Supported with funding from
Exporting to CanadaTFO Canada
@ Trade Facilitation Office Canada 2011
TFO Canada services
TFO Canada mandateTFO Canada confronts the challenge of global poverty by promoting sustainable economic development through export information, advice and contact. We facilitate access to the Canadian marketplace and share Canadian trade expertise for the benefit of smaller exporters in developing countries and emergent markets.
TFO Canada: backgroundHistory:• Created by Canadian government in 1980• Since 1985 operating as a non-profit NGO• Private sector oriented Board of Directors• Clients:• Developing country exporters, especially SMEs• Trade support institutions in partner countries• Canadian Importers• Funding:• Canadian International Development Agency• Partner governments and other donors• Cost sharing by participants, partners, Canadian corp.
TFO Canada services: Information
• Content rich web based service on how to access the Canadian market: www.tfocanada.ca
• Exporting to Canada Handbook• Over 20 sector-specific market studies• Used by over 4,000 registered
exporters from over 100 countries• Content served in English, French and Spanish• Approximately 3,000 visitors per month
TFO Canada Services: Advice• MBA Market Entry Studies: University of Concordia in
Quebec and Sir Wilfred Laurier in South east Ontario• Trade Capacity Building Projects
– Exporter Training and Coaching– Export Packaging– Product Adaptation– Shipping Logistics– Foreign Service Officer Training
(Trade/Investment)• Regional Initiatives
TFO Canada Services: Contact• Web-based promotion of export offers to
over 1,300 registered Canadian importers• Regular program of trade missions and
trade fairs • Recent projects:
– Garment (and others) solo show: Bangladesh– Cosmetics: Burkina Faso– Fresh and processed foods: Ecuador, Guyana,
Haiti, Peru
What’s New
• Quarterly Export to Canada e-Newsletter
• TFO Canada Responsive Initiative• Updated web-based services:
– www.tfocanada.ca
New Home Page
Foreign suppliers - Page
Logged in Visitor
www.tfocanada.ca: New Content
• Supply-market country profiles• Trade Agreements• Exporters:
– stats on how many time profile viewed by importers
• Site may be customised without logging in
TFO Canada Ottawa Team
• Brian Mitchell, Executive Director• Tim Mattimoe, Program Director• Lidia Karamaoun, Project Manager, Latin
America & Eastern Europe• Lalla Haidara, Project Manager, Africa &
Haiti• Marysabel Gonzalez, Project &
Communications Officer• Danielle Mulligan, Office Manager• Merry Sun, Accountant
TFO Regional Representatives
• Marc Germain– Quebec (Montreal)
• Alma Farias– Ontario (Greater Toronto Area)
• Bill Ross– British Columbia (Vancouver)
The CanadianMarket
The Canadian Market
• Second largestcountry in the world
• Small, concentrated population
• Six market regions
• 10% size of U.S. market
Introduction to Canada
BritishColumbia
The Prairies
Ontario
Quebec
The North
AtlanticCanada
The Canadian Market
BritishColumbia
The Prairies
Ontario
Quebec
The North
AtlanticCanada
Atlantic ProvincesPopulation: 2.4 Million
• Second largestcountry in the world
• Small, concentrated population
• Six market regions
• 10% size of U.S. market
Introduction to Canada
HalifaxHalifax
Statistics Canada 2010
The Canadian Market
BritishColumbia
The Prairies
Ontario
Quebec
The North
AtlanticCanada
QuébecPopulation: 7.9 Million
Atlantic Provinces: 2.4 Million
• Second largestcountry in the world
• Small, concentrated population
• Six market regions
• 10% size of U.S. market
Introduction to Canada
Montréal
Statistics Canada 2010
The Canadian Market
BritishColumbia
The Prairies
Ontario
Quebec
The North
AtlanticCanada
OntarioPopulation: 13.3 Million
Atlantic Provinces:Québec:
2.47.9
MillionMillion
• Second largestcountry in the world
• Small, concentrated population
• Six market regions
• 10% size of U.S. market
Introduction to Canada
Toronto
Statistics Canada 2010
The Canadian Market
BritishColumbia
The Prairies
Ontario
Quebec
The North
AtlanticCanada
Prairie ProvincesPopulation: 6.0 Million
Atlantic Provinces:Québec:Ontario:
2.47.9
13.3
MillionMillionMillion
• Second largestcountry in the world
• Small, concentrated population
• Six market regions
• 10% size of U.S. market
Introduction to Canada
Calgary
Statistics Canada 2010
The Canadian Market
BritishColumbia
The Prairies
Ontario
Quebec
The North
AtlanticCanada
British ColumbiaPopulation: 4.6 Million
Atlantic Provinces:Québec:Ontario:
Prairies Provinces
2.47.9
13.36.0
MillionMillionMillionMillion
• Second largestcountry in the world
• Small, concentrated population
• Six market regions
• 10% size of U.S. market
Introduction to Canada
Vancouver
Statistics Canada 2010
The Canadian Market
BritishColumbia
The Prairies
Ontario
Quebec
The North
AtlanticCanada
The TerritoriesPopulation: 0.1 Million
Atlantic Provinces:Québec:Ontario:
Prairies Provinces:British Columbia:
2.47.9
13.36.04.6
MillionMillionMillionMillionMillion • Second largest
country in the world
• Small, concentrated population
• Six market regions
• 10% size of U.S. market
Introduction to Canada
Statistics Canada 2010
The Canadian Market
Canadian Population
BritishColumbia
The Prairies
Ontario
Quebec
The North
AtlanticCanada
Atlantic Provinces:Québec:Ontario:
Prairies Provinces:British Columbia:
The Territories
2.47.9
13.36.04,60.1
MillionMillionMillionMillionMillionMillion
• 62% of Canadians live in Ontario and Quebec
The Canadian Market
• 62% of Canadians live in Ontario and Quebec
• 90% of Canadians live within 160 Kmsof the United States border
Canadian Population
BritishColumbia
The Prairies
Ontario
Quebec
The North
AtlanticCanada
Atlantic Provinces:Québec:Ontario:
Prairies Provinces:British Columbia:
The Territories
MillionMillionMillionMillionMillionMillion
2.47.9
13.36.04,60.1
The Canadian Market
• Low overall density (3.5 per Km Sq.) but:
• 80% of the population is urban
• 50 % concentrated in 4 broad urban areas.• Toronto & area (6.7 million)• Montreal & Area (3.7 million)• Vancouver (2.7 Million)• Calgary – Edmonton Corridor (2.2 Million)
Market Concentration
Source: Statistics Canada – census population 2006
The Canadian Market
Demographic Snapshot - 2010
Area (Km2) 9.98 million 9.83 million
Population 33.7 million 309 million
Population/ Km2 3.4 32
Population < 15 15.7 % 20.1%
Population > 65 15.9 % 13.1 %
Median age 39.5 36.9
Canada USA
Source: Statistics Canada – census population 2006 and US Census Bureau
The Canadian Market
Economic Snapshot (US$) - 2010
GDP $1.35 Trillion $14.7 Trillion
GDP (per Capita) $39,600 $47,400
Exports $406.8 Billion $1.27 Trillion
Per capita $9,430 $3,375
Imports $406.4 Billion $1.9 Trillion
Per capita $11,964 $6,070
SERVICES (% of GDP) 78 % 76.79%
Canada USA
Source: CIA – The World Factbook
The Canadian Market
• Highly dependant on Trade• Two way trade = 60% of economy• Imports 31% of GDP; Exports 29% of GDP
• Knowledge base economy and High Tech Industrial society
• Services 78%of GDP• GDP growth:
• Slow in 2008: 1.3%, down from 2.7% in 2006-07• Decreased 2.9% in 2009 • Increased 5.6% in 2010• Increased 7% in 2011
• $CDN close to parity with $US• Import market open, growing and diversified
Economic Indicators - 2010
Source: Statistics Canada 2010
The Canadian Market
Demographics – Immigration trends
1 in 5 Canadians is an immigrant
Last five years• Immigrant growth (13.6%)• FOUR times higher than
birth rate (11.3% per 1,000population)
Main settlement areas• Toronto, Montreal and
Vancouver 69% of new immigrants
• Calgary, Ottawa-Gatineau, Edmonton, Winnipeg, Hamilton, London 98 99 00 01 02 03 04 05 06 07
Immigration to Canada by Region of Origin1998-2007
Asia & Pacific – 48%
Africa and the Middle East – 21%
Europe – 17%
South & Central America – 11%
United States – 4%
Source: Statistics Canada –data based on census 2006
The CanadianConsumer
The Canadian Consumer
• Well informed and demanding• Price Conscious• Home owner• Double Income families (Although many single
parent homes)• Health and environmentally aware • Increasingly multicultural• Regional differences• Baby boomers dominate the market
• Aging Population – A very important sector
The Canadian Profile
Aging population: by 2031 23%-25% > 65
The Canadian Market
• Ethnic Products • Health• Specialty/Gourmet• Educational Products and Services• Household products
• Construction, repair materials• Décor items, house ware, giftware, furnishings
• Hobbies: gardening, recreation • Holiday/ Seasonal markets
Consumer Trends
The Canadian Market
Aging Population
AgePeople (million)
% of thePopulation
AverageIncome
15-24 9.8 31 $16,36425-44 8.8 28 $36,58645-64 8.7 27 $37,375
65+ 4.8 14 $29,660
One out of every seven Canadians is now a senior citizen
Baby-boomers: Born between 1946 and 1965. In 2011 the first of the large baby-boom cohorts reached the age of 65
Source: Statistics Canada – 2009
The Canadian Market
Top 14 Average Household Expenditure in Canada 2009 (CDN$)
1,2151,2381,5061,7151,896
2,0042,841
3,4283,843
4,2697,262
Personal care
EducationTobacco products
and smokers supplies
Gifts / money
Household furnishings and Equipment
Health Care
Clothing
Household operation
Recreation
Personal insurance/pension contribution
Food
Transportation
Shelter
Personal taxes
9,75314,095
14,399
Source: Statistics Canada 2010
Imports into Canada
Imports into Canada
• Imports per capita almost double the USA level
• Canada imports mostly manufactured products
• A four seasons market
Canada – Import Market
Goods: $414 CDN Billions (31% GDP) – 2010
UP 25% in 2010
Imports in 2010 have recovered registering CDN$ 414 Billions and increased 7% in 2011 (CDN$ 446 billions)
*
Source: Statistics Canada
25%
Between 2010 & 2011, imports increased 7%.
In 2011 Imports: CDN$ 446 $ billions
1,903
1,3071,122
636575 546
459 431 417 408 406
USA GermanyChina Japan France United Kingdom Italy Hong
KongSouth Korea Netherlands Canada
Canadian Imports 2007 -2011
Canada: Canada was the 11th largest import market in the world as of 2010
2007 2008 2009 2010 2011
415
443
374
414446
The Canadian Market
Imports of Selected Goods 2009-2010 (CDN$ billions)
46.5
Miscellaneous consumer
goods
46.2
11.2Apparel andfootwear
Other agriculturaland fishing
products
Fruits andvegetables
2009 2010
Source: Trade on line – Industry Canada 2010
11.211.2
21.1
29.5
8.38.2
The Canadian Market
Imports by Region - 2011
Source: Trade on Line – Industry Canada 2010
North America including Mexico 55%
Middle East 2%
Other Europe 2%Africa 3%Latin America and the
Caribbean 5%
Western Europe 14%
Asia Pacific 21%
Top Imports from Asia - 2011
The Canadian Market
Electrical Machinery & Equipment
Nuclear reactors, boilers
Motors , Vehicles
Furniture
Toys, Games & Sporting Goods
Knitted or Crocheted Clothing & Apparel
Woven Clothing & Articles of Apparel
Articles of Iron or Steel
Optical, medical InstrumentsPlastics and Articles Thereof
Rubber and Articles ThereofFootwear
Articles of Leather
Pearls and precious stones
Organic Chemicals
Industry Canada – Trade data online 2010
The Canadian Market
Top Ten Imports from India - 2011
Organic chemicals
Pearls & precious stones
Articles of Iron or Steel
Woven Clothing and articles of Apparel
Knitted or crocheted clothing and articles of apparel
Heavy machinery
Electrical or electronic machinery & equipment
Pharmaceutical products
Other made up textiles articles
Mineral fuels & mineral oils
Accessing theCanadian Market
Accessing the Canadian Market
• English• Business practices• Border commonality (Vancouver & Seattle)• Same retail chains (Walmart, Sears, Home Depot)• Similar demographics:
• Dominated by “baby boomers”• Important ethnic market
• Both demand:• High-quality products• Good value for money (competitive)• After sales service where applicable
Market Comparison: Canada vs USA SIMILARITIES
Accessing the Canadian Market
• Canada: French is an official language• USA: Spanish is unofficial but important• Customs tariffs• Packaging and labelling• Import documentation• Health requirements• Measurement
• Canada uses the Metric System• USA uses the Imperial System
• In Canada, bigger share of market held by specialty stores
Market Comparison: Canada vs USA DIFFERENCES
Accessing the Canadian Market
• 90% of the imported categories of products enter the market tariff free
• Average tariff= 6%• Sensitive products – more difficult access• Dairy products, textiles, apparel
• In 2010 The Government of Canada announced the elimination of duties on imported raw materials
• Developing countries have access to the General Preferential Tariff (GPT)
• Least developed countries (LDC) have duty free access
Market Access – Commercial System
Accessing the Canadian Market
Free Trade Agreement in force:
Market Access – Trade Agreements
• Colombia (August 2011)• Peru (August 2009)• Chile (1997) • Costa Rica (2002)
• EFTA (2008)• Israel (1997)• NAFTA (1994)
Free Trade Agreements signed:
• Panama, May 14, 2010• Jordan, June 28, 2009
Conclusion of fourth round on FTA negotiations with India in February.Negotiation process: FTA’s with South Korea, Singapore among others.
Accessing the Canadian Market
Controls
• Quotas• List of imports control• Prohibited products• Health regulations• Provincial laws• Norms & Standards• Strict labelling requirements
Accessing the Canadian Market
• Bill of lading/airway bill• Commercial invoice• Fresh fruits / vegetables COS mandatory• Certificate of origin (form A)• Packing list• Inspection certificates• Import permits
Export Documentation
Required documents include:
Exporting to Canada –Handbook & Market Information Paperswww.tfocanada.ca
Accessing the Canadian Market
How to Approach the Market FINDING THE IMPORTER
• Industry associations• Chambers of commerce• TFO Canada• Trade show• Embassy Trade Representatives• Trading companies and Agents• Revisiting previous contacts • Commercial missions• Publicity• Promotion• Banks and Freight forwarding companies
Accessing the Canadian Market
• Open but competitive market• Information is important - do your
homework• Managing relations with importers• Trusting and efficient supplier• Price is not always a key factor• Right distribution channels
Accessing the Market
Key Considerations:
• Strict packaging and labelling regulations
• Labels in English and French
• Different to the USA!
Import Requirements
Accessing the Canadian Market
Identifying the Buyers – Trade Shows
AGRO Food
Giftware and Decoration
Canadian Food and Beverage Showwww.crfa.caToronto, March 4-6, 2012
SIAL CANADAwww.sialcanada.comMontreal ,May 9-11, 2012
Canadian Produce Marketing Associationwww.cpma.caCalgary, April 11-13, 2012
Canada Blooms Flowers www.canadablooms.comToronto, May 16- 25, 2012
Canadian Gift and Tableware Association (CGTA) Gift Show www.cgta.orgToronto, January 29 – February 2, 2012
Sources of InformationStandards Council of
Canada (Normative)www.scc.ca
Canadian Food Inspection Agencywww.inspection.gc.ca
Industry Canada www.ic.gc.ca
Foreign Affairs and International Trade Canadawww.international.gc.ca
Canada Border Services Agency (Aduanas)www.cbsa-asfc.gc.ca
www.tfocanada.ca
Supported with funding from
Thank You!www.tfocanada.ca