Springhill, April 3rd, 2019

Alexandre LanteigneTrade Commissioner Atlantic Region

What is Global Affairs Canada?

Represents Canada around the world through

Canada has 177 missions in 109 countries

Embassies, consulates and trade offices

Participation in multilateral institutions

International treaties and arrangements

What is the TCS?

The Trade Commissioner Service promotes Canadianeconomic interests in the global marketplace

What is the TCS?

The TCS can help you to:

What is the TCS?

Are you a TCS client?

Companies that are part of the Canadian business community

Contribute to Canada's economic growth

Have a demonstrated capacity for internationalization

Have meaningful economics ties to Canada

Funding Programs

CanExportProvides Canadian SMEs with financial assistance to help them developnew markets and opportunities

• Reimburses up to 50% of a projects eligible expense, on a 1:1 basis

• Contributions range between $10k and $50k

• Open to all sectors, with few exceptions

• Open to all markets, with some restrictions

CanExport

Your company reaches $100K in annual revenue

You identify a new market and develop a viable business plan and market entry strategy

Receive up to $50,000 in matched funding to help your company execute on its export growth project

Funding Programs

Eligible expenses include: travels to market, conference fees, adaptation of marketing material, market research, etc.

Going Global Innovation (GGI)

Assists in the formalization of international R&D partnerships

Funding Programs

• Cannot be used to fund R&D directly

• Adapt, validate, or co-develop technology

• Covers up to 75% of eligible expenses (max of $75,000)

Our Export Partners

Free Trade Agreements - In Force

Chile, Colombia, Costa Rica, European Union,Honduras, Israel, Jordan, Korea, Mexico, Panama, Peru, Ukraine, United States, Australia, Brunei Darussalam, Chile, Japan, Malaysia, Mexico, New Zealand, Singapore, Vietnam, Norway, Iceland, Switzerland, Liechtenstein

Canada’s FTAs – Concluded and/or In Force

Canada’s Free Trade Agreements

Free Trade Agreements – ExploratoryDiscussions

ASEAN, Philippines, Thailand, Turkey, China

Simplifiedcustoms and trade procedures

Clearrules of origin

Ambitioustariff eliminationAccess

to government procurement

Enhancedlabour mobility

Benefits of CETA

BelgiumBulgariaCzech RepublicDenmarkGermanyEstoniaIrelandGreeceSpainFranceCroatiaItalyCyprusLatvia

LithuaniaLuxembourgHungaryMaltaNetherlandsAustriaPolandPortugalRomaniaSloveniaSlovakiaFinlandSwedenUnited Kingdom

28 COUNTRIES

510+ MILLION CONSUMERS

1 AGREEMENT

Benefits of CETA

Principal Merchandise Exports from Nova Scotia to the EU (2016)

How CETA Benefits Nova Scotia

The EU imports over a quarter of the world’s fish and seafood…

14Source: National Statistical Agencies

Global Fish and Seafood Imports, 2016

EU27%

U.S.20%Japan

14%

China9%

ROW30%

…and its demand is growing

15

-

5

10

15

20

25

30

35

40

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

$ Bi

llion

s

Source: National Statistical Agencies

EU

US

Japan

China

Fish and Seafood Imports, 2007 - 2016

Canada is present in EU countries where the import demand for fish and seafood is strong

16Source: Eurostat

Top 8 Import Markets for Fish and Seafood in the EU, 2016

- 2 4 6 8

Sweden

Spain

Denmark

U.K.

Netherlands

Italy

Germany

France

$ Billions

Main commercial species:

Salmon Hake

Cod Mackerel

Tuna Pangasius

Tropical Shrimps Pollack

Scallop Herring

Mussel Sardine

Squid

CETA provides Canadian fish and seafood exporters with a great opportunity to expand in the EU market

17

Aquaculture20%

Wild catch80%

■ Canada – 1.8% (15th Largest)

Countries with a preferential trade agreement with the EU

■ Norway – 26.7% / ■ Iceland – 4.7% ■ Faroe Islands – 2.6%

Countries without a preferential trade agreement with the EU

■ China – 7.0% / ■ Morocco – 5.1%■ Ecuador – 4.6% / ■ United States – 4.4% / ■ Vietnam – 4.1% / ■ India – 3.8%■ Argentina – 2.7%

Mix of countries with or without a trade agreement with the EU

■ ROW – 32.5%

Top Suppliers of Fish and Seafood Products to the EU (by percentage of market share), 2016

Source: Eurostat

26.7%

4.7%

2.6%

7.0%

5.1%4.6%4.4%

4.1%3.8%

2.7%Canada

1.8%

32.5%

Comprehensive EU tariff elimination for Canadian fish and seafood products under CETA

18

Since CETA’s entry into force, almost 96% of EU fish and seafood tariff lines has been eliminated, in particular:

The remaining EU fish and seafood tariffs will be phased out over …

• Live lobster (8%)*• Frozen and fresh scallops (8%)*• Frozen shrimp (12%)*• Cooked and peeled shrimp in retail packages (20%)*• Fresh or chilled hake (15%)*• Dried and salted cod (13%)*• Frozen herring (15%)*• Frozen mackerel (20%)*• Fresh or chilled halibut (15%)*• Fresh mussels (8% or 10% depending on species)*• Salmon (2% to 15% depending on species)*• Processed salmon (5.5%)*• Fresh/live crab (7.5%)*• Frozen snow crab (7.5%)*• Dogfish (6%)*• Oysters (9%)*

3 years:• Frozen lobster, whole (6%)*• Frozen lobster, not whole (16%)*• Frozen crab other than snow crab (7.5%)*

5 years:• Processed lobster (20%)*• Prepared/preserved mussels (excl. Mytilus and

Perna) (20%) *7 years:

• Cooked and peeled shrimp in wholesale packages or in airtight containers (20%)*

• Frozen fillets of cod (7.5%)*• Prepared or preserved mussels (Mytilus and Perna)

(20%)*• Prepared or preserved bonito (25%)*• Prepared or preserved crab (8%)*• Processed fillets of trout, including smoked (9%

and 12%)*• Prepared or preserved tunas or skipjack (24%)*

* 2015 tariff

Where is the potential for Canadian fish and seafood exporters with CETA’s entry into force?

19

• Coldwater shrimp• Canned salmon• Lobster• Frozen mackerel,

haddock, cod

• Lobster & lobster products

• Scallops• Oysters• Salmon (wild)

United Kingdom

Belgium

• Live lobster• Lobster tails• Fish eggs• Smoked salmon

France

• Coldwater shrimp• Lobster• Scallops• Snow Crab• Cod• Turbot• Halibut

• Lobster & lobster products

• Mackerel• Scallops• Oysters• Fish oil

Denmark

Netherlands

• Processed shrimp• Processed mussels• Frozen lobster

Germany

Source: Trade Commission Service in Canadian Missions in the EU

The EU is the world’s largest importer of agricultural and agri-food products

EU16.3%

US16.1%

China14.4%

ROW53.1%

Global Agriculture and Agri-food Imports, 2015

Source: National Statistical Agencies

EU demand for imports is growing

Source: Eurostat

-

20

40

60

80

100

120

140

160

180

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

EU Agriculture and Agri-food Imports, 2006 - 2015$ Billions

Exports are spread over multiple markets

- 200 400 600 800

Italy

UK

Netherlands

Belgium

France

Germany

Spain

Ireland

Portugal

Greece

$ Millions

- 10 20 30 40

Netherlands

Germany

UK

Italy

Spain

France

Belgium

Poland

Sweden

Austria

$ Billions

Top 10 Import Destinations for Agricultural and Agri-Food Products in

the EU, 2015

Top 10 Export Destinations for Canadian Agricultural and Agri-Food Products in the

EU, 2015

Source: Eurostat Source: Statistics Canada

CETA provides Canadian agricultural producers with an advantage over certain competitors

Top Suppliers of Agricultural and Agri-food Goods to the EU (by percentage of market share), 2015

Source: Eurostat

11%

11%

5%

5%

4%

3%4%

4%4%2%Canada

2%

45%

■ Canada – 2.0% (17th Largest)

Countries with a preferential trade agreement with the EU

■ Turkey – 4.5% / ■ Switzerland – 4.4% /■ Ukraine – 3.6%

Countries without a preferential trade agreement with the EU

■ Brazil – 11.4% / ■ United States – 10.8% ■ Argentina – 5.0% / ■ China – 4.6% /■ Indonesia – 3.8% / ■ India – 2.7%

Mix of countries with or without a trade agreement with the EU

■ ROW – 44.7%

CETA eliminates tariffs on many Canadian agricultural and agri-food products

24

Almost 94% of EU agricultural lines* are now duty-free:

Many EU lines* will be progressively phased out over …

• Pet Food (948 €/tonne)• Frozen French Fries (14.1%)• Barley (98 €/tonne)• Cranberries (3.2%)• Processed Pulses (7.7%)• Blueberries (3.2% to 9.6%)• Soybean and Canola oil (3.2-9.6%)• Prepared Vegetables (17.6%)• Maple Syrup (8%)• Condiments (10.2%)

7 years:• Durum Wheat (148 €/tonne)• Rye (93 €/tonne)• Beat Sugar (41.9 €/100 kg/net)

5 Year Phase-in Tariff Rate Quota* (TRQ) for…

• Sweet Corn (8,000 tons)• Beef (50,000 tons)• Pork (80,549 tons)• Low/Medium Quality wheat (100,000 tons)

*Not an exhaustive list/Rules of origin may apply

There is significant demand for ICT products in the EU

25Source: National Statistical Agencies

China22%

U.S.16%

Hong Kong15%

EU12%

ROW35%

Global ICT Merchandise Imports, 2015

26Source: Statistics Canada

-

2

4

6

8

10

12

14

16

18

20

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

$ Bi

llion

s

ROW

U.S.

EU

Canada’s ICT Merchandise Exports, 2006 - 2015

There are real opportunities for Canadian firms

- 50 100

Netherlands

Germany

U.K.

France

Czech Republic

Italy

Poland

Hungary

$ Billions - 200 400

U.K.

Germany

Netherlands

France

Italy

Sweden

Belgium

Spain

$ Millions

27

Top 10 Import Markets for ICT Products in the EU, 2015

Top 10 Export Markets for Canadian ICT Products in the EU, 2015

Source: Statistics CanadaSource: Eurostat

Exports are spread over multiple markets

28

Top Suppliers of ICT Products to the EU (by percentage of market share), 2014

■ Canada – 0.5% (16th Largest)

Countries with a preferential trade agreement with the EU

■ South Korea – 3.2%

Countries without a preferential trade agreement with the EU

■ China – 50.5% / ■ U.S. – 9.0% / ■ Vietnam – 6.4% / ■ Malaysia – 5.6% /■ Taiwan – 4.7% / ■ Japan – 4.5% /■ Hong Kong – 2.6% / ■ Thailand – 2.3% ■ Singapore – 2.0%

Mix of countries with or without a trade agreement with the EU

■ ROW – 8.8%Source: Eurostat

3.2%

50.5%

9.0%

6.4%

5.6%

4.7%

4.5%

2.6%2.3%

2.0%

Canada0.5%

8.8%

CETA provides Canadian ICT companies with an advantage over certain competitors

29

EU MarketSoftware

Development & Solutions

CybersecurityCloud

Computing & Data Centres

Mobile Technology Gaming

E-Commerce / E-Government

Solutions

Baltics*

Croatia

France

Germany

Hungary

Italy

Ireland

Netherlands

Poland

Romania

Spain

Sweden

UK

* Consisting of Estonia, Latvia, and Lithuania

EU Market Profile: Opportunities by sub-sector and Member State

30Source: Statistics Canada

0.2 0.20.1

0.30.4 0.4

0.50.4 0.4 0.5

0.5 0.6

0.5

0.7

0.8 0.8

1.1

1.0

0.70.70.1

0.4

0.1

0.0

0.1 0.1

0.1

0.2

0.1 0.1

0.3

0.3

0.2

0.2

0.20.2

0.2

0.2

0.3

0.8

0

0.5

1

1.5

2

2.5

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

$ Bi

llion

s

Software and otherroyalties

Information services

Computer services

Communicationsservices

Canadian Exports of ICT Services to the EU, 2005 - 2014

The EU is also an important market for Canadian ICT services providers

Preferential Tariff Treatment

How to benefit from preferential tariff treatment:1. Look up the applicable Harmonized System code (HS code) using the Tariff Finder tool

2. Familiarize yourself with the CETA Protocol on rules of origin and origin procedures, namely Sections A, B, and C

3. Consider applying for advanced binding ruling on tariff classification and the origin of your product• Optional step, but provides certainty of what designations will be applied by EU customs authorities• To apply: visit the European Commission website www.ec.europa.eu to find

Binding Tariff Information (BTI) and Binding Origin Information (BOI)

4. Complete the Origin Declaration as required under CETA• Declaration text & footnote instructions are available on our website: www.international.gc.ca/CETA

• Can be found at Annex 2 of the CETA Protocol on rules of origin and origin procedures • The declaration must be provided either on an invoice or other commercial document that describes the

good in sufficient detail to enable its identification

5. Keep a copy of the origin declaration and supporting evidence for six years!

6. Ensure your product complies with all other EU requirements, such as conformity assessments and sanitary and phytosanitary measures, as well as any other requirements, such as labelling, that may be applicable at the Member State level.

For more information visit the Canadian website on CETA and consult the guides: Exporting to the EU: A guide for Canadian Business and European Union Government Procurement Guide for Canadian Businesses

Tools and Resources

www.international.gc.ca/CETA

Tools and Resources

MyTCSPersonal link to business intelligence around the world• Step-by-Step Guide to Exporting• Other Guides & Tools• Webinars

Tariff Finder• See what rates apply to your products• Includes markets where Canada has a FTA in place• www.tariffinder.ca

Connect with the TCStradecommissioner.gc.ca

Alexandre LanteigneTrade Commissioner Atlantic Region