Exporting to Canada TFO Canada. Supported with funding from

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1 Exporting to Canada TFO Canada Supported with funding Trade Facilitation Office Canada 2011

2 TFO Canada services

3 TFO Canada mandate TFO Canada confronts the challenge of global poverty by promoting sustainable economic development through export information, advice and contact. We facilitate access to the Canadian marketplace and share Canadian trade expertise for the benefit of smaller exporters in developing countries and emergent markets.

4 TFO Canada: background History: Created by Canadian government in 1980 Since 1985 operating as a non-profit NGO Private sector oriented Board of Directors Clients: Developing country exporters, especially SMEs Trade support institutions in partner countries Canadian Importers Funding: Canadian International Development Agency Partner governments and other donors Cost sharing by participants, partners, Canadian corp.

5 TFO Canada services: Information Content rich web based service on how to access the Canadian market: Exporting to Canada Handbook Over 20 sector-specific market studies Used by over 4,000 registered exporters from over 100 countries Content served in English, French and Spanish Approximately 3,000 visitors per month

6 TFO Canada Services: Advice MBA Market Entry Studies: University of Concordia in Quebec and Sir Wilfred Laurier in South east Ontario Trade Capacity Building Projects Exporter Training and Coaching Export Packaging Product Adaptation Shipping Logistics Foreign Service Officer Training (Trade/Investment) Regional Initiatives

7 TFO Canada Services: Contact Web-based promotion of export offers to over 1,300 registered Canadian importers Regular program of trade missions and trade fairs Recent projects: Garment (and others) solo show: Bangladesh Cosmetics: Burkina Faso Fresh and processed foods: Ecuador, Guyana, Haiti, Peru

8 What s New Quarterly Export to Canada e-newsletter TFO Canada Responsive Initiative Updated web-based services:

9 New Home Page

10 Foreign suppliers - Page

11 Logged in Visitor

12 New Content Supply-market country profiles Trade Agreements Exporters: stats on how many time profile viewed by importers Site may be customised without logging in

13 TFO Canada Ottawa Team Brian Mitchell, Executive Director Tim Mattimoe, Program Director Lidia Karamaoun, Project Manager, Latin America & Eastern Europe Lalla Haidara, Project Manager, Africa & Haiti Marysabel Gonzalez, Project & Communications Officer Danielle Mulligan, Office Manager Merry Sun, Accountant

14 TFO Regional Representatives Marc Germain Quebec (Montreal) Alma Farias Ontario (Greater Toronto Area) Bill Ross British Columbia (Vancouver)

15 The Canadian Market

16 The Canadian Market Introduction to Canada Second largest country in the world British Columbia The North The Prairies Ontario Quebec Atlantic Canada Small, concentrated population Six market regions 10% size of U.S. market

17 The Canadian Market Introduction to Canada Second largest country in the world British Columbia The North The Prairies Ontario Quebec Atlantic Canada Small, concentrated population Six market regions Halifax 10% size of U.S. market Atlantic Provinces Population: 2.4 Million Statistics Canada 2010

18 The Canadian Market Atlantic Provinces: 2.4 Million Introduction to Canada Second largest country in the world British Columbia The North The Prairies Ontario Quebec Atlantic Canada Small, concentrated population Six market regions Montréal 10% size of U.S. market Québec Population: 7.9 Million Statistics Canada 2010

19 The Canadian Market Atlantic Provinces: Québec: 2.4 Million 7.9 Million Introduction to Canada Second largest country in the world British Columbia The North The Prairies Ontario Quebec Atlantic Canada Small, concentrated population Six market regions Toronto 10% size of U.S. market Ontario Population: 13.3 Million Statistics Canada 2010

20 The Canadian Market Atlantic Provinces: Québec: Ontario: 2.4 Million 7.9 Million 13.3 Million Introduction to Canada Second largest country in the world British Columbia The North The Prairies Ontario Quebec Atlantic Canada Small, concentrated population Six market regions Calgary 10% size of U.S. market Prairie Provinces Population: 6.0 Million Statistics Canada 2010

21 The Canadian Market Atlantic Provinces: Québec: Ontario: Prairies Provinces 2.4 Million 7.9 Million 13.3 Million 6.0 Million Introduction to Canada Second largest country in the world British Columbia Vancouver The North The Prairies Ontario Quebec Atlantic Canada Small, concentrated population Six market regions 10% size of U.S. market British Columbia Population: 4.6 Million Statistics Canada 2010

22 The Canadian Market Atlantic Provinces: Québec: Ontario: Prairies Provinces: British Columbia: 2.4 Million 7.9 Million 13.3 Million 6.0 Million 4.6 Million Introduction to Canada Second largest country in the world British Columbia The North The Prairies Ontario Quebec Atlantic Canada Small, concentrated population Six market regions 10% size of U.S. market The Territories Population: 0.1 Million Statistics Canada 2010

23 The Canadian Market Atlantic Provinces: Québec: Ontario: Prairies Provinces: British Columbia: The Territories 2.4 Million 7.9 Million 13.3 Million 6.0 Million 4,6 Million 0.1 Million Canadian Population 62% of Canadians live in Ontario and Quebec The North British Columbia The Prairies Ontario Quebec Atlantic Canada

24 The Canadian Market Atlantic Provinces: Québec: Ontario: Prairies Provinces: British Columbia: The Territories ,6 0.1 Million Million Million Million Million Million Canadian Population 62% of Canadians live in Ontario and Quebec British Columbia The North The Prairies Ontario Quebec Atlantic Canada 90% of Canadians live within 160 Kms of the United States border

25 The Canadian Market Market Concentration Low overall density (3.5 per Km Sq.) but: 80% of the population is urban 50 % concentrated in 4 broad urban areas. Toronto & area (6.7 million) Montreal & Area (3.7 million) Vancouver (2.7 Million) Calgary Edmonton Corridor (2.2 Million) Source: Statistics Canada census population 2006

26 The Canadian Market Demographic Snapshot Canada USA Area (Km 2 ) 9.98 million 9.83 million Population 33.7 million 309 million Population/ Km Population < % 20.1% Population > % 13.1 % Median age Source: Statistics Canada census population 2006 and US Census Bureau

27 The Canadian Market Economic Snapshot (US$) Canada USA GDP $1.35 Trillion $14.7 Trillion GDP (per Capita) $39,600 $47,400 Exports $406.8 Billion $1.27 Trillion Per capita $9,430 $3,375 Imports $406.4 Billion $1.9 Trillion Per capita $11,964 $6,070 SERVICES (% of GDP) 78 % 76.79% Source: CIA The World Factbook

28 The Canadian Market Economic Indicators Highly dependant on Trade Two way trade = 60% of economy Imports 31% of GDP; Exports 29% of GDP Knowledge base economy and High Tech Industrial society Services 78%of GDP GDP growth: Slow in 2008: 1.3%, down from 2.7% in Decreased 2.9% in 2009 Increased 5.6% in 2010 Increased 7% in 2011 $CDN close to parity with $US Import market open, growing and diversified Source: Statistics Canada 2010

29 The Canadian Market Demographics Immigration trends 1 in 5 Canadians is an immigrant Last five years Immigrant growth (13.6%) FOUR times higher than birth rate (11.3% per 1,000 population) Immigration to Canada by Region of Origin United States 4% South & Central America 11% Europe 17% Main settlement areas Africa and the Middle East 21% Toronto, Montreal and Vancouver 69% of new immigrants Asia & Pacific 48% Calgary, Ottawa-Gatineau, Edmonton, Winnipeg, Hamilton, London Source: Statistics Canada data based on census 2006

30 The Canadian Consumer

31 The Canadian Consumer The Canadian Profile Well informed and demanding Price Conscious Home owner Double Income families (Although many single parent homes) Health and environmentally aware Increasingly multicultural Regional differences Baby boomers dominate the market Aging Population A very important sector Aging population: by %-25% > 65

32 The Canadian Market Consumer Trends Ethnic Products Health Specialty/Gourmet Educational Products and Services Household products Construction, repair materials Décor items, house ware, giftware, furnishings Hobbies: gardening, recreation Holiday/ Seasonal markets

33 The Canadian Market Aging Population One out of every seven Canadians is now a senior citizen Age People (million) % of the Population Average Income $16, $36, $37, $29,660 Baby-boomers: Born between 1946 and In 2011 the first of the large baby-boom cohorts reached the age of 65 Source: Statistics Canada 2009

34 The Canadian Market Top 14 Average Household Expenditure in Canada 2009 (CDN$) Personal care Education Tobacco products and smokers supplies Gifts / money Household furnishings and Equipment Health Care Clothing Household operation Recreation Personal insurance/ pension contribution Food Transportation Shelter Personal taxes 1,215 1,238 1,506 1,715 1,896 2,004 2,841 3,428 3,843 4,269 7,262 9,753 14,095 14,399 Source: Statistics Canada 2010

35 Imports into Canada

36 Imports into Canada Canada Import Market Goods: $414 CDN Billions (31% GDP) % UP 25% in 2010 Imports per capita almost double the USA level Canada imports mostly manufactured products A four seasons market * Imports in 2010 have recovered registering CDN$ 414 Billions and increased 7% in 2011 (CDN$ 446 billions) Source: Statistics Canada

37 Canadian Imports Between 2010 & 2011, imports increased 7% In 2011 Imports: CDN$ 446 $ billions 374 1, ,307 1,122 Canada: Canada was the 11th largest import market in the world as of USA China Germany Japan France United Kingdom Italy Hong Kong South Korea Netherlands Canada

38 The Canadian Market Imports of Selected Goods (CDN$ billions) Miscellaneous consumer goods Apparel and footwear Other agricultural and fishing products Fruits and vegetables Source: Trade on line Industry Canada 2010

39 The Canadian Market Imports by Region Latin America and the Caribbean 5% Western Europe 14% Africa 3% Other Europe 2% Middle East 2% Asia Pacific 21% North America including Mexico 55% Source: Trade on Line Industry Canada 2010

40 The Canadian Market Top Imports from Asia Footwear Articles of Leather Pearls and precious stones Organic Chemicals Rubber and Articles Thereof Plastics and Articles Thereof Optical, medical Instruments Articles of Iron or Steel Woven Clothing & Articles of Apparel Nuclear reactors, boilers Knitted or Crocheted Clothing & Apparel Toys, Games & Sporting Goods Electrical Machinery & Equipment Motors, Vehicles Furniture Industry Canada Trade data online 2010

41 The Canadian Market Top Ten Imports from India Other made up textiles articles Pharmaceutical products Mineral fuels & mineral oils Organic chemicals Electrical or electronic machinery & equipment Pearls & precious stones Heavy machinery Articles of Iron or Steel Knitted or crocheted clothing and articles of apparel Woven Clothing and articles of Apparel

42 Accessing the Canadian Market

43 Accessing the Canadian Market Market Comparison: Canada vs USA SIMILARITIES English Business practices Border commonality (Vancouver & Seattle) Same retail chains (Walmart, Sears, Home Depot) Similar demographics: Dominated by baby boomers Important ethnic market Both demand: High-quality products Good value for money (competitive) After sales service where applicable

44 Accessing the Canadian Market Market Comparison: Canada vs USA DIFFERENCES Canada: French is an official language USA: Spanish is unofficial but important Customs tariffs Packaging and labelling Import documentation Health requirements Measurement Canada uses the Metric System USA uses the Imperial System In Canada, bigger share of market held by specialty stores

45 Accessing the Canadian Market Market Access Commercial System 90% of the imported categories of products enter the market tariff free Average tariff= 6% Sensitive products more difficult access Dairy products, textiles, apparel In 2010 The Government of Canada announced the elimination of duties on imported raw materials Developing countries have access to the General Preferential Tariff (GPT) Least developed countries (LDC) have duty free access

46 Accessing the Canadian Market Market Access Trade Agreements Free Trade Agreement in force: Colombia (August 2011) Peru (August 2009) Chile (1997) Costa Rica (2002) EFTA (2008) Israel (1997) NAFTA (1994) Free Trade Agreements signed: Panama, May 14, 2010 Jordan, June 28, 2009 Conclusion of fourth round on FTA negotiations with India in February. Negotiation process: FTA s with South Korea, Singapore among others.

47 Accessing the Canadian Market Controls Quotas List of imports control Prohibited products Health regulations Provincial laws Norms & Standards Strict labelling requirements

48 Accessing the Canadian Market Export Documentation Required documents include: Bill of lading/airway bill Commercial invoice Fresh fruits / vegetables COS mandatory Certificate of origin (form A) Packing list Inspection certificates Import permits Exporting to Canada Handbook & Market Information Papers

49 Accessing the Canadian Market How to Approach the Market FINDING THE IMPORTER Industry associations Chambers of commerce TFO Canada Trade show Embassy Trade Representatives Trading companies and Agents Revisiting previous contacts Commercial missions Publicity Promotion Banks and Freight forwarding companies

50 Accessing the Canadian Market Accessing the Market Key Considerations: Open but competitive market Information is important - do your homework Managing relations with importers Trusting and efficient supplier Price is not always a key factor Right distribution channels Import Requirements Strict packaging and labelling regulations Labels in English and French Different to the USA!

51 Accessing the Canadian Market Identifying the Buyers Trade Shows AGRO Food Canadian Food and Beverage Show Toronto, March 4-6, 2012 SIAL CANADA Montreal,May 9-11, 2012 Canadian Produce Marketing Association Calgary, April 11-13, 2012 Canada Blooms Flowers Toronto, May 16-25, 2012 Giftware and Decoration Canadian Gift and Tableware Association (CGTA) Gift Show Toronto, January 29 February 2, 2012

52 Industry Canada Sources of Information Foreign Affairs and International Trade Canada Canada Border Services Agency (Aduanas) Standards Council of Canada (Normative) Canadian Food Inspection Agency

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54 Thank You! Supported with funding from