compiled summary of workdone in semester iii & semester iv pdf 2013/794 canada - 13-.pdf ·...
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COMPILED SUMMARY OF WORKDONE IN
SEMESTER III & SEMESTER IV
SUBMITTED BY:
GLOBAL INSTITUTE OF MANAGEMENT, GANDHINAGAR (794)
COUNTRY SLECTED: CANADA
COORDINATOR: MR. DHARMENDRA KHAIRAJANI
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COMPARITIVE ANALYSIS OF CANADA WITH RESPECT
TO INDIA
DEMOGRAPHIC PROFILE OF THE COUNTRY:
CANADA & INDIA
The first people to live in Canada were the Inuit and First Nation Peoples. The first Europeans to reach the country were likely the Vikings and it is believed that Norse explorer Leif Eriksson led them to the coast of Labrador or Nova Scotia in 1000 C.E.
European settlement did not begin in Canada until the 1500s. In 1534, French explorer Jacques Cartier discovered the St. Lawrence River while searching for fur and shortly thereafter, he claimed Canada for France. The French began to settle there in 1541 but an official settlement was not established until 1604. That settlement, called Port Royal, was located in what is now Nova Scotia.
A brief summary depicting the demographic profile of the countries Canada & India is as
under:
Demographic Factor
Canada India
Flag
Map
President Pranav Mukharaji
Nation Official name : Canada
Country code ISO : CA
Location : North America
Official name : Hindustan
Country code ISO : IN
Location : South Asia
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Surface (land) area:
Total area: 9 984 670 square km
Land: 9 093 507 square km
Fresh Water: 891 163 square km
Climate : cold weather and snow
Sueface (Land) area :
Total area : 3287260 sq.km
Land : 2973190 sq.km
Fresh Water : 314070 sq.km
Cliamte : Tropical Monsoon
Population 34,300,083 (July 2012 EST.) 1222020000 ( in 2012)
Language English (21%), French (15%), Scottish (15%), and Irish (13%).
Hindi 41%, Bengali 8.1%,
Telugu 7.2%, Marathi 7%,
Tamil 5.9%, Urdu 5%,
Gujarati 4.5%, Kannada
3.7%, Malayalam 3.2%, Oriya
3.2%, Punjabi 2.8%,
Assamese 1.3%, Maithili
1.2%, other 5.9%
Religion The largest ethnicities of non-European origin (other than Canadian) were Chinese (4.3%) and First Nations (4.0%).
Hindu 80.5%, Muslim 13.4%,
Christian 2.3%, Sikh 1.9%,
other 1.8%, unspecified 0.1%
Ethnic groups
Indo-Aryan 72%, Dravidian 25%, Mongoloid and other 3% (2012 )
Indo-Aryan 72%, Dravidian
25%, Mongoloid and other
3%
Age structure 0-14 years: 29.7% (male 187,450,635/female 165,415,758)
0-14 years: 29.7% (male
187,450,635/female
165,415,758)
15-64 years: 64.9% (male 398,757,331/female 372,719,379)
15-64 years: 64.9% (male
398,757,331/female
372,719,379)
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65 years and over: 5.5% (male 30,831,190/female 33,998,613) (2011 EST.)
65 years and over: 5.5%
(male 30,831,190/female
33,998,613)
Birth rate 10.28 births/1,000 population (2012 EST.)
20.6 births/1,000 population
(2012 est.)
Death rate 8.09 deaths/1,000 population (July 2012 EST.)
7.43 deaths/1,000 population
(July 2011 est.)
Net migration rate
5.65 migrant(s)/1,000 populations (2012 EST.)
``-0.05 migrant(s)/1,000
population (2011 est.)
Life expectancy at birth
81.48 years total population: 67.14 years
Total fertility rate:
1.59 children born/woman (2012 EST.)
2.58 children born/woman
(2011 est.)
ECONOMIC OVERVIEW OF THE COUNTRY:
CANADA & INDIA
A brief summary depicting the economic profile of the countries Canada & India is as
under:
Economic Factor Canada India
GDP-percapita (PPP)
$41,100(2011EST.) $3,700 (2011 est.)
GDP - real growth rate
2.2 %( 2011EST.) 7.8% (2011 est.)
GDP - composition by
Agriculture: 1.90% Agriculture: 17.2%
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sector Industry: 27.10%
Services: 71.00% (2011 EST.).
Industry: 26.4%
Services: 56.4% (2011 Est.)
Labor force 18.67 million (2011 EST.) 487.6 million (2011 est.)
Unemployment rate
7.5 %( 2011EST.) 9.8% (2011 est.)
Currency Canadian Dollar Indian Rupee
Investment
(gross fixed)
22.6% of GDP (2012 EST.) 32.8% of GDP (2011 est.)
Budget
Revenues: $660.2billion
Expenditures: $747.8 billion (2011 EST.)
revenues: $196.4 billion
expenditures: $308.8 billion (2011 est.)
Taxes and other revenues
38.5% of GDP (2011 EST.) 11.9% of GDP (2011 est.)
Budget surplus (+) or deficit (-)
-3.8% of GDP (2011 EST.) -5% of GDP (2011 est.)
Public debt 83.5%ofGDP(2011EST 51.6% of GDP (2011 est.)
Inflation rate (consumer prices)
2.8%(2011EST.) 6.8% (2011 est.)
Industrial production growth rate
3.7% (2011 EST.) 4.8% (2011 est.)
Electricity production
604.4 billion kWh (2009 EST.) 835.3 billion kWh (2009 est.)
Current Account Balance
-$52.6billio(2011EST.) -$62.96 billion (2011 est.)
Exports $450.6 billion (2011 EST.)
$393 billion (2010 EST.)
Exports – commodities: motor vehicles and parts, industrial machinery, aircraft, telecommunications equipment; chemicals, plastics, fertilizers; wood pulp, timber, crude
$298.2 billion (2011 est.)
Exports – commodities:
petroleum products, precious stones, machinery, iron and steel, chemicals, vehicles, apparel
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petroleum, natural gas, electricity, aluminum
Exports – partners: US 74.9%, UK 4.1% (2009)
Imports $459.6billion(2011EST.) $401.7 billion (2010 EST.)
Imports - commodities
Machinery and equipment, motor vehicles and parts, crude oil, chemicals, electricity, durable consumer goods
Imports - partners
US 50.4%, China 11%, Mexico 5.5% (2009)
$451 billion (2011 est.)
Imports – commodities:
crude oil, precious stones, machinery, fertilizer, iron and steel,
Imports – partners:
China 12.4%, UAE 6.5%, Saudi Arabia 5.8%, US 5.7%, Australia 4.5% (2009)
Reserves of foreign exchange and gold
$57.15 billion (31 December 2010 EST.)
$345.8 billion (31 December 2011 est.)
Exchange rates
Canadian dollars (CAD) per US dollar-
0.9801(2011EST.)
1.0302(2010EST.)
1.1431(2009)
1.0364(2008)
Indian rupees (INR) per US dollar –
44.64 (2011 est.)
Fiscal year: 1 April - 31 March 1 April - 31 March
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OVERVIEW OF INDUSTRIES TRADE AND COMMERCE OF CANADA
GDP sorted out by Industry or Sector: Canadian Economy Annualized GDP sorted out
by Industry or Sector as of
December 2011. Canada's
GDP is dominated by the
commodities particularly oil,
gas, and various minerals.
But according to this GDP
data, mining and oil and gas
extraction shows only 4.5%
of GDP it is extremely far
from being the most
important sector.
Manufacturing is no longer
an important component of
Canada's economy but still
has a very large portion of
GDP i.e. 13%. . The figures
show that "Finance,
insurance and real Estate and
leasing and management of companies and enterprises" is by far the largest segment of
Canada's economy.
Canada Exports: Industrial goods and materials (metals, ores and chemicals) is the largest
export segment representing 26% of total exports. The second largest category is Energy
Products (oil, natural gas and other) at 24% of total exports. However, manufacturing
including machinery and equipment plus automotive products accounts for 31% of Canada's
exports.
Canada Import: Canada's larger import category is energy products (oil and other) at
11.5% of total imports. The United States accounts for 62% of Canada's imports. The
remainder appears to spread widely around the globe.
Canadian GDP Segment %
Source: Statistics Canada
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Goods Exports by Category in 2011 2011 Canadian Export Went to
Canadian Import segment % 2011 2011 Canadian Import come from
Source: www.investorsfriend.com/...
TRADE RELATIONS AND BUSINESS VOLUME OF DIFFERENT
PRODUCTS BETWEEN CANADA & INDIA
Canada is home to 962,670 Persons of Indian origin (2006 Census): 50% are Sikhs, 39%
Hindus, and the remainder is Muslim, Christian, Jain, Buddhist, etc. A majority of PIOs
live in Greater Toronto Area, Greater Vancouver Area, Montreal and Calgary. There are 9
Indo-Canadian MPs in the House of Commons and one in the Senate. Two PIO MPs are
Ministers of State in the Federal government and one PIO MP is Parliamentary Secretary to
the Foreign Minister. Prominent Indo-Canadian bodies include Canada India Business
Council (CIBC), Canada India Foundation (CIF) and several other local chambers and
associations. Over 300 MOUs exist between Canadian and Indian higher education
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institutions for collaborative research and exchange programmes. As on 2011, approx
12,000 Indian students are studying in various Canadian universities/colleges. India is the
fourth largest source of foreign students in Canada after China, Korea and the US.
Political relations: In Canada, India is represented by the High Commission of India in
Ottawa and the Consulate General of India in Toronto and Vancouver. In India, Canada is
represented by the Canadian High Commission in New Delhi and the Consulate General of
Canada in Chandigarh, Chennai and Mumbai. India Established diplomatic relations with
Canada in 1947. India and Canada have longstanding bilateral relationship based on shared
democratic values, the multi-cultural, multi-ethnic and multi-religious nature of two
societies and strong people-to-people contacts. In recent years, both countries have been
working to enhance bilateral cooperation in a number of areas of mutual importance.Several
high level visits including at PM levels, have been exchanged during recent years.
India and Canada pursue bilateral relations through the mechanisms of annual Foreign
Office Consultations, Trade Policy Consultations, Strategic Dialogue and meetings of
Science & Technology Committee, Joint Working Group on Counter-terrorism,
Environment Forum, Energy Forum, Steering Committee on Mining and Earth Sciences;
Joint Working Groups on Pulses, Plant Protection, Health, Agriculture and SPS issues etc.
Commercial relations: The India Canada CEOs Roundtable has been upgraded to a
CEOs Forum. An annualised Trade Ministers dialogue has been established. Both sides are
engaged in technical negotiations for a Comprehensive Economic Partnership Agreement
(free trade) including trade in goods, services, investment, trade facilitation etc. Separate
MOUs exist with implementation mechanisms to advance relations in the fields of energy,
mining, agriculture etc. Annualised Trade Policy Consultations are held to review economic
relations. Air India and Jet Airways operate air services to Canada. State Bank of India,
ICICI Bank, Government of India Tourist Office, Air India and Jet Airways has offices in
Canada. Many renowned Indian companies have presence in Canada such as Tata, Aditya
Birla, Reliance, Wipro, Infosys, TCS, Essay, etc.
Trade: Bilateral trade during the calendar year of 2011 crossed US$ 5 billion mark. India’s
exports to Canada in 2011 were up 25 per cent and imports from Canada registered an
increase of 31.7 per cent over 2010. Total bilateral trade during 2011 registered 28.35 per
cent increase over the previous year. According to Statistics Canada, bilateral merchandise
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trade between Canada and India in 2011 totaled approximately CAD$ 5.2 billion, an
increase of 23.4% percent 2010. While Canadian merchandise exports to India in 2011
totaled $2.6 billion (a 27.7% percent increase 2010), imports from India reached $2.5 billion
(a 19.3% percent increase from 2010).
India-Canada Bilateral Trade during 2006-2011 (January-December)
Details 2006 2007 2008 2009 2010 2011
India’s Exports to Canada 1.692 1.841 2.065 1.754 2.064 2.581
India’s Imports from Canada 1.477 1.667 2.268 1.881 2.024 2.635
Total 3.169 3.508 4.333 3.635 4.088 5.216
Canada - India Bilateral Trade 2006 – 2011
Details 2006 2007 2008 2009 2010 2011
Canada’s Imports from India
1.92 1.98 2.2 2.0 2.12 2.5
Canada’s Exports to India
1.68 1.79 2.42 2.14 2.15 2.6
Total 3.59 3.77 4.62 4.14 4.27 5.1
Source: Statistics Canada
Major Items of Indian Exports are: Medicines, Garments, diamonds, chemicals, gems and
jeweler, petroleum oils, made-up, sea food, engineering goods, marble and granite, knitted
garments, rice, electric equipment, plastic products, etc. Major items of Canada’s export to
India are: Pulses, fertilizers, newsprint, aircrafts & aviation equipment, diamonds, copper
ores and concentrates, bituminous coal, wood pulp, nickel, unwrought aluminum, asbestos,
god, cameras, lumber, ferrous waste, etc.
Investments: Canadian investors are present in the Indian banking; insurance and financial
services sectors, as also in engineering and consultancy services. Canadian investment in
India has targeted telecommunications, environment, energy and mining. Indian investment
in Canada has increased steadily in the recent years, especially in the information
technology, software and natural resources sectors. A Bilateral Investment Promotion
Agreement is under negotiation.
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Two-way direct investment between India and Canada
(Figures in million Canadian Dollars)
Details 2005 2006 2007 2008 2009 2010 2011
Canadian Direct Investment in India
319 677 506 667 520 676 587
Indian Direct Investment in Canada 171 211 1,988 6,514 6,217 4,364 4,396
Total 490 888 2,494 7,181 6,737 5,040 4,983
Source: Government of Canada
Science and Technology: Canada and India signed a Canada-India Agreement for
Scientific and Technological Cooperation in November 2005 to foster greater bilateral S&T
collaboration in five priority areas. Under this Agreement and fostered by a Joint Committee
on S&T which meets annually, the five priority sectors are: nanoscience and nanomedicine;
information and communications technology; biotechnology, health research and medical
devices; sustainable and alternative energy and environmental technologies; and earth
sciences and disaster management. From 2005 to 2010, joint funding from Canada and India
for S&T collaboration totaled C$13.5 million.
Environment and Energy: The two countries have established the Canada-India
Forum for Environmental Collaboration in order to increase technology and knowledge
exchange on environmental issues. Canada and India also initiated a Canada India Energy
Forum following the signing of the energy Memorandum of Understanding in November
2009.
Canada and India in Multilateral Fore: Canada and India are also strong partners
in addressing a variety of regional and international challenges. Our two countries regularly
engage in dialogue to discuss our shared commitment to global peace and security. This past
summer in Tokyo, Canada and India joined more than 60 other countries and 25
international organizations in pledging support to help Afghanistan become a more stable,
more secure, and democratic country.
Immigration and Visas: India is currently the third largest source country of
immigrants to Canada, with a rapidly growing Indo-Canadian community Estimated to be
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over one million. India was the second largest source of students destined to Canada in 2011
when 12,210 study permits were issued, more than four times the number in 2007.
High-level Visits: The high number of visits over the last three years - involving Ministers,
Members of Parliament, Premiers, academic and trade delegations - reflects the importance
of the Canada-India relationship. Visits that took place in the last two months include:
• Minister of Foreign Affairs John Baird visited Mumbai and Delhi, India September 10-
12, 2012, and met with many key government and business interlocutors including his
Indian counterpart, former External Affairs Minister Krishna.
• Minister Baird advanced Canadian objectives related to ongoing negotiations, promoted
education cooperation, and discussed regional issues with Minister Krishna.
• Minister of Natural Resources Joe Oliver visited Delhi and Mumbai October 7-12 and
met with government and industry interlocutors to highlight Canada’s interest in
deepening engagement with India and its natural resource sector.
• Clerk of the Privy Council Wayne Wouters visited Mumbai and Delhi October 22-26.
Clerk Wouters received the Gordon Draper award at the Commonwealth Association for
Public Administration and Management (CAPAM) Conference in Delhi (October 24-
26). He also met with government and business interlocutors, focusing meetings around
public administration, service delivery, innovation, education and economics.
Development Assistance: After 55 years of bilateral programming in India totaling C$2.39
billion, Canada’s bilateral development assistance program came to an end in 2006
following a change in Indian government policy regarding aid. However, the Canadian
International Development Agency (CIDA) continues to provide assistance to India through
partnerships between Indian and Canadian NGOs and multilateral programs. In addition, the
Canadian High Commission in New Delhi manages the Canada Fund for Local Initiatives,
to support local projects in India focusing on gender equality, human rights, and good
governance. For further details see the “Development Cooperation” link on the left hand
side of this page.
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POLITICAL FACTOR OF CANADA
In this report we had considering the political factor of the country Canada. On the basis of
data and information we put the total information about the political situation about the
Canada. Canada we had different industries affected of Canada. In Canada the 7 types of
industries are automobile, aerospace, agriculture, business services, financial services,
chemical and machinery & equipment.
(1) Automobile:
The Automobile Industries Association of Canada (AIA) is a national trade association
representing the automotive aftermarket industry in Canada. The aftermarket is an $18.5
billion industry that employs more than 420,000 people. The industry is composed of
companies that manufacture, distribute and install automotive replacement parts,
accessories, tools, and equipment. AIA represents manufacturers, re-builders, manufacturers
agents, warehouse distributors, national distributors, buying groups, wholesalers, machine
shops, retailers, and through its councils, the interests of collision repair shops and
automotive service and repair outlets. AIA’s mandate is to promote, educate and represent
members in all areas that impact the growth and prosperity of the industry.
Canada agreed to accord duty-free treatment to vehicles and original equipment
manufacturing parts of the United States, provided the importer met the definition of a
motor vehicles "manufacturer" under the terms of the Auto Pact. An Auto Pact manufacturer
must have produced in Canada, during the base year (1963-64), motor vehicles of the class
it is importing, and (i) must have maintained a ratio of the sales value of its local production
of vehicles of that class to the vehicles of that class sold in Canada of a prescribed
minimum, and (ii) must have achieved a minimum amount of CVA in its local production of
motor vehicles (including in certain cases the production of parts therefore). The Auto Pact
also provided that Canada could designate a manufacturer not meeting the base year
criterion to import duty-free motor vehicles and original equipment manufacturing parts.
(2) Aerospace industries
The Aerospace Association of Canada (AIAC) and its member companies
strongly support the Government of Canada’s commitment to review all policies and
programs related to the aerospace industry within 12 to 18 months; to maintain the level of
funding of the Strategic Aerospace and Defense Initiative (SADI) stable while doing so;
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and, to examine options for continuing the level of funding thereafter. SADI - along with
other programs and policies - enables the Canadian aerospace industry to compete globally
by leveling the playing field with competitors outside of Canada. AIAC also supports the
Government’s intention to balance the budget by 2014-15. The aerospace industry is
determined to do its part through continued efforts to invest in innovation, enhance exports
and create wealth across Canada.
The Review will result in longer term recommendations and actions necessary to
enhance the competitiveness of our industry regarding space, defense, and small business,
among others. The AIAC presents the following key measures that we believe are urgently
needed for the Canadian aerospace industry to remain competitive, maintain and grow its
market share in the immediate term.
The measures include:
1. Investments in technology demonstrators. New, more eco-efficient technologies are
currently being developed by aerospace nations all over the world. These
technologies will be incorporated into new aircraft platforms. In order to ensure our
continued position as a world leader - and to continue to contribute to Canada’s
technological advancement and economic prosperity - the Canadian aerospace industry
must urgently technology demonstrators to showcase its own technological innovations.
Technology demonstrators will ensure an optimal positioning of our industry on the
platforms of the future which are being developed now. AIAC recommends that the
Government create a special fund for a Technology Demonstration Project of a total of $140
million over four years.
2. Preservation and enhancement of the Scientific Research & Experimental Development
(SR&ED) tax credit. The existence and continuation of the SR&ED program is pivotal to
the ongoing business plans and strategies of Canada’s aerospace companies. The SR&ED
program, along with the Strategic Aerospace and Defense Initiative (SADI) through
Industry Canada, work in tandem to position these companies to compete successfully
around the world. Given the aggressive direct financial support that several other nations
offer to their domestic aerospace sectors, these two programs are of strategic importance to
the creation of high-value, high-skilled jobs here in Canada. AIAC therefore recommends
that the SR&ED program be protected and enhanced.
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3. Assure the efficiency of Canadian Aircraft Certification Process. The design and
related manufacturing processes of aerospace products must be reviewed and approved by
Transport Canada Civil Aviation. This requires not only the necessary number of technically
competent staff but also requires those personnel to be experienced in the latest concepts
that our industry is continuously developing to ensure that our products are both the safest
and the most competitive on a world-wide basis. In the extremely competitive international
industry, Canada’s aerospace companies must both have the best ideas and must be able to
follow through with the best results. This requires the necessary depth of regulatory
resources to fully support certification requirements on a timely basis. An inefficient
Certification process will lead to failure to sell and deliver our product on time, and will
negatively impact our capacity to export and entail significant job losses. AIAC therefore
recommends that the
AIAC membership that Canada’s global economic competiveness in aerospace will be
curtailed if access to the SR&ED program is curtailed.
Making significant changes to what is covered under SR&ED would cause uncertainty
about the cost of multiple year R&D efforts currently underway. It would also add risk to
future business investment decisions, and could potentially stall current investments with
longer term market horizons.
The SR&ED program, along with the Strategic Aerospace and Defense Initiative (SADI)
through Industry Canada, work in tandem to position Canada’s aerospace companies to
compete successfully around the world. Given the aggressive direct financial support several
other nations offer to their domestic aerospace sectors, these two programs are of strategic
importance to the creation of high-value, highly skilled jobs here in Canada.
AIAC recommends the following enhancements to the SR&ED tax credit in order to be
more effective in generating R&D expenditures:
• Make SR&ED refundable regardless of entity size; or alternatively, make SR&ED
creditable against non-income taxes such as payroll taxes.
• Recognizing that many aerospace projects are international in nature, allow all R&D
costs incurred outside of Canada to be eligible for SR&ED tax credits.
• Make the cost to protect the R&D intellectual property an eligible expense.
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AIAC and its member companies recommend that the SR&ED program be protected and
enhanced. Its existence and continuation is pivotal to their ongoing business plans and
strategies.
AIAC applauds the Government of Canada’s initiatives and support by removing trade
barriers and supporting international marketing to the benefit of aerospace international
trade. In conjunction with this we must also ask for the same level of support in providing
the necessary certification resources within Transport Canada Civil Aviation such that our
many current and future deign certification programs are successfully completed on time
and that our products are delivered on time to the customers.
AIAC recommends that the Transport Canada Civil Aviation personnel funding, particularly
in the Aircraft Certification branch, should not be reduced from current levels AND should
in fact be increased commensurate with new certification programs
(3) Agriculture industry
Canadian farms, fisheries and ranches produce a wide variety of crops, livestock,
food, feed, fibber, fuel and other goods by the systematic raising of plants and animals
which are dependent upon the geography of the province. In 2001 farms numbered only
246,923 at a size of 676 acres (2.74 km2) as the production of food and fibber for human or
livestock sustenance has evolved into intensive and industrial practices. As of 2002, wheat
constituted the largest crop area at 12.6%. Canadian farmers received a record $36.3 billion
in 2001 from livestock, crop sales and program payments. In 2001, the accrued net income
of farm operators from farm production amounted to 1,633 million dollars, which amounts
to 0.147% of Canada's gross domestic product at market prices which is 1,108,200 million
dollars. Fisheries are also playing an important role while forestry plays a secondary role.
Canada' evolution has abandoned subsistence techniques and now sees a mere 3% of
Canada's population employed as a mechanized industrial farmer who are able feed the rest
of the nation's population of 30,689.0 thousand people (2001) as well as export to foreign
markets (Canada's estimated population was 32,777,300 on 1 January 2007).
Trade
The marketing and economic movement of Canada's various agriculture commodities has
been a challenge. Domestic trade encompasses providing goods within Canada provincially
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and inter-provincial. Support agencies and services such as storage, railways, warehouses,
stores, banking institutions all affect domestic trade. Trade of wheat from the Canada’s
prairies is monitored by the Canadian Wheat Board. Canada's depression of 1882–1897
brought a low of 64¼ cents per bushel ($24/t) as of 1893. This era during Laurier's
administration saw thousands of homesteads cancelled. Wheat prices soared during World
War I. In 1928, Canada exported high quantities of wheat, flour, and goods.
The depression took its toll on Canada as exports sunk to approximately 40% of their 1928
amount. European markets stopped needing to import Canadian wheat as they started
growing their own varieties, and then World War II events put a blockade on trade to
European markets. Canada became more of an industrial entity during the time of this
industrial revolution, and less of an agricultural nation. Following World War II the United
Kingdom entered into contract for a large amount of agricultural commodities such as
bacon, cheese, wheat, oats and barley. After the United Kingdom, the United States is
Canada's largest external trade partner. Between 1943 and 1953, the average export of
Canadian wheat was 347,200,000 bushels (9,449,000 t) The three year International Wheat
Agreement of 1955, which really lasted 6 years, included exports of wheat or flour to 28 of
44 importing countries including Germany, Japan, Belgium, UK, and the Netherlands.
Agribusiness
Agribusinesses are activities of food and fibber production and processing which are not
parts of the farm operation. This would include the production of farm equipment and
fertilizers to aid farm production. Agribusiness also includes the firms that purchase the raw
goods from the farm for further processing. The meat packing industry, flour mill, and
canning industry would be included in the agribusiness sector processing farm products. A
recent growth area in agribusiness is the advent of organized farmland investment funds
operating on the model of direct land ownership with rental back to farmers as operators.
(4) Financial Services
Canada’s financial services sector is both diverse and remarkable secure. In 2012, the World
Economic Forum rated Canada’s banking system the soundest in the world.
“There are countries with comparable economic characteristics to Canada, but with a lot less friendly
environment. In our dealings with the Canadian government, various parts of the government, with
the business people, we feel that it’s a lot more congenial to our investments. ”
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Canada’s thriving financial services sector includes banks, cooperatives, credit unions,
insurance companies and brokers, pension fund managers, securities dealers and
independent agencies.
Moody’s Investment Service ranks Canada’s banking sector first worldwide for financial
strength and safety. No major Canadian banks failed during the financial crisis of 2008-2009
and Bloomberg Markets magazine listed four Canadian banks among the ten strongest in the
world.
The Canadian financial sector is among the world’s most well-regulated and is responsible
for many international best practices. The World Bank ranks Canada fifth worldwide for its
strength of investor protection, and assigns Canada a maximum score for depth of credit
information.
Nominal GDP: US$ 1,737 billion (2011)
GDP per head: US$ 50,436 (2011)
GDP growth: 2.1% 2012)
Inflation: 2.9% (2011)
Labour: 19million(2011.)
Unemployment: 7.5% (2011)
Major industries: Automobile manufacturing, pulp and paper, iron and steel work,
machinery and equipment manufacturing, mining, extraction of fossil fuels, forestry and
agriculture.
Major Trading Partners: United States, UK, Japan and China.
Exports: US$462.4billion(2011)
Exports - commodities: Automobiles and parts, machinery and equipment, high-
technology products, oil, natural gas, metals, and forest and farm products.
Imports: US$493billion(2011)
Imports - commodities: machinery, electric machinery and
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equipment, industry goods, motor vehicles and parts, minerals fuels and oils, plastics.
Gross Government Debt: C$1460 billion (2011)
Government debt (% of GDP): 85% (2011)
Exchange rate: £1 = C$1.58 (September 2012)
Each party’s share of fundraising in relation to its share of the popular vote in the previous
election. It shows that three political parties—Liberal, PC, and Reform/Alliance—have
raised funds at a rate slightly less than or roughly equal to their share of popular vote. Two
other parties diverge significantly from this pattern. The NDP’s fundraising has traditionally
been far more successful than its performance in federal general elections. By contrast, the
Bloc has been less successful at raising funds than it has been at securing votes.
Contributions were banned and the state was the only source of funding, the only clear
winner would be the Bloc and the only obvious loser would be the NDP.
(5) Business Services
Canada has significant proficiency in a wide range of business services including
engineering, human-resources and customer-relationship management, knowledge-process
outsourcing, data mining, application development, business continuity and disaster-
planning support.
“Locating in [Canada] gives us access to a bilingual workforce with a strong reputation for quality
work, which is essential in our business.”
Canada is a preferred destination for complex and high-value-added information-technology
and business-process outsourcing. Canada’s business-services sector generated more than
$60 billion worth of revenues in 2012 and employed nearly 1.3 million people–more than
seven percent of the country’s total labour force.
Foreign companies have been a major source of growth in Canada’s business-services
industry, and represent nearly 35 percent of Canadian head office and management
operations. Between 2003 and 2011, more than 200 foreign companies established
Greenfield projects in Canada’s business-services sector.
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Thanks to its proximity to and cultural similarities with the United States, Canada has been
one of the world’s largest suppliers of business process outsourcing (BPO) services since
the mid-2000s. Canada’s BPO industry is larger than peers in Mexico, Ireland and China.
In 2011, A.T. Kearney rated Canada’s business environment as the best in North America
for off shoring services and the third-best globally.
Political Risk
All business activity presents risks that must be managed to be successful and make a profit.
Political risk may mean investors lose money. Losses can be financial, time delays,
technical breakdowns, loss or reputation, or loss of market share.
Political risk analysis looks for the causes of risk and predicts the effect it would have on
investment in that country. Awareness is the first step. Risk management requires assessing
potential political situation. The assessment is factored into business decisions for that
country.
Political risk occurs when government policies intimidate the business environment.
Policies may change at any time.
Businesses may walk away from opportunities because of the risk. They may minimize the
risk by taking out insurance, balance it with more secure projects or build in higher prices
for products in the country.
Political Risk
Political Risk refers to political decisions, conditions, events, or activities in a country that
affect the business climate
Losses can take many forms:
Financial loss, time delays, technical breakdown, loss of reputation, or loss of market share
Awareness of potential political risks in a country is the first step in risk reduction
Political and economic risks can be so high that a business may decide to ignore an
investment opportunity.
21
If, however, business proceeds, it can implement difference policies to protect itself
Such as, insurance etc.
(6) Chemical Industry
Trends and drivers of change
The second article of three in this series discusses the main factors influencing the present
and future of the chemicals industry, looking particularly at:
Employment, with a particular reference to the brain-drain of young talent;
The importance of innovation;
The two main obstacles the sector now faces (relocation of client industries away from the
EU and the deferred take-off of biotechnology in Europe);
The effects of high energy prices and environmental targets on the industry’s prices and
competitiveness;
The challenge from Middle Eastern producers in basic chemicals and from Asian producers
in commodity chemicals and, increasingly in the future, in specialty chemicals;
The effects of EU regulation, notably the REACH proposal.
In conclusion, this feature examines four alternative scenarios for the chemicals industry in
the light of the main pressures on the industry, and reckons that the most optimistic scenario
is unlikely to be realized.
Canada’s synthetic-resin industry recorded sales of $6.2 billion in 2010 (including exports
of $5.5. billion). Plants based in Western Canada produce commodity-grade thermoplastic
resins from raw materials derived mainly from natural gas, while those in Central Canada
produce both thermoplastic and thermo set resins using raw materials derived from both
crude oil and natural gas.
Canada’s plastics sector is sophisticated and multi-faceted, thanks to a large pool of highly
skilled machinists and technicians, relatively short delivery times, and close integration with
other advanced manufacturing sectors such as aerospace, automotive, medical devices and
telecommunications. Canadian firms have internationally recognized expertise in high-
22
quality injection moulding, thermoforming machinery, blown-film extrusion systems as well
as extrusion capability for corrugated pipe and other specialized plastic profiles.
(7) Machinery & Equipment
Machinery and equipment (M&E) is one of many imperative factors that influence Canada’s
Future living standards. M&E investment and development is vital for long-term growth.
Despite Canada’s resilience to the global financial crisis, it is still vulnerable to weak future
growth due to lingering economic frailties such as rising consumer debt and continued low
productivity. Although not always apparent, there is a fundamental relationship between
M&E and productivity. M&E investments influence research and development (R&D) and
labour. These attributes, together with foreign direct investment (FDI) and taxation,
stimulate a number of variables, which can change the outcome of productivity and the
standard of living.
M&E can be categorized into two groups; information and communications technology
(ICT) and non-ICT. In Canada, until the last 15 to 20 years, overall investment was
predominately in non-ICT M&E. Since then, the landscape has changed. In 2011,
investment in ICT M&E represented 48.9%1 of total M&E investment. As ICT M&E
continues to shape Canada’s economic forefront, a number of studies2 have identified that
low overall investment in ICT is a significant contributor to Canada’s continued lagging
productivity. There are a number of explanations for Canada’s low investment in ICT; those
include underutilized potential of such productivity factors as innovation and competition,
and certain characteristics of the Canadian business sector.
Canada’s skilled workforce and specialization in advanced materials, hybrid technologies,
and intelligent systems, machinery and plant design continues to attract foreign investors.
“Here we have access to a highly skilled workforce and are close to many of our major
clients and partners. Establishing a plant [in Canada] is a strategic decision that we have
never regretted, and which we continue to support through new investment and innovation.
”
Canada’s expertise in machinery and equipment is fuelled by robust education and R&D
infrastructure, ready access to major international markets and strong demand from
23
domestic industries such as agriculture, minerals, aerospace, automotive, oil and gas,
chemicals and plastics.
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 exported more than
$21.5 billion worth of machinery-manufacturing equipment in 2010, more than the US on a
per-capita basis.
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.
In 2012, Canada’s machinery and equipment manufacturing sector attracted $5.8 billion
worth of international investment, 75 percent more than in 2010.
Between 2003 & 2012, more than 50 foreign companies established Greenfield operations
in machinery, metals, and engines and turbines in Canada. The country is renowned as a
global leader in many of these industries.
Machinery-manufacturing revenues are forecast to increase by almost 30 percent by 2015.
In 2010, the value-added of machinery manufacturing grew by 9.4 percent.
Looking to purchase equipment? You can obtain up to $350 000 to purchase or improve
new or used equipment!
"One consequence of government–private sector alliances’ stimulating exporting is that
many Canadian companies are doing business in farther reaches of the globe. However,
some of the newer areas that are being opened to international business are not as safe and
free from risk as are more familiar markets and regions. Canadian companies should
therefore plan for overseas security."
1.Automobile Industry In Canada
Canada is the Ninth Largest vehicle producer in the world. The industry directly supports in
over 550,000Jobs all across the country11Light duty,3Heavy-duty assembly plants, over
540Original Equipment (OEM) parts manufacturers,3949Dealerships,and many other
directly related industries. It is predictable that in the auto sector directly and indirectly
employs one out of every seven Canadians. They are emphasis in production on the "Just in
Time" inventory control system. Canada’s auto industry also comprises a highly-developed
24
parts sector, including manufacturers, in-house engine and transmission plants, and over 400
independent parts facilities. New models are continuously re-designed and re-engineered in
response to consumer demand for increased safety and convenience and the need for
emissions reductions, greater fuel efficiency and recyclability.
Production & Sales Data of 2011.
There are 2,135,121 vehicles were built and 1,587,434sales in Canada in 2011 (or 5,850 per
day).The industry produced vehicles and parts worth $69 billion in 2011, (or $189 million
per day). In recently, they are sales1,442,932 vehicles in2012 YTD*.
Research &Development spending in Canada’s automotive industry has averaged more than
$460 million per annum. So they can get tax benefit up to 30 cents on the dollar invested in
R & D in Canada. Canada also has the Sevens lowest costs in R & D-intensive sectors (up to
10.7% lower than the U.S.)
According to the World Bank, Canada has one of the world’s best logistics infrastructures.
Canada is the sixth largest exporter of road vehicles in the world. Many of the largest global
suppliers have facilities in Canada, along with steel and other material producers.
Assemblers and Tier 1s in Canada also have access to supply chains in the U.S. and Mexico.
Canada is the first G-20 country to offer a tariff-free zone for industrial manufacturers, a
major initiative that will see tariffs on all manufacturing inputs reduced to zero by 2015.
Canada has a world-class higher education system with 22 Canadian universities appearing
in the top 500 universities of the world. A total of 11,450 undergraduate degrees in
engineering were awarded in 2012.
Over the past four years, Canada's banking system has repeatedly been declared the
soundest in the world. The North American Free Trade Agreement (NAFTA) gives
investors access to nearly 457 million consumers and a combined continental GDP of about
US $17.2 trillion. Canada continues to seek more free trade agreements with economic and
emerging powers to increase trade and investment.
There are a number of reasons for Canada’s success:
• A 6.4% cost advantage over the United States.
• Better productivity than plants in the United States and Mexico.
25
• The second lowest corporate tax rate among the world’s top ten automobile
countries.
• High Research and Development spending. This is supported by tax credits.
• Capital investment of $3.5 billion per year.
• Availability of qualified engineers and skilled workers.
• The highest quality of life among the top ten automotive countries.
• Integrated into NAFTA (i.e. Canada, U.S., and Mexico).
• Globally competitive.
• The eighth largest automobile sector in the world.
2. Aerospace Industry In Canada
From visiting family and friends to shipping high value products, 71 million passengers and
762,000 tones freight travelled to, from and within Canada. More than 318,000 scheduled
international flights depart Canada annually, destined for 204 airports in 61 countries.
Domestically, more than one million flights make69 million seats available to passengers
annually, destined to 264 airports. The aviation sector contributes C$33.3 billion (2.2%) to
Canadian GDP. The average air transport services employee generates C$109,736 in GVA
annually, which is 30% more productive than the average in Canada.
The aviation sector contributes C$33.3 billion (2.2%) to Canadian GDP. This total
comprises:
• C$16.7 billion directly contributed through the output of the aviation sector (airlines,
airports and ground services, aerospace);
• C$9.4billion indirectly contributed through the aviation sector s supply chain; and
• C$7.1 billion contributed through the spending by the employees of the aviation
sector and its supply chain.
• In addition there are C$9.1 Billion in catalytic benefits through tourism which raise
the overall contribution to C$42.4 billion or 2.8% of GDP.
26
According to census data, women held about 11% of the jobs in this occupation in 2012, a
percentage that has been fairly stable since 1991 (10%). This percentage should increase
somewhat over the next few years, because for several years about 15% of the new
graduates in mechanical engineering and in aerospace, aeronautical or astronautically
engineering are women As the vast majority of aerospace engineers work for manufacturing
companies, self-employment was not very widespread (approximately 4% of jobs in 2006
compared with 11% for all occupations). One of the largest issues that the commercial
aerospace industry faces Is pilot and workforce shortages. The Aging and skilled baby
boomer generation means an increased number of the industry’s workforce will be eligible
for retirement in the coming years. According to Aviation Week, retirement eligibility will
increase from13% in 2009tomorethan20%in2013in the Canada.
The foreign markets that constitute the majority of exports also appear to differ by size of
company, as only53.6%of exports from the14 largest Canadian aerospace companies go to
TheUS,comparedtoAnestimated71.0%ofexportsfromtherestoftheCanadianaerospaceindustry
.EDCwasresponsibleforunderwriting C$5billion in total business volume related to
Canadian aerospace exports, and had active relationships with130differentcountries.
In 2011 there were 378 routes connecting major airports in Canada to urban
agglomerations around the world. On average there were just over 4 outbound flights per
day along these routes. Export Development Canada’s (“EDC”) role is of great
significance. In 2012, EDCwasresponsibleforunderwriting C$5 billion in total business
volume related to Canadian aerospace exports, and had active relationships
with130differentcountries.
In 2011 there were 378 routes connecting major airports in Canada to urban
agglomerations around the world. On average there were just over 4 outbound flights per
day along these routes. A total of 65 of these routes were connecting Canada to cities of
more than 10 million inhabitants, with an average of 3outbound flights per day available to
passengers.
According to “CFO” Form the last three quarter they are gaining good profit and
financial performance improving over the next year. Data monitor projects that global
airliner avenue will growata10%CAGRbetween 2010 and2013.Onesource of the strong
trend in BE-LF could be the continuing rise of low cost carriers (“LCC”). Of the total air
routes flew, 41%areexpectedtobeflownbyLCCs in2028, comparedto19% in 2012.
27
3. BUSINESS SERVICES SECTOR IN CANADA
The business or economic activities that exist to service or facilitate others -some are ends in
themselves but other service sector activities are facilitators for other parts of the economy.
With breakthroughs in technology and telecommunications equipment, the trade in services
is becoming more and more demanded, making non-tariff barriers, the main impediment to
services trade and investment. Some of the more important service sectors are banking,
insurance, engineering, architecture, legal, consulting, accounting, tourism, transportation,
IT, communications, health care, personnel placement, restaurants, personal services, and
education.. Canada’s traditional sectors are still strong and continue to make an essential
economic contribution to our national economic wealth, and are important beyond urban
areas. But services are becoming a vital part of our GDP, our economic profile and
importantly, our exports and imports.
According to the World Bank Group’s World Development Indicators, in 1980, the output
generated by the Canadian services industry was approximately 58 percent of Canada’s
Gross Domestic Product (GDP) and by 2012 that number had increased to approximately 65
percent.
Supply and demand impacts a nation's Gross Domestic Product (GDP), which is the
combined dollar value of all goods and services produced by a country. The higher the
demand for goods and services, the greater the need for workers to produce them, leading to
economic growth.
People who have adjustable-rate home mortgages can face financial hardship or even lose
their homes when interest rates spike. Retirees who live largely off investment income may
need to lower their standard of living when interest rates decline.
Higher inflation is typically accompanied by higher prices, so consumers may be less
willing to buy non-essential or luxury items. When inflation is rises the value of the dollar
decreases, so consumer buying power drops accordingly.
The rate of unemployment can have a major effect on the economy. The more people who
are out of work the less money that is circulated into the economy through the purchase of
goods and services.
28
A nation's foreign exchange rate is the value of its currency in the international market. In
the United States, when the value of the dollar is high in relation to other countries'
currencies, the more goods and services we are able to import.
The business services industry in Canada is worth$61 billion.5
Foreign companies have been a major source of growth in Canada’s business services
industry, representing nearly 35% of Canadian head office and management operations.
In Canada, around 85,000 people are employed in engineering services. In 2011, Canada
was one of the top five exporters of engineering design solutions in the world, with
Canadian firms serving clients in more than 125 countries. Operating revenues for Canadian
engineering companies reached $22.5 billion in 2012.
Canada is a leading provider of BPO services thanks to its skilled workforce and its
proximity to and cultural similarities with the U.S. Canada is experiencing rapid adoption of
back office financial services BPO.10
Operating revenues for Canada’s accounting services reached $13.9 billion in 2010,
increasing each year since 2007-11. In 2011, 1.3 million people were employed in Canada’s
business services sector, accounting for 8% of Canada’s total labor force.As the most
multicultural country in the world, the Canadian workforce is uniquely placed to serve
international markets.
4. CHEMICAL INDUSTRY IN CANADA
Chemical Industry refers to the industry which is involved in the business of making
different products from raw materials through Chemical Reactions. Generally, the Raw
Materials used in the Chemical Industry are oil, natural gas, metals, minerals, coal, salt and
last but not the least air and water. Chemical Industries are very important for the economy
of any country. This is because, these Chemical Industries supply the farmers Pesticides and
Fertilizers which are essential for crop growing. In this way Chemical Industries contribute
to agriculture and food self sufficiency of every country. Other than direct contribution to
agriculture, Chemical Industry contributes indirectly to almost every sector of every
economy. Not only that Plastic requirement of Packaging Industry and Artificial Rubber
requirement of the Automobile Industry are also met by the very same Chemical Industries.
29
The Modern Industry: Canada’s chemical industry is traditionally segmented into eleven
categories, the two largest of which make industrial chemicals (inorganic and organic in
nature) and primary plastics. Together the two constitute almost one half of the aggregate
industry shipments. Shipments of $28.7 billion (Canadian) or 7.4% of the total
manufacturing activity in the country.
The petrochemical sector employed 15 166 persons while the inorganic chemical sector had
10 410 employees and the organic and specialty chemicals sector had 4138.
GDP in the Basic Chemical Manufacturing industry group decreased from $3.5 billion in
2002 to $3.2 billion in 2011. The decrease in GDP reported between 2002 and 2011
represented a compound annual rate of 1.1%. Between 2010 and 2011, the total value-added
of the Basic Chemical Manufacturing industry group increased by 6.4%.
Economic growth is often measured as the percentage increase in GDP, adjusted for
inflation, from one year over an earlier year. Trend growth rates for an economy, sector or
industry are calculated over a series of years. In Canadian Industry Statistics, the
compound is frequently used to depict trends in real GDP growth.
The total number of employees in the Basic Chemical Manufacturing industry group
decreased from 12,772 workers in 2001 to 10,190 workers in 2011, an average annual
decrease of 2.5% over this time span. There was an increase of 3.7% in employment
between 2009 and 2011.
The chemicals industry accounts for around 12% of the Canada’s total energy demand
according to. Energy is not only a major cost in the processing of chemicals, but gas and oil
are also used for the manufacture of many chemical products. Furthermore, Canada and
national environmental policies aim at reducing emissions by 20% by 2020 and thus rely
heavily on emissions trading as the means of allocating scarce resources.
The chemical industry accounts for 23% of energy used by all manufacturing industries in
Canada. A more recent report notes that carbon dioxide emissions as a percentage of the
constant dollar value of industry sales dropped by 10% between 2011and 2012.
30
Chemical imports have kept pace with exports. In the 2011-2012 periods they rose in value
by 118% to a total of $18.4 billion.
For many years, a significant 10%-20% tariff applied to chemicals not manufactured in
Canada, but GATT negotiations have eroded this protection.
5.AGRICULTUREINDUSTRY IN CANADA
Canada is one of the largest agricultural producers and exporters in the world. As with other
developed nations, the proportion of the population and GDP devoted to agriculture fell
dramatically over the 21th century but it remains an important element of the Canadian
economy.
Canada's evolution has abandoned subsistence techniques and now sees a mere 3% of
Canada's population employed as a mechanized industrial farmer who are able feed the rest
of the nation's population of 30,689.0 thousand people (2009) as well as export to foreign
markets. (Canada's estimated population was 32,777,300 on 1 January 2011).
Include all goods which have entered the country (Canada) by crossing territorial (customs)
boundaries, whether for immediate domestic consumption or for storage in customs bonded
warehouses.
Domestic exports consist of the exports of all goods grown, produced, extracted or
manufactured in the country (Canada) leaving the country (through customs) for a foreign
destination. 34% domestic export
The increase in GDP reported between 2002 and 2011 represented a compound annual rate
of 2.5%. Between 2010 and 2011, the total value-added of the Agriculture, Forestry, Fishing
and Hunting sector increased by 2.1%.
Productivity of major crops increasing demand for crops for biofuels, and lower grain stock
reserves. Higher agricultural prices have been accompanied by increased costs of farm
inputs, including energy and fertilizer.
Employment Trends in Canada's Agriculture and Agro-Food System
• Employment in the agriculture and Agro-food system increased by 14% between
1997 and 2010.
31
• The agriculture and Agro-food system is a major employer in most provincial
economies, contributing jobs and economic activity.
• In 2012, employment in foodservice and food retail/wholesale grew by over 30%
compared to 1987, while that in food processing followed a stable trend with modest
increases since 2000.Unemployment rate in agriculture 7.6
Interest rates affect agricultural markets in three major ways, costs of holding inventory,
effect on investment decisions such as land, machinery and input purchases and overall farm
business risk associated with possible rising interest rates.
Costs - costs, if the inventory had been sold. In practice, interest rates can vary in a large
range from four to six per cent for operating loans to 18 to 24 per cent for short-term loans
from agri-businesses.
Inflation is a risky situation for any economy since it faces a crisis in terms of scanty supply
of products whereas the demand for goods and services are on a rise. Negatively affects the
demand of the masses. Inflation Analysis contains a vivid description of the factors that are
responsible for inflation.
Prize Bull: 115,000 cattle roamed the southern prairies by 1900. Livestock can include the
raising of cows, also commonly called cattle. Recently domestication of the buffalo and elk
has initiated a new food industry.
6.MACHINERY ANDEQUIPMENT IN CANADA
Canada represents a large and growing producer of machinery and equipment, with more
than 8,500 machinery manufacturing establishments. Canada’s machinery and equipment
industry is highly export-oriented, with export sales typically accounting for more than 65%
of production. Canadian machinery manufacturers almost doubled their share of the US
machinery market, from 2.1% to 4.1%.Within the global value chain, Canadian machinery
firms have developed a range of specializations that are closely tied to other strong sectors
of the Canadian economy. These competitive strengths translate into potential opportunities
for firms looking to benefit from Canadian capabilities in machinery manufacturing:
• Metalworking machinery manufacturing accounted for one-fifth of machinery
Industry employment in Canada in 2005
32
• Mining, oil and gas field machinery manufacturing is another key strength for the
Canadian machinery industry.
• Construction machinery manufacturing has been a strongly growing niche for Canada’s
machinery manufacturers.
• General-purpose machinery manufacturing, which encompasses production of pumps
and compressors, material handling equipment, and other manufacturing machinery, also
represents a strong capability in Canada.
LOCATION OF PLANTS
About 64% of the machinery and equipment industry (by dollar value of plant shipments) is
found in Ontario; Québec has 20%; the Prairie Provinces 9%; BC 6%; and the Maritimes
1%.
Canada offers a very competitive labor cost environment for machinery equipment
manufacturers. KPMG analysis found that cost of labor advantages in Canadian cluster
about 5% to 20%.
Canada has an existing skilled machinery industry workforce of nearly 1, 50,000. This labor
workforce highly concentrated with machinery in the Canadian clusters. More than 73,000
workers are located in Ontario cluster only! Canada also graduates approximately 16,000
engineers per year which is more per capita than United States. The world economic
forum’s 2010-2011 also shows that availability of skilled labors, ranking Canada in 8th place
globally for the availability of engineers and scientists, ahead of both United States 13th and
Italy 54th.
Canada has a long established tax credit program for research and development activities
that is amongst to the most generous world. Overall the after tax cost of R&D in Canada is
well below than us and Italy and key Canadian clusters are lower than in France.
National tax rates:
Canada offers very competitive corporate taxes to the machinery manufactures. KPMG
estimates of average of nominal 2006corporate income tax rates are: FRANCE - 33.3%,
CANADA – 36.1%, ITALY - 37.3%, U.S. 40%.
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Canada’s most industrial clusters many suppliers to the industry to the machinery
equipment. and also offering a wide range of capabilities and specialization. in addition a
large skilled base of service providers also supports the machinery industries in each of the
Canadian clusters.
7. FINANCIALSERVICES IN CANADA
The Bank of Canada (French: Banque du Canada) is Canada's central bank. The Bank was
founded by the Bank of Canada Acton July 3, 1934 as a privately owned corporation. In
1938, the Bank became a Crown corporation belonging to the Government of Canada.The
role of the Bank is to "promote the economic and financial well-being of Canada." The
responsibilities of the Bank are: monetary policy; sole issuer of half of
Canadian banknotes; the promotion of a safe, sound financial system within Canada and
funds management and central banking services "for the federal government, the Bank and
other clients."The Bank headquarters are located at the Bank of Canada Building in the
nation's capital Ottawa. The building is the site of the Currency Museum, which opened in
December 1980.
We have find out the different Rate of interest like (2011)
Bank capital to assets ratio (%) 4.6
Lending interest rate (%) 3.0
Real interest rate (%) -0.2
Stocks traded, total value (% of GDP) 87.6
Canada was the United States' largest goods export market in 2011.U.S. goods exports to
Canada in 2011 were $280.8 billion, up 12.7% ($31.7 billion) from 2010, and up 59% from
2000.U.S. exports to Canada account for 19.0% of overall U.S. exports in 2011.
Canada was the United States' 2nd largest supplier of goods imports in 2011.U.S. goods
imports from Canada totaled $316.5 billion in 2011, a 14.0% increase ($38.9 billion) from
2010, and up 38.1% from 2000.U.S. imports from Canada are up 185% from 1993 (Pre
NAFTA). U.S. imports from Canada account for 14.3% of overall U.S. imports in 2011.
34
Finance and insurance accounted for 7% of national output in 2011and the Canadian
financial services sector represented a GDP of $264 billion.The size and growth of the
Canadian financial services sector is supported by Canada’s AAA credit rating and stable
banking system.Eleven of the Top 1000 World Banks are located in Canada, with six
Canadian banks in the Top 100.
GDP in the Finance and Insurance sector increased from $63.6 billion in 2002 to $84.2
billion in 2011. The increase in GDP reported between 2002 and 2011 represented a
compound annual rate of 3.2%. Between 2010 and 2011, the total value-added of the
Finance and Insurance sector increased by 2.2%
Population growth is the net result of 4 factors: birth rate, life expectancy, immigration and
emigration.Canadian and international politics, wars, etc as well as Canadian immigration
policy. Emigration is most affected by economic factors such as job availability outside vs
inside Canada and a desire to live in more temperate climates. All of these factors have an
impact on net population growth and many of them also affect the ethnic diversity of the
population.
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“SOCIAL FACTOR IN CANADA”
Canada is a North American country consisting of ten provisions and three
territories, Located in northern part of continent, it extends from the Atlantic
and pacific and northward into the Arctic Ocean. Canada is the world’s
35
second largest country by local area, and its common border with United
States is the world’s largest land border.
Social Factors of Canada
Social factors are demographic and cultural considerations that affect
potential market size and customer needs. A demographic map may reveal a
change in the composition of certain age groups like an increase in
the retirement age population and this in turn may affect future supply of
manpower.
A nation with a large immigrant population may discover that certain
products or brand names may be taboo to them and if strategic planning fails
to identify it sooner, a product or brand name may be launched and may be a
disaster due to the cultural factor.
Health consciousness is a social factor that is sweeping across the world.
What formerly fat was considered healthy, not anymore. Business or
organizations in any industry are in one way or another affected by this. Their
strategic planning has to incorporate this social factor.
This social factor affects the food industry food labels may have to contain
certain health information, if affects the fitness industry “exercise and health
enhancing equipment has to be designed and redesigned for this emerging
factor and it affects certain kinds of spending “people may decide to ride on
bicycles instead of driving their cars.
Age distribution and career attitudes are other social factors that affect
business or organizations. Nations that experience a rise in the young
working population are apt to the challenge for more business and industry
openings because it can provide the necessary manpower. The attitude of
many young workers to switch workplaces frequently due to compensation
factors may be a wakeup call to business or organizations that their salary
standards may need revision and recalculation.
36
� AUTOMOBILE
The 'automobile industry in Canada consists primarily of assembly plants
of foreign automakers, most with headquarters in the United States or
Japan, along with hundreds of manufacturers of automotive parts and
systems.
Canada is currently the eleventh largest auto producer in the world,
producing 2.1 million cars a year, down from seventh place with 3
millions peak a few years ago. China, Spain, India, Brazil, Mexico
recently surpassed Canadian production for the first time.
The 1964 Automotive Products Trade Agreement or “Auto Pact”
represents the single most important factor in making the Canadian
automotive industry what it is today. Key features of the Auto Pact were
the 1:1 production to sales ratio and Canadian Value Added requirements.
� SOCIAL FACTORS AFFECTING AUTOMOBILE
� Demand Factors
� Financing option
Auto industry observers cite car loans as the biggest driving factor for the
expansion of the Compact Car segment. At present, almost 85 per cent of
all new car sales are backed by auto finance, compared to 65 per cent five
years ago.
� Advertising and Marketing
Due to the advertising techniques adopted by all the manufacturers in the
CC-Segment the sales have risen drastically. It is all due to because the
companies now days are using even aggressive selling techniques for
which they are even coping with the Film celebrities and Cricket stars,
like Maruti has contracted Irfan Pathan as the brand ambassador of Zen
and for Santro Hyundai has contracted for Shah Rukh Khan.
� Price of the car
37
One of the major factors that affect the demand of any commodity in the
market is the price of the commodity. As the law of demand also states
that with an increase in price the demand of the commodity decreases and
vice versa.
� Income of consumer/ buyer
The income of the consumer or buyer of the car is a very important factor
of demand. In recent time we have seen that due to increase in the Income
of the general public, there has been a shift from the Lower CC-segment
cars to the Upper CC-segment cars.
� Increases in affordability
The demand for passenger cars is driven mainly by greater affordability,
which in turn increases the aspiration level of the customers.
Today with high amount of disposable income in the hand of Indian
youth, who forms major portion of the population, PV market has larger
addressable market.
� Demographic drivers.
Cars being aspiration products, purchase decisions are influenced by the
overall economic environment. Increase in per capita income increases
the consumption tendency of the customer.
� Availability of easy financing services
A majority of PV purchases are financed through financial institutions.
Over the past4-5 years car industry has been benefited through significant
increase in affordability due to the decrease in EMIs.
� Exports.
The share of exports from domestic production is currently at 12-13%,
which is much lower than current export hubs. Currently, India’s share of
global passenger cars export volume stands at less than 1%. But India is
fast emerging as a manufacturing hub for leading global car makers, and
38
several manufacturers have already firmed up plans for setting up
manufacturing bases in India, which will also be used for exports.
� Supply Factors
� Presence across segment
Manufacturers with presence across various product segments can ensure
higher volume and better capacity utilization by using the common
manufacturing capacity.
� Efficient operations
Competition in PV segment is very intense and this requires the existing
players to initiate steps to reduce their cost of production. Effective and
successful operation methods like platform commonality, reduction in
vendor base and workforce rationalization can help a company
immensely.
� Wide dealer network and availability of finance
A wide dealer network helps the company serve customers over wide
geographical area. For e.g. Maruti has used its available wide service
network as point of difference over competitors.
� Access of latest technologies
Indian PV segment is highly competitive with as many a 14 players
operating in it and more than 80 models on the offering. But still any new
model launch meets with increase in sales volume for the company
� Factor of production
There are some factors of production which influence the supply of a car
like Cost of Raw Material Labor Cost, Machinery Input Cost, these
factors influence the supply of a car largely.
39
� AEROSPACE
Canada’s aerospace industry is robust and dynamic, with a long history of
innovation and success throughout the world. Home to leading aviation
and space companies, Canada is a global market leader in
producing regional aircraft, avionics, business jets, commercial
helicopters, aircraft engines, flight simulation, landing gear, and space
systems and Maintenance Repair and Overhaul Expertise.
The Aerospace Industries Association of Canada (AIAC) website
contains information on Canadian aerospace capabilities. The AIAC
represents more than 400 Canadian aerospace enterprises and works to
enhance their competitiveness and export marketing through cooperative
efforts and direct contact with governments.
� SOCIAL FACTORS AFFECTING AEROSPACE
Key Facts on Canada’s Aerospace Industry
• The Canadian aerospace industry is composed of more than 400 firms located
from Newfoundland to British Columbia. It generates in excess of $23 billion
in annual revenues through its global reach.
• Aerospace in Canada is directly responsible for the creation of more than
80,000 value added jobs for Canadians from coast-to-coast.
• Aerospace is a direct and significant contributor to Canada’s balance of trade:
more than 82 per cent of our output is exported.
• With annual investments of more than $1 billion each year, aerospace is
amongst Canada’s largest contributors to Canadian R&D activities.
• The Canadian aerospace industry is ranked 5th amongst its global peers. It is a
world leader in market segments such as regional aircraft, flight simulators,
small gas engines, robotics and satellite technologies, aircraft maintenance,
repair and overhaul, and landing gear systems.
• Canada’s international aerospace footprint is well diversified. Its partners
include the US, Europe and the expanding markets of Asia and South-
America.
40
Review of Aerospace and Space Programs and Policies
In Budget 2011, the Government of Canada announced its commitment to
review all policies and programs related to the aerospace and space industries
in order to develop a federal policy framework to maximize the
competitiveness of these sectors.
The review will involve industry and other key stakeholders and examine the
following:
The long-term goals of the Canadian aerospace and space sectors;
The recent and anticipated future trends in the global and domestic
aerospace and space sectors and how these trends could impact the
Canadian industry;
The key opportunities and major challenges for the Canadian industry;
and
The strengths and weaknesses of the Canadian industry.
� CHEMICAL
Chemical MANUFACTURING entails the conversion of one material to
another by a chemical reaction on a commercial scale. The starting material
(feedstock) can be a natural substance or a relatively pure chemical used as
an "intermediate" for subsequent upgrading.
� Location of Plants
A handful of chemical companies produce a wide range of products, grossing
over $1 billion each, but there are dozens of smaller companies as well.
Almost 400 separate manufacturing plants in Canada produce at least one
chemical for general sale.
� Ownership
The large commodity chemicals can be successfully produced in Canada only
with adequate economies of scale. This worldwide trend to higher levels of
minimum scale has increased the influence of large multinationals endowed
41
with sizable technological and financial resources and with global marketing
skills.
� Government Control
For many years there was no coherent government policy governing chemical
manufacturing. It received about the same general tariff protection as other
manufacturing sectors and Petrosar received some indirect federal support
when the Crown-owned CANADA DEVELOPMENT CORPORATION
acted as one of the principals.
� SOCIAL FACTORS AFFECTING CHEMICAL
� Agriculture and Food
Canada's agriculture and food industries have changed greatly during the past
60 years. Economic growth and development in the general economy have
accompanied pervasive social and economic changes and influenced
agriculture. Changes have occurred in the way that food is produced,
processed, handled and sold.
� Health
� P
ositive environmental factors sustain health, and promoting them is
preventive medicine. They include:
� sources of nutrition (farming: soil quality, water availability,
biodiversity/bio-integrity, genetically modified organisms (GMOs);
hunting, fishing: wildlife, fish populations.)
� water (drinking, cooking; cleaning / sanitation);
� Negative environmental factors are threats to health, and controlling them
is public environmental health. They include:
� Environmental conditions favoring disease vectors (endemic and exotic
vectors);
� Invasive biota (viruses, bacteria, etc), their hosts and vectors;
� AGRICULTURE
Canada is one of the largest agricultural producers and exporters in the world.
As with other developed nations, the proportion of the population and GDP
42
devoted to agriculture fell dramatically over the 20th century but it remains
an important element of the Canadian economy.
Production
Farming activities were very labor intensive before the industrial revolution
and the advent of tractors, combines, balers, etc. From the late 19th century to
mid-20th century, a great percentage of the Canadian labor force was
engaged in high labor, smaller farming practices.
� SOCIAL FACTORS AFFECTING AGRICULTURE
� Dairy farming in Canada
In Canada in 2011, there were 985,300 dairy cows on 12,746 farms across the
country With 98% of Canadian dairy farms still family owned and operated,
that’s an average of just 77 cows per farm.
� Water
Water is an indispensable resource for agriculture and has played a pivotal
role in the development of the sector, but it is also scarce and unevenly
distributed both regionally and among certain marginalized populations.
� Forestry
Forests have historically provided shelter, food, fuel, medicines, and building
materials. More recently, they have become sources for new goods and
services such as pharmaceuticals, raw materials, recreation, and carbon
sequestration.
� Oceans and Fisheries
The oceans offer a development option to a major portion of the 660 million
inhabitants of the least-developed countries. Like dairying, the sector
provides an all-year harvest and income stream, which contributes to the
social and economic welfare of large cross-sections of rural and urban
populations.
43
� Private Sector Development
Small farmers in rural areas often comprise the largest segment of the private
sector in developing countries. The full potential of these farmers and farms
is often not realized due to poor policies, inadequate markets and other
infrastructure, and generally weak institutions. Creating the enabling
environment in which agriculture can perform is crucial.
� MACHINERY EQUIPMENTS
Machinery and Equipment Industry includes establishments that produce
pumps and compressors, rolling-mill and metalworking equipment, forestry
equipment, mining equipment, farm machinery, construction equipment and
service industries equipment.
The largest resource industry users of machinery in Canada are mining,
forestry, petroleum and electric-power generation. Among Canadian
manufacturing industries, the largest purchasers of machinery and equipment
are the metalworking industries, including steelmaking, the automotive
industry and the machinery industry itself.
Other large user industries are food processing, packaging and air and water
purification. Machinery and equipment are made in foundries, machine and
welding shops and assembly plants.
It was not until the 1850s, when a reciprocity treaty opened the booming US
market to Canadian manufacturing industries that machinery and equipment
production moved from small forges and metalworking shops to the early
versions of today's large plants.
� SOCIAL FACTORS AFFECTING MACHINERY
EQUIPMENT
� Productivity, Living Standards and Machinery Equipment
44
Productivity can be defined as the measure of efficiency in producing goods
and services using economic resources; or output per unit of input. Simply
put, productivity growth is critical for long-term economic growth and
improved living standards.
Productivity influences a number of socioeconomic variables in various
economic sectors including real wages, consumption, social status,
employment, inventory, profitability, and tax revenues.
� Competitive strengths and capabilities
Within the global value chain, Canadian machinery firms have developed a
range of specializations that are closely tied to other strong sectors of the
Canadian economy.
� Metalworking machinery manufacturing accounted for one-fifth of
machinery industry employment in Canada in 2005. Metalworking
machinery manufacturing operations are particularly strong in Central
Canada, reflecting strong demand from Canada’s automotive and
aerospace industries.
� Mining, oil and gas field machinery manufacturing is another key strength
for the Canadian machinery industry. One quarter of Canada’s largest
machinery manufacturing firms are engaged in the production of equipment
for the extractive industries.
FINANCIAL SEVICES
Financial services are the economic services provided by the finance
industry, which encompasses a broad range of organizations that manage
money, including credit unions, banks, credit card companies, insurance
companies, consumer finance companies, stock brokerages, investment funds
and some government sponsored enterprises.
� Regulation
Canada's federal government has sole jurisdiction for banks according to the
Canadian Constitution, specifically Section 91(15) of The Constitution Act,
45
1867 (30 & 31 Victoria, c.3 (UK)), formerly known as the British North
America Act, 1867.
� Foreign exchange services
Foreign exchange services are provided by many banks around the world.
Foreign exchange services include:
Currency exchange - where clients can purchase and sell foreign currency
banknotes.
Foreign Currency Banking - banking transactions are done in foreign
currency.
� SOCIAL FACTORS AFFECTING FINANCIAL SERVICES
• Climate Change and Extreme Events that are Relevant to the Financial
Services Sector
� Present-Day Conditions
Present-day impacts of weather events on financial services are caused mainly
by extreme events. Differences in vulnerability exist, caused by geographical
location, population distribution, and national wealth. In developing countries,
there may be very high mortality from extreme weather but relatively small
costs to the financial sector because of low insurance penetration.
� Of the 40 worst insured losses since 1970, only six were not weather related.
� Nineteen of the weather-related catastrophes affected the United States.
Twenty-eight were related to windstorm (tropical and temperate latitudes). In
contrast, of the 40 worst events in terms of fatalities, only 16 were weather
related, of which 13 occurred in Asia.
� Attribution Analyses of Loss Trends
Weather-related events of all magnitudes resulted in US$707 billion in insured
and uninsured economic losses between 1985 and 1999 (Munich Re, 2000). A
longer term comparison of large catastrophic events over the past 50 years
reveals that economic losses (adjusted for inflation) increased by a factor of
10.3
� Cold Temperature Extremes.
46
As a result of global warming, cold extremes of winter weather are likely to
become rarer. In temperate latitudes, this development generally would be be
unofficial for business activities in, for example, the construction and transport
sectors, with concomitant reductions in claims for business interruption.
� Tropical and Extra tropical Windstorm.
Experiments with climate models to date have not produced a consensus
regarding the likely future occurrence of tropical and extra tropical wind
storms. Both have a very large capacity to cause damage. Hurricane Andrew,
for example, occurred in 1992 in the Atlantic Basin and made landfall over the
United States, causing US$21 billion (1999 US$) in insured damage.
� Sea-Level Rise.
Increases in sea level pose a major potential risk to coastal zones (TARWGI),
especially if they are associated with an increase in storminess. The mid-range
increase in sea level by the year 2100 as a result of anthropogenic climate change is
49 cm, taking into account atmospheric aerosol concentrations, with estimates
ranging from 26 to 72 cm (TARWGI).
� Business services
� Getting closer to customers is a top priority for CEOs, according to the IBM 2010
CEO Study.1 Today’s businesses are fervently building social media programs to do
just this. But are customers as enthusiastic?
� Actually, most do not engage with companies via social media simply to feel
connected. It turns out, customers are far more pragmatic. To successfully
exploit the potential of social media, companies need to design experiences
that deliver tangible value in return for customers’ time, attention,
endorsement and data.
� Consumers all over the world, across all generations, are swarming to social media,
but most interact only occasionally. Despite the astounding escalation of social
media adoption, only a very small percentage of consumers engage regularly by
responding to posts and authoring their own content.
� SOCIAL FACTORS AFFECTING BUSINESS SECTOR
47
� It’s about friends and family – not brands. More than half of consumers don’t even
consider engaging with businesses via social sites. For them, social media and social
networking are about personal connections with friends and family.
� Perception versus reality – what consumers really want. We discovered significant
gaps between what businesses think consumers care about and what consumers say
they want from their social media interactions with companies. In exchange for their
time, endorsement and personal data, consumers expect something tangible. But
businesses rank getting discounts and purchasing as the least likely reasons
consumers interact with them.
� The advocacy paradox – Is it the chicken or the egg? Most businesses believe
social media will increase advocacy, but only 38 percent of consumers agree,
and more than 60 percent believe passion for a business or brand is a
prerequisite for social media engagement. Companies need to find creative
ways to tap the power of the trusted social community.
� Canada is home to Bombardier, a manufacturer of both business and commercial
aircraft. Bombardier first entered the aerospace industry with its acquisition of
Canadair in 1986, And later became the parent company of a major U.S. business jet
OEM, Learjet.175 Two of Bombardier’s Challenger series models, the 300 and the
605 are within the scope of The current report and compete within the medium to
super midsize product segments. Bombardier is able to draw on significant aerospace
engineering talent and expertise Within Canada for the domestic production of its
business jets. The company also has a Significant international presence with its
overseas manufacturing facilities, including those in Mexico and the United
Kingdom. At present, the company is focused on Improving production efficiency
and expanding its aftermarket services business.
� 181Bombardier is a market share leader for deliveries and revenues within the
business jet markets in which it competes. 182 Including the aircraft offered by
Learjet, which Bombardier acquired in 1990, the company has 12 business jet
models, the broadest range of any OEM. 183 Such a large range of aircraft has
advantages, such as Countercyclicality184 and cross-product research and
development.
48
� Bombardier Aerospace has 30,300 employees around the world, including an
estimated 17,500 in Canada performing high-skilled jobs related to all of the
company’s aircraft Programs.
� The decision to sign the agreement didn't come easy as we have opposed changes to
AgriInvest after consulting extensively with our stakeholders," Stewart said in a
news release.
� "However we are pleased funding for crop insurance remains unchanged and the
increased investment in strategic initiatives, such as research and water
infrastructure, will benefit our farmers and ranchers," he said.
� Stewart said producers have also told his government research and innovation is
critical if the industry is to grow.
� He added the federal government's plan to boost strategic initiative spending by 50
per cent will mean an extra $46 million per year for the province.
� Alberta's Agriculture Minister Verlyn Olson noted that the current federal budget
includes a $250 million reduction in agriculture spending over the next three years
for agriculture and Agri-Food Canada.
� "However Alberta producers will continue to have access to a strong and effective
suite of business-risk management programs."
� The market development program will include developing plans to break down trade
barriers, build market success and support the agriculture industry to find new
markets.
� Ritz said the agreement sets up an Agri-Innovators Committee that would provide
expert advice, research and development.
� He said the committee would consist of innovators with diverse backgrounds.
� "They will undertake a range of activities such as hearing from other industry
members, farmers and processors. Innovation can help mitigate risks, whether it's a
better kind of irrigation or a more drought-resistant seed variety."
49
� Canada’s financial services sector is both diverse and remarkably secure. In 2012,
the World Economic Forum rated Canada’s banking system the soundest in the
world.
� “There are countries with comparable economic characteristics to Canada, but with a
lot less friendly environment. In our dealings with the Canadian government, various
parts of the government, with the business people, we feel that it’s a lot more
congenial to our investments. ”
� Canada’s thriving financial services sector includes banks, cooperatives, credit
unions, insurance companies and brokers, pension fund managers, securities dealers
and independent agencies.
• Moody’s Investment Service ranks Canada’s banking sector first worldwide for
financial strength and safety. No major Canadian banks failed during the financial
crisis of 2008-2009 and Bloomberg Markets magazine listed four Canadian banks
among the ten strongest in the world.
• The Canadian financial sector is among the world’s most well-regulated and is
responsible for many international best practices. The World Bank ranks Canada
fifth worldwide for its strength of investor protection, and assigns Canada a
maximum score for depth of credit information.
• Between 2003 and 2011, more than 130 foreign companies established greenfield
projects in Canada’s financial services sector. More than one quarter of all foreign
direct investments in the sector involve technology projects.
• A boom in industrial development ensures steady demand for financial services:
more than $300 billion worth of mega-capital (in excess of $1 billion each), private
sector industrial projects have already been announced in Canada for the current
decade. These projects require extensive international financing.
� First, the government sought to define the legal terms for future referenda on
sovereignty or secession. The key elements of this effort were the Secession
Reference.30 to the Supreme Court of Canada and the subsequent adoption of the
Clarity Act.31 This prong of the strategy showed strength and firmness. Second, the
government attempted to woo disaffected Quebec voters with a co-ordinated effort
50
to raise its profile in Quebec. One of the main aspects of this prong of the
government’s strategy was the so-called “Sponsorship Program,” which gave
money, at the direction of the Prime Minister’s Office, to cultural and sporting
events in Quebec. From 1996 to the end of the Sponsorship Program in 2002,
Canada’s name and logo were ubiquitous at events from the Montreal Grand Prix to
the smallest country fair.
� Canada is a preferred destination for complex and high-value-added information-
technology and business-process outsourcing. Canada’s business-services sector
generated more than $60 billion worth of revenues in 2011 and employed nearly 1.3
million people–more than seven percent of the country’s total labour force.
• Foreign companies have been a major source of growth in Canada’s business-
services industry, and represent nearly 35 percent of Canadian head office and
management operations. Between 2003 and 2011, more than 200 foreign companies
established Greenfield projects in Canada’s business-services sector.
• Thanks to its proximity to—and cultural similarities with—the United States,
Canada has been one of the world’s largest suppliers of business process outsourcing
(BPO) services since the mid-2000s. Canada’s BPO industry is larger than peers in
Mexico, Ireland and China.
• In 2011, A.T. Kearney rated Canada’s business environment as the best in North
America for off shoring services and the third-best globally.
• Canada offers among the most attractive corporate income tax levels of any
comparable country. Companies locating in Canadian cities pay lower corporate
income taxes than they would in the US, Brazil and India.
• Canada prefers to deal with democratic countries, but important opportunities exist
in non-democratic countries (China). Sometimes a strong authoritarian government
provides stability that a shaky democratic government could not.
Canada is the North American country consisting of ten provisions and three
territories, Located in northern part of continent, it extends from the Atlantic and
pacific and northward into the Arctic Ocean Canada is the world's second largest
51
country by local area, and its common border with United States is the world’s
largest land border
FINANCIAL SERVICE
The financial services industry has been undergoing significant change in recent
years. This paper analyzes some key developments affecting the industry and
examines some important issues facing the industry and its regulators. Changes
discussed include the way services are provided, the instruments used to provide
services, and the nature of the financial service providers. Factors driving these
changes include technological developments, the changing role of competition, and
demographically led changes in household portfolios. These changes raise
challenges for the financial services industry. Among the most important are
determining what services and products to offer as well as the best size for providers.
With the evolution in the financial services industry, policymakers and regulators
also face challenges: the relative use of disclosure and market discipline versus
direct supervision; the potential role of functional regulation; the role of non-
regulated financial service providers; changes in the current supervisory process;
cross-border transactions; and the impact of new developments on the legislative
framework governing financial service providers.
Technological change in the form of remote delivery of certain financial services and
products may well provide the means for foreign banks to overcome this obstacle
(although this possibility has not yet materialized on a large scale in most places).
The spread of telephone banking and the introduction of computer-based delivery of
services discussed earlier has made the so-called “virtual bank” a possibility. Of
course, domestic banks are also rushing to offer such services to their customers,
both as a way of cutting costs and of holding onto their customer base in the face of
the new competitive challenges. Nonetheless, the domestic banks are concerned that
their costly investment in brick-and-mortar branches, which until now were the
principal obstacle to entry for foreign banks, will become an albatross for them,7
with the new virtual banks (themselves perhaps the subsidiaries or branches of brick-
and-mortar banks in other countries) gradually gaining an increasing share of the
local retail business. Nonetheless, brand recognition and loyalty to the domestic
banks are still formidable obstacles for foreign banks.
52
Technological change
The most important factor propelling change has probably been technology.
Technological developments in recent years, especially those in information
processing, management, and delivery, have led to a number of significant changes
in the way FSPs operate. Changing technology has permitted them to offer new
services or products or to improve existing ones and hence to satisfy more fully and
efficiently customers’ demands for the financial service functions. Moreover,
technological change is likely to continue to facilitate significant future changes in
the nature of services provided and the way they are delivered. This section of the
paper focuses on three key developments facilitated by technological change and
assesses their implications: backroom efficiencies; new instruments (including
electronic money and commerce) and different ways of putting the underlying
financial service functions together; and service delivery mechanisms for the
household sector.
Technological developments over the years, particularly in electronic processing of
transactions, have enabled financial institutions to increase the efficiency of their
backrooms. Initially, these developments allowed the financial services industry to
manage the sharp increase in the volume of transactions that was underway without
a proportionate increase in costs. More recently, they have led to a merger of some
of the backroom operations of large Canadian banks, or to the outsourcing of some
of these activities, to take advantage of the potential economies of scale in this area.
In one sense, this is not a new development at all; small- and medium-sized FSPs
have been doing this for some time. What is new is that technological change has
increased significantly the size of the scale of certain operations at which an FSP
must operate to be efficient. Thus, even a large institution can gain significant scale
economies by merging certain of its backroom activities with those of other
institutions or by completely outsourcing these activities to a third party.
Interestingly, a Deloitte & Touche study (1995) of this issue3 concludes that banks
in dif- ferent countries will contract out backroom operations to a different extent.
53
AUTOMOBILE INDUSTRY
We have looked at the Canadian automotive industry and seen that there is a capable
supply chain. But the industry demand is significant to a number of other industries:
37% of steel foundry production
17% of rubber production
14% of processed Aluminum
13% of wire goods
9% of carpeting and fabric
8% of glass
Canadian Areas of Expertise.
The Canadian industry excels in a number of areas as detailed below:
Metal Processing:
• Advanced casting of light metals
• Cutting and machining
• Sheet and tube forming
• Welding and joining
• Powder metallurgy
Advanced Materials
• Lightweight materials
• Nano materials
• Bio-materials
Advanced Design, Visualization & Manufacturing
• Inspection and vision system
54
MACHINERY EQUIPMENT
Machinery and equipment (M&E) is one of many imperative factors that influence
Canada’s future living standards. M&E investment and development is vital for
long-term growth. Despite Canada’s resilience to the global financial crisis, it is still
vulnerable to weak future growth due to lingering economic frailties such as rising
consumer debt and continued low productivity. Although not always apparent, there
is a fundamental relationship between M&E and productivity. M&E investments
influence research and development (R&D) and labour. These attributes, together
with foreign direct investment (FDI) and taxation, stimulate a number of variables,
which can change the outcome of productivity and the standard of living.
As Canada’s future economic landscape changes, the above mentioned attributes
must become a priority for future prosperity. This continues to be a challenge for
Canada in a number of areas and as the following pages reveal:
Canadians need to become more aware of the importance of productivity drivers to
the future of Canada’s economy and well-being. A change in M&E investment
directly affects productivity; however its impact is usually not as immediate or
visible to the public, thus leaving the misconception that it is less important.
Canada trails in investment and adoption of information and communications
technology (ICT), a sub-group of M&E and the foundation for technological
advancement in today’s digital world, compared to a number of advanced economies
including the U.S. It is important for Canada to maintain investment levels similar to
that of the U.S., its largest trading partner, to retain a global competitive edge.
ICT acts as a vehicle that propagates R&D, which in turn advances innovation to its
highest potential. Canada is falling behind global R&D advancement; however there
is an opportunity to excel through collaboration between government, academic and
business communities.
Low investment in and adoption of ICT by small and medium enterprises (SMEs) is
another contributing factor to Canada’s productivity challenge. The effectiveness of
ICT in today’s business environment is still ambiguous among Canadian managers
as they may not.
55
risk associated with it. Companies that adopt ICT have a clear advantage over their
competitors and provide themselves with a greater opportunity to survive and
expand. Although adequate funding is a substantial obstacle to ICT adoption, it
should not prevent advancement. Further support from the government in addition to
tax credits can help SMEs enhance their presence and impact onthe Canadian
economy. Support in the form of tax simplification, additional refundable tax credits
and direct government contributions for ICT equipment and services will support
SMEs and pay high future dividends.
Government regulations and restrictions can stimulate innovation in some sectors;
however it does not seem to always be the case for FDI. Canada has various
regulations for inbound FDI which suppresses technological transfers in the form of
ICT and non-ICT M&E development, job growth, and managerial talent, among
other benefits to the Canadian market. There is a concern that inbound FDI from
foreign state-owned companies can in fact be damaging the country’s economic and
social welfare through, for example, poor financial performance, tax evasion or even
infringement on national sovereignty. Certainly, the government has a responsibility
to protect Canadian markets from such interests, particularly in the case of foreign
takeovers that threaten national security.
However, policies should be in place to rapidly and thoroughly identify qualified
firms with purely commercial interests and allow them to easily enter the market,
establish themselves as quickly as possible and compete with Canadian counterparts.
A 2011 report32 ranks Canada 20th in filing for international patents and 28th in
exporting of high-tech goods. Canada offers a weaker encouragement compared to
the U.S. to harness new technologies or produce or export innovative tech products
to international markets. The welcoming of qualified foreign firms will stimulate the
development and innovation of technologies. The federal government is encouraged
to continue to work with other nations to establish trade liberalizations that are
rewarding for both countries and improve its reputation, as trade agreements are a
corner stone for international business of which many benefits follow. Investment
and development of M&E play significant roles in Canada’s future through its
prominent influence on productivity and living standards. It is imperative that the
government, the business sector, and the academic community increase the
56
investment to all inputs of productivity, not just M&E, in order for Canada to remain
a long-term competitive force in the global arena.
BUSINESS SERVICES
A welcoming business environment
Canada is the best place to do business in the world.
A growing economy
Canada has been the top performer among the G-7 in GDP growth over the 2008 to
2011 period.
A highly educated workforce
Canada has the highest proportion of post-secondary graduates among members of
the Organization for Economic Co-operation and Development (OECD).
Financial stability
Over the past four years, Canada’s banking system has repeatedly been declared the
soundest in the world.
Low tax rates
Canada’s combined federal-provincial statutory corporate income tax rate of 26% is
more than 13% below the U.S. and among the lowest when compared to G-7
countries.
Scientific research and experimental development
Canada offers some of the most generous R & D tax incentives in the industrialized
world, with combined federal and provincial tax credits that can currently save
foreign investors, on average, up to 30 cents on the dollar invested in R & D in
Canada. Canada also has the G-7’s lowest costs in R & D-intensive sectors (up to
10.7% lower than the U.S.).
NAFTA
The North American Free Trade Agreement (NAFTA) gives investors access to
nearly 457 million consumers and a combined continental GDP of about US$17.2
57
trillion. Canada continues to seek more free trade agreements with economic and
emerging powers to increase trade and investment
AEROSPACE
R&D and innovation are essential ingredients for Canada to increase its competitive
edge in aerospace. Canada’s comparative advantage in aerospace is highly
dependent on technology and innovation. Strategic investments in the full R&D
spectrum will be essential for our industry to compete effectively with emerging
nations that are vying for a larger share of this lucrative market, and sparing no
expense. -The Technology Demonstration phase is a crucial element of the R&D
spectrum is the. This is the most critical phase in the development of new aerospace
technology as this is when industry showcases new systems and technologies to be
integrated into future platforms.
This is also where the risk of losing a mid-spectrum technology is the greatest. Yet,
when proven, these technologies result in long-term implementation of lucrative
technologies and jobs in Canada. It is therefore imperative for Canada to ensure that
leading-edge and highly advanced technologies be supported by a Technology
Demonstration Program.
-The SR&ED tax credit has been a major incentive to attract and sustain R&D
investments in Canada. According to an AIAC survey, changes proposed in Budget
2011 will lead to a considerable decrease in R&D investments and erode Canada’s
comparative advantage with other countries. AIAC recommends that the SR&ED
investments be refundable and non-taxable for both labour and capital expenditures
at the proposed rate of 15 percent. Supporting R&D and innovation through a
Technology Demonstration and ensuring the effectiveness of the SR&ED tax credit
are among the necessary measures to ensure Canada remains as a global aerospace
technology leader.
R&D investments are a crucial factor in the development of future innovation
capabilities of aerospace firms.
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AGRICULTURE
The data we use to estimate the model incorporating induced technological change
are taken from Karagiannis and Furtan (1990) and run from 1926-1985 for four
inputs: land, machinery, fertilizer (including chemicals) and labour for the Central
Canadian region of Canada (Ontario and Quebec).4 Given a four input model with
the minimum number of symmetry restrictions imposed to generate a full column
rank design matrix leaves 166 parameters to be estimated. Obviously, this precludes
the estimation of the cost function as a separate equation in the system due to the fact
that the row rank (number of observations) of the design matrix must be greater than
the column rank. The data cannot be updated past 1985 because the output series
ceased to be collected after that date. This leaves us with the estimation of the four
conditional factor demand functions. The C( yt ,Pt ,t)= (t)C( yt ,Pt ) (7) λ number of
free parameters that can be estimated in each separate equation is forty two per
equation if the parameter of returns to scale (α) is allowed to be free across
equations. The parameter of neutrality (γ) is not identified from the conditional
factor demand functions but the lack of an independent estimate of this parameter
will not affect any of the results given below as long as γ > 0, as required by theory.
Therefore, to achieve full parameter identification, we set γ=1. An issue that must be
dealt with concerns the selection of the lag between when research is undertaken and
when it affects the bv ij parameters. Several studies taken from the returns to
research literature (e.g. Klein et al (1994)) assume a ten year lag. While a careful
reading of this literature reveals that the choice of the ten year lag is somewhat
arbitrary, the choice of any other seems even more arbitrary. Therefore, we choose a
ten year lag as the time horizon between whe research is undertaken and when it
affects cost function parameters. Given the ten year lag, the next consideration is
what type of expectations generator to use for expected prices. We assume that
economic agents have static expectations, that is where Et is the expectations
operator. Alternatively, if all prices follow a random walk, then the rational
expectation of price is the same as the static expectation of price and equation (8)
and the expectations operator can be interpreted as conditional on information
available at time t. A final consideration involves the selection of an appropriate
estimation technique. Phillips-Perron Zτ tests were undertaken on all of the variables
included in the model. The results of these tests are not shown but are available from
the authors upon request. The results of the Phillips-Perron test indicated that unit
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root non-stationarity could not be rejected for 150 of the 160 Et Pit+n= Pit . i=1,...,m
(8) variables using a significance level of 10%. Given the large number of regressors
in the model and the large percentage of these where unit root non-stationarity could
not be rejected, it seems reasonable to proceed assuming all of the data are
characterized by unit root non-stationarity. Since the data indicate that unit root non-
stationarity is a reasonable approximation of the data, cointegration techniques need
to be applied to the estimation.
A new procedure is developed to estimate innovation possibility frontiers and test for
biases in technological change. Using data on four inputs (land, machinery,
chemicals and labour) from central Canada (Ontario and Quebec) over the period
1926-1985, we find that the innovations possibilities frontier shifts neutrally over
time. This is consistent with Ahmad=s model of induced innovations, but is not
consistent with de Janvry=s application of Ahmad=s model to the historical
development of Argentine agriculture. Agricultural research in Canada has been
conducted with the objective of developing cost minimizing technologies. Empirical
support was found for this notion in the development of the innovation possibilities
frontier.
In this study, a model is developed to directly estimate the parameters of the
innovation possibilities frontier. A test of fundamental versus induced biased
technological change is obtained and applied to Central Canadian agriculture. We
find that all technological change is induced, or that the innovations possibilities
frontier shifts neutrally over time. This is consistent with
Ahmad=s model of induced innovations, but is not consistent with de Janvry=s
application of
Ahmad=s model to the historical development of Argentine agriculture.
There is also evidence to suggest that the manner in which research is undertaken in
Canada is consistent with expected cost minimizing behavior on the part of
researchers, or at least a research allocation policy on the part of funding agencies
that encourages research designed to minimize expected costs. Empirical support
was found for this notion in the development of the innovation possibilities frontier.
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Nonetheless, our results need to be refined in several ways. The empirical model
performed well in terms of monotonicity but only marginally well in terms of
negativity and concavity. Symmetry was rejected. This could perhaps be due to the
assumption of a ten year lag in the undertaking of research before it affects the
prevailing technology, or the assumption of static price expectations. Certainly, more
work needs to be undertaken on this topic before more definitive statements can be
made concerning the historical development of modern agriculture in Canada
CHEMICAL
Strong growth of demand: Today, biopharmaceuticals account for about $55-$80 billion,
or 15% of the total pharmaceutical market. They are growing by 15% per year, i.e. three
times faster than LMW drugs and are expected to pass the $150 billion per year
threshold by 2015. Whereas just one out of the world’s top ten drugs was a
biopharmaceutical in 2001, the number went up to five in 2010 (see table 6) and is
expected to increase further to eight by 2016
� The likelihood of developing a new biopharmaceutical successfully is significantly
greater than in traditional drug development. 25% of biopharmaceuticals that enter
Phase I of the regulatory process eventually are granted approval. The corresponding
figure for conventional drugs is less than 6%.
� The traditionally large share of outsourcing.
� Small number of custom manufacturers with industrial-scale manufacturing
capabilities in this demanding technology. In the Western hemisphere, primarily
Boehringer-Ingelheim of Germany and Lonza of Switzerland; in the Eastern
hemisphere Nicholas Piramal of India (through the acquisition of a former Avecia
operation)and the joint ventures between AutekBio and Beijing E-Town Harvest
International in China and between Biocon in India and Celltrion in South Korea.
� Same customer category: life science, especially the pharmaceutical industry.
� Similar business types: custom manufacturing of proprietary drugs; opportunities for
generic versions, called biosimilars.
� Similar regulatory environment: FDA regulations, especially GMP.
� Existing infrastructure (utilities, etc.) can be used.
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Cons:
� High entry barriers because of demanding technology. The construction of a large-
scale plant for the production of biopharmaceuticals by cell culture fermentation
costs around $500 billion and takes four to six years.
� As the specifications of the plant and process types for biopharmaceuticals differ
substantially from traditional chemical synthesis, they cannot be produced in
conventional multipurpose fine chemical plants.
� High financial exposure: (1) high capital intensity (‘massive investments are needed
at a time when chances of success are still very low’ and (2) risk of batch failures
(contamination).
� Unlike the biopharmaceutical start-ups, the emerging big biopharmaceutical
companies are adopting the same opportunistic outsourcing policy as big pharma
companies.Thus, Amgen, Biogen/Idec, Eli Lilly, Johnson &
Johnson (J&J), Medimmune, Novartis, Roche/Genentech and Pfizer are investing
heavily in in-house manufacturing capacity. With three plants in the US, two in
Japan and one each in Germany and Switzerland, Roche has the largest production
capacity.
New developments in expression systems for mammalian and plant cell technology
could reduce capacity requirements substantially. Actually, the titer in large-scale
mammalian production, actually 2-3 grams/liter. is expected to double to 5-7 by
2015 and once more to 10 by 2020. Furthermore, the widespread application of
‘single-use disposable bioprocessing technology’, considered by experts as ‘the
hottest buzz in town’. It advantageously substitutes for stainless steel production
trains, at least for short production campaigns.
Canada’s Legal System
Canadian courts are considered independent of the government elected politician &
bureaucrat cannot influence or dictate how the courts administer and enforce the law,
In theory, federal and provincial government make the laws and courts interpret and
enforce them Increasingly however the line between who makes laws blurring. In
some cases Canada’s courts end up making new laws by virtue of the way legislation
is interpreted.
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A Significant driving force for legislative judicial change in recent year has been
Canada’s charter of rights and freedom, which imposes limits on government
activity relating to Canadian’s fundamental rights and liberties these include the
right to liberty, equality, freedom of religion, freedom of expression, freedom to
associate with a group, to be presumed innocent until proven guilty by an
independent and impartial tribunal the charter however does not generally govern
interactions between private citizens or business.
Canada’s legal system is unique from many others in that the Quebec act of 1774
created two system for laws- the “civil law” governing those in Quebec and a
common law system in all others province. The common law system of justice,
similar to that in U.S., relies the historical record of court interpretation of laws over
the years. The civil law system in Quebec relies on a written civil code that sets out
standard of acceptable behavior or conduct in private legal relationship.
CANADA AUTOMOBILE
The 'automobile industry in Canada consists primarily of assembly plants of foreign
automakers, most with headquarters in the United States or Japan, along with
hundreds of manufacturers of automotive parts and systems.
Canada is currently the eleventh largest auto producer in the world producing 2.1
millions car a years down from seventh place with 3 millions peak a few year ago
China, Spain, India, Brazil, Mexico recently surpassed Canadian production for the
first time. Canada's highest rankings ever were second largest producer in the world
between 1918 and 1923 and third after WWII.
The first large-scale production of automobiles in Canada took place in Walkersville,
Ontario, near Windsor, in 1904. In the first year of operations Gordon McGregor and
Wallace Campbell along with a handful of workmen produced 117 Ford Model Cs at
the Walkersville Wagon Works factory.
The 1964 Automotive Products Trade Agreement o “Auto Pact” represents the
single most important factor in making the Canadian automotive industry what it is
today key features of the Auto Pact were the 1:1 production to sales ratio and
Canadian Value Added requirements.
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LEGAL FACTORS AFFECTING AUTOMOBILE SECTOR IN CANADA
Transport Canada promulgates enforces federal road safety and motor vehicle
regulations under the Motor Vehicle Safety Act (MVSA) this Act regulates the
manufacture and importation of motor vehicles and motor vehicle equipment to
reduce risk of death, injury, damage to property and the environment.
Automotive Products Agreement
Automotive Products Agreement, commonly known as the Auto Pact or APTA was
an important trade agreement between Canada and the other country it was signed by
Prime Minister and President of particular country which do agreement with Canada
Canadian Vehicle Emissions Regulations
Canada had national emissions regulations for new gasoline and diesel-fuel road
vehicles since 1971 these standards cover crank case emissions exhaust emissions of
carbon monoxide (CO), hydrocarbons (HC), oxides of nitrogen (N0x), diesel
particulate matters (PM), evaporative hydrocarbon emissions (HC), and smoke
capacity.
Safety Standards
Canadian Vehicle Safety Regulations
Transport Canada promulgates enforces federal road safety and motor vehicle
regulations under the Motor Vehicle Safety Act (MVSA) this Act regulates the
manufacture and importation of motor vehicles and motor vehicle equipment to
reduce risk of death, injury, damage to property and the environment.
Automotive Innovation Fund
A new Automotive Innovation Fund (AIF) had been established that will provide
automotive firms $250 million over five years to support strategic large-scale (R&D)
projects to build innovative greener more fuel-efficient vehicles.
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CANADA AEROSPACE
Canada’s aerospace industry is robust and dynamic with a long history of innovation
and success throughout the world home to leading aviation space companies canada
is a global market leader in producing regional aircraft, avionics, business jets,
commercial helicopters, aircraft engines, flight simulation, landing gear, space
systems ,Maintenance Repair and Overhaul Expertise in addition leading aerospace
companies from around the world choose to perform their manufacturing and
research and development activities in Canada.
Canadian aerospace firms have a well-deserved reputation for quality, value,
performance and reliability Canada is home to more than 400 aerospace firms
employing nearly 80 000 skilled professionals Canadian aerospace firms recorded
sales totaling $22.1 billion in 2006. The industry exports 80 percent of its output to
customers worldwide.
The Aerospace Industry Association of Canada (AIAC) website contains
information on Canadian aerospace capabilities the AIAC represents more than 400
Canadian aerospace enterprises works to enhance their competitiveness and export
marketing through cooperative efforts and direct contact with governments.
LEGAL FACTORS AFFECTING AEROSPACE SECTOR IN CANADA
The Government of Canada announced commitment to review all policies and
programs related to the aerospace and space industries in order to develop a federal
The head of the review will provide recommendations to the Government of Canada
on programs and policies that support the long-term competitiveness of the
aerospace and space sector his report is delivered to the government in 2012. A
three-member advisory council will assist with the review.
� Leveraging defense and security procurement activities through the Industrial and
Regional Benefits Policy to provide economic benefits to Canada.
� Announcing up to $350 million in repayable contribution to Bombardier Aerospace
for research and development (R&D) related to the Series aircraft.
� Providing R&D funding to the Strategic Aerospace and Defense Initiative, this
builds on previous investments made through Technology Partnerships Canada.
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� Providing funding of approximately $14 million over four years to support the Green
Aviation Research and Development Network, one of the Business-Led Networks of
Centers of Excellence.
� providing funding from Natural Sciences and Engineering Research Council of
Canada to support strategic investments in the aerospace industry's capabilities in
science and technology;
� providing an additional $200 million over two years (Budget 2009) to National
Research Council Canada's Industrial Research Program, enabling the Council to
temporarily expand its initiatives for small and medium-sized businesses while also
supporting its ongoing work to aid the Canadian aerospace industry with R&D;
� providing funding from Canada Foundation for Innovation to support innovation in
the aerospace industry;
� providing from space robotics and the development of the RADARSAT Mission, a
system of remote sensing satellites; and
� Supporting Canadian participation in the Paris and Farnborough international air
shows.
CANADA BUSINESS SERVICES
This sector note analyzes the Canadian Business Services Sector and the Canadian
Management Consulting Market that will allow someone with a business idea and
interest to enter this market a full understanding of the steps and focus areas
necessary to allow one to have a sustainable and successful consulting firm.
The business services sector includes professional, technical and scientific services.
It is a sector where the main input for carrying out activities is human capital. On a
case by case basis the businesses in this sector make available to their clients the
knowledge and skills of their employees.
For the sector as a whole the proportion of staff with higher education and skills has
been continuously growing since 1994. The sector trend is that it has been constantly
growing in importance since 1990. Business Services are a very important part of the
knowledge economy and technical expertise is in great demand.
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LEGAL FACTORS AFFECTING BUSINESS & SERVICES SECTOR IN CANADA
Obtaining a Business License outside Winning
� The Municipal Act of Manitoba empowers all rural municipalities to regulate certain
trades and occupations carried on within their boundaries and to limit or even
prohibit certain types of business.
Zoning Regulation
� All businesses, including home-based businesses, are required to comply with City
of Winnipeg zoning regulations
Property Assessment Department
� You will be required to pay a percentage of the assessed rental value of your
premises as determined by the City Assessor.
Procedure for Issuing Licenses
� Licenses are mainly regulatory in function that is, they are intended as part of a
larger mechanism to control businesses which may pose issues relative to health, fire
safety, disturbance to the physical or social environment, and so on.
Taxation
� Taxes are compulsory payments by individuals and corporations to government,
levied to finance government services, to redistribute income and to influence the
behavior of consumers and investors.
CANADA CHEMICAL
Chemical MANUFACTURING entails the conversion of one material to another by
a chemical reaction on a commercial scale. The starting material (feedstock) can be a
natural substance or a relatively pure chemical used as an "intermediate" for
subsequent upgrading.
Coexisting with thousand of organic compounds are inorganic chemicals, chemicals
normally obtained by processing various nonpetroleum MINERALS (eg, common
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SALT, LIMESTONE, POTASH, metallic ores) or atmospheric gases such
classifications historically evolved are less precise than they might be for example
inorganic nitrogen fertilizers which embody atmospheric nitrogen in chemical
combination are not generally manufactured without burning natural gas for its
hydrogen content.
Location of Plants
A handful of chemical companies produce wide range of products grossing over $1
billion each but there are dozens of smaller companies as well almost 400 separate
manufacturing plants in Canada produce at least one chemical for general sale most
are located in central Canada because of the proximity of large cities but every
province except PEI has at least one chemical manufacturing operation some are
associated with other processing activities: a petroleum refinery at Dartmouth.
Ownership
The large commodity chemicals can be successfully produced in Canada only with
adequate economies of scale this worldwide trend to higher levels of minimum scale
has increased the influence of large multinationals endowed with sizable
technological financial resources and with global marketing skills.
Government Control
For many year there was no coherent government policy governing chemical
manufacturing it received about the same general tariff protection as other
manufacturing sectors and Petrosar received some indirect federal support when the
Crown-owned CANADA DEVELOPMENT CORPORATION acted as one of the
principals Ottawa has accepted the concept of 3 petrochemical centers in the
country.
LEGAL FACTORS AFFECTING CHEMICAL SECTOR IN CANADA
Environment Canada uses a number of act regulations and agreements to fulfill its
mandate to preserve and enhance the quality of Canada's natural environment.
Environment Canada use regulations to place strict controls on areas governed by
these acts it also enters into voluntary and regulated agreements with individuals or
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multiple parties in Canada and elsewhere to define mutual commitments roles and
responsibilities and actions on specific environmental issues.
Acts
Some act such as the Canadian Environmental Protection Act are intended to protect
the environment from pollution while others such as the Canada Wildlife Act and the
Canada Water Act focus on conservation.
� Antarctic Environmental Protection act
� Canadian Environmental Protection act 1999
� Environmental Enforcement act
� Migratory Birds Convention act 1994
� Species at Risk act
� Consumer Protection
� Water Governance and Legislation
� Learn about Canada's water policy and legislation Agreement
� Canada-Ontario Agreement Respecting the Great Lakes Basin Ecosystem
� Canadian Environmental Protection Act Agreement
Agreements
� Canada-Ontario Agreement Respecting the Great Lakes Basin Ecosystem.
� Canadian Environmental Protection Act: Agreements
� Environmental Performance Agreements
� Great Lakes Water Quality Agreement
� International Affairs
Land Registration Systems
Each Canadian province has its own systems for registering interests in real
property, as property legislation is constitutionally a provincial responsibility in
Canada. In Ontario, for example, there are two land registration systems: registry
and land titles.
Environmental Assessments
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In Canada there is a legislative framework at both the provincial and federal level
that governs the duties of land owners with respect to the storage discharge and
disposal of contaminants and other hazardous materials connected with the property
the liability for improper environmental practices runs with the land and can be
inherited by future owners of the property.
Occupational Health & Safety
All federal and provincial jurisdiction have enacted laws designed to ensure worker
health and safety as well as compensation in cases of industrial accident or disease
employers must set up and monitor appropriate health and safety programs in
provinces such as Alberta, Saskatchewan, Manitoba and Ontario, occupational health
and safety legislation requires a workplace violence and harassment policy.
CANADA AGRICULTURE
Canada is one of the largest agricultural producer and exporter in the world as with
other developed nations the proportion of the population and GDP devoted to
agriculture fell dramatically over the 20th century but it remains an important
element of the Canadian economy.
Crops
In 1925 Saskatchewan produce over half of the wheat in the Dominion of Canada
threshing in excess of 240,000,000 bushels (6,500,000 metric tons) of wheat
Rapeseed, alfalfa, barley, canola, flax, rye, and oats are other popularly grown grain
crops.
Production
Farming activities were very labor intensive before the industrial revolution and the
advent of tractors, combines, balers, etc. From the late 19th century to mid-20th
century, a great percentage of the Canadian labor force was engaged in high labor
smaller farming practices.
LEGAL FACTORS AFFECTING AGRICULTURE SECTOR IN CANADA
Intellectual property (copyright)
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Few issues have seen as vigorous a debate among civil society groups on both sides
of the Atlantic as this. European demands for extended patents on prescription drugs
remain one of Canada's most difficult decisions, as drug costs for provinces and
territories could jump significantly.
Government procurement
European access to large contracts at all levels of government in Canada has been a
key EU demand. But Canadian negotiators had a specific demand of their own.
Canadian Agricultural Loans Act program
The Canadian Agricultural Loans Act (CALA) program is a financial loan guarantee
program that gives farmers easier access to credit. Farmers can use these loans to
establish, improve, and develop farms; while Agricultural co-operatives may also
access loans to process, distribute, or market the products of farming.
Through the CALA Government of Canada is supporting the renewal of the
agricultural sector and enabling co-operatives to better seize market opportunities.
Import conditions
Most goods imported subject to customs duties (imposed under the Customs Tariff)
and the GST; both these are collected by Customs at the time of importation and
levied on the landed value of the goods customs also collect anti-dumping and
countervailing duties on a few goods that have been found to be sold under unfair
conditions.
Exports
The certification process play an important role in Canada's international trade and
helps to protect the excellent international reputation of Canada's exports of food,
plants, animals and associated products.
CANADA MACHINERY EQUIPMENTS
Machinery and Equipment Industry includes establishments that produce pumps and
compressors, rolling-mill and metalworking equipment, forestry equipment, mining
equipment, farm machinery, construction equipment and service industries
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equipment. The largest resource industry users of machinery in Canada are mining,
forestry, and petroleum and electric-power generation.
The Modern Industry
The modern Canadian machinery and equipment industry is heavily dependent on
export markets: between 1975 and 1985, exports accounted for 62% of the industry's
real growth. Increasing exports were necessary to sustain growth because the
indigenous Canadian market is too small, even for manufacturers who concentrate
on producing machinery for larger Canadian industries.
LEGAL FACTORS AFFECTING MACHINERY EUIPMENT SECTOR IN
CANADA
Regional markets
� Canadian machinery manufacturing clusters are located in regional economies that
are highly oriented towards machinery-intensive industries- agriculture, mining,
utilities, construction & manufacturing (AMUCM).
Export markets
� In addition to these strong regional in the Canadian clusters jurisdictions Canadian
locations also offers seamless access to US machinery markets under the North
American free trade agreement (NAFTA).
Tax incentives and exemptions
� Tax incentives and exemptions figures highly in machinery investment decisions.
Canada’s competitive tax environment is complemented by a number of relevant
incentives for R& D and manufacturing investment.
Manufacturing tax incentives
� The rate of depreciation allowed on manufacturing buildings has been increased
from 4% to 10%- a significant benefit for machinery manufactures.
� The rate of depreciation allowed on manufacturing equipment has been accelerated
from 30% to 50% for new machinery & equipment purchased. This directly assists
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machinery manufacture when investing in new machinery for their own plants, and
also stimulates demand from all manufacturing sectors for machinery & equipment.
CANADA FINANCIAL SEVICES
Financial services are the economic services provided by the finance industry which
encompasses a broad range of organizations that manage money including credit
unions banks credit card companies insurance companies consumer finance
companies stock brokerages investment funds and some government sponsored
enterprises the financial services industry represented 20% of the market
capitalization of the S&P 500 in the United States.
Regulation
Canada's federal government has sole jurisdictions for banks according to the
Canadian Constitution specifically Section 91(15) of The Constitution Act 1867 ,
formerly known as the British North America Act 1867 Meanwhile credit
unions/caisses popularizes securities dealers and mutual funds are largely regulated
by provincial governments.
Foreign exchange services
Foreign exchange services are provided many banks around the world foreign
exchange services include:
Currency exchange where client can purchase and sell foreign currency banknotes.
Foreign Currency Banking - banking transactions are done in foreign currency.
Wire transfer - where clients can send funds to international banks abroad.
LEGAL FACTORS AFFECTING FINANCIAL SERVICES SECTOR IN CANADA
Risk Management Function
� Identifying, measuring, monitoring and reporting financial risk exposures in a
manner consistent with Board-approved policies and limits;
� Assisting senior management or the Board in understanding the financial risks faced
by the institution and the techniques used to measure and manage those risks; and
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� Assisting senior management in developments of risk management policies,
procedures and limits.
Treasury Risk Management Practices
Financial risk should be managed in a manner commensurate with their complexity and
the extent of potential losses treasury risk management practices should be consistent
with the nature of an entity’s operations and permitted financial transactions risk
management systems should be adequate to provide accurate up-to-date measuring
monitoring controlling and reporting capabilities.
� Liquidity Risk
� Operational Risk
� Sales Tax Division
� Legal Risks
� Excise Taxation and Legislation
SUMMARY OF PESTAL ANALYSIS
(1) POLITICAL FACTOR OF AUTOMOBILE INDUSTRY
The Automobile Industries Association of Canada (AIA) is a national trade association representing
the automotive aftermarket industry in Canada. The aftermarket is an $18.5 billion industry that
employs more than 420,000 people. The industry is composed of companies that manufacture,
distribute and install automotive replacement parts, accessories, tools, and equipment. AIA
represents manufacturers, re-builders, manufacturers agents, warehouse distributors, national
distributors, buying groups, wholesalers, machine shops, retailers, and through its councils, the
interests of collision repair shops and automotive service and repair outlets. AIA’s mandate is to
promote, educate and represent members in all areas that impact the growth and prosperity of the
industry.
Canada agreed to accord duty-free treatment to vehicles and original equipment
manufacturing parts of the United States, provided the importer met the definition of a
motor vehicles "manufacturer" under the terms of the Auto Pact. An Auto Pact manufacturer
must have produced in Canada, during the base year (1963-64), motor vehicles of the class
it is importing, and (i) must have maintained a ratio of the sales value of its local production
of vehicles of that class to the vehicles of that class sold in Canada of a prescribed
minimum, and (ii) must have achieved a minimum amount of CVA in its local production of
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motor vehicles (including in certain cases the production of parts therefore). The Auto Pact
also provided that Canada could designate a manufacturer not meeting the base year
criterion to import duty-free motor vehicles and original equipment manufacturing parts.
The 2012 Outlook Study Find out Positive Signs of Recovery in the Automotive
Aftermarket Industry November 13, 2012, Ottawa – The Automotive Industries Association
(AIA) of Canada is pleased to announce that its 2012 Outlook Study is now available.
This biennial report, produced for AIA Canada by Defrosters Automotive Consultants Inc.
provide in-depth look at various factor influencing Canadian automotive aftermarket
industry success. By examining the state of the industry over the last two years and making
calculated projections of future growth, this report paints an exact picture of industry that
helps members in their business planning activities.
The 2012 edition of Outlook Study found that industry is beginning to recover from 2008
economic depression in terms of consumer spending & employment both. Overall,
employment rates have since increased, which bodes well for aftermarket given that both
vehicle ownership & usage are correlated with employment rates. In addition, study
indicates that the surge in new vehicle sales prior to 2008 will define the distribution of
Canadian vehicles in older age segments in coming years to the assistance of the aftermarket
industry.
Highlights from the study are as follows:
• The aftermarket is now expected to be worth $19.4 billion & employs 420,000 Canadians
representing 50% of all employment in automotive industry.
• 54% of all vehicles registered in Canada are now over the age of 8 years with average age
of a vehicle on Canadian roads now standing at 8.54 years.
• There were 22.2 million vehicles registered in 2011 with total annual vehicle kilometers
driven measured at 469.8 billion kilometers or on an average of 21,995 kms/vehicle.
• Used vehicle sales represented 65.6% of all vehicles sold in Canada in 2011.
• Average mileage record on a retired vehicle is now estimated at 320,000 kilometers.
“Improved vehicle reliability, ratio of do it yourself versus do it for me maintenance &
growing numbers of import vehicles in Canadian market will have intense impacts on the
industry moving forward,” Marc Brazeau President spoke out, AIA Canada. “Though
improving from an economic droop constantly takes time, being conscious of factors that
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influence growth potential, like those outlined in this study, can assist members of
aftermarket stay on right track.”
(2) ECONOMIC FACTOR OF AUTOMOBILE INDUSTRY
� Canada has vibrant R & D clusters and offers generous investment tax credits and funding
to automotive companies for R & D. From 2002 to 2011, R & D spending in Canada’s
automotive industry has averaged more than $460 million per annum. Key focus areas
include alternative fuel, mechanical engineering, and engine and transmission design,
advanced materials, emissions, biomechanics, and vehicle safety. Intensive R & D related to
electric vehicles is currently underway.
Canada offers some of the most generous R & D tax incentives in the industrialized world,
with combined federal and provincial tax credits that can currently save foreign investors,
on average, up to 30 cents on the dollar invested in R & D in Canada. Canada also has the
Sevens lowest costs in R & D-intensive sectors (up to 10.7% lower than the U.S.).
� According to the World Bank, Canada has one of the world’s best logistics infrastructures.
Canada has a highly developed transport infrastructure and duty-free access to the U.S.,
Mexico and many other global markets. It is part of a fully integrated North American
automotive market with 37 high-volume assembly plants within a 500 km radius of the
Windsor-Detroit border. Canada is the sixth largest exporter of road vehicles in the world.
� Canada is the first G-20 country to offer a tariff-free zone for industrial manufacturers, a
major initiative that will see tariffs on all manufacturing inputs reduced to zero by 2015.
� The Canadian automotive manufacturing industry employs more than 111,000 people.
Canadian automotive workers are known for their strong work ethic, reliability, low
turnover, and productivity. Manufacturing workers on average stay with an employer for
more than 10 years. Canada has a world-class higher education system with 22 Canadian
universities appearing in the top 500 universities of the world. Canada’s top-quality
educational institutions ensure a continuous supply of qualified graduates in engineering,
machining, metalwork, welding, robotics, manufacturing systems, service technicians, as
well as tool and die making. In 2010, more than 63,000 students were enrolled in accredited
engineering programs across Canada. A further 21,000 were enrolled in masters or doctoral
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engineering programs, an increase of 10% from 2009. A total of 11,450 undergraduate
degrees in engineering were awarded in 2012.
� Canada's combined federal-provincial statutory corporate income tax rate of 26% is more
than 13% below the U.S. and among the lowest when compared to G-7 countries. Canada is
the first among G-20 members to make itself a tariff-free zone for manufacturers by
eliminating tariffs on manufacturing inputs and machinery and equipment.
� The auto industry directly employs 112,000 people in Canada. Thousands more jobs are
created to supply the industry: jobs in steel, plastics and other manufacturing and services.
More jobs are created by the spending power of auto workers ‘paycheques. Auto workers’
paycheques pumped $6.1 billion into the Canadian economy in 2011 (or $17millionper day).
The major original equipment manufacturing jobs are estimated to stimulate 337,000 other
jobs throughout the economy. Including spin-off jobs, the auto industry is responsible for
374,000 jobs across the country.
� The auto industry accounted for $53 billion worth of exports in 2012, 12% of the nation’s
total. Among all of Canada’s sources of exports, the auto industry is second only to the oil
& gas industry (but as the nation’s leading manufacturing exporter the auto industry
produces twice as many direct jobs).
� In 2012, auto workers paid $1.6 billion in income, payroll and sales taxes (or $4.4 million
per day). Most auto workers own homes, and based on average property tax rates auto
workers also supported $468 million in municipal taxes in 2011 (or $1.3 million per day),
helping to pay for local services. Vital for us All the CAW fights for good jobs in the auto
industry, which are vital for us all.
(3) SOCIAL FACTOR OF AUTOMOBILE INDUSTRY
The income of the consumer or buyer of the car is a very important factor of demand. In
recent time we have seen that due to increase in the Income of the general public, there has
been a shift from the Lower CC-segment cars to the Upper CC-segment cars.
Due to the recent increase in the number of multinationals in India, the income level of the
employees have risen drastically and has made CC-segment cars an entry level car for a lot
of people. The average age of a CC-segment car owner has also dropped from 35 years to
31 years in India.
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Auto industry observers cite car loans as the biggest driving factor for the expansion
of the Compact Car segment. At present, almost 85 per cent of all new car sales are backed
by auto finance, compared to 65 per cent five years ago. Interest rates on car loans have
come down drastically in the past four or fiveYears, which help prospective buyers, take
the plunge.
The growth of the CC-segment in the past few years can be mainly credited to factors such
as rise in income levels leading to increased affordability and simultaneous reduction
in interest rates leading to lower EMIs.
One of the major factors that affect the demand of any commodity in the market is the price
of the commodity. As the law of demand also states that with an increase in price the
demand of the commodity decreases and vice versa. Since, in the compact car segment
market even there are very less competitors there is stiff price competition.
Like the price of Zen in 2001 was Rs. 3.93 lacs which increased to Rs. 4.01 lacs in 2005,
but still the sale of the Maruti brand keeps on increasing it was due to the company’s
reputation with the customers.
The income of the consumer or buyer of the car is a very important factor of demand. In
recent time we have seen that due to increase in the Income of the general public, there has
been a shift from the Lower CC-segment cars to the Upper CC-segment cars.
Due to the recent increase in the number of multinationals in India, the income level of the
employees have risen drastically and has made CC-segment cars an entry level car for a lot
of people. The average age of a CC-segment car owner has also dropped from 35 years to
31 years in India.
Cars being aspiration products, purchase decisions are influenced by the overall economic
environment. Increase in per capita income increases the consumption tendency of the
customer. Growth in per capita income and rising aspirations and changing lifestyle is
leading to increased preference for cars over two-wheelers, which is also having a positive
rub off on car demand.
Market economies are assumed to have many buyers and sellers, high competition
and many substitutes. Monopolies characterize industries in which the supplier determines
prices and high barriers prevent any competitors from entering the market. Demand and
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supply refer to the relationship price has with the quantity consumers demand and the
quantity supplied by producers. As price increases, quantity demanded decreases and
quantity supplied increases. On the other hand, elasticity tells us how much quantity
demanded or supplied changes when there is a change in any of the factor. The more the
quantity changes, the more elastic the good or service. By studying various demand and
supply factors affecting the automobile industry we can conclude that an upturn or downturn
in this sector is due to an aggregate effect of multiple factors. These together govern the
economies of automobile sector.
(4) TECHNOLOGICAL FACTOR OF AUTOMOBILE INDUSTRY
Canada is a giant in the production of automobiles and automobile components for North
America and is the largest producer of vehicles in North America. Total revenues in 2012
were $96.7 billion, while export revenues were $70.5 billion. Total employment is in excess
of 90,000 and 84 percent of the vehicles built in Canada are exported. Capital investment
has averaged $3.5 Billion over the past ten years. Table A compares production of vehicles
in key States and Provinces. Province/State Production Percentage of Total Prod Ontario,
Canada 2.5 Million 22% Michigan, United States 2.25 Million 19.8% Ohio, United States
1.6 Million 14.1% Kentucky, United States 1 Million 9% Total Production (North America)
11.36 Million 100% Canada is the third largest exporter of automotive products after Japan
and the United States. The total industry employs about 170,000 in over 1000 companies in
manufacturing and an additional 300,000 in distribution.
In Canada, there are ten automobile assembly plants, which produce almost 2.5 Million
vehicles per year. All of these plants are located in Ontario. Table B shows the automotive
assembly plants in Ontario, with details of locations, models produced, ownership and
Automotive Component.
These are the largest companies, but with over 1000 companies in the industry, there is the
excellence and capability to produce parts with zero defects, with on-time delivery to meet
the schedules of the assembly plants, both in Canada and the United States.
• Denso Corporation
• Ford Motor Company of Canada Ltd.
• General Motors of Canada Ltd.
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• Honda Canada Inc
In the 2012 the automotive industry accounted for about 14% of total direct manufacturing
employment in Canada and 10% of the value of total manufacturing shipments. The industry
consumed 14% of iron foundry production, 11% of rubber products, 7% of machine-shop
products, 9% of wire goods, 14% of processed aluminum, 6% of carpeting and fabrics and
9% of glass products. The Canadian automotive industry is the final destination of over 20%
of all domestic steel shipments, representing over 10 000 jobs in the Canadian steel industry.
There are soon to be more than 10 producers of cars and trucks in Canada, and Canada is the
sixth-largest producer in the world. These vehicle assemblers also produce nearly half of the
value of parts and components going into vehicle production. A further 40% of these
original equipment parts is produced by some 450 Canadian-owned parts companies, and
the balance is produced by the 12 largest independent multinational parts companies.
Ontario continues to be the centre for vehicle assembly with 83%; about 12% of assembly is
in Québec; and smaller facilities are maintained in BC, Manitoba and NS. Original
equipment-parts plants are also concentrated in Ontario (80%) and Québec (10%). After-
market parts production, which is about one-quarter that of original equipment parts, is
located in Ontario (68%), with 16% each in Québec and Western Canada. The automotive
industry also includes a distribution system of about 3500 dealers employing almost 80 000
persons.
Governments are also involved in the automotive industry. The federal government is using
its impressive $25-million test track and facilities at BLAINVILLE, Québec, and Ontario
has established 6 technology centers, an Automotive Parts Technology Centre in St
Catharine, and a Robotics Technology Centre in Peterborough. In future years there will be
more innovations in this revitalized, restructured industry.
(5) ENVIRONMENTAL FACTOR OF AUTOMOBILE INDUSTRY
Climate change can be caused by both natural processes and human activities, in the recent
warming has been largely attribute to human activity, primarily the release of carbon
dioxide and other greenhouse gases from the atmosphere. These gases enhance the
insulating properties of the atmosphere, reducing heat loss, thereby warming the planet.
Continued emission of these gases is the primary cause for concern about climate change
now and into the immediately future. Particularly important is the emission of carbon
dioxide, which is released through the combustion of carbon-based fossil fuels. In Canada,
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over 80 % of total national greenhouse gas emissions are associated with the production or
consumption of fossil fuels for energy purposes.
As carbon dioxide stays in the atmosphere for a long time, levels of carbon dioxide continue
to build-up in the atmosphere with ongoing human emissions. Even with human emissions
eliminated, atmospheric levels of carbon dioxide would fall very gradually as natural
processes slowly remove carbon dioxide from the atmosphere. This means that past
emissions from human activity continue to affect the climate system for a very long time.
Over the period 1948 to 2010, the average annual temperature in Canada has warmed by 1.6
°C, a higher rate of warming than in most other regions of the world. Increased winter and
spring temperatures are contributed to this warming trend to a greater degree than other
seasons. In addition, Canada is a maritime nation with 8 of its 10 provinces and all three
territories bordering on ocean waters (including Hudson Bay). Thus many regions of
Canada will also be affected by changing ocean environments, including the changes in
average and extreme sea level, wave regimes, and ice conditions.
Smog and air pollution is one of the most important air quality issues in Canada. Often
appearing as a haze in the air, smog is a mixture of gaseous pollutants such as ground-level
ozone (O3) and minute solid and liquid particles, called fine particulate matter (PM2.5).
These air pollutants, even at low concentrations, have been linked to a number of adverse
effects on health. Air pollution is spreading by the increase in the vehicle exhaust.
The Canadian automotive industry produces light duty vehicles — cars, vans, pickup trucks;
heavy duty vehicles — trucks, transit buses, school buses, military vehicles; and a wide
range of parts, components, and systems used in vehicles of this nature. To complement its
manufacturing activities, the industry boasts a well-developed vehicle dealer network, plus
an aftermarket organization which has grown into a world-class distribution system and
service provider.
In Canadian automotive sector has been hit hard by the economic recession, witnessing a
considered decline in jobs and production, and is currently facing major challenges
manufacturers. The social partners have criticized the government for being too passive and
for not taking the actions needed to save jobs. However, the government wants to avoid
supporting individual sectors, arguing that employees will be protected by the social welfare
system.
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Since the last few years when the effects of the global recession started to emerge in
Canada, the automotive sector has been severely hit by the crisis, resulting in a considerable
decline in employment in the sector – about 22,000 employees have been given notice. The
crisis in the automotive sector also has consequences for many other areas of Canadian
automobile industry. In the time of recession the most of the companies firing the
employees. Because the time of financial crisis the employment is decreased.
Canadian automobile industry generally depends on the natural gases and oil because this
kind of scare resources affects the automobile sector. Because fluctuation in the price of
crude oil it will directly affect the automobile sector. When the prices increased or
decreased of crude oil the manufacturers also increasing or decreasing the prices of vehicles.
The growth rate of Canada is depends on its total number of goods produced within the
country so oil and natural gases are affect the automobile sector in Canada the
manufacturers are set their prices according to cost of raw materials, oil and gas .
(6) LEGAL FACTOR OF AUTOMOBILE INDUSTRY
� Transport Canada promulgates and enforces federal road safety and motor vehicle
regulations under the Motor Vehicle Safety Act (MVSA). This Act regulates the
manufacture and importation of motor vehicles and motor vehicle equipment to reduce
Risk of death, injury and damage to property and the environment.
� Proposed regulations, along with their impact analysis statement, are published in the
Canada Gazette Part I for the purposes of notifying the public and of inviting input from
stakeholders. A Regulatory Steering Committee representing stakeholder interests then
reviews these regulatory proposals after fully taking into account comments made by
various partie.Approved regulations are finally published in the Canada Gazette Part II, and
are then enforced.
� Automotive Product Agreement, commonly known as the Auto Pact and APTA, was an
important trade agreement between Canada and the other country. It was signed by Prime
Minister and President of particular country which do agreement with Canada.
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� It removed tariffs on cars, trucks, buses, tires, and automotive part between the two
countries, greatly benefiting the large particular country car makers. In exchange the big
three car makers (General Motor, Ford, and Chrysler) and later Volvo agreed that
automobile production in Canada not fall below 1964 levels and that they would ensure the
same production-sales ratio in Canada.
� The agreement also prevented Canada pursuing free trade in automobiles elsewhere
internationally, and this North American Exclusively led Canada to adopt the technical
regulation of the U.S. National Highway Traffic Safety Administration rather than
participating in the European-based development of international consensus on auto safety
and emissions regulations.
The Canadian, Mexican and US government, recognizing the importance of compatible
standard, particularly from the viewpoint of removing potential trade irritant, established a
tripartite council under the NAFTA to facilitate the attainment of compatible national
standard related to automotive goods.
� Canada has no official policy to harmonize automotive safety standards with those in the
United State. However, it is estimated that about 95% of the safety regulations of passenger
cars are harmonized between Canada and the US. There are minor difference between the
standard in the two county for example, air bags are not mandatory in Canada, and daytime
light are not mandatory in the United State.
� Transport Canada promulgates and enforces federal road safety and motor vehicle
regulations under the Motor Vehicle Safety Act (MVSA). This Act regulate the manufacture
and importation of motor vehicles and motor vehicle equipment to reduce risk of death
injury and damage to property and the environment.
� Under the AIF, Industry Canada will consider funding proposals that provide for private
sector investment in Canada of more than $75 million over five year. Eligible projects will
include vehicle and power train assembly operations associated with significant automotive
innovation and R&D initiative. Other large-scale automotive innovation and R&D initiative
will also be consider provided they meet the $75 million threshold.
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� A new Automotive Innovation Fund (AIF) have been established that will provide
automotive firms $250 million over five years to support strategic, large-scale research and
development (R&D) projects to build innovative, greener, more fuel-efficient vehicles.
Canada accounts for 16 percent of North America’s vehicle production and is the world’s
sixth-largest exporter of road vehicles.
• Between 2002 and 2011, annual capital investment in Canada’s automotive industry
averaged $3 billion and annual R&D spending averaged more than $460 million. Key areas
of research include alternative fuel, electric vehicles, mechanical engineering, engine and
transmission design, advanced materials, emissions, biomechanics, and vehicle safety.
• J.D. Power and Associates rated Toyota and General Motors plants in Canada as the
best in the western hemisphere in six of its last 10 annual quality surveys.
• Canada is home to a highly-skilled automotive workforce of more than 111,000.
Canadian autoworkers are known for their strong work ethic, low turnover, reliability,
quality and productivity. Canada’s top-quality educational institutions ensure a continual
supply of qualified graduates in engineering, machining, metalwork, welding, robotics,
manufacturing systems and service, as well as, tool-and-die making.
• Between 2003 and 2011, more than 110 foreign companies established Greenfield
projects in Canada’s automotive industry.
Canada’s motor vehicle manufacturing industry is feeling the effects of global developments
in both the United States and Japan, according to a study by the Conference Board of
Canada.
In its Canadian Industrial Outlook: Canada’s Motor Vehicle Manufacturing Industry-Spring
2011report, the research organization notes that U.S. vehicle sales continue to rise from the
depths they reached during the recession. But the Japanese earthquake and tsunami have
disrupted production at Canadian automating plants, which could lead to rising prices for
consumers as vehicle inventories dwindle.
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“After three years of losses, automakers finally posted a small profit in 2010,” said Michael
Burt, associate director, industrial economic trends, the Conference Board of Canada.
“Despite the supply disruptions caused by the Japanese earthquake, profitability will
increase this year thanks to rising U.S. demand – Americans have not ended their love affair
with cars.”
According to the research organization, the Canadian auto assembly industry can expect to
post profits of almost $1 billion in 2011, an increase from $114 million in 2010. Industry
revenues shot up by 29 per cent last year, and will rise another eight per cent in 2011. After
the industry slashed costs during the recession, expenditures are expected to rise slower than
revenues, leading to an improved bottom line.
Driving revenues higher will be a continued recovery in U.S. light vehicle sales. An
estimated 84 per cent of Canadian-assembled vehicles go to the United States, and sales
there are on pace to exceed 13 million units in 2011. Although well above 2009 lows, there
is still significant room for growth. Normal market conditions would see sales in the range
of 16 million units per year.
The tragic earthquake and tsunami in Japan hit Canadian Toyota and Honda plants
particularly hard. In the second quarter of 2011, Toyota slashed production by a startling 56
per cent and Honda cut production by 31 per cent due to the difficulty in obtaining parts.
Primarily as a result of the production shutdowns, the Conference Board expects production
to increase by 11.8 per cent in 2011, down from 15 per cent in the Board’s autumn 2010
forecast. The production slowdown will be temporary – supply should return to more
normal levels later this year.
For consumers, one effect of the Japanese earthquake is likely higher prices, as Toyota and
Honda attempt to conserve their vehicle inventories. The Detroit Three automakers – which
are less affected by the supply chain disruptions, may have an opportunity to gain additional
market share among car buyers.
For parts manufacturers, the jump in demand and significant cost restructuring led the
industry to a $255-million profit last year the first profitable year for the industry since
2007. Despite the current turmoil in the industry, strong gains in production in the second
half of the year will lead to a profit of about $455 million in 2011. Canada’s cost-
competitiveness, however, is eroding because of the strong dollar. As a result, profit
margins will remain below their pre-recession levels through the forecast period.
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The automotive manufacturing industry is bouncing back, bringing its parts sector along
with it and that’s good for the London region.
The auto parts industry, a big player in the city and region’s economy, welcomed a national
report Thursday calling 2012 a record year for parts makers, and suggesting 2013 will be a
good one, too.
“We are seeing continued strong sales and growth,” said Dave Inman plant manager for C.S.
Auto Tubing on Innovation Dr., a London plant that could be a poster child for parts sector
growth.
The business saw 50% growth in sales this year, with another 40% forecast for 2013, he
said.
That has meant a 50,000- square-foot expansion to its plant and it is adding staff as well,
with 13 new workers this year, another 11 to be added by year end 2013, bringing its total
staffing to about 50, he said.
“Vehicle sales in Canada back to pre-recession levels and we are seeing that here,” said
Inman.
He believes national figures, released in the Conference Board of Canada report Thursday,
that there has been this year a 22%, increase in auto parts production in Canada and
revenues have climbed 27%, the largest one-year increase ever.
In London region, there are about 40 automotive parts manufacturers employing about 6,000,
according to London Economic Development Corp. There are a number of reasons for
Canada’s success:
• A 6.4% cost advantage over the United States.
• The calculation of the estimated annual labour costs for a typical automotive. component
manufacturing operation shows that Canadian locations offer competitive cost levels
compared to many U.S. counterparts.
• An important contributor to Canada’s competitive labour is the lower costs of providing
Employee benefits. Under Canada’s national healthcare system, most medical insurance
costs are publicly funded, rather than paid by the employer.
• Better productivity than plants in the United States and Mexico.
• The second lowest corporate tax rate among the world’s top ten automotive countries.
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• High Research and Development spending. This is supported by tax credits.
• Capital investment of $3.5 billion per year.
• Availability of qualified engineers and skilled workers.
The highest quality of life among the top ten automotive countries.
• Integrated into NAFTA (i.e. Canada, U.S., and Mexico).
• Globally competitive.
• The eighth largest automotive sector in the world.
One of the dominant factors contributing to the organization.
Canada’s Bilateral Trade with Asia Pacific
(C$000s)
2010 2011 2012
Exports Imports Exports Imports Exports Imports
Canada
12,879,89
6
44,521,7
30
16,788,78
8
48,140,88
5
19,002,62
1
50,700,79
9
India 2,017,375
2,122,90
1 2,594,532 2,534,212 2,275,975 2,862,095
The country is officially bilingual and multicultural at the federal level, with a population of
approximately 35 million as of 2013. Canada's advanced economy is one of the largest in
the world, relying chiefly upon its abundant natural resources and well-developed trade
networks, especially with the United States, with which it has had a long and complex
relationship.
Trade: Bilateral trade during the calendar year of 2011 crossed US$ 5 billion mark. India’s
exports to Canada in 2011 were up 25 per cent and imports from Canada registered an
increase of 31.7 per cent over 2010. Total bilateral trade during 2011 registered 28.35 per
cent increase over the previous year: [Figures in billions US Dollars]
87
Details 2006 2007 2008 2009 2010 2011
India’s Exports 1.692 1.841 2.065 1.754 2.064 2.581
India’s Imports 1.477 1.667 2.268 1.881 2.024 2.635
Total 3.169 3.508 4.333 3.635 4.088 5.216
Year of India 2011 in Canada (YOI): Pursuant to the announcement made by Indian and
Canadian Prime Ministers in November 2009, the Year of India 2011 was organized in
different cities of Canada which included multi sectoral events such as cultural shows,
Writers festivals, film festivals, food festivals, trade shows, Education Summit, Innovation
Summit, PBD-Canada, LKA’s Moderns Exhibition, Eminent lecture series, installation of
Gandhi statues, Tagore anniversary etc. The Rt Hon Stephen Harper, Prime Minister of
Canada officiated at both the inaugural and the closing ceremonies of YOI. India specific
centres have been set up in Canadian Universities, the most prominent being the Canada
India Centre of Excellence at Carleton, Ottawa. Over 300 MOUs exist between Canadian
and Indian higher education institutions for collaborative research and exchange
programmes. Bilateral Education Summit was held in Ottawa in June 2011.
Canada - India Bilateral Trade 2005 – 2011
2005 2006 2007 2008 2009 2010 2011
Canada’s Imports from
India 1.79 1.92 1.98 2.2 2.0 2.12 2.5
Canada’s Exports to India 1.09 1.68 1.79 2.42 2.14 2.15 2.6
Total 2.87 3.59 3.77 4.62 4.14 4.27 5.1
Canada – India Bilateral Direct Investment
In 2011, the stock of two-way direct investment between Canada and India was C$5 billion.
2005 2006 2007 2008 2009 2010
2011
Canadian Direct Investment in India 319 677 506 667 520 676 587
88
Indian Direct Investment in Canada 171 211 1,988 6,514 6,217 4,364
4,386
Total 490 888 2,494 7,181 6,737 5,040
4,983
Since Canada and India announced the start of free trade negotiations towards a CEPA in
November 2010, following the release of the Canada-India Joint Study Report, in September
2010, seven rounds of negotiations have been held. The second round was held in Ottawa in
July 2011, and the third, fourth and fifth rounds were held in New Delhi in December 2011,
February 2012 and July 2012, respectively. The sixth round was held in Ottawa in
November 2012. Additional meetings relating to the fifth round were also held in New
Delhi in August 2012.
� Five major automakers operate car and light truck assembly plants in Canada: Chrysler,
Ford, General Motors, Honda and Toyota. A further six firms produce buses and heavy
trucks.
� Canada’s auto industry also comprises a highly-developed parts sector, including
manufacturers’ in house engine and transmission plants, and over 400 independent parts
facilities.
� 2,135,121 vehicles were built in Canada in 2011 (or 5,850 per day).
A number of top Canadian automotive companies will participate in the 11th Auto Expo in
New Delhi from 5-11 January, 2012. The visiting delegation will include representatives
from Canadian manufacturers of automotive components, systems and technologies.
Estimates suggest that the use of electronics in vehicles will advance in excess of 7% per
annum through the end of the decade. According to Strategy Analytics, worldwide sales of
automotive electronic equipment, including devices that enable the delivery of information
and entertainment to the driver and occupants will drive demand from US$189 billion in
2012 to US$274 billion by 2017.
Canada’s Aerospace Industry
Canada’s aerospace industry is robust and dynamic, with a long history of innovation and
success throughout the world. Home to leading aviation and space companies, Canada is a
global market leader in producing regional aircraft, avionics, business jets, commercial
helicopters, aircraft engines, flight simulation, landing gear, and space
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systems and Maintenance Repair and Overhaul Expertise. In addition, leading aerospace
companies from around the world choose to perform their manufacturing and research and
development activities in Canada.
Industry Statistics
As the world’s fifth-largest aerospace industry, Canada’s aerospace sector generates more
than $22 billion and exports 80% of its output. Investments of over $2 Billion make the
aerospace industry the second largest R&D investor in Canada. Aerospace is responsible for
the employment of 160,000 Canadians.
Aerospace companies in Canada are global market leaders in regional
aircraft, avionics, business jets, commercial helicopters, aircraft engines, flight
simulation, landing gear, and space systems.
They are also globally competitive suppliers of:
• Airframe structural assemblies
• Wing structure assemblies
• Power conversion and distribution systems
• Integrated electronic controls
• Environmental conditioning systems
• Air traffic control and management systems
• Aviation communications systems
• Aircraft maintenance, repair and overhaul services
Canadian aerospace firms are world leaders in a number of niche markets, and Canada's
share of the world market for aerospace products and services is growing at an impressive
rate. Aerospace is an intensely competitive business. Since 1986 industry sales have grown
140%, double the rate of growth of the economy as a whole. Keeping ahead of the
competition requires Canadian firms to sustain their investment in technology development
and penetrate new emerging markets.
MRO = maintenance, repair, and overhaul
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The Canadian aerospace industry has benefited tremendously from the establishment of
local subsidiaries by firms from abroad, and its vibrancy can be enhanced by additional
foreign direct investments, particularly in areas where the sectoral structure needs to be
strengthened, such as tier 1 capacity.
The Canadian aerospace sector, then, has a long and impressive history, and is today not
only one of Canada's proudest accomplishments—an emblem of what this country and its
people are capable of—but also an engine of technological innovation and economic
growth. However, the industry was built in a time when there was a limited number of
competitor nations, when Canadian companies enjoyed significant technological leads over
foreign firms, and when our geographic proximity and relationship with the United States
were a distinct advantage that could be readily leveraged.
The aerospace sector contributes significantly to the prosperity of Canadians. The
Aerospace Industries Association of Canada (AIAC) estimates that the sector directly
employs about 80,000 people, mostly in high-wage jobs, and has annual revenues of about
$22 billion. The sector is very technologically advanced and one of the largest performers of
research and development (R&D) in Canada. It is globally oriented, with approximately
80 per cent of its production exported.
Canadian economy, will be affected by a range of broad, long-term trends, including the
following:
• A global rebalancing marked by the emergence of new economic powers with a
growing appetite for sophisticated goods and an increasing number of manufacturers
that benefit from comparatively low labour costs and high government support.
• Non-traditional security threats that require more precise detection and response
technologies.
• Climate change and the opening of Canada's North.
• The need for enhanced natural resource management in a resource-hungry and
environmentally sensitive age.
• The worldwide expansion of telecommunications and the Internet, and the associated
demand for reliable infrastructure to support them.
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• These five trends apply to the sector overall. Others are more specific to the
commercial aerospace, military aerospace, or space segments, and are summarized
below
The industry with annual sales of $23.8 Billion is not limited to these very large
Corporations. There is a supply chain in place to support the industry, whether in Canada or
other countries. This supply chain includes not only manufacturers, but also a very large
Maintenance, Repair and Overhaul (MRO) capability that serves Canadian and International
airlines and the military.
Market outlook:
The market outlook analyzes external market drivers and trends in the Canadian and
international markets which could positively and negatively affect the aerospace industry in
the short- and long-term. Significantly more importance is placed on the civil aerospace
sector because of its importance to the Canadian aerospace industry.
Comparative analysis:
The importance of the aerospace sector to the Canadian economy is introduced. A report
card is developed to evaluate the Canadian economy relative to global competitors based on
a set of quantitative and qualitative metrics.
Market forecast:
Global aerospace market revenues, segmented by sector, sub-sector, and region, are
forecasted from 2010 to 2020.
Policy Scenarios:
The scenarios analyze the impact of the future growth of the aerospace industry, based on
the aforementioned trends, on Canada’s current employment market, current R&D
investment, and future growth opportunities within emerging markets.
Long term pilot and workforce shortages
One of the largest issues that the commercial aerospace industry faces is pilot and workforce
shortages.
The following are among the factors that have contributed to the labour shortage:
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• The growing demand for pilots due to increased passenger activity in emerging
markets;
• The “stop-loss” programs instituted by the US military to prevent pilot departure;
and
• The financial crisis led to a temporary short-lived softening of labour demand.
International competitors
Traditional aerospace markets continue to develop their aerospace industries through
significant R&D investment, public private partnerships, and favourable business
environments and public policies. Emerging markets are aggressively developing their
domestic aerospace industries. China has made serious investments towards creating a
competitive domestic aircraft manufacturer with the first commercial aircraft scheduled for
delivery in 2011. Opinions remain mixed on the competitiveness of the emerging market
manufacturers, however Embraer illustrates that the possibility of success exists.
Canada's Aerospace Industry
• More than 400 companies in Canada are involved in aerospace. The industry is located in
every region of the country with main production centers in Montréal and Toronto. More
than 60 000 people work in this sector of the economy.
• Canada is one of only a handful of nations with a full range of aerospace design and
manufacturing capabilities. Although a number of companies are subsidiaries of foreign
corporations, in many cases they have been assigned - and capitalized on - mandates to
manufacture for the world market. The industry represents the best in aircraft, electronics,
avionics, communications, simulators, space technology, repair and overhaul, gas turbine
engines and engineering
• Having focused on niche markets, the Canadian industry is the fastest growing aerospace
sector in the world. By the year 2000, it is projected to be the 4th largest in the world and,
by the turn of the century, sales are expected to reach $17 billion, with nearly 80% destined
for export.
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• The industry's output includes an impressive range of advanced technology proprietary
products such as Bombardier's Regional Jet transport, Challenger and Global Express
business jets and Dash 8 family of commuter transports; civil helicopters produced by Bell
Helicopter Textron (Canada); and the family of small and medium-sized aircraft engines
designed and built by Pratt & Whitney Canada.
• Canadian firms also produce aircraft systems and subsystems, structural components and
other parts for aircraft manufacturers in Canada, the US and Europe, and carry out repair
and overhaul on a wide range of aircraft, aero engines and component parts. In addition,
Canadian aerospace firms are world leaders in simulation and visual systems, satellite
communications systems and systems integration.
The rise of Toronto as a major international banking centre
“Canada’s financial capital has enjoyed a rapid expansion in recent years. According to
Moody’s Analytics, Toronto is on track to overtake London by 2020 in the number
employed in the financial services industry.”
Strong Public finances
Canada entered the global recession with a strong record of balanced budgets and low debt.
Such fiscal strength allowed the Government of Canada to take timely, meaningful action to
temper the effects of the global downturn, while delivering on promises to lower corporate
taxes and to make strategic investments in public infrastructure and industries of the future.
Today, Canada has the lowest net debt-to-GDP ratio in the G-7 and a concrete plan to return
to a budget surplus by 2015–16. This puts Canada in a strong position to continue the pro-
business strategies that support long-term economic growth and competitiveness, and help
the country attract global investors.
Canadian Aerospace Products & Services
Canadian aerospace companies offer aerospace products and services to Canada and the
world. Home to leading aviation and space companies, Canada is a world leader in
producing regional aircraft, avionics, business jets, commercial helicopters, aircraft
engines, flight simulation, landing gear, and space systems and offers extensive Aircraft
Maintenance Repair and Overhaul expertise. In addition, leading aerospace companies
from around the world choose to perform their manufacturing and research and development
activities in Canada.
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• Aerospace Services
From aerial application and fire fighting to wind tunnel testing.
• Air Traffic Control & Management Systems & Equipment
From air navigation systems and equipment to radar systems.
• Aircraft Avionics & Electronics
From airborne radar to radomes.
• Aircraft Engines & Components
From auxiliary power units to turbo shaft engines.
Canada-India Relations
Canada and India have longstanding bilateral relations, built upon shared traditions of
democracy, pluralism and strong interpersonal connections with an Indian diaspora of more
than one million in Canada. This expanding bilateral relationship is supported by a wide
range of agreements and by PM Singh and PM Harper’s commitment to increase annual
bilateral trade to $15 billion by 2015. Canada’s priorities in India include infrastructure,
energy, food, education, science and technology. India is an important source country for
immigration to Canada.
Aerospace export import trend
Canada’s aerospace and related industries sector is robust and dynamic, and has a long
history of innovation and global success. With exports accounting for 80 percent of the
industry’s annual revenues of more than $21 billion12, Canada’s aerospace producers have
earned an outstanding worldwide reputation for quality, value, performance and reliability.
More is to come due to an intensive R&D effort: between 2002 and 2012, the R&D
investment in this sector grew by 46 percent to reach $1.5 billion13.
• Canada gets ‘C’ grade and ranks 5th out of 16 countries in aerospace industry.
• Canada is outperformed by large military powers-the U.S, France and U.K.
• The aerospace industry is beginning to show shins of recovering from the 2011-2012
recession.
• Export is $10.9 Billion.
• Compare Canada’s export trend to its peers:-
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A Canada rank 5th behind France, U.K, Germany and U.S. Aerospace is only advanced
technology industry in Canada that generates a consistent trade surplus. Despite the
recession and despite the high Canadian dollar, Canada’s aerospace industry continues to
perform well.
• Effect of recession to aerospace industry:-
The aerospace industry fared better than other manufacturing industries in Canada. Going
into the recession, the industry had a significant backlog of orders consequently; major
production cuts were not needed. The weak Canadian dollar at the beginning of 2009 helped
boost industry prices and profits. Still, exports declined in 2009 and 2010, before recovering
slightly in 2011. The Conference Board is forecasting modest growth for the aerospace
industry. Demand for business jets is recovering, and industries in developing countries are
expected to boost demand for new aircraft in the future.
• Canada’s strong performance in aerospace export:-
Canada’s aerospace industry has also focused on exports and on research and development.
The aerospace industry is more export intensive in Canada than in other countries, with
more than 80% of its production exported. About 56% of Canada’s aerospace exports are to
the United States. Total revenues for Canada’s aerospace industry were $15.7 billion in
2011.
The top three aerospace firms in Canada—Pratt and Whitney, Bombardier and CAE are also
among the top 20 corporate R&D spenders in the country. Canada is also a world leader in
space technology, including satellite communications and automation, robotics and
automation, and earth observation and remote sensing
Chapter-1
Overview of Business Service Industry
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This sector note analyzes the Canadian Business Services Sector and the Canadian
Management Consulting Market that will allow someone with a business idea and interest to
enter this market a full understanding of the steps and focus areas necessary to allow one to
have a sustainable and successful consulting firm. The business services sector is a sector
that its customers turn to when they have a need for the knowledge and skills of its workers
to provide solutions to an array of issues it may be experiencing. This sector has been
increasing in size rapidly since 1997 in terms of GDP as companies turn to the knowledge
based firms for their specific expertise.
Growth in this sector can be attributed to two main trends: the growth of other sectors and
outsourcing. Strategic HR policies will be important for firms to attract and retain top talent
because there are concerns with the talent shortage in Canadian society and if there will be
enough supply of workers for this sector to sustain its growth.
The management consulting market has been growing steadily since the economic downturn
in 2000 and after 9/11. Even though there are big players in the Canadian Consulting market
such as Deloitte, KPMG and Price Waterhouse Coopers that have the size and know-how to
provide a large breadth of services to the market there are many medium and small firms
that provide a smaller portfolio of services making this a more fragmented market than the
U.S. The problem for these firms is how they are to survive even though the barriers to entry
and exit for that matter are low financially. The “Rules of the Game,” and “Rules of
Success” were developed using a combination of consultants input that was retrieved from
the web and professional journals which if followed will lead to success.
This paper was undertaken because of the growing importance of this sector and the lack of
examples in this industry. Our entrepreneurial students who have an interest in entering this
market can use this sector note to turn their idea into a sustainable success.
Chapter-2
Current Scenario Of Business Service Industry In Canada
97
Business Development Centre is your one-stop solution for business expertise.
We specialize in providing a wide range of services to entrepreneurs in the area of business
registration and incorporation, business consulting, complete accounting, bookkeeping and
tax reporting for individuals, businesses and corporations. These services are provided at a
low cost and with fast turnaround times.
Below you will find a brief list of available services. If you cannot find a service you need,
please contact our Help Desk here.
• Corporate Services
� Business Registration
� Corporate & Legal Searches
� Mailbox Services
� Accounting Services
� Marketing Services
� Internet Web Services
98
Chapter-3
Major Players of Business Service Industry In Canada
Service Industry The Canadian ECONOMY has 2 main components, the goods-producing
sector and the service sector. The former includes agriculture, forestry, mining, fishing,
construction and manufacturing (see also ECONOMICS). The latter includes
noncommercial activities, such as health and welfare, EDUCATION, religion and charity;
commercial services, such as restaurants, recreation, amusement, personal care, etc; trade,
including wholesale and retail; TRANSPORTATION, COMMUNICATIONS and utilities;
and financial and legal, including INSURANCE, REAL ESTATE, BANKING and
investment.
As Canada's population has grown and its economy has expanded, and as the goods-
producing sector has increased its efficiency and productivity, there has been a steady
growth in the share of the working population employed in the service sector.
� Aerospace & defense
� Insurance
� Automotive & transport
� Banking
� Chemicals
� Retail
� Electronics
� Equipment
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Chapter-4
Bilateral Agreement of Business Service in Canada
Over the past 50 years, the evolution of air transportation has contributed significantly to
economic growth in Canada and around the world. Technological advances in aircraft and at
airports as well as the streamlining of administrative rules and regulations between countries
have increased the flow of goods, people and ideas around the globe.
Canada’s principal goals when negotiating air agreements are to:
Provide a framework that encourages competition and the development of new and
expanded international air services to benefit travellers, shippers, and the tourism and
business sectors. Provide opportunities for Canadian airlines to grow and compete
successfully in a more liberalized global environment. Enable airports to market themselves
in a manner that is unhindered by bilateral constraints to the greatest extent possible.
Support and facilitate Canada’s international trade objectives. Support a safe, secure,
efficient, economically healthy and viable Canadian air transportation industry.
Since December 2006, Canada has successfully negotiated new air agreements or updated
existing agreements with the following countries:
� Algeria
� Barbados
� Brazil
� China
� Colombia
� Japan
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Chapter-5
Export import trend in business service industry in Canada
� Agricultural Machinery and Equipment
� Construction (CON)
� Electric Power Equipment (EPE)
� Food Processing and Packaging Machinery and Equipment (FPP)
� Healthcare (HCS/MED)
� Mining Equipment (MIN)
� Safety and Security (SEC)
� Telecommunications (TEL/TES)
� Travel and Tourism Services (TRA)
� Water Resources Equipment (WRE)
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Chapter-6
Position Of India With Canada Business Service Sector
Canada-India Relations
� Someone not familiar with the history of Indo-Canadian relations might assume that
a democracy like Canada with roots in the British Empire and the Commonwealth
would be a natural partner for India, though not with authoritarian, Communist
China. Someone assuming this would be wrong. Historically, we have had good
relations with China (apart from the 2006-2009 period) and poor relations with
India.
Canadian Companies That Do Business in India
� The Culture of Corporate Canada
� Entering the Indian Market
� Corruption, Pricing and Other Problems
� Business Culture
OVERVIEW OF CHEMICAL INDUSTRY IN CANADA
Introduction:
The chemical industry is a diverse group of manufacturing companies that operate in all
regions of Canada. Companies in this industry exhibit one of two features. One group uses
chemical reactions to convert one substance into a different substance. The second group,
blends a variety of inputs to produce a functional product for specific end-use applications.
According to the North American Industry Classification System (NAICS), the chemical
industry is identified as NAICS 325. Within this grouping the 4-digit sub-industries are
Industrial Chemicals:
Basic Chemicals:
Basic chemical companies transform raw, natural resources like natural gas, crude oil,
minerals and metals into organic (petrochemicals) or inorganic chemicals. Also within the
basic chemical industry are those companies that start with one chemical substance and
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subject it to further chemical reactions to create second-order basic chemicals, known as
derivatives.
Synthetic Resins and Fibres:
These companies use basic chemicals produced from companies in NAICS 3251 and
polymerize them into synthetic resins and fibres. In some cases companies in this industry
are integrated (ie., they produce basic chemicals and then convert them into polymers), and
in other cases companies buy the basic chemicals from a different company. For both of
these industries, the companies tend to be large, multinational firms.
Agricultural Chemicals:
Fertilizers and Pesticides: Fertilizer production is quite similar in nature to basic chemical
production. Raw resources are chemically reacted to produce the desired species. Pesticides
involve an active ingredient that provides the desired pest-control functionality blended with
other substances in order to create a product that is useable by customers. In Canada, there is
little production of pesticide active ingredients, and most of the industry is involved in
blending, only. Companies in this industry also tend to be large, multinational firms.
Pharmaceuticals:
Pharmaceuticals and Medicines: Pharmaceuticals also involve an active ingredient that
provides the basic intended functionality, blended with other substances to put that active
ingredient into a form that is easy for patients to use.
Other Chemical Products:
For the most part, formulated product manufacturing processes do not involve chemical
reactions, but rather involve the blending of a number of chemical products together to meet
a particular end-use application. This part of the industry is characterized by a predominance
of small and medium-sized firms.
Within each 4-digit NAICS industry, there are further subdivisions into more specific
industry groups. The distribution of industry shipments by each of the major sub-industry
groupings
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CURRENT SCENARIO
Canada’s chemical industry is traditionally segmented into eleven categories, the two largest
of which make industrial chemicals (inorganic and organic in nature) and primary plastics.
Together the two constitute almost one half of the aggregate industry shipments.
Agricultural chemicals, pharmaceuticals, coatings, cleaning compounds, toiletries and a
myriad of formulated specialties constitute the balance. In aggregate the sectors in 1996
were responsible for shipments of $28.7 billion (Canadian) or 7.4% of the total
manufacturing activity in the country.
Potassium Hydroxide 45%
(Synonyms: Caustic potash, Potassium hydrate,Potassa, KOH)
1. Product and Company Identification
CAS # Mixture
Product Use Industrial applications
Distributor Benson Chemicals Ltd.
1012 Concession 11 W
Freelton, ON L0R1K0 CA
Phone: 1-800-265-0014
Emergency Services (24 hours / 7 days ) 1-519-821-0215
Emergency Responder 1-800-567- 7455 Newalta Industrial SVC
Emergency Overview DANGER – CORROSIVE TOXIC.
.2. Hazards Identification
Routes of exposure
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Potential short term health effects Eye, Skin contact, Inhalation, Ingestion. Eyes Causes
chemical burns. May cause blindness. Skin Causes chemical burns. Inhalation May cause
respiratory tract irritation. Ingestion Harmful if swallowed. Causes chemical burns to mouth,
throat and stomach. Target organs Eyes. Respiratory system. Skin. Chronic effects
Prolonged or repeated exposure can cause drying, defatting and dermatitis. Signs and
symptoms The product causes burns of eyes, skin and mucous membranes. Symptoms of
overexposure may be headache, dizziness, tiredness, nausea and vomiting. Ingredient(s)
CAS # Percent
Potassium hydroxide 1310-58-3 30 - 60
.3. Composition/Information on Ingredients
Eye contact
First aid procedures
Immediately flush with cool water. Remove contact lenses, if applicable, and continue
flushing for 15 minutes. Obtain medical attention immediately.
.4. First Aid Measures
Skin contact Immediately flush with cool water for 15 minutes while removing
contaminated clothing and shoes. Discard or wash well before reuse. Obtain medical
attention if irritation
persists.
Inhalation If symptoms develop, move victim to fresh air. If symptoms persist, obtain
medical attention. If breathing has stopped, trained personnel should administer CPR
immediately.
Ingestion Do not induce vomiting. Never give anything by mouth if victim is unconscious,
or is convulsing. Obtain medical attention.
Notes to physician Symptoms may be delayed.
General advice If you feel unwell, seek medical advice (show the label where possible).
Ensure that medical personnel are aware of the material(s) involved, and take precautions to
protect themselves. Show this safety data sheet to the doctor in attendance. Avoid contact
with eyes and skin. Keep out of reach of children.
Flammable properties Not flammable, but reacts with most metals to form flammable
hydrogen gas.
Total Exports: 2002-2012
Canadian Economy (NAICS 11-91)
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Total Imports: 2002-2011
Canadian Economy (NAICS 11-91)
Canada-India Relations
In India, Canada is represented by the High Commission of Canada in New Delhi. Canada
also has two consulate generals in Chandigarh and Mumbai, a consulate in Chennai
and trade offices in Ahmedabad, Bangalore, Hyderabad, and Kolkata.
India is represented in Canada by a High Commission in Ottawa, and by consulates in
Toronto and Vancouver.
Canada and India have longstanding bilateral relations, built upon shared traditions of
democracy, pluralism and strong interpersonal connections with an Indian diaspora of more
than one million in Canada. This expanding bilateral relationship is supported by a wide
range of agreements and by PM Singh and PM Harper’s commitment to increase annual
106
bilateral trade to $15 billion by 2015. Canada’s priorities in India include infrastructure,
energy, food, education, science and technology. India is an important source country for
immigration to Canada.
Prime Minister Harper undertook a state visit to India from November 4-9, his longest
official foreign visit since assuming office in 2006. During the visit the following
agreements were signed: the Canada-India Social Security Agreement, the Memorandum of
Understanding (MOU) on cooperation in Information and Communication Technologies
and Electronics, and the MOU between York University and the Indian Defence Research
and Development Organization. Announcements were also made on: agreement on the
Appropriate (Administrative) Arrangements of the Nuclear Cooperation Agreement;
institutionalization of annual Strategic Dialogues between respective Foreign, Trade, and
Energy Ministers, and between the offices of National Security Advisors; upgrading of the
trade office in Bangalore to a Consulate; announcement of updates to the air transport
agreement; and announcement of the winners of the competition for the Canada-India
Research Centre of Excellence.
PESTEL ANALYSIS:
Political factor
Objectives
The Collaborative Research and Development (CRD) Grants are intended to give companies
that operate from a Canadian base access to the unique knowledge, expertise, and
educational resources available at Canadian postsecondary institutions and to train students
in essential technical skills required by industry. The mutually beneficial collaborations are
expected to result in industrial and/or economic benefits to Canada.
Description
CRD Grants support well-defined projects undertaken by university researchers and their
private-sector partners. Direct project costs are shared by the industrial partner(s) and
NSERC. Projects may range from one year to five years in duration, but most awards are for
two or three years.
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CRD projects can be at any point in the R&D spectrum that is consistent with the
university’s research, training, and technology transfer mandate. Eligible collaborations
include focused projects with specific short- to medium-term objectives, as well as discrete
phases in a program of longer-range research. All proposals require evidence of detailed
planning and sound budget justification, and must clearly spell out the underlying
assumptions, intended approaches, milestones, and deliverables.
Certain expenditures related to project management are now eligible as a direct cost of
research up to a maximum of 10% of the total direct costs.
Projects that focus on the application of existing technology, provide routine analysis,
collect data without interpreting underlying mechanisms, or provide professional practice or
consulting services (contract research) are not eligible. Similarly, proposals that involve the
set-up and operational management of an institute, a formal or informal group of
researchers, or that are principally associated with the acquisition and maintenance of
scientific equipment will not be considered.
Industrial Participation
The Partner Eligibility Guidelines section of the Guidelines for Organizations Participating
in Research Partnerships Programs should be consulted to determine the eligibility of the
industrial partner to participate.
The industrial partner must contribute to the direct project costs in an amount equal to, or
greater than, the amount requested from NSERC. The industrial cash must be at least half of
the NSERC request, with the balance provided as in-kind contributions to the project by the
industrial partner(s). NSERC will recognize only those in-kind contributions that are fully
documented and considered essential to carry out the work. For a full discussion of the
eligibility and value of in-kind contributions, refer to the Guidelines on Eligibility and Value
of In-Kind Contributions section of the Guidelines for Organizations Participating in
Research Partnerships Programs.
Cash contributed before the proposal is submitted may be used to start the project, but
NSERC will not recognize industrial funds spent more than three months prior to the date of
submission. NSERC funds cannot be applied to expenses incurred before a project was
approved.
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NSERC's Policy on Intellectual Property supports the premise that every effort should be
made to exploit the results of NSERC-funded research in Canada, for the benefit of
Canadians. For most projects, a copy of the final and signed research agreement between the
industrial partner and the university is reviewed by NSERC to ensure that it conforms to the
NSERC IP Policy.
Application Procedures
Proposals can be submitted at any time, using a Personal Data Form (Form 100), an
Application for a Grant (Form 101), and an Information Required from Organizations
Participating in Research Partnerships Programs (Form 183A). Full instructions for
professors and their industrial sponsor(s) to complete the forms and the on-line submission
are found on NSERC's On-line Services page. All proposals undergo peer review. Large or
complex proposals (requesting $200,000 or more per year) are reviewed by a site visit
committee. Those requesting $150,000 or more per year from NSERC are reviewed by a
selection committee – the Advisory Committee on University-Industry Grants (ACUIG).
The ACUIG normally meets four times a year: in March, June, September, and December.
Decisions on funding CRD Grants are usually made within three to five months of receiving
a complete application.
Selection Criteria
Applications are evaluated on the following criteria:
• Scientific merit: The project must be scientifically sound, technically feasible, and
promise either to generate new knowledge or to apply existing knowledge in an
innovative manner.
• Research competence: The applicant and the research team together must have all
the expertise required to address the defined objectives competently and to complete
the project successfully. Academic expertise may be complemented with the know-
how residing in the company.
• Industrial relevance: The proposal must identify how the work will benefit the
company and demonstrate that exploitation of the project results will benefit the
Canadian economy within a reasonable time frame.
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• Private-sector support: The industrial partner must contribute an appropriate amount
from its own resources to the project, consistent with the risks and rewards involved,
and be in a position to exploit successful research results.
• Contribution to the training of highly qualified personnel: The proposal must include
a student training component and should indicate how the knowledge and experience
gained by graduate students, postdoctoral fellows, research assistants or others,
including company personnel, are relevant to the advancement of the field, to
developing practical applications of knowledge, or to strengthening the industrial
research base. The number of undergraduate and graduate students trained is
expected to be commensurate with the size of the project.
• Benefit to Canada: As well as the economic benefit to Canada described under the
Industrial Relevance criterion above, the proposal should outline any additional
economic, social, and environmental benefits that could be realized in Canada.
Economical factor:
The Economic Environment
Canadian Chemical and Chemical Products Industry: Overview
The chemical and chemical products industry (hereinafter referred to as the "chemical
industry) in Canada was hard hit by the recession of the early 1990s, relatively more so
than the economy as a whole (Chart 2-1). Chemicals output fell by 7.9 percent in 1991
compared to a decline of just 1.5 percent for economy-wide production. However,
chemicals output has been growing steadily in recent years. Indeed, between 1991 and
1999, the industry’s real domestic product – its value added measured in millions of
constant 1992 dollars – grew at an average annual rate of 4.4 percent, well ahead of the
2.7 percent pace achieved by the economy as a whole.
The shipments of chemical products by Canadian producers have not kept pace with the
fast growing domestic market for chemical products (Chart 2-3). The domestic market –
estimated by taking the value of shipments of Canadian chemical producers less that
portion of such shipments headed for foreign markets (exports) but augmented by the
shipments of foreign producers to Canada (imports) – grew from just under $20 billion in
1985 to just over $40 billion in 1998. Over the same period the shipments of chemical
producers grew from just over $18 billion to just over $31 billion. Over this period the
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industry’s export orientation (exports as a percent share of shipments) increased from 24
percent to 44 percent, while the import penetration (imports as a percent share of the
domestic market) it faces increased from 29 percent to 57 percent.
Chart-2.1
Canada’s Chemical Industry Output Compared to Economy-Wide
Output Real GDP in Millions of Constant 1992 Dollar
Total GDP (Left Scale)
825,
000
11,500
800,
000
775,
000
11,000
750,
000
10,500
725,
000
700,
000
1
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The Labour Market in Canada
Concepts and Definitions
Before proceeding further it is useful to explain a number of terms that describe the
labour market in Canada.
People choosing to participate in labour market activities represent only about one-half of
the total population (Chart 2-19). For analytical purposes the group from which the
economy can draw workers -- the labour force source population, which is considered to
include all those legally eligible and physically able to work – is defined to include
everyone 15 years of age and over not living on an Indian Reservation or not
institutionalized in a penal or mental facility.
The labour force source population consists of two key groups: those who participate in
labour market activity and those who do not. The latter group includes primarily the
elderly, students not working part-time, the disabled, and stay-at-home parents.
Source Population = Labour Force + Not In Labour Force
Those participating in labour market activity are said to form the labour force. The
participation rate -- the share of the source population choosing to participate in labour
market activity -- is calculated as the labour force divided by the source population
expressed as a percent. The participation rate in Canada is currently about 65.5 percent.
Participation Rate = (Labour Force/Source Population) X 100
Labour market participants, in turn, can be broken into two groups: those with jobs
(whether full-time or part-time), and those without jobs but looking for work. The latter
are designated as unemployed.
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TECHNOLOGICAL FACTOR
Several key technologies are used for the production of fine chemicals, including
� Chemical synthesis, either from petrochemical starting materials or from natural
products extracts
� Biotechnology, for small molecules biocatalysts (enzymatic methods),
biosynthesis (fermentation), and, for big molecules, cell culture technology.
� Extraction from animals, microorganisms, or plants; isolation and purification,
used, for example, for alkaloids, antibacterial (especially penicillin’s), and
steroids
� Hydrolysis of proteins, especially when combined with ion exchange
chromatography, used, for instance, for amino acids.
Chemical synthesis and biotechnology are most frequently used; sometimes also in
combination.
Traditional chemical synthesis
A large toolbox of chemical reactions is available for each step of the synthesis of a fine
chemical. The reactions have been developed on laboratory scale by academia over the
last two centuries and subsequently adapted to industrial scale, for instance for the
manufacture of dyestuffs & pigments. The most comprehensive handbooks describing
organic synthetic methods is Methods of Molecular Transformations. About 10% of the
26’000 synthetic methods described in are currently used on an industrial scale for fine
chemicalsproduction. Amination, condensation, esterification, Friedel–Crafts, Grignard,
halogenation (esp. chlorination), and hydrogenation, respectively reduction (both
catalytic and chemical) are most frequently mentioned on the websites of individual
companies. Optically active cyanohydrins, cyclopolymerization, ionic liquids, nitrones,
oligonucletides, peptide (both liquid- and solid-phase),electrochemical reactions (e.g., per
113
fluorination) and steroid synthesis are promoted by only a limited number of companies.
With the exception of somestereospecific reactions, particularly biotechnology, mastering
these technologies does not represent a distinct competitive advantage. Most reactions
can be carried out in standard multipurpose plants. The very versatile organ metallic
reactions (e.g., conversions with lithium aluminum hydride, boronic acids) may require
temperatures as low as -100 °C, which can be achieved only in special cryogenic reaction
units, either by using liquefied nitrogen as coolant or by installing a low-temperature unit.
Other reaction-specific equipment, such as filters for the separation of
catalysts, ozone or phosgene generators, can be purchased in many different sizes. The
installation of special equipment generally is not a critical path on the overall project for
developing an industrial-scale process of a new molecule.
Since the mid-1990s the commercial importance of single-enantiomer fine chemicals has
increased steadily. They constitute about half of both existing and developmental drug
APIs. In this context, the ability to synthesize chiral molecules has become an important
competency. Two types of processes are used, namely the physical separation of the
enantiomer and the stereo specific synthesis, using chiral catalysts. Among the latter,
enzymes and synthetic BINAP((2,2´–Bis(diphenylphosphino)–1,1´–binaphthyl) types are
used most frequently. Large volume (> 103 mtpa) processes using chiral catalysts include
the manufacture of the perfume ingredient l-Menthol and Syngenta’s Dual (metolachlor)
as well as BASF’s Outlook (dimethenamid-P) herbicides. Examples of originator drugs,
which apply asymmetric technology, are AstraZeneca’s Nexium (esomeprazole)
and Merck & Co’s Januvia (sitagliptin). The physical separation of chiral mixtures and
purification of the desired enantiomer can be achieved either by classical fractional
crystallization (having a “low-tech” image but still widely used), carried-out in standard
multipurpose equipment or by various types of chromatographically separation, such as
standard column, simulated (SMB) or supercritical fluid (SCF) techniques.
For peptides three main types of methods are used, namely chemical synthesis, extraction
from natural substances, and biosynthesis. Chemical synthesis is used for smaller
peptides made of up to 30-40 amino acids. One distinguishes between “liquid phase” and
“solid phase” synthesis. In the latter, reagents are incorporated in a resin that is contained
in a reactor or column. The synthesis sequence starts by attaching the first amino acid to
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the reactive group of the resin and then adding the remaining amino acids one after the
other. In order to ascertain a full selectivity, the amino groups have to be protected in
advance. Most developmental peptides are synthesized by this method, which lends itself
to automation. As the intermediate products resulting from individual synthetic steps
cannot be purified, a virtually 100% selectivity is essential for the synthesis of larger-
peptide molecules. Even at a selectivity of 99% per reaction step, the purity will drop to
less than 75% for a dekapeptide (30 steps). Therefore, for industrial quantities of peptides
not more than 10–15 amino acid peptides can be made using the solid-phase method. For
laboratory quantities, up to 40 are possible. In order to prepare larger peptides, individual
fragments are first produced, purified, and then combined to the final molecule by liquid
phase synthesis. Thus, for the production of Roche’s anti-AIDS
drug Fusions (enfuvirtide), three fragments of 10–12 amino acids are first made by solid-
phase synthesis and then linked together by liquid-phase synthesis. The preparation of the
whole 35 amino acid peptide requires more than 130 individual steps.
ENVIRONMENTAL FACTORS
ONE OF THE things to emphasize about creating value in advocacy for members is that
most of the issues we deal with aren’t “one-day-wonder” emergency issues where we
suddenly put out a fire. Those do occur from time to time, but usually the issues are long-
term and sustained and they go over a number of years. Sometimes it feels like they go on
forever. Probably the four main issues in Technical Affairs that we’ve focused on and
that have added value for members are climate change (and that’s been both federally and
provincially); the Chemicals Management Plan (both of these projects have gone on for
at least 10 years); and over the last three or four years, we’ve tried to develop a nationally
coordinated approach to air quality management so that we wouldn’t have federal and
provincial duplication of regulations. The e fourth area is making sure we have really
solid relationships with Transport Canada and how we manage Transportation of
Dangerous Goods, both in terms of the regulations that we have to comply with —
making sure those regulations make sense — and also through such non-regulatory
approaches as the Transportation Emergency Assistance
Program (TEAP).
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The key elements are understanding what member needs are, which is shaped by
committee discussion and Responsible Care and our members wanting to do the right
thing and be seen to be doing the right thing, but it’s also making sure that what the
government does is workable and practical so that it complements what our companies
are already doing under Responsible Care. It requires building good long-term
relationships with federal and provincial government people so that you can have a
dialogue to make sure that these areas end up moving forward in the right direction,
knowing if there are going to be changes in legislation and helping shape that and
being in on the ground fl oor. Th is is really the key to adding value: Being involved on a
long-term basis in these core critical issues, working with members to understand what
their needs are, having good relationships with offi cials so that we can refl ect those
needs and have them agreed to. Understanding member needs is mainly driven by
committees and task forces that look at specifi c issues. It’s much easier to add value for
members who let us know what they want by participating in our committees.
CIAC statement on responsible development of shale gas
On shale gas, I think that was balancing Business & Economics and Responsible Care.
One contribution Technical Aff airs made in the shale gas discussions was
— because we work with so many associations on various initiatives
— ensuring that some of our partners such as CAPP (Canadian Association of Petroleum
Producers) knew what we were doing. We weren’t having our Technical Affairs is
environmental policy an d advocacy
Statement vetted through CAPP, but we still wanted to know what their views were on
the statement as we were developing it. Under Responsible Care, especially the way it
has evolved towards sustainability and working with partners, we have an obligation
to talk with others when we are determining our views on the responsible development of
shale gas as a feedstock issue. I think promoting this dialogue was our main input on the
shale gas.
LEGAL FACTORS
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Acts, Regulations and Agreements
� Environment Canada uses a number of acts, regulations and
agreements to fulfill its mandate to preserve and enhance the quality of
Canada's natural environment.
� The Department was first established by the Department of the
Environment Act in 1971. Today, Environment Canada administers
nearly two dozen acts either in whole or in part. It also assists with the
administration of many others.
� Environment Canada uses regulations to place strict controls on areas
governed by these acts. It also enters into voluntary and regulated
agreements with individuals or multiple parties in Canada and
elsewhere to define mutual commitments, roles and responsibilities
and actions on specific environmental issues.
� For Environment Canada, regulatory excellence is vital to protecting our
environment today and for future generations. We’re always striving to improve
the way we regulate and, in the process, to operate as a world class regulator.
Acts
� Some acts, such as the Canadian Environmental Protection Act, are intended to
protect the environment from pollution, while others, such as the Canada Wildlife
Act and the Canada Water Act focus on conservation.
This section offers information on federal acts related to the environment.
� Access to the full text of federal acts and regulations is provided by the
Department of Justice (Consolidated Statutes and Regulations)
� Antarctic Environmental Protection Act
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This section provides information regarding Environment Canada's
responsibilities related to the Antarctic Environmental Protection Act and a link to
the Antarctic Environmental Protection Act Permits application process.
Consumer Protection
� The new Canada Consumer Product Safety Act gives the federal government
authority to deal with products that may pose a danger to human health and
safety. Any safety incidents involving the product must be reported.
Manufacturers, employers and retailers are also required to report recalls or
similar measures involving the product anywhere in the world.
� The government also receives reports directly from consumers. Such reports can
lead to inspections, requirements for product testing or product recalls. Federal
and provincial governments have also enacted specific legislation that prohibits
deceptive or unfair business practices (including misleading advertising), imposes
sanctions on businesses engaging in such conduct and provides additional
protection for Canadian consumers. Class actions, which are becoming
increasingly popular as a consumer protection tool in Canada, are often based on
alleged breaches of the Competition Act or provincial consumer protection
statutes.
� Water Governance and Legislation
� Learn about Canada's water policy and legislation
Agreements
� Environment Canada is party to a wide range of environmental agreements, both
voluntary and regulated.
� The Department enters into agreements with provincial or territorial governments
to streamline the administration and management of environmental regulations. It
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also makes agreements with individual companies and industry sectors to ensure
that they achieve certain levels of environmental performance.
� Environment Canada’s international agreements are negotiated on the basis of
positions developed through consultations with provincial, territorial and
Aboriginal governments and with Canadian stakeholders.
� Canada-Ontario Agreement Respecting the Great Lakes Basin Ecosystem
Find out about the Canada-Ontario Agreement which aims to restore and protect
the Great Lakes Basin ecosystem
Land Registration Systems
� Each Canadian province has its own systems for registering interests in real
property, as property legislation is constitutionally a provincial responsibility in
Canada. In Ontario, for example, there are two land registration systems: registry
and land titles. The older of the two is the registry system, which merely provides
for the public recording of instruments affecting land and does not guarantee the
status of title. Most Ontario properties, however, are in the land titles system,
which is operated by the Province pursuant to the Land Titles Act. Title to land
within this system is guaranteed by the Province. Where the land titles system
applies, each document submitted for registration is certified by the Province, and,
until this certification is complete, the registration is subject to amendment at the
request of the registry officials.
Environmental Assessments
� In Canada, there is a legislative framework at both the provincial and federal level
that governs the duties of land owners with respect to the storage, discharge and
disposal of contaminants and other hazardous materials connected with the
property. The liability for improper environmental practices runs with the land
and can be inherited by future owners of the property.
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� In certain circumstances, any “guardian” of a property, such as a tenant, may face
liability for contamination. Additionally, it is incumbent upon a potential
purchaser to inspect a property and assess environmental risks as government
officials in Canada cannot certify that properties are free of environmental risk.
Commercial lenders in Canada will customarily require the completion of an
environmental assessment of a property before the advance of funds.
� Work Permits
� Under certain circumstances, multinational or other foreign companies of
chemical carrying on business in Canada may transfer executive or senior
managerial employees or workers with specialized knowledge to work in Canada
on a temporary basis, subject to the person who is to be transferred obtaining a
work permit. A person might be eligible for a work permit as an intra-company
transfer pursuant to three separate and distinct international agreements —
NAFTA, the Canada Chile Free Trade Agreement (CCFTA) and the General
Agreement on Trade in Services (GATS). These three international agreements
liberalized the rules respecting the temporary entry of business visitors, certain
professionals and intra-company transferees who are citizens or permanent
residents of the numerous countries that are GATS signatories. The rules
concerning the maximum work permit duration limits for the NAFTA
Professional category have been increased from 12 months to three years for any
single work permit issued.
Occupational Health & Safety
� All federal and provincial jurisdictions have enacted laws designed to ensure
worker health and safety, as well as compensation in cases of industrial accident
or disease. Employers must set up and monitor appropriate health and safety
programs. In provinces such as Alberta, Saskatchewan, Manitoba and Ontario,
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occupational health and safety legislation requires a workplace violence and
harassment policy.
� The purpose of occupational health and safety legislation is to protect the safety,
health and welfare of employees as well as the safety, health and welfare of non-
employees entering worksites. Occupational health and safety officers have the
power to inspect workplaces. Should they find that work is being carried out in an
unsafe manner or that a workplace is unsafe, they have the power to order the
situation to be rectified, and to make “stop work” orders if necessary.
INDIAN AGRICULTURE INDUSTRY
The majority of the total population of India is living in rural areas.
Agriculture is considered as the only source of primary occupation as a
huge size of rural population of the country is solely depending on
agriculture. Thus, the development of the rural areas should receive top
priority in our developmental programmers. Accordingly, it requires
development of agriculture, implementation of land reform measures &
development of co-operatives.
Agriculture Sector in India
Introduction
Agriculture is the mainstay of the Indian economy because of its high
share in employment and livelihood creation. More than half of the Indian
population still relies on agriculture for employment and livelihood.
During the past five years, agriculture sector has witnessed spectacular
advances in the production and productivity of food grains, oilseeds,
commercial crops, fruits, vegetables, food grains, poultry and dairy.
Agriculture is the dominant sector of the Indian economy, growing at an
average rate of 3.4 per cent from FY 2011-12. “India is the second-largest
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producer of food in the world and holds the potential of being the biggest
on global food and agriculture canvas,” according to a Corporate Catalyst
India (CCI) survey.
The Indian agriculture sector is now moving towards another green
revolution. The transformations in the sector are being induced by factors
like newfound interest of the organized sector, new and improved
technologies, mechanized farming, rapid growth of contract farming, easy
credit facilities, etc.
Department of Agriculture and Cooperation under the Ministry of
Agriculture is the nodal organization responsible for development of the
agriculture sector in India. The organization is responsible for formulation
and implementation of national policies and programmers aimed at
achieving rapid agricultural growth through optimum utilization of land,
water, soil and plant resources of the country.
� AGRICULTURE INDUSTRY IN CANADA
Canada has a well-established agriculture and agri-food industry with
long-standing success in the global marketplace. Canada prides itself on its
systems and policies that ensure world-class production standards. The
industry's best practices and well-known reputation for innovative
products and high-quality food have consistently positioned it as a
cornerstone of the country's economy and a driving force in international
trade.
While the relative contribution of Canadian agriculture to the overall
economy has been declining, the absolute size of the sector has continued
to grow. The agriculture and agri-food system contributed $87.9 billion
(constant 1997 dollars) or 8% to the Canadian economy and employed 2.1
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million Canadians in 2006. The importance of the sector varies across the
provinces, with food processing being more important in Central and
Eastern Canada, and primary agriculture more important in the Prairies. In
2009, total sector export sales reached $35.2 billion, 40.5% of which were
consumer-oriented products.
CURRENT SCENARIO OF AGRICULTURE INDUSTRY IN
INDIA
Current Scenario
Agriculture is the mainstay of the Indian economy because of its high
share in employment and livelihood creation. It supports more than half a
billion people providing employment to 52 per cent of the workforce. Its
contribution to the nation’s GDP is about 18.5 per cent in 2011-12. It is
also an important source of raw material and demand for many industrial
products, particularly fertilizers, pesticides, agricultural implements and a
variety of consumer goods.
India’s total geographical area is 328.7 million hectares, of which 141
million hectares is the net sown area, while 190 million hectares is the
gross cropped area. The net irrigated area is 57 million hectares with a
cropping intensity of 134 per cent. The total irrigation potential in the
country has increased from 81.1 million ha in 1991- 92 to 102.8 million ha
in 2006-07.
Productivity increase in agriculture is also considerably dependent on
capital formation both from the public and private sectors. Gross capital
formation (GCF) in agriculture as a proportion to the total capital
formation has shown a continuous decline. GCF in agriculture relative to
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GDP in this sector has, however, shown an improvement from 9.6 per cent
in 2000-01 to 12.5 per cent in 2006- 07.
The overall production of food grains was estimated at 217.3 million
tonnes in 2006-07. Between 1950-51 and 2006-07, production of food
grains increased at an average annual rate of 2.5 per cent compared to the
growth of population which averaged 2.1 per cent during this period. As a
result, India almost became self-sufficient in food grains and there were
hardly any imports during 1976-77 to 2005-06, except occasionally.
The increase in food grain production in 2006-07 was largely because of
higher production of wheat by 6.5 million tonnes (9.3 per cent) and of
pulses by 0.8 million tonnes (6 per cent). There was a decline in
production of oilseeds (3.7 million tonnes or 13 per cent) compared to the
production in 2005-06.
The production of non-food crops, particularly sugarcane, cotton and jute
(including roselle), in 2006-07, however, exceeded both the targets and the
levels achieved in the previous year.
During the year 2006-07 (up to 30 September 2006), the value of
agricultural exports was worth Rs 28,157.52 crore as compared to Rs
21673.25 crore during April-September 2005. The share of agricultural
exports in total export was more than 10 per cent during April-September
2006. Agricultural imports registered a decline during April-September,
2005. The share of agricultural imports in India’s total imports showed a
decline from 3.70 per cent to 2.88 per cent during the corresponding
period.
India is the third largest producer and consumer of fertilizers in the world
after China and the USA, and contributes about 11.4 and 11.9 per cent to
the total world production/consumption of NPK nutrients respectively.Per
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hectare consumption of fertilizers has increased from 69.8 kg in 1991-92
to 113.3 kg in 2006-07 at an average rate of 3.3 per cent.
The rapid growth of agriculture is essential not only for self-reliance but
also for meeting the food and nutritional security of the people, to bring
about equitable distribution of income and wealth in rural areas as well as
to reduce poverty and improve the quality of life. Growth in agriculture
has a maximum cascading impact on other sectors, leading to the spread of
benefits over the entire economy and the largest segment of population.
MAJOR PLAYER
Agriculture is an important part of India's economy and at present it is
among the top two farm producers in the world. This sector provides
approximately 52 percent of the total number of jobs available in India and
contributes around 18.1 percent to the GDP.
Company ABT Industries
� Sector
Agricultural products and export and import
� Products ghee, processed vegetables, yoghurt, fresh fruits, sweetened khoa and milk based sweets
� Net Profit
NA
� Company Raasi Seeds
� Sector Seeds
� Products Cotton, vegetables, and field crops
� Net Profit
NA
� Company DuPont India
� Sector Agricultural products
� Products Crop protection, animal health solutions, pioneer seeds and inoculants, and agricultural packaging
� Gross Profit (as 10,147 million US dollars
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on December 31, 2011)
� Sector Seed cum fertilizer drills
� Products
Zero till ferti- seed drill, Ridge planter, Seed cum fertilizer drill, Raised bed planter, Seed drill, Vegetable nursery transplanters, Maize / multi crop planter, Axial flow vegetable seed extractor, Zero till maize / multi crop planter, Maize Sheller, Zero till happy seeder, Paddy grain planter, Zero till multi crop planter for controlled tractor traffic, Aluminum fluted rollers assembly, and Zero till 2 wheel multi crop planter
� Net Profit
NA
� Company Poabs Organic
� Sector Organic agro-based products
� Products Organic coffee, organic spices, and organic tea
� Net Profit
NA
� Company Phalada Agro Research Foundation
� Sector Organic products
� Products Spices, medicinal herbs, coffee, essential oil and extracts, commodities, and dehydrated and freeze dried culinary herbs
� Net Profit
NA
� Company Advanta India
� Sector Seeds
� Products PAC 801, PAC 835, PAC 807, PAC 837, PAC 809, SWARNA 2, and PAC 832,
� Net Profit for 2010-11 fiscal
2,780.57 lakh rupees
� Sector Agrochemicals
� Products Pesticides, household products, seeds, seed treatment chemicals, and fertilizers
� Net Profit before taxation for 2010-11 fiscal
18,357.44 lakh rupees
� Company
Monsanto
� Sector Crops
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� Products Maize seeds
� Net Profit NA
� Company
Heinz
� Sector Food manufacturing
� Products Heinz, Nycil, Complan, Sampriti, and Glucon D,
� Net Profit NA
Position of India and Canada in global import market
country position % Share of
Imports
India 12th 1.24%
Canada 7th 2.1%
India:
Agri-imports constitute only a small proportion of the country’s total
imports. During the period 1996-97 to 2010-2011, agri-imports have been
in the range of 4 to 7 per cent of the total imports of the country. In recent
years,edible oil has become the single largest agri import accounting for
more than 50 per cent of he value of total agri-imports. In 2010-2011, it
accounted for as high as 70 per cent of total agri-imports. Another item,
which has been accounting for around 10 per cent of total agri imports is
raw cashew nut. Each of the other agricultural and allied products
imported into the country - cereals, pulses, spices, sugar, milk and milk
products, chicken meat etc. -account for very small proportion of total agri
import, except in some climatically abnormal years warranting relatively
larger import of particular commodity – cereals (mostly wheat)in 1997-98,
pulses in 1996-97 and 2010-2011 It is generally the policy that import
duties should be low for those sensitive essential products where there is a
large domestic shortfall in production. Pulses are a typical example, where
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there is zero import duty. In current time India holds the 12th rank globally
in import of agriculture products.
POLITICAL
Realizing the importance of Indian agricultural production for economic
development, the central Government of India has played an active role in
all aspects of agricultural development. Planning is centralized, and
planned priorities, policies, and resource allocations are decided at the
central level. Food and price policy also are decided by the central
government. Thus, although agriculture in India is constitutionally the
responsibility of the states rather than the central government, the latter
plays a key role in formulating policy and providing financial resources for
agriculture. The main objectives of the Government's price policy for
agricultural produce, aims at ensuring remunerative prices to the growers
for their produce with a view to encourage higher investment and
production. Minimum support prices for major agricultural products are
announced each year which are fixed after taking into account, the
recommendations of the Commission for Agricultural Costs and Prices
(CACP). For example, the Government of India has also approved
proposals for joint ventures, foreign collaborations, industrial licenses and
100% export in or with the agricultural sector, envisaging an investment of
over $ 18.2 Billion (Agbola, 2004). One of the most critical obstacles of
policies applications in agricultural sector is in ensuring food security -
access of the population to sufficient food to meet nutritional
requirements. Food security issues tend to cover not only issues related to
availability and stability of food supplies but also issues of access to this
supply.
Social
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Since its independence in 1950s, foreign aid has made a significant
contribution to the agricultural progress in rural India. Increasingly since
independence, India has been sharing its agricultural technology with other
developing countries. Numerous foreign scientists have received special
and advanced training in India; hundreds of foreign students have attended
Indian state agricultural universities. In the late 1980s and early 1990s,
India provided short and long-term training courses to hundreds of foreign
specialists each year under a variety of programs, including the Technical
Cooperation Scheme of the Colombo Plan for Cooperative Economic and
Social Development in Asia and the Pacific and the Technical Cooperation
Scheme of the Commonwealth of Nations Assistance Program. India is
one of the oldest civilizations with a kaleidoscopic variety and rich cultural
heritage. During the period of 55years independence, it has achieved
multifaceted socio-economic progress and is now the tenth industrialized
country in the world and the sixth nation to have gone into outer space to
conquer nature for the benefit of the people. However, those people
employed in agricultural sector, are those less educated, living in rural
areas. More than 60% of the India’s populations dependent on the
agriculture (Palmer-Jones and Sen., 2003)
Technological
The last few decades have witnessed a visible transition in the industrial
landscape of India. Technology has helped society to cut across the
traditional boundaries for getting converted into an emerging information
society. The Government's long-term vision on “Information and
Communication Technology (ICT) in the Agriculture Sector” aims to
bring farmers, researchers, scientists and administrators together by
establishing a system known as “Agriculture Online” for the exchange of
ideas and information. A land information system has already started using
geographic information systems (GIS) and remote sensing to help the
farmers to plan their activities and facilitate decision-making and planning
129
at the local level (India, 2004). Farmers can find out the chemical
composition of their land through lab testing to know how fertile their land
is and what should they grow to make maximum profits. Achievements of
Indian agriculture supported by technology like development of High
Yielding Varieties (HYV) of seeds, new hybrids of different crops,
research in the area of vaccine production, varietal development through
monoclonal variations, developing better quality products and transgenic
in crops such as brinjal, tomato, cauliflower and cabbage have
strengthened the field.
Ecological Factors
Analysis Agriculture, forestry and fisheries are traditional activities in the
rural environment of India. Forest conversion has been accelerated by
activities associated with rapid industrialization, such as mining and
energy generation through large hydroelectric projects. Nevertheless,
much conversion is still due to the extraction of timber for industrial uses
and to meet the needs of the rural poor in terms of food, fodder and
firewood. In India, lakes and rivers are an integral part of human
settlement and the water is being used for drinking, aquaculture, fishing
and agriculture purposes. These freshwaters are under considerable threat
owing to the fast pace of modern technology, industrialized and increased
population densities. Industrial, agricultural, aquacultures, transportation
and other human activities like burning of fossil fuels and disposal of solid
and domestic waste deteriorates the air and water quality of the lakes. The
concept of economic development has been changing over a period of
time. In the early 1980s a new concept of development had emerged as a
reaction to the negative experiences of development, which is known as
“sustainable development”. The concept “sustainable development” may
be interpreted to mean a certain pace of development which can be
sustained even in the long run.
130
� Machinery and Equipment
Canada’s expertise in machinery and equipment is fuelled by robust education and R&D
infrastructure, ready access to major international markets and strong demand from
domestic industries such as agriculture, minerals, aerospace, automotive, oil and gas,
chemicals and plastics.
� With nearly 8,700 companies and a direct-production labor force of more than
113,000 people, the industry generated sales of $44.8 billion in 2011. Canada exported
more than $21.5 billion worth of machinery-manufacturing equipment in 2010, more than
the US on a per-capita basis.
� 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.
� Private and public investment (2010)
Investment in non-residential construction and machinery and equipment in 2010 is
expected to increase 5.3% from 2009 to $239.9 billion on a current dollar basis. Due to
the sizeable decline in 2009, it will still be below the 2008 level. Capital spending by the
public sector, particularly the public administration, will account for nearly two-thirds of
the increase.
Higher public sector investment is expected to continue into 2010. Capital spending by
the public sector is anticipated to increase 9.9% to nearly $87.8 billion.
Private sector investment is expected to rise 2.8% to $152.2 billion. Significant capital
spending increases from the mining and oil and gas extraction sector as well as the
manufacturing sector are behind that increase.
� Mining and oil and gas extraction sector resumes growth
131
Spending by companies in the mining and oil and gas extraction sector is expected to
rebound somewhat in 2010, recovering almost a quarter of the decline in 2009.
Investment in the sector is expected to total $48.1 billion in 2010, up 11.6%. The 33.1%
drop in 2009 was due to declining demand and falling oil prices. These factors resulted in
the cancellation or postponement of a number of large investment projects in 2009.
� Other sectors: Manufacturing industries set to increase
investment
Overall, manufacturers plan on spending 14.6% more on non-residential construction and
machinery and equipment in 2010. Investment intentions are up $2.0 billion
to $15.6 billion.
Much of the manufacturing investment growth is coming from petroleum and coal
products manufacturing, where capital outlays are expected to rise by 44.5%, and primary
metal manufacturing, where they will be up by 44.8%.
132
� Private and public investment (2011)
Investment in capital construction and machinery and equipment is expected to
rise 3.3% in 2011 to $349.1 billion.
Much of the recovery from the 2009 economic downturn occurred in 2010 due to strong
growth on the part of both public (+17.5%) and private (+8.0%) investment. If
intentions are realized, increases in 2011 will be led by private investment, which is
expected to grow 3.8% to $261.3 billion.
� Mining and oil and gas extraction sector fuels investment
Investment intentions by companies in the oil and gas extraction sector will reach an
estimated $35.7 billion in 2011, up $3.0 billion (+9.1%) from 2010.
Powered by a host of new projects in the Alberta oil sands, investment in non-
conventional oil extraction is expected to rise 27.8% in 2011 to $14.3 billion.
133
� Primary metal manufacturing set to increase
Canada's transportation and warehousing sector is expected to rise 14.4%
to $22.1 billion in 2011. Most of this increase can be attributed to an increase of
over $1.5 billion (+28.0%) in the transit and ground passenger transportation industry.
� Private and public investment, 2013
Public and private organizations and the housing sector report that their anticipated
investment in construction and machinery and equipment will reach $398.2 billion
in 2013, up 1.7% from 2012 in current dollars. This would be the smallest increase since
the economic downturn in 2009.
� Decline in the mining and oil and gas extraction sector
Organizations in the mining and oil and gas extraction sector reported that investment in
construction and machinery and equipment is expected to fall by $2.2 billion, or 2.7%,
to $79.2 billion. This would be the first decrease since the economic downturn.
134
Current scenario of the Machinery Equipments
Canada 2013 Investment Intentions Report
Public and private organizations and the housing sector report that their anticipated
investment in construction and machinery and equipment will reach $398.2 billion in
2013, up 1.7% from 2012 in current dollars. This would be the smallest increase since the
economic downturn in 2009.
The main contributor to the slowdown is an anticipated decline in investment reported by
the mining and oil and gas extraction sector. Declines are also anticipated in the
information and cultural industries as well as in educational services.
Strong increases in investment were reported in the utilities sector and in transportation
and warehousing.
� Other sectors
Strong increases were reported by a number of sectors. Investment in non-residential
construction and machinery and equipment by utilities is anticipated to reach $31.3
billion, up 7.7% from 2012. The electric power generation and transmission and
distribution industries would account for almost 65% of the increase. Almost two-thirds
(65.1%) of the increase in the electric power generation and transmission and distribution
industries can be allocated to the province of Ontario, where capital spending is expected
to increase by $943.6 million or 16.7%.
� Provinces and territories
Provincially, the biggest increase is anticipated in Ontario, where investment is expected
to rise 3.5% to nearly $80.1 billion. Investment is anticipated to rise 12.2% in
Newfoundland and Labrador, where the mining and oil and gas sector anticipates a $1.6
billion increase.
� The-Modern-Industry
135
A 1977 study of the 17 largest Western industrial nations by the OECD showed that
Canada had the lowest machinery self-sufficiency in the group (32%). By comparison,
figures for some of the other countries were Italy 60%, West Germany 70%, France 74%,
the US 91% and Japan 95%. A 1985 study showed Canada's machinery self-sufficiency
still to be only 31%.
Business and History - Canada Machinery Corporation Ltd.
Canada Machinery Corporation Ltd.
This page was reproduced with permission from the Canadian Manufactures
Association. The Canadian Manufacturers Association renamed Canadian
Manufacturers & Exporters, holds the Copyright-for-the-text-and-images.
This information came from Industry '67 Centennial Perspective, published by The
Canadian Manufacturers' Association in May 1967. The original document is
accessible through Western Libraries Shared Catalogue.
J. J. Stevens and R. M. Hamilton formed their own company and started manufacturing
machine tools in 1886. The machine tool industry in Galt probably had its origins in this
venture and it was subsequently noted in a 1927 journal that the design of some of the
machines evolved by these two pioneers was afterwards followed by all machine tool
builders in Canada.
In the post-war years, the company stabilized its position in the industry and concentrated
its efforts in the design and development of special purpose machine tools and production
machinery.
Footwear Industry
The footwear industry is one of the oldest in Canada. The name of the first person in
Canada to cobble a pair of shoes has not been recorded, but François Besot of Pointe-
Levy, Québec, built the first tannery in 1668. Besot was assisted by Jean TALON, who
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advanced the sum of 3268 livers from the royal coffers. The Companies des Indies
occidentals contributed another 1500 livers.
� Metals, Minerals and Equipment
Saskatchewan is the second biggest global producer of potash and uranium with $20
billion in mine expansions expected to take place over the next 20 years. Global
companies, junior uranium and potash companies take advantage of the province’s
abundance of resources and expertise in these areas.
Saskatchewan’s value of mineral production was over $6.8 billion in 2010, with mineral
exploration expenditures at $319 million and $280 million estimated for 2011.
� Environmental Industries
Saskatchewan's clean tech sector is primarily focused on soil and ground water
remediation, water and wastewater management, and renewable energies (wind, solar,
biomass and bio fuels). Despite the relative size of Saskatchewan companies in this
sector, the vast majority look to international markets for growth opportunities in
trade, investment, or R&D collaboration.
� Life Sciences - Bio and Health Industries
The history and knowledge of Agriculture in Saskatchewan has made it one of the top
ag biotechnology research centers in the world and home to 30% of the Canadian
industry. Saskatchewan is one of the few places in the world where you can go from
innovative research through bio-processing and analysis all the way to commercial
products.
� Information and Communications Technologies (ICT)
Approximately 14,000 people in some 300 Saskatchewan companies generate more
than $1 billion a year, providing innovative products and services in
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telecommunications, digital communications, software development, monitoring and
remote sensing, computerized banking, geometrics, health and environmental systems.
� Arts and Cultural Industries
Saskatchewan's arts and cultural industries include book publishing, sound recording,
film and video production, as well as commercial crafts and visual arts. Cultural
industries contribute over $1.9 billion to the Saskatchewan economy and directly
employ over 14,000 people.
Bilateral Relations
In India, Canada is represented by the High Commission of Canada in New Delhi.
Canada also has two consulate generals in Chandigarh and Mumbai, a consulate in
Chennai and trade offices in Ahmedabad, Bangalore, Hyderabad, and Kolkata.
India is represented in Canada by a High Commission in Ottawa, and by consulates in
Toronto and Vancouver.
Canada and India have longstanding bilateral relations, built upon shared traditions of
democracy, pluralism and strong interpersonal connections with an Indian diaspora of
more than one million in Canada.
This expanding bilateral relationship is supported by a wide range of agreements and by
PM Singh and PM Harper’s commitment to increase annual bilateral trade to $15 billion
by 2015. Canada’s priorities in India include infrastructure, energy, food, education,
science and technology. India is an important source country for immigration to Canada.
� Trade and Investment
According to Statistics Canada, bilateral merchandise trade between Canada and India in
2011 totaled approximately CAD$ 5.2 billion, an increase of 23.4% percent 2010.
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� Canada - India Bilateral Trade 2005 – 2011
[Figures in billion Canadian Dollars]
2005 2006 2007 2008 2009 2010 2011
Canada’s Imports
from India 1.79 1.92 1.98 2.2 2.0 2.12 2.5
Canada’s Exports
to India 1.09 1.68 1.79 2.42 2.14 2.15 2.6
Total 2.87 3.59 3.77 4.62 4.14 4.27 5.1
� Canada – India Bilateral Direct Investment
In 2011, the stock of two-way direct investment between Canada and India was C$5
billion.
[Figures in million Canadian Dollars]
2005 2006 2007 2008 2009 2010 2011
Canadian Direct
Investment in India 319 677 506 667 520 676 587
Indian Direct
Investment in Canada 171 211 1,988 6,514 6,217 4,364 4,386
Total 490 888 2,494 7,181 6,737 5,040 4,983
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Export import trends
U.S. Trade Trends: Canada, Mexico, China Remain Top U.S. Trade
Markets
According to the report, U.S. exports will increasingly find their way to rapidly growing
consumer markets in developing economies, as growth prospects for industrialized
nations remain subdued. And while U.S. exports to the United Arab Emirates, India, and
Vietnam are expected to increase the most over the next several years, the top three
markets for U.S. exports continue to be Canada, Mexico and China, according to the
report.
“Emerging markets are developing at a phenomenal pace and are set to reshape world
trade patterns over the next 20 years,” said James Emmett, HSBC’s Global Head of Trade
and Receivables Finance. “Understanding which sectors are growing in which markets,
delivers huge opportunities for businesses.”
Global Trade Trends: Emerging Markets Add Value to Supply Chain
Globally, the report notes the shift towards the production of higher value goods is
particularly evident in Asia, with a clear pattern emerging as Chinese export growth in
information and communications technology and industrial machinery gathers pace. This
balances a declining rate of growth in sectors such as textiles, giving rise to opportunities
for companies in the smaller, faster growing countries around the region to win contracts
to produce these more basic goods.
Market Demand
Canada’s construction industry employs close to 1.2 million, accounts for approximately
seven percent of Canada’s annual GDP, and buys goods and services in every region of
the country and every sector of the economy. There are four general categories of
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construction work: New Home Building and Renovation (single and multi-family);
Heavy Industrial; Commercial and Institutional; and Civil Engineering.
Position/Rank of India with Canada
Canada has dropped two positions this year to 12th place, with a slight improvement in
score. Canada continues to benefit from highly efficient markets (with its goods, labor,
and financial markets ranked 12th, 5th, and 13th, respectively), well-functioning and
transparent institutions (11th), and excellent infrastructure (11th).
In addition, the country has been successful in nurturing its human resources: it is ranked
6th for health and primary education and 12th for higher education and training. As we
have noted in recent years, improving the sophistication and innovative potential of the
private sector, with greater R&D spending and producing goods and services higher on
the value chain, would enhance Canada’s competitiveness and productive potential going
into the future.
Having topped the G-7 with an average real GDP growth rate of 0.9 percent between
2008 and 2011, Canada is now expected to be among the top G-7 performers through
2017 and to return to a balanced budget position by that year or earlier.
PESTLE ANALYSIS OF FINANCIAL ERVICES OF CANADA
POLITICAL FACTOR
Canada’s financial services sector is both diverse and remarkable secure. In 2012, the
World Economic Forum rated Canada’s banking system the soundest in the world.
“There are countries with comparable economic characteristics to Canada with lot less
friendly environment. In dealings with Canadian government different parts of
government, with business peoples, we feel that it is lot more congenial to our
investments. ”
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Canada’s flourishing financial services sector include banks, cooperatives, credit unions,
insurance companies and brokers, pension fund managers, securities dealers and
independent agencies.
Most important industries: Automobile modern, pulp and paper, iron and steel work,
machinery and equipment manufacturing, mining, extraction of fossil fuels, forestry and
agriculture.
Political force can have great bearing on financial structures. This influence could take
the form of a command-type economy, with a large proportion of financing occurring via
government or government-controlled institutions. This would include the overriding of
market mechanisms by state planning and bureaucracy. It could determine political
structure.
A New Political Finance Regime
The Sponsorship Scandal and the Context for Reform the 1995 Quebec referendum was a
near-death experience for Canada. Quebec voters rejected a vague sovereignist resolution
by only a small fraction of a percentage point. The federal government of the day, formed
by the Liberal Party under the leadership of Jean Chrétien, resolved not to repeat the
experience. The Chrétien government adopted a two pronged, post-referendum strategy
to blunt the separatist movement. First, the government sought to define the legal terms
for future referenda on sovereignty or secession. The key elements of this effort were the
Secession Reference.30 to the Supreme Court of Canada and the subsequent adoption of
the Clarity Act.31
The NDP’s ability to maintain revenues under the new political finance regime belied
other more fundamental changes resulting from the new contribution limits. In addition to
the contribution limits, despite the obstacles to union financing of the NDP, Jansen and
Young conclude that the relationship was restructured as a result of the Elections Act
rather than severed. In their view, the relationship persisted because of ideological
affinities and the involvement of union personnel in the NDP party organization.
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ECONOMIC FACTOR
Exports
Canada was the United States' largest goods export market in 2011.
U.S. goods exports to Canada in 2011 were $280.8 billion, up 12.7% ($31.7 billion) from
2010, and up 59% from 2000. U.S. exports to Canada are up 180% from 1993 (Pre
NAFTA). U.S. exports to Canada account for 19.0% of overall U.S. exports in 2011.
U.S. exports of agricultural products to Canada totaled $19.0 billion in 2011, our largest
U.S. Ag export market. Leading categories include: fresh vegetables ($1.7 billion), fresh
fruit ($1.7 billion), snack foods ($1.6 billion), red meats, fresh/chilled/frozen ($1.4
billion), and processed fruit and vegetables ($1.2 billion).
Imports
Canada was the United States' 2nd largest supplier of goods imports in 2011.
U.S. goods imports from Canada totaled $316.5 billion in 2011, a 14.0% increase ($38.9
billion) from 2010, and up 38.1% from 2000. U.S. imports from Canada are up 185%
from 1993 (Pre NAFTA). U.S. imports from Canada account for 14.3% of overall U.S.
imports in 2011.
The five largest import categories in 2011 were: Mineral Fuel and Oil (crude and natural
gas) ($103.4 billion), Vehicles ($49.8 billion), Machinery ($19.7 billion), Plastic ($10.3
billion), and Special other (returns) ($8.6 billion).
The Financial Services Sector is one of the Largest Contributors to the Canadian
Economy.
Finance and insurance accounted for 7% of national output in 2011 (Source: CANSIM,
Gross domestic product (GDP) at basic prices (2012)), and the Canadian financial
services sector represented a GDP of $264 billion. Fitch and S & P all maintain a positive
outlook for the Canadian economy.
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Eleven of the Top 1000 World Banks are located in Canada, with six Canadian banks in
the Top 100. Four Canadian banks are among the global top 10 strongest financial
institutions according to Bloomberg Markets magazine.
A Growing Economy
Canada has been the top performer among the G-7 in GDP growth over the 2008 to 2011
period.
A Highly Educated Workforce
Canada has the highest proportion of post-secondary graduates among members of the
Organization for Economic Co-operation and Development (OECD).
Financial Stability
Over the past four years, Canada's banking system has repeatedly been declared the
soundest in the world.
NAFTA
The North American Free Trade Agreement (NAFTA) gives investors access to nearly
457 million consumers and a combined continental GDP of about US $17.2 trillion.
Canada continues to seek more free trade agreements with economic and emerging
powers to increase trade and investment.
GDP
The following graph illustrates annual GDP for the Finance and Insurance (NAICS 52)
sector between 2002 and 2011.Gross Domestic Product (GDP): 2002-2011 Finance and
Insurance (NAICS 52)
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SOCIAL FACTOR
Present-Day Condition
Present-day impacts of weather events on financial services are caused
mainly by extreme events. Differences in vulnerability exist, caused by
geographical location, population distribution, and national wealth. In developing
countries, there may be very high mortality from extreme weather but relatively
small costs to the financial sector because of low insurance penetration. In
developed nations, the loss of life may be much less but may have enormous—
even catastrophic—costs to the insurance industry. These lists show that:
• Of the 40 worst insured losses since 1970, only six were not weather related.
• Nineteen of the weather-related catastrophes affected the United States.
• Twenty-eight were related to windstorm (tropical and temperate latitudes). In
contrast, of the 40 worst events in terms of fatalities, only 16 were weather
related, of which 13 occurred in Asia.
• A list of natural disasters causing billion-dollar losses drawn up by Munich Re
shows that, of 30 such disasters, 15 affected the United States and seven affected
Europe. Eighteen were related to windstorm. With the exception of earthquakes,
all were weather related. In recent decades, economic and insured losses related to
weather extremes have increased rapidly.
Cold Temperature
As a result of global warming, cold extremes of winter weather are likely to become
rarer. In temperate latitudes, this development generally would be beneficial for
business activities in, for example, the construction and transport sectors, with
concomitant reductions in claims for business interruption.
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Sea-Level
Increases in sea level pose a major potential risk to coastal zones (TARWGI),
especially if they are associated with an increase in storminess. The mid-range increase
in sea level by the year 2100 as a result of anthropogenic climate change is 49 cm,
taking into account atmospheric aerosol concentrations, with estimates ranging from 26
to 72 cm (TARWGI).
The main risk to the financial sector is in the effect that this change in mean sea
level may imply for the occurrence of tidal surges, which already cause enormous
damage and loss of life, especially in the developing world One of Europe’s greatest
natural disasters in terms of loss of life was the 1953 storm surge in the North Sea,
which led to almost 2,000 fatalities in The Netherlands and the UK.
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TECHNOLOGICAL FACTOR
Technological Change
The most important factor propelling change has probably been technology. Technological
developments in recent years, especially those in information processing, management, and
delivery, have led to a number of significant changes in the way FSPs operate. This section of
the paper focuses on three key developments facilitated by technological change and assesses
their implications: backroom efficiencies; new instruments (including electronic money and
commerce) and different ways of putting the underlying financial service functions together;
and service delivery mechanisms for the household sector.
Backroom Efficiencies
Technological developments over the years, particularly in electronic processing of
transactions, have enabled financial institutions to increase the efficiency of their backrooms.
Initially, these developments allowed the financial services industry to manage the sharp
increase in the volume of transactions that was underway without a proportionate increase in
costs.
New Instruments and Different ways of Putting Functions Together
Six key functions provided by the financial system are noted in the introduction (page 1,
footnote 2). Many of these functions traditionally had to be provided as a joint product and
could not be disentangled or unbundled. With the recent technological changes, new
instrum6ents have been developed that permit the unbundling of these functions, the
restructuring of financial components into a variety of new products, and the delivery of the
separate services by different entities.
Delivery Mechanisms for the Household Sector
A generation ago, most household transactions were carried out in the bank branch, with the
teller taking in deposits, paying out cash, and making bill payments, and with a bank officer
making loans based on an assessment of the creditworthiness of the potential borrower. An
important technological breakthrough that changed this pattern was the development and
spread of the ABM, which permitted payments of cash to the customer to be carried out
without access to a teller.
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Changing Nature of Competition in the Financial Services Sector
Technological change in the form of remote delivery of certain financial services and
products may well provide the means for foreign banks to overcome this obstacle (although
this possibility has not yet materialized on a large scale in most places). The spread of
telephone banking and the introduction of computer-based delivery of services discussed
earlier has made the so-called “virtual bank” a possibility. Of course, domestic banks are also
rushing to offer such services to their customers, both as a way of cutting costs and of holding
onto their customer base in the face of the new competitive challenges.
ENVIRONMENTAL FACTOR
• Environmental factor study is important factor it include the geographical and ecological
factor are shown below:
� Natural resources endowment
� Climate conditions
� Weather
� Port facilities are relevant to business
� Topographical factor
� Location aspects in the global context
• The natural resources, environmental pollution and disturbance of the ecological balance
are concern. Government policies aim to present environment purity and ecological
balance. Other responsibility to industry increases the cost of the production.
Natural Resources Endowment
• Raw material are scarce resources for manufacturing industry, economical growth of
the country depend on the natural resources. Natural resources are mainly use in
manufacturing industry financial services industry is totally service provider they very
less use the natural resources.
• When begin the financial service they use natural resources like paper uses are more
but now a day increase the technology so that the use of natural resource are lees in
the financial sector.
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• Financial sector include the all the financial institute in the Canada. Natural resources
affect to the financial sector is very less. Financial service are the service provider
sector not the manufacturing industry so lees affect the natural resources.
Climate Conditions
• The main finding after the major study the financial sector and the climate changes for
corporate decision taking and the government are the policy maker. Climate changes
is the relevant to the financial sector industry and the explain the long term, market-
based, framework to financial sector participation.
Threats of Financial Service Industry
• New and existing markets become due to potential climate impacts
• Macroeconomic downturn due to actual impacts
• Compounding of clime risk across the financial sector
• Unchanged government policy
Location Aspects in the Global Context
• Canada is the clean country their financial service sector pay some amount for the
clean the area where the industry are situated. Financial sector pay less amount of the
government because these are the service sector they not use the natural resource
higher than the manufacturing industry.
� Weather
� Port facilities are relevant to business
� Topographical factor
LEGAL FACTORS
Risk Management Function
• Each Crown corporation should have a risk management function that is consistent
with the breadth and complexity of its operations. Where the breadth or complexity of
an entity’s operations does not justify the formation of a separate risk management
function, the statement of investment policy and, more specifically, the permitted
financial transactions should be appropriately circumscribed.
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Audit
• The Crown corporation’s risk guidelines should be included as part of the internal
audit plan (or external as appropriate).
Treasury Risk Management Practices
• Financial risks should be managed in a manner commensurate with their complexity
and the extent of potential losses. Treasury risk management practices should be
consistent with the nature of an entity’s operations and permitted financial
transactions.
• Risk management systems should be adequate to provide accurate, up-to-date
measuring, monitoring, controlling and reporting capabilities. Pricing and risk
measurement models used in relation to financial risks should be independently
reviewed or validated.
Liquidity Risk
• Establish appropriate methods for measuring and stress testing current and projected
liquidity and for effectively managing liquidity.
• Ensure appropriate liquidity is available to meet financial commitments as they fall due.
Operational Risk
• Establish effective internal controls and ensure independent review by internal audit.
Review results should be reported back to senior management or Board as appropriate.
• Periodically review procedures, documentation requirements, data processing systems,
contingency plans, and other operating practices through the internal control function.
Legal Risks
• Ensure that the legal authorities and documentation pertaining to risk-generating activities
are complete and up-to-date.
• Establish appropriate processes and procedures to deal with non-standard covenants of
treasury transactions.
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Sales Tax Division
• The Sales Tax Division is responsible for developing the policies, legislation and
regulations associated with federal consumption taxes—the goods and services tax
(GST), the harmonized sales tax (HST) and the federal excise duties and taxes—on
products such as tobacco, fuel and alcohol. The division consists of seven sections.
Excise Taxation and Legislation
• This section is responsible for developing policies and legislation relating to federal
excise duties on beer, spirits, wine and tobacco. This section is also responsible for the
development of policies and legislation relating to the Financial Services for Air
Travelers Security Charge as well as the Green Levy on vehicles,
Customs Tariff
The Customs Tariff is based on the World Customs Organization's (WCO) Harmonized
Commodity Description and Coding System (HS). For information on the HS and agendas of
upcoming sessions of the Harmonized System Committee and the HS Review Sub-
Committee.
Advance Rulings for Tariff Classification
• To help the importing community determine the proper tariff classification of goods, the
Canada Border Services Agency (CBSA) publishes advance rulings.
• These rulings, issued under paragraph 43.1(1)(c) of the Customs Act, provide information
on the importation of particular goods, including their 10-digit tariff classification number
under the Canadian Customs Tariff.
Benefits of an Advance Ruling
• Tariff classification can be very complex for certain goods. The advance ruling ensures
that the tariff classification number used is deemed correct by the CBSA. The ruling is
binding until it is revoked or amended.
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• The advance ruling provides certainty to the importer, or his or her representative, as to
how goods are to be classified and thereby facilitates the documentation requirements for
clearing goods at the border.
Removal of Most Sector-Specific Thresholds
• The Minister of Transport conducts pre-closing reviews of proposed transactions
involving a transportation undertaking that raise public interest issues and that exceed the
pre-notification thresholds under the Competition Act.
Thresholds Based on “Enterprise Value”
• The threshold for review is based on the aggregate value of all assets being acquired as
shown in the financial statements for the Canadian business for the prior year. The
calculation will be changed from one Although the lower threshold for certain businesses
has been repealed in the ICA.
SUMMARY OF FINANCIAL SERVICES INDUSTRY IN CANADA
OVERVIEW
� Financial services are the economic services provided by the finance industry, which
encompasses a broad range of organizations that manage money.
� It including credit unions, banks, credit card companies, insurance companies,
consumer finance companies, stock brokerages, investment funds and some
government sponsored enterprises.
� The financial services industry represented 20% of the market capitalization of the
S&P 500 in the United States.
� These are the main services of financial services industry:
� Banks
� Foreign exchange services
� Investment services
� Insurance
• Revenues increased by $3.3 billion, or 2.8 per cent, to $120.9 billion in 2012-13.
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• April to September period, Program expenses were $115.1 billion, up $1.5 billion, or
1.4 per cent.
• A budgetary deficit of $8.9 billion and a requirement of $12.8 billion from non-
budgetary transactions, there was a financial requirement of $21.7 billion for the April
to September 2012 period, compared to a financial requirement of $30.5 billion for
the same period the previous year.
CURRENT SCENARIO OF THE FINANCIAL SERVICES INDUSTRY
IN CANADA
Payments System Review
• The government also initiated a review of the payments system. The Payments
System Advisory Committee was to conduct its review in parallel with the work of
the Task Force.
• The review identified three public policy objectives for the system: efficiency, safety
and the consideration of consumer interests. Balancing these objectives is key to
ensuring that the Canadian payments system remains an efficient component of the
financial sector.
The Evolution of the Financial Services Sector
• New information technology, globalization and demographic change are driving
innovation and giving rise every day to new opportunities and demands in the
Canadian financial services sector.
Technological advances have Revolutionized the Financial Services Sector
• These technological developments make possible new financial products and services,
from telephone and Internet banking to index-linked guaranteed investment
certificates (GICs).
Canadians are among the fastest adopters of new information technologies
• The new information technologies have also accelerated the trend toward freer trade
around the world, leading to a truly global market for capital and financial services.
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As a result, firms now have access to more consumers who, in turn, enjoy greater
choice of products and services from enhanced competition.
Shaping the Financial Services Sector at Guiding Principles
Canada is widely acknowledged for having one of the safest and soundest
financial sectors in the world
• Financial institutions must have the flexibility to adapt to the changing marketplace
and to compete and thrive, both at home and abroad, in order to retain their role as
critical sources of economic activity and job creation.
• Consumers, regardless of their income or whether they live in an urban or rural area,
and individual businesses, whether they be large or small, should receive the highest
possible standard of quality and service.
MAJOR PLAYERS OF FINANACIAL SERVICE SECTOR OF CANADA
History
• Canada Financial group was founded in 2000, and has grown to become a leading
Managing General Agency. Canada Financial currently serves over 1200 independent
financial advisors across Canada with offices in British Columbia, Alberta and
Ontario.
• We continually strive to support our advisors in building their business by world-class
training, education, sales and marketing support. We are a full service Financial
Services company offering a large selection of investments and insurance products so
that our advisors can meet every need of their clients.
Banks
• Canada’s banking industry is concentrated. Schedule I banks (the six largest
institutions plus Canadian Western Bank and Laurentian Bank control 86 percent of
the $776 billion in total domestic bank sector assets Schedule II banks, which are
predominantly foreign owned, are a highly fragmented group. No one institution
exceeds a 3.1 percent share of domestic assets and, all in all, a total of 46 institutions
share the remaining 12 percent of the total domestic assets
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Life insurers
• Like the banking sector, Canada’s life insurance sector is also concentrated, but to a
lesser degree. Over 70 percent of the sector’s domestic assets are controlled by the top
six life insurers This level of concentration has come about only recently, due in part
to the 22 percent pro forma share that Great West Life now holds since acquiring
London Life .
Credit unions and trusts
• The credit unions and trusts have traditionally played important and unique roles in
the Canadian financial services landscape. They are the most numerous of the non-
bank financial institutions; although they control only 8 percent of the country’s
domestic financial industry assets A single institution or federation of institutions
dominates each of the trust and credit union sectors.
Asset managers
• The asset management sector – a business in which invested assets of individuals or
pools of pension assets are actively managed – is characterized by both institutional
and retail segments, which split the sector approximately 60/40 (The institutional
segment is relatively fragmented despite the presence of a leading player – the de
depot et placement du Québec.
PRODUCT PROFILE
Business Description
• Canada Financial Group Inc. (CF) is a leading national financial services firm. We
are dedicated to supporting Advisors in an ever-changing marketplace through world-
class training, development and marketing support.
Company Background
• The founder of CF Financial, Bharat Anand, has been a leader in the Financial
Services sector for over 30 years. Bharat has assembled a seasoned and ambitious
leadership team in Giovanni Bitelli, Vice President & General Manager and Alan
Cheung, Manager of Operations.
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Company Products and Services
CF provides a comprehensive suite of products including life insurance, accident and
sickness insurance, critical illness, Long Term Care, banking and mortgage products,
mutual funds, education savings plans, medical and travel insurance. Services include
financial planning, tax and estate planning, retirement planning, wealth accumulation,
and risk management.
Competitive Edge
• CF has set itself apart from its competitors by creating an infrastructure that has lent
itself to recruiting and training new agents as well as offering services and
compensation programs necessary to attract experienced advisors.
Markets
• Contracts with all of the major insurance and segregated fund suppliers
• Business savvy & keen understanding of the financial services business allowing for
experienced advisors and new advisors to build their businesses.
Sales & Turnover of Financial Service Sector of Canada
• Retail sales in March 2013 fell 0.4% and compared to expectations of unchanged
activity for the month.
• This followed a solid increase in February of 1.0% although this was revised
downward from a previous estimate of 1.1%.
• As expected, some of the decline reflected weakness in both the motor vehicle
component (-0.6%) and gasoline stations (-2.2%).
• Excluding autos and gasoline stations, sales fell 0.1% following a 0.3% gain in
February.
• The slowing in March retail sales growth does not alter our view that the pace of first-
quarter 2013 real consumer spending will likely strengthen to 3% from the 1.8% that
occurred in the fourth quarter of 2012 and benefitted from strength in earlier months.
To help support this rebound, Fed policy is expected to remain highly accommodative
with the fed funds remaining within its current range of 0% to 0.25% into 2015.
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BILTERAL AGREEMENT OF CANADA AND INDIA
• In India, Canada is represented by the Canadian High Commission in New Delhi; the
Consulate General of Canada in Chandigarh, Chennai, Mumbai and a Consulate in
Bangalore. India established diplomatic relations with Canada in 1947.
• Trade: Bilateral trade during the calendar year of 2011 crossed US$ 5 billion mark.
India’s exports to Canada in 2011 were up 25 per cent and imports from Canada
registered an increase of 31.7 per cent over 2010. Total bilateral trade during 2011
registered 28.35 per cent increase over the previous year.
• Major Items of Indian Exports are: Medicines, Garments, diamonds, chemicals,
gems and jewellery, petroleum oils, made-up, sea food, engineering goods, marble
and granite, knitted garments, rice, electric equipment, plastic products, etc.
• Major items of Canada’s export to India are: Pulses, fertilizers, newsprint, aircrafts
& aviation equipment, diamonds, copper ores and concentrates, bituminous coal,
wood pulp, nickel, unwrought aluminum, asbestos, god, cameras, lumber, ferrous
waste, etc.
• The Government of Canada should include the following sectors as priorities in its
pursuit of stronger engagement with India and increased trade in goods and services
and investment and in the negotiations for a Common Economic Partnership
Agreement as appropriate:
• Education
• Infrastructure
• Energy and power
• Mining and other extractive industries;
• Agriculture
• Science technology, information and communications
• Financial services
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EXPORT IMPORT TRENDS OF THE FINANCIAL SERVICES INDUSTRY IN
CANADA
Exports
• Exports grew at a CAGR of 10%. In 2008, exports spiked, growing 50% from2007
levels. Much of the increase in activity is the result of price increases among major
commodities. In July of 2008,oil prices peaked at USD $145.16 per barrel, an increase
of 96% from one year earlier.
Export Forecast
• In 2012, commodity prices are expected to make further gains and the U.S. economy
to experience more robust growth. Exportsin2012 are expected to grow 10.1%
from2011 levels.
Top Exported Products
• As a resource rich province, Saskatchewan exports are leveraged by the province’ s
natural strengths and advantages. Saskatchewan’s primary exports can be summed up
as being the three Fs: food, fuel and fertilizer. In addition to the three Fs,
Saskatchewan’s of the major export, in recent years, has been uranium.
Imports
• Imports of goods to Saskatchewan, since 2001, have been growing at a CAGR of 6%
annually. The importation of goods to Saskatchewan from international market to
tilled $8.1 billion in 2010. As with exports, imports of goods peaked in 2008 and
returned to normal levels in 2009 and continued to recovering 2012.
Top Imported Products:
• Saskatchewan imports significantly less than the province exports, internationally.
The major imports to Saskatchewan were oil($471million), of which the province is
also a major exporter, followed by combine harvesters($282million).
Types of financial assistance
There are several types of basic financial assistance for export ventures: pre-shipment
financing, post
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shipment financing, medium-term financing and project financing.
� Pre-shipment export financing
� Post-shipment export financing
� Medium-term export financing
� Project financing
Services Trade
• 2011 was a year of continued recovery for services trade. The 5.0-percent growth in
services exports continued the 2010 trend, adding $3.6 billion to the total to set a new
record for Canadian service exports at $74.8 billion.
POSITION / RANK OF INDIA WITH CANADA OF THE
FINANCIAL SERVICES INDUSTRY
• Finance and insurance accounted for 7% of national output in 2011 (Source:
CANSIM, Gross domestic product (GDP) at basic prices (2012)), and the Canadian
financial services sector represented a GDP of $264 billion.
• Eleven of the Top 1000 World Banks are located in Canada, with six Canadian banks
in the Top 100. (Source: The Banker, Top 1000 World Banks, ranked by Tier 1
Capital (2011)) Four Canadian banks are among the global top 10 strongest financial
institutions according to Bloomberg Markets magazine.
Strongest banking system in the world
• The Canadian banking system was ranked the soundest in the world by the World
Economic Forum in 2011.
Size of the financial sector
• The Toronto Stock Exchange (TMX Group) is the largest in North America and
second largest worldwide by number of companies listed.
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http://www.fin.gc.ca/
http://www.cimindustry.com/
http://www4.agr.gc.ca/