canada, latin america and the caribbean
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Canada, Latin America and the Caribbean. 2008 NSS Conference: June 2-4, 2008 St. John's, Newfoundland and Labrador. Introduction. Overview of Canada’s Investment in LAC Current Issues in LAC Opportunities for Canadian companies Standards in a Global Economy. - PowerPoint PPT PresentationTRANSCRIPT
Canada, Latin America and the Caribbean
Canada, Latin America and the Caribbean
2008 NSS Conference: June 2-4, 2008
St. John's, Newfoundland and Labrador
www.focal.ca
Introduction Introduction
• Overview of Canada’s Investment in LAC
• Current Issues in LAC• Opportunities for Canadian
companies• Standards in a Global Economy
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2007 CDI Stock Abroad by Geographic Area (millions of C$)
2007 CDI Stock Abroad by Geographic Area (millions of C$)
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Canada’s Trade with Latin America
(minus Mexico)
Canada’s Trade with Latin America
(minus Mexico)
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Ex ports
Imports
Bilateral
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Rest of LAC
PeruChileCuba
Colombia
Venezuela
Brazil
Destination of Canadian Exports to LAC, Top 6 – (Excluding Mexico)
Destination of Canadian Exports to LAC, Top 6 – (Excluding Mexico)
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Canadian Companies Present in Latin America
Canadian Companies Present in Latin America
CompanyMarket Capital
Royal Bank $61.30EnCana $49.80Scotiabank $45.60Petro-Canada $29.60Barrick $29.60Thomson $29.20SunLife $28.50CIBC $28.10Talisman $24.90Alcan $22.10Nexen $18.00Brookfield Asset Mgt $17.50Teck Cominco $17.00Nortel $13.90
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Top 25 imports from LACTop 25 imports from LAC
24%
11%
9%
8%7%
6%
4%
3%
3%
3%
3%
3%
2%
2%
2%2%
1%1%1%1%1%1%1%1%1%
Gold in Unwrought form (non-monetary)
Crude Petroleum Oils
Unrefined Copper
Aluminum oxidesAirplanes and other aircrafts
Copper ores
Cane sugar - Raw
Other Minerals such as iron and copper, and food products such as bananas, coffee grapes and Orange Juice
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Current AgreementsCurrent Agreements
FIPA w/Argentina
FTA and FIPA w/Costa Rica
NAFTA
FTA w/Peru (pending ratification)
FTA and FIPA w/Chile
Exploring FTA w/Dominican Republic
FIPA w/Uruguay
FIPA w/Trinidad and Tobago, Venezuela and Barbados
FIPA w/Ecuador
Exploring FTA w/C4
Exploring FTA w/ CARICOM
FIPA w/Peru (pending ratification)
Negotiations ongoing with Colombia
FIPA and Exploring FTA w/Panama
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Figure 1. China’s total trade with top 5 LAC countries and Andean Community, 1990-2003 ($m)
Source: Funakushi and Loser 2005, p3
http://www.focal.ca/pdf/china_latam.pdf
China’s Total Trade with Top 5 LAC Countries, 1990-2003
US$mil
China’s Total Trade with Top 5 LAC Countries, 1990-2003
US$mil
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A decade of ChangeA decade of Change
• Growing Economies – Brazil– Peru – Colombia
• Stable Democracies• Stronger Institutions: rule of law and
good governance
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What is Missing?What is Missing?
1. More Sophisticated Understanding of the Market– False assumptions about the region
and missed opportunities. – Less extreme opportunities, e.g.,
Uruguay
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What is Missing?What is Missing?2. Corporate Social
Responsibility – CSR is not missing, rather
under-emphasized – Should be a Canadian
competitive advantage• Canadian firms 25% of CIDA
spending
– Government needs to support CSR activities• Falconbridge, PlaceDome,
Glamis
Canadian Government
Canadian Private Sector
Source: OECD and Phoenix Survey
Canadian Government ODA vs Private Sector External CSR Spending, Including Staff Time in Chile, Guatemala and Trinidad and Tobago, 2004
Canadian Private Sector and Government Spending on
Development/CSR – Guatemala, Chile, T&T, 2005
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Opportunities for Canadian companies in LAC
Opportunities for Canadian companies in LAC
• Sectors previously explored: – Extractive Industry– Financial Sector and Insurance– Manufacturing– Management of Companies and Enterprise
• Other Areas to consider: Infrastructure, Telecommunications, Information Technology
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Standards In Latin AmericaStandards In Latin America
• Looking out for WTO – SPS and TBT compliance
• Assisting partner countries to achieve international standards.
• Making products together: global supply chain.