Trade with Canada

Information about Trade with Canada

Published on April 16, 2008

Author: Renato

Source: authorstream.com

Content

`:  ` Your Global Business Partner Slide2:  Why Trade with Canada? Canada and the U.S. share the largest unprotected border in the world, 3987 miles and approximately 140 land border crossings. Trade between the United States and Canada totals $1.4 billion per day, constituting the largest bilateral economic relationship in the world. 56% of Canadian imports come from the U.S. 84% of Canadian exports go to the U.S. Canada is the leading export market for 35 of the 50 states. Canada does more business with the Home Depot than it does with the country of Japan. IMPORTS/EXPORTS Why Trade with Canada?:  Why Trade with Canada? No language barriers Common culture with similar lifestyle pursuits Canadians are very familiar with U.S. products and services Highly developed transportation infrastructure Sophisticated telecommunications infrastructure that is integrated with the U.S. Stable, mature financial markets Efficient marketing channels No restrictions on movement of funds in or out of the country Why Trade with Canada? Population slide:  Population slide 80% of Canada’s Population… …live within 100 miles of the U.S. border. Canadian Economy:  Canadian Economy Economy is strong – dollar gained against the U.S. dollar this year due to increasing global demand for crude oil & copper and now sits at almost par National jobless rate is at a three-decade low of 6.1% Over the past 5 years oil has replaced auto parts as the number one commodity traded between the U.S. and Canada. Demand for oil is forecasted to increase by 2.2% over the next seven years. Canada has the second highest proven reserves in the world behind Saudi Arabia. Canadian Economy Slide6:  Canadian Consumers GDP in Canada for 2006 was $1.165 trillion USD, with a real growth rate of 2.8% Consumer spending was the leading contributor to real GDP growth in 2006. Canadians spend 18% of their disposable income on US products and services. Exports account for roughly one-third of Canada’s GDP Per Capita Consumption of US Goods:  Per Capita Consumption of US Goods Canadian Consumers Per Capita Consumption of U.S. Goods Nafta Results:  Nafta Results -January 1, 2008 North America will be joined in Free Trade. -This is the day the last scheduled NAFTA tariffs and quotas will be eliminated in North America. NAFTA Results NAFTA Results:  Since implementation on January 1, 1994 trade has tripled from USD 304 billion to USD 903 billion. Canada’s exports to NAFTA partners increased by 173% U.S. exports to Mexico and Canada grew by 157% Mexican exports to the U.S. grew by 392% NAFTA Results Key Markets of Opportunity:  Key Markets of Opportunity Key Markets of Opportunity Oil/Gas Field Machinery Automotive Parts and Service Defense and Security Aerospace Medical Equipment Education Environment Building Products Franchising ITC/Telecom Agricultural Machinery & Equipment Canada’s Oil and Gas Sector:  Canada is the world’s third largest producer of natural gas, and the seventh largest producer of crude oil. Canada is the largest supplier of oil and gas to the United States. In 2007 the Industry will invest $50 billion, the largest single private sector investor in Canada. Drilling in 2007 will reach 19,500 wells.     Equipment in demand: ·         Upgrader equipment requirements $700 Million per upgrader ·         Pressure Vessels and Heat Exchangers $802 Million per annum ·         Instrumentation and Control Systems $600 Million per annum ·         Pumps and Gas Compressors $1.2 Billion per annum ·         Steel Pipe and Tube $1.1 Billion per annum Interested in expanding or entering the Canadian Oil and Gas Sector? Contact: [email protected] Canada’s Oil and Gas Sector The Global Petroleum Show:  The Global Petroleum Show Canadian Automotive After Market Industry:  The Canadian automotive after market retail value is estimated at over US $ 19.6 billion(2006) - the largest retail sector in Canada The number of vehicles sold in Canada- 1.62 million (2006) The US accounts for 76 % of automotive parts and service equipment imported in Canada Over 19.2 million passenger cars and light trucks are on Canadian roads Aftermarket demand is driven by age of vehicles, kilometers driven, wear and tear- scrappage Best prospects – transmission,power steering ,suspension compressions, muffler/ exhaust,shocks and brakes For more information on the Automotive market… Contact: [email protected] Canadian Automotive After Market Industry Canadian Defense Industry:  Canadian Defense Industry Best prospects: Smart Cards Tanks GPS Systems Air Surveillance/Traffic Systems Tactical UAV Cold/Hot light weight combat clothing and accessories RFID(Radio Frequency Identification Aircraft Arrestor Systems Join Command Systems Military Automated Air Traffic System Operational Mission Simulators Target Acquisition System (JUSTAS) Utility Transport Aircraft Omnibus Night Vision Capability For more information on Canada’s Defense Industry Contact: [email protected] Canada trades $3.5 billion D&S products and technologies with the U.S.annually. U.S. companies account for the largest share of military contract awards. Canada’s Afghanistan mission equipment and services requirements are driving demand for a wide range of products and technologies. Increased frequency of sole source / non-competitive acquisitions. Canadian Security Industry:  Canadian Security Industry Valued at approximately US$2 billion Strong demand for U.S. cutting-edge security technology Key to success = find local (ie provincial/regional) partners/reps Best Prospects in the Canadian Security Industry       Electronic physical access control systems       Biometrics        Smart Cards        IT solutions for personnel screening and verification  To expand or enter the Canadian Security Market Contact: [email protected] Canadian Aerospace Industry:  Canadian Aerospace Industry The Canadian Aerospace Industry ranks 3rd in the world behind US and the E.U. –valued at US $ 18.5 billion in revenues, 85 % of which come from exports Over 400 firms with over 79,000 employees in this industry 12 % of all Canadian R & D spending is in the Aerospace Industry Highly oriented to commercial markets (80%) US ownership – 40% in revenue and 52% in manufacturing Best Prospects- Aircraft and parts,maintenance and repair ,avionics and electro systems, space, simulation and training and system integration For more information in the Aerospace Industry… Contact: [email protected] Canada’s Health Care Market:  Canada’s Health Care Market Total Health care expenditures in Canada exceeded US$125 billion in 2006 This is approximately 10% of Canada's GDP spent on health care. By comparison in the U.S. close to 15% of GDP is spent on health care. About 70 percent of health care costs in Canada are publicly funded. About 30 percent of costs are private insurance or out-of-pocket money Canada's public health care system is a group of socialized provincial and territorial health insurance plans providing coverage to all Canadian citizens. It is publicly funded and administered by each provincial or territorial government within guidelines set by the federal government’s Canada’s Health Act. This interlocking health care system originally called Medicare provides Canadians with preventative care and medical treatments from primary care physicians as well as access to hospitals, dental surgery and additional medical services to the discretion of each province or territory. All Canadian citizens qualify for health coverage regardless of medical history, personal income, or standard of living. Market wise, sales and distribution of medical equipment and products to Canada’s public health care system must take into account that provinces and territories health authorities represent clearly different clients. Best Prospects Imagery CT MRI ANGIO LITHO PET BD GAMMA SPECT CATHLAB Infection Control Systems, Equipment & Products IT PAC - Picture Archiving Communications Systems Canadian Regulations The use of medical devices is strictly regulated in Canada. Health Canada's Therapeutic Products Program (TPP) ensures the safety and effectiveness of medical devices, which are classified into four categories depending on the level of potential risk to the patient. Class I represents devices that pose the least risk while Class IV pose the highest risk OHA Health Achieve 2007 Show:  OHA Health Achieve 2007 Show The U.S. Commercial Service in Canada invites you to explore new Canadian business opportunities with our U.S. Delegation Program at OHA Health Achieve. Join the action! Travel to Canada with your own U.S. Delegation program agenda! For more information regarding Canada’s Health Sector… Contact [email protected] Canadian Education Industry:  Canadian Education Industry Hot Opportunities and Popular Learning Methods Provincial regulations allow US accredited schools to operate in Canada. (*Restrictions apply in each province) Hybrid education (Traditional and online) On-line Learning (via PES firms) and distance education Student exchanges Internships & Co-operative programs Questions on the Canadian Education Market? Contact: [email protected] Canadians are the most educated people on earth, according to OEDC. The universities enterprise represents a $22 billion business. 22% of the student population ages 25-60 is currently enrolled in continuing education and training. With a market of $195 billion, PES firms provide 55.7% of the total e-learning training in Canada. Canadian Environmental Industries:  Environmental Opportunities in Canada        Water treatment: infrastructure upgrading         Watershed management: software, security        Unique, niche market product or service applications         Waste-to-energy (esp. southern Ontario)         Testing, monitoring equipment – esp. to improve efficiencies         Renewable energy growth in all regional markets To expand or enter the Canadian Environmental Market… Contact: [email protected] Mature, $13 billion + market – still room for U.S. specialty cos. Key to success = find local (ie provincial/regional) partners/reps Attend events & shows! GLOBE 08, March, Vancouver Canadian Environmental Industries Canadian Building Products Industry:  Canadian Building Products Industry Trends / Opportunities New Construction – cooling trend from residential to non-residential Renovation – 80% of Canadians renovates vs. sell home Energy savings / Green building / Building automation Market Drivers Positive economic trends – 2.7% GDP growth, low unemployment, consumer confidence Non-residential construction - growth 3.2% in 2007, 2.2% in 2008 Residential construction– 209,500 units in 2007 Renovation – composite indoor / outdoor products Energy efficiency / Conservation / Environmental awareness Market Entry Non-residential sector – short distribution channel – often from manufacturer to end-user Residential marketing channel – wholesaler, distributor and retailer For more information on building products… Contact: [email protected] Canadian Franchise Industry:  Canadian Franchise Industry Second largest franchise industry in the world. $85.4 billion to Canada’s GDP Over 60% of Canadian franchise systems are Master Licensees of U.S. franchise systems. Franchise Trends in Canada ·        Environmental products and services ·         Education services ·         Health and fitness – including home health care, nutrition ·         Landscaping ·         Pets – sales/supplies/services ·         Trucking and logistics Interested in expanding or entering the Canadian Franchise Industry? Contact: [email protected] International Franchise Congress November 4-7, 2007 Montreal, Canada:  International Franchise Congress November 4-7, 2007 Montreal, Canada Unique opportunity for U.S. participants to learn and exchange knowledge on Quebec franchising industry Attendees includes representatives from Quebec franchising industry, franchisors, legal, marketing , international development professionals and major service suppliers Program includes full attendance to congress, networking luncheons and gala , twenty minute presentation to potential master franchisors and franchisees Participation fee: USD$2000 per company for one participant, USD$2500 per company for two participants www.congresfranchisemontreal.com Telecommunications Industry in Canada:  Canadian Telecommunications Industry is extremely sophisticated and fast-paced and has shown consistent growth since 2000. Telecommunications accounted for 42 percent of ICT GDP ($25.9billion USD) in 2005. The majority of R&D is conducted in Ottawa. Canada is among the world leaders in photonics and wireless technologies: WiFi, mesh networks, WiMAX, software defined radio, data-centric mobile devices, IP infrastructure for next generation networks. The wireless sector is one of the fastest growing sectors of this industry with revenues totaling $11 billion US in 2005. U.S. companies will find lucrative opportunities in several of the Canadian telecom equipment sectors, including: wireless, photonics, fiber optics, satellite, multimedia and cable. For more information on the Telecommunication Industy in Canada… Contact: [email protected] Telecommunications Industry in Canada Canada’s Agricultural Machinery Sector:  Canada’s Agricultural Machinery Sector Market Overview: Market size in 2006 exceeded $4 Billion. Canadian farmers import machinery from the U.S. at a rate of $2.4 Billion annually. Canada has the crucial ingredients for leading the world’s agricultural industry, clean environment, temperate climate, plentiful natural resources, a strong economy and high standards for food inspection and regulation. The trend toward diversification of crops and the need to meet worldwide food demand have farmers planting more land, but are cautious when buying equipment Market Opportunities: Expanding row and crop farming is driving the need for smaller technology equipment to serve Canadian farmers diversifying from dry land farming to increase pulse and vegetable crops. Equipment with good potential would be spraying equipment, as well as seeders, planters and transplanters. Trade Promotion Opportunities in Canada’s Agricultural Sector:  Trade Promotion Opportunities in Canada’s Agricultural Sector Agri-trade, Red Deer Alberta, Canada November 7- 10,2007 Canadian International Farm Equipment Show, Toronto, Ontario, Canada, February 5-7, 2008 Western Canada Farm Progress Show, Regina, Saskatchewan, Canada, June 2008 For more information on Canada’s Agricultural Sector… Contact [email protected] Canadian Mineral Mining Industry:  Canadian Mineral Mining Industry In 2006, overall mineral production increased 23% to $31.7B Metallic mineral production reached over $20B (45.4% increase) Nonmetallic mineral production valued at $9.62M (2.7% decrease) Coal production valued at $2.1B (-5.3% decline) Largest metal production: Nickel valued at over $5.8B (75.9% increase) Mineral Production - Top Provinces (metallic / nonmetallic / coal) - Ontario ($8.9B), British Columbia ($5.30B), Quebec ($4.5B) Mineral R&D expenditures totaled over $224.5M     Best prospects: Rock Drilling or Earth Boring Tools; Boring or Sinking Machinery; Trucks, Compression Ignition – Load exceeding 20 tons ; replacement parts for mining equipment. Interested in expanding or entering the Canadian Mining Industry? Contact: [email protected] 2010 Winter Olympic Games:  2010 Winter Olympic Games Opportunities for venue overlay (temporary) products and services such as but not limited to: Fencing Cabling Lighting Portable seating Portable toilets Security Catering Establish sub contracts with Canadian suppliers now. Bid tenders will take place 2008-2009 Contact: [email protected] NAFTA Links:  NAFTA Secretariat - Full NAFTA legal text including Annex 401 – Specific Rules of Origin and Tarriff items for NAFTA www.nafta-sec-alena.org/DefaultSite/index_e.aspx?ArticleID=1 For information on rules, regulations and imposed tariffs within the NAFTA when importing / exporting, please contact the destination country's customs office: http://www.ccra-adrc.gc.ca/customs/general/menu-e.html U.S. Trade Representative: www.ustr.gov/Trade_Agreements/Regional/NAFTA/Section_Index.html NAFTA Links U.S.C.S. Offices in Canada:  U.S.C.S. Offices in Canada CANADA Our Most Important Export Market U.S.C.S. Information & Mission:  U.S.C.S. Information & Mission The U.S. Commercial Service is a Commerce Department agency that helps U.S. companies, particularly small and medium-sized businesses, make sales in international markets. Founded in 1980, the agency’s network includes 107 U.S. Export Assistance Centers throughout the country, and more than 150 offices overseas. The U.S. Commercial Service shall place primary emphasis on the promotion of exports of goods and services from the United States, particularly by small- and medium-sized businesses, and on the protection of United States business interests abroad. About the USCS Our Mission www.buyusa.gov/canada

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