for the mining and energy sector. It contains 80% of Canada’s investment management industry, worth $700 billion in assets. 38
    • Functional Foods• With nearly 700 producers, Canada’s natural-health products and dietary- supplements sector generates annual revenues of more than $3.5 billion.• Saskatchewan is Canada’s largest producer of canola and flaxseed.• British Columbia produces more than 3,000 functional foods and natural health products.• Nova Scotia is home to the Atlantic Food and Horticulture Research Centre and is a major exporter of seafood and wild blueberries.• Cargill just announced an expansion of their canola processing facility in Saskatchewan 39
    • Machinery & Equipment• With nearly 8,700 companies and a direct-production labour force of more than 113,000 people, the industry generated sales of $44.8 billion in 2011.• Canada is the first country in the G-20 to create a tariff-free zone for industrial manufacturers; tariffs on all manufacturing inputs will be eliminated by 2015.• Alberta has the world’s third largest proven crude oil reserves and is a leader in extractive machinery and technologies. 40
    • Medical Devices• Canada’s highly diversified medical device manufacturing and development industry encompasses more than 1,000 firms employing some 26,000 people.• Vancouver is the hub of British Columbia’s life-sciences sector, with annual revenues of approximately $800 million.• Ontario’s medical- and assistive-device industry is based primarily in Ottawa and Toronto, and comprises many subsidiaries of multinational companies• Montréal is the centre of Québec’s booming medical technologies industry, which comprises more than 350 companies. 41
    • Renewable Energy• Canada has the third-largest renewable energy capacity in the world; renewable sources generate 17% of its total primary energy supply and more than 60% of its total electricity capacity.• The feed-in-tariff rates for solar PV electricity offered in Ontario are among the world’s most attractive.• In Quebec, a significant cluster of companies in the solar supply chain exists, including semiconductor manufacturers, aluminum smelters and steel mills in addition to other solar PV component manufacturers. 42
    • Alberta Oil Sands Scope • Recoverable reserves of approximately 170 billion barrels of bitumen (among the largest deposits of crude oil in the world) • Forecasted production rises to 1.2 billion barrels per year by 2019 • Oil sands deposits underlie 54,903 square miles • Land disturbed to date for mining is about 232 square miles • Less than 30% of mineable area has been approved for mining • Total minable area is about 0.15% of Canada’s Boreal forest
    • Economic OpportunitiesOil Sands Heavy Hauler Trucks – The 200th Caterpillar 797 hauler delivered April 2009Oil Pipeline Construction – Billions of dollars of pipelines being built – Using steel and creating jobs – Major regional economic stimulusRefinery expansions underway – Several expansions and modifications are underway – Providing significant jobs and local benefits 44
    • Minnesota Companies Active in the Alberta Oil Sands 45
    • Economic Benefits to the U.S. Fort McMurray, Alberta Joliet, Joliet, Illinois Illinois Lafayette, Indiana Decatur, Illinois Lexington, South Carolina Amite, Louisiana 46The 200th Caterpillar 797 hauler delivered April 2009The 200th Caterpillar 797 hauler delivered April 2009
    • More Information The Logistics of Doing Business in Canada A Commercial Service Webinar SeriesTemporarily Moving Goods & People across the BorderDate: October 17, 2012Time: 1:00pm – 2:30pm (Central)Distribution Strategies for CanadaDate: October 31, 2012Time: 1:00pm – 2:30pm (Central)Canada Trade Regulations & StandardsDate: November 14, 2012Time: 1:00pm – 2:30pm (Central) 47
    • Contact Consulate General of Canada – Minneapolis701 Fourth Avenue South, Suite 900 Minneapolis, MNMichael FlahertyConsul and Senior Trade Commissioner(612) 492-2909michael.flaherty@international.gc.ca 48