Canada is the world’s 2 largest country, but more importantly, largest coastline, which has meant greater access to international markets than any other nation in the world. Couple with close proximity to US, largest domestic consumer market in the world by far, and abundance of natural resources, geography has been a large part of Canada’s destiny.
Canada-US trade relation is the largest in the world. 17 of Canada’s 20 largest cities are located about 90 minutes from the US border. 75% of our exports are U.S. bound and 58% of FDI originates from the U.S. Bilateral trade was $557 billion in 2008, tripling since our bilateral trade agreement was signed in 1989.
Canada is the number one customer for 35 U.S. states, and we are in the top 3 in all 50 states.
On top of the millions of jobs that depend on merchandise and services trade between Canada and the U.S, Canadian subsidiaries on U.S. soil also create jobs and that allows Canada to exert political influence on issues of mutual interest such as keeping our borders opened.
Diversity of Canadian companies that can be found in Florida
On June 9, 2009, Canada’s most senior diplomats in the U.S. met with over 75 members of Congress and staff to drive home the message that the Buy American restrictions in the U.S. Recovery Act are costing jobs on both sides of the border. The Canadian delegation was accompanied by close to 30 American business leaders who support the message that by working together our two countries can kick-start the North American economy.
The department's Foreign Service employees fall into three categories: political/economic officers, management/consular officers and trade commissioners. Canada's Representation Abroad 270 locations: These offices provide a variety of services, although not all offices provide every service. The offices include embassies, high commissions, permanent missions, consulates general, consulates, consulates headed by honorary consuls, and satellite offices. Except for consulates headed by honorary consuls, all of the offices have Canadian staff in addition to locally engaged staff members.
Central agency, work with other government departments (e.g. Environment Canada on climate change, Heritage Canada on culture. Etc.)
Video: what does it mean? What should be the role of government. Set the stage, get laws right, create tax incentives, remove barriers, train, allow influx of talent (25% of public companies founded by immigrants, over 50% of Silicon Valley startups, and MIT spinoff larger than state of Massachussetts.
Brazil, India, China and Russia, along with many other emerging economies including the Czech Republic, Singapore, South Korea, Poland and others have meant increased competition but also new business opportunities for Canada
Being part of Global Value Chains and industry clusters are key to the success of Canadian companies
Investments, both inbound (FDI) and outbound (CDIA), and the sales of Canadian affiliates abroad have grown faster than trade (exports and imports) of goods and services, which has forced the government of Canada to broaden its mandate and be more proactive on the investment front.
Everything we do is rooted in federal policies, such as our Economic Action Plan, our Science & Technology Strategy and our Global Commerce Strategy
A timeline of how Canada has been responding to change and to the broader needs of our busines community.
The Canadian Pacific Gateway Initiative is a source of comparative advantage to our exportes and a magnet for foreign direct investment
The trade side of DFAIT contributes to Canada’s position as a leader in international business development by: Helping Canadian companies to expand and to succeed in the global market place; Negotiating and administrating trade agreements; Promoting Canada as a dynamic place to conduct business.
75% of our clients are small and medium-sized companies. Two thirds of our clients have consulted more than one of our offices abroad. 80% are satisfied with the services they have received. (Source: 2004 TCS client survey) 1. New or experienced . . .Before we deliver services, we need to know that the Canadian company is prepared and committed to the market and will be able to deliver products or services. 2. The request could come from any number of different firms. The main concern is that the TCS service provided will lead to economic benefit and prosperity for Canada. 3. The request could be from a consultant or student, but they must have a mandate from the Canadian company they are representing.
Other tools produced by the government of Canada include exporting guides…
A monthly electronic newsletter with relevant news about regulations, events, success stories, and training opportunities
Our missions abroad also produce newsletters to create awareness among foreign companies of Canada’s competitive advantages
Missions also produce sector reports for specific markets
How to reach me to learn more….
How Canada Promotes International Trade
Presentation by Claudio Ramirez Consul and Trade Commissioner Consulate General in Miami
How governments support the private sector in the area of trade promotion The Case of Canada Florida International University MBA Class November 14, 2009
<ul><li>33 million people in 10 provinces and three territories </li></ul><ul><li>Stable parliamentary democracy </li></ul><ul><li>Officially bilingual but with more than 200 languages active </li></ul><ul><li>One in six Canadians is an immigrant reflecting true diversity of culture and language found in the world </li></ul><ul><li>Among the top 3 in the United Nations quality of life Index for seven years in a row </li></ul>
Mexico City Saskatoon 1000 km 500 km Los Angeles Denver Houston Atlanta Seattle Miami New York Boston Philadelphia Washington Baltimore Detroit Chicago Cleveland St. Louis Pittsburgh Milwaukee San Francisco St. John's Calgary Vancouver Regina Halifax Toronto Montréal Winnipeg Charlottetown Edmonton Victoria Ottawa Windsor Québec Fredericton
All Politics is Local WATCH YOUTUBE VIDEO AT http://www.youtube.com/watch?v=yEHXMoKPzvI
Department of Foreign Affairs and International Trade Canada (DFAIT) Canada has diplomatic and consular offices in over 270 locations in 180 countries.
DFAIT’s four key functions <ul><li>Coordinating international policy-making </li></ul><ul><li>Promoting Canadian interests, values and expertise abroad </li></ul><ul><li>Assisting Canadians by providing global commerce , consular and passport services </li></ul><ul><li>Supplying a physical platform outside Canada </li></ul>
Shift Happens, innovation becomes an imperative WATCH YOUTUBE VIDEO AT http://www.youtube.com/watch?v=jpEnFwiqdx8
Source: The Federal Budget, Finance Canada, January 27, 2009 and the OECD Tax Database. * METR takes into account federal and provincial statutory corporate income tax rates, deductions and credits available in the corporate tax system and other taxes paid by corporations, including provincial capital taxes and retail sales taxes on business inputs. <ul><li>The overall impact of the business tax system can be measured by the marginal effective tax rate (METR)*. </li></ul><ul><li>By 2012, Canada’s METR will be the lowest in the G-7 as a result of corporate tax reductions introduced by the Government since 2006. </li></ul>
<ul><li>Canada offers one of the most favorable tax treatments for R&D among the G-7. </li></ul><ul><ul><li>Canada provides a system of tax credits and accelerated tax deductions for a wide-variety of R&D expenditures. </li></ul></ul><ul><ul><li>Eligible costs include: salaries, overhead, capital equipment, and materials. </li></ul></ul><ul><li>These tax-based incentives permit firms to significantly reduce R&D costs through direct investment or sub-contracting in Canada. </li></ul>
<ul><li>With the world in the midst of the current financial crisis, investors can take comfort in the fact that Canadian banks are generally healthy with solid balance sheets and least likely to require a government bailout in the event of a major economic downturn. </li></ul>*Standing among 134 countries. Ranking based on the degree of soundness of financial institutions. Source: Global Competitiveness Report, 2008-2009
<ul><li>The overall skill level of Canada’s workforce ranks high among competing countries. </li></ul><ul><li>Canada has one of the highest percentage of individuals achieving at least college or university education, among OECD member countries. </li></ul>Source: IMD, World Competitiveness Yearbook 2009
<ul><li>Regulations pertaining to the creation of new businesses are considerably more flexible in Canada than those in the rest of the G-7. </li></ul><ul><li>Canada ranks first among the G-7 and OECD countries for the lowest number of procedures required to establish a new business. </li></ul>
<ul><li>Canada understands the importance of its business community and has created an environment to encourage its success. </li></ul><ul><li>Canada’ business climate ranked first in the G-7 and third out of 82 countries in the Economist Intelligence Unit’s global business rankings for the forecast period (2009-13), up from fourth and still first in the G-7 out of the full 82 countries from the historical period (2004-2008). </li></ul><ul><li>The country ranks well for its infrastructure, market opportunities, taxes, and foreign trade and exchange controls. </li></ul>Source: The Economist Intelligence Unit, April 2009
<ul><li>From a global standpoint, Canada has the highest concentration of entrepreneurs within its working population. </li></ul><ul><li>Businesses, including start-ups, develop new products and services and get them to market and conceive new types of organization and production and put them into practice. </li></ul><ul><li>New companies also serve to remind existing firms of the need to adapt and continue innovating. </li></ul>Source: Statistics Netherlands 2008
<ul><li>Canada has the best overall quality of life among the G-7. </li></ul>Source: IMD, * Rank among 55 economies considered in the World Competitiveness Yearbook 2008.
<ul><ul><li>Ascribed to DFAIT </li></ul></ul><ul><ul><li>Over 150 offices at home and abroad </li></ul></ul><ul><ul><li>Some 800 Trade Commissioners </li></ul></ul><ul><ul><li>7 employees in Miami </li></ul></ul>
Structure – International Trade <ul><li>International Trade consists of four integrated strategic functions: </li></ul><ul><li>Trade Policy and Negotiations </li></ul><ul><li>Exports </li></ul><ul><li>Investment </li></ul><ul><li>Innovation </li></ul>
Building Canada’s economy <ul><li>The TCS promotes Canada’s economic interests in the global marketplace. </li></ul><ul><li>Foreign-market access </li></ul><ul><li>Trade leads </li></ul><ul><li>Exports </li></ul><ul><li>Business contacts </li></ul><ul><li>Events </li></ul><ul><li>Technology transfer </li></ul><ul><li>Licensing agreements </li></ul><ul><li>Joint-venture development </li></ul><ul><li>Investment in Canada </li></ul><ul><li>Research and development (R&D) partnerships </li></ul>The TCS facilitates
Our clients <ul><li>are small, medium and large companies; </li></ul><ul><li>are established in Canada; </li></ul><ul><li>do business abroad; and </li></ul><ul><li>have researched their market(s). </li></ul>
Delivering value to businesses <ul><li>We help Canadian companies succeed globally and lower their costs of doing business through four key services: </li></ul><ul><ul><li>Preparation for international markets </li></ul></ul><ul><ul><li>Market-potential assessment </li></ul></ul><ul><ul><li>Qualified contacts </li></ul></ul><ul><ul><li>Problem solving </li></ul></ul>
Leveraging partnerships <ul><li>The TCS </li></ul><ul><li>has an unparalleled network of contacts around the world. And that network starts at home. </li></ul><ul><li>connects partners to clients through its regional offices across Canada. Partners include: </li></ul><ul><li>Export Development Canada (EDC) </li></ul><ul><li>Canadian Commercial Corporation (CCC) </li></ul><ul><li>Business Development Bank of Canada (BDC) </li></ul><ul><li>Provincial economic development organizations </li></ul><ul><li>Business and industry associations </li></ul>
The Virtual Trade Commissioner (VTC) <ul><li>Markets are constantly changing. The VTC allows clients to receive the latest insights, including </li></ul><ul><li>access to current market reports, country information, business opportunities, sector-specific news, trade events and more. </li></ul><ul><li>assistance from VTC partners: </li></ul><ul><ul><li>Agriculture and Agri-Food Canada, Canadian Heritage, EDC and the CCC. </li></ul></ul>