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Supported with funding from

Exporting to CanadaTFO Canada

@ Trade Facilitation Office Canada 2011

TFO Canada services

TFO Canada mandateTFO 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.

TFO Canada: backgroundHistory:• 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.

TFO Canada services: Information

• Content rich web based service on how to access the Canadian market: www.tfocanada.ca

• 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

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

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

What’s New

• Quarterly Export to Canada e-Newsletter

• TFO Canada Responsive Initiative• Updated web-based services:

– www.tfocanada.ca

New Home Page

Foreign suppliers - Page

Logged in Visitor

www.tfocanada.ca: 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

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

TFO Regional Representatives

• Marc Germain– Quebec (Montreal)

• Alma Farias– Ontario (Greater Toronto Area)

• Bill Ross– British Columbia (Vancouver)

The CanadianMarket

The Canadian Market

• Second largestcountry in the world

• Small, concentrated population

• Six market regions

• 10% size of U.S. market

Introduction to Canada

BritishColumbia

The Prairies

Ontario

Quebec

The North

AtlanticCanada

The Canadian Market

BritishColumbia

The Prairies

Ontario

Quebec

The North

AtlanticCanada

Atlantic ProvincesPopulation: 2.4 Million






HalifaxHalifax

Statistics Canada 2010

The Canadian Market

BritishColumbia

The Prairies

Ontario

Quebec

The North

AtlanticCanada

QuébecPopulation: 7.9 Million

Atlantic Provinces: 2.4 Million






Montréal


The Canadian Market

BritishColumbia

The Prairies

Ontario

Quebec

The North

AtlanticCanada

OntarioPopulation: 13.3 Million

Atlantic Provinces:Québec:

2.47.9

MillionMillion






Toronto


The Canadian Market

BritishColumbia

The Prairies

Ontario

Quebec

The North

AtlanticCanada

Prairie ProvincesPopulation: 6.0 Million

Atlantic Provinces:Québec:Ontario:

2.47.9

13.3

MillionMillionMillion






Calgary


The Canadian Market

BritishColumbia

The Prairies

Ontario

Quebec

The North

AtlanticCanada

British ColumbiaPopulation: 4.6 Million


Prairies Provinces

2.47.9

13.36.0

MillionMillionMillionMillion






Vancouver


The Canadian Market

BritishColumbia

The Prairies

Ontario

Quebec

The North

AtlanticCanada

The TerritoriesPopulation: 0.1 Million


Prairies Provinces:British Columbia:

2.47.9

13.36.04.6

MillionMillionMillionMillionMillion • Second largest

country in the world






The Canadian Market

Canadian Population

BritishColumbia

The Prairies

Ontario

Quebec

The North

AtlanticCanada



The Territories

2.47.9

13.36.04,60.1

MillionMillionMillionMillionMillionMillion

• 62% of Canadians live in Ontario and Quebec

The Canadian Market

• 62% of Canadians live in Ontario and Quebec

• 90% of Canadians live within 160 Kmsof the United States border

Canadian Population

BritishColumbia

The Prairies

Ontario

Quebec

The North

AtlanticCanada



The Territories

MillionMillionMillionMillionMillionMillion

2.47.9

13.36.04,60.1

The Canadian Market

• 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)

Market Concentration

Source: Statistics Canada – census population 2006

The Canadian Market

Demographic Snapshot - 2010

Area (Km2) 9.98 million 9.83 million

Population 33.7 million 309 million

Population/ Km2 3.4 32

Population < 15 15.7 % 20.1%

Population > 65 15.9 % 13.1 %

Median age 39.5 36.9

Canada USA

Source: Statistics Canada – census population 2006 and US Census Bureau

The Canadian Market

Economic Snapshot (US$) - 2010

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%

Canada USA

Source: CIA – The World Factbook

The Canadian Market

• 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 2006-07• 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

Economic Indicators - 2010

Source: Statistics Canada 2010

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 1,000population)

Main settlement areas• Toronto, Montreal and

Vancouver 69% of new immigrants

• Calgary, Ottawa-Gatineau, Edmonton, Winnipeg, Hamilton, London 98 99 00 01 02 03 04 05 06 07

Immigration to Canada by Region of Origin1998-2007

Asia & Pacific – 48%

Africa and the Middle East – 21%

Europe – 17%

South & Central America – 11%

United States – 4%

Source: Statistics Canada –data based on census 2006

The CanadianConsumer

The Canadian Consumer

• 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

The Canadian Profile

Aging population: by 2031 23%-25% > 65

The Canadian Market

• 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

Consumer Trends

The Canadian Market

Aging Population

AgePeople (million)

% of thePopulation

AverageIncome

15-24 9.8 31 $16,36425-44 8.8 28 $36,58645-64 8.7 27 $37,375

65+ 4.8 14 $29,660

One out of every seven Canadians is now a senior citizen

Baby-boomers: Born between 1946 and 1965. In 2011 the first of the large baby-boom cohorts reached the age of 65

Source: Statistics Canada – 2009

The Canadian Market

Top 14 Average Household Expenditure in Canada 2009 (CDN$)

1,2151,2381,5061,7151,896

2,0042,841

3,4283,843

4,2697,262

Personal care

EducationTobacco 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

9,75314,095

14,399

Source: Statistics Canada 2010

Imports into Canada

Imports into Canada

• Imports per capita almost double the USA level

• Canada imports mostly manufactured products

• A four seasons market

Canada – Import Market

Goods: $414 CDN Billions (31% GDP) – 2010

UP 25% in 2010

Imports in 2010 have recovered registering CDN$ 414 Billions and increased 7% in 2011 (CDN$ 446 billions)

*

Source: Statistics Canada

25%

Between 2010 & 2011, imports increased 7%.

In 2011 Imports: CDN$ 446 $ billions

1,903

1,3071,122

636575 546

459 431 417 408 406

USA GermanyChina Japan France United Kingdom Italy Hong

KongSouth Korea Netherlands Canada

Canadian Imports 2007 -2011

Canada: Canada was the 11th largest import market in the world as of 2010

2007 2008 2009 2010 2011

415

443

374

414446

The Canadian Market

Imports of Selected Goods 2009-2010 (CDN$ billions)

46.5

Miscellaneous consumer

goods

46.2

11.2Apparel andfootwear

Other agriculturaland fishing

products

Fruits andvegetables

2009 2010

Source: Trade on line – Industry Canada 2010

11.211.2

21.1

29.5

8.38.2

The Canadian Market

Imports by Region - 2011

Source: Trade on Line – Industry Canada 2010

North America including Mexico 55%

Middle East 2%

Other Europe 2%Africa 3%Latin America and the

Caribbean 5%

Western Europe 14%

Asia Pacific 21%

Top Imports from Asia - 2011

The Canadian Market

Electrical Machinery & Equipment

Nuclear reactors, boilers

Motors , Vehicles

Furniture

Toys, Games & Sporting Goods

Knitted or Crocheted Clothing & Apparel

Woven Clothing & Articles of Apparel

Articles of Iron or Steel

Optical, medical InstrumentsPlastics and Articles Thereof

Rubber and Articles ThereofFootwear

Articles of Leather

Pearls and precious stones

Organic Chemicals

Industry Canada – Trade data online 2010

The Canadian Market

Top Ten Imports from India - 2011

Organic chemicals

Pearls & precious stones

Articles of Iron or Steel

Woven Clothing and articles of Apparel

Knitted or crocheted clothing and articles of apparel

Heavy machinery

Electrical or electronic machinery & equipment

Pharmaceutical products

Other made up textiles articles

Mineral fuels & mineral oils

Accessing theCanadian Market

Accessing the Canadian Market

• 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

Market Comparison: Canada vs USA SIMILARITIES


• 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

Market Comparison: Canada vs USA DIFFERENCES


• 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

Market Access – Commercial System


Free Trade Agreement in force:

Market Access – Trade Agreements

• 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.


Controls

• Quotas• List of imports control• Prohibited products• Health regulations• Provincial laws• Norms & Standards• Strict labelling requirements


• Bill of lading/airway bill• Commercial invoice• Fresh fruits / vegetables COS mandatory• Certificate of origin (form A)• Packing list• Inspection certificates• Import permits

Export Documentation

Required documents include:

Exporting to Canada –Handbook & Market Information Paperswww.tfocanada.ca


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


• 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

Accessing the Market

Key Considerations:

• Strict packaging and labelling regulations

• Labels in English and French

• Different to the USA!

Import Requirements


Identifying the Buyers – Trade Shows

AGRO Food

Giftware and Decoration

Canadian Food and Beverage Showwww.crfa.caToronto, March 4-6, 2012

SIAL CANADAwww.sialcanada.comMontreal ,May 9-11, 2012

Canadian Produce Marketing Associationwww.cpma.caCalgary, April 11-13, 2012

Canada Blooms Flowers www.canadablooms.comToronto, May 16- 25, 2012

Canadian Gift and Tableware Association (CGTA) Gift Show www.cgta.orgToronto, January 29 – February 2, 2012

Sources of InformationStandards Council of

Canada (Normative)www.scc.ca

Canadian Food Inspection Agencywww.inspection.gc.ca

Industry Canada www.ic.gc.ca

Foreign Affairs and International Trade Canadawww.international.gc.ca

Canada Border Services Agency (Aduanas)www.cbsa-asfc.gc.ca

www.tfocanada.ca

Supported with funding from

Thank You!www.tfocanada.ca

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