Contracts, Trade Centres 10

Australia Truck Market 11

AgendalPublications 12

INSIDEU.S. Contract Bidding 2

Business Opportunities 3

Trade Fairs .4 & 9

COCOM (Coordinating Commit-tee for Multilateral Strategic Ex-port Controls) that took effect Sep-tember 1, 1991. Experts also willbe available to answer timelyquestions on marketing prospectsin Eastern Europe.The seminars will be of particu-lar interest to marketing and traf-ficmanagers, specialists who needto know about export controlschanges (especially those changesassociated with COCOM),customsbrokers and freight forwarders.New information will also be pro-vided on non-proliferation initia-tives such as dual-use nucleargoods,chemical products, and mis-sile technology - and what thesemay mean for the Canadian ex-porting community.Copies of the "new-look"Export

Control List, which is now moreuser-friendly, will be freely dis-tributed in an effort to increasepublic awareness ofCanada's com-prehensive export controls and toenhance transparency in the over-all system.

Continued on page 2- Export

Focus on:CENTRAL AMERICA

active in export markets - areencouraged to participate and toregister early.Locations and dates are:Ottawa, February 12;Montreal,February 13; Halifax, February14; Toronto, February 17;Win-nipeg, February 18; Calgary,February 20; and Vancouver,February 21.The seminars will focus prima-rily on the major changes (result-ing in further liberalization) to the

"Major New Changes to Cana-da's Export Control System andthe Growing Market for Hi-TechProducts in Eastern Europe" isthe theme of a series of seminarsto be held across Canada begin-ning next month.Attendance at the seminars isexpected to be heavy and inter-ested parties - especially those

Canada's Export Controls,HiTech East Europe Seminars

nowproducing cleaning agents andother items of a parapharma-ceutical nature.In this regard, Canadian compa-nies could explore the possibilities

Continued on page 10- Jordan

Considerable Potential forCanadian Exporters Existsin Jordan's Medical Market

Vol. 10, NO.1

Beds, medical equipment andmedicines are among the itemsJordan's medical sector requires,according to a consultant's reportreceived from the Canadian Em-bassy in Amman.The country, now becoming aregional medical centre, also re-quires advanced medical technol-ogy and services and new hospi-tals and equipment - all creatingconsiderable potential for Cana-dian involvement.Obstetrical beds are also requiredand an urgent requirement callsfor new patient beds to care foremergency cases.In the pharmaceutical field, J or-danians are studying the possibil-ity of producing raw materials fortheir products - clearly a field,suggests the report, where Cana-dian expertise could playa role:The bulk of Jordan's pharma-ceutical output is exported, butthe domestic market still is heav-ily reliant on imported products.Canada's current share of themarket is small, but, says the re-port, the demand for new drugsand the shortage ofpresent ones issevere."This may provide an oppor-tunity for Canadians to becomeinvolved in the pharmaceuticalmarket," particularly since expen-sive medicines used for the treat-ment of cancer, heart problemsand psychiatric illnesses are badlyneeded.Not all new products are drug-related, with local manufacturers

'.CANADExPoRT

Canadian companies have anopportunity to bid on the follow-ing U.S. federal governmentschedule contracts with theGeneral Services Administration(which are similar to Supplyand Services Canada's StandingOffer Program). Solicitation willbe available as noted below; thebid period usually closes 30 daysafter that.

Product: Instruments and Labo-ratory Equipment - electricaland electronic components and testequipment.Expected contract value: $300million.Number of vendors on currentschedule: 25.Next open season solicitationexpected: Aug. '92; Effective:Jan. '93.Contract Period: 1Aug. '91 - 31July'95.Schedule Identification: 66 IIH.Contact: GSA Office and Scien-tific Equipment CommodityCenter, Charita Saculles, tel.:(703) 557-9403.

Product: Special Industry

Machinery -lithographic print-ing plates, solutions and masters;printing, duplicating and book-binding equipment; pulverizing,pulping and shredding machines.Expected contract value:$108,634,000.Number of vendors on schedule:30.Next solicitation expected tobe issued: Open season - Oct.'92.Contract Period: 1 July '91 - 30June '94.Schedule Identification: 36 II.Contact: GSA Office EquipmentCommodity Centre, PhilipCohen, tel.: (703) 557-9292.

Product: Laboratory Instru-ments and Equipment - bloodchemistry analysis systems; di-luter pipettes and/or pipetting sys-tems.Expected contract value: $260 mil-lion.Number of vendors on currentschedule: 30.Next open season solicitationexpected to be issued: Oct. '92.Contract Period: 1 Oct. '90 - 30Sept. '94.Schedule Identification: 66 IIA.Contact: GSA Office and Scien-

tific Equipment CommodityCenter, Brian Jameison, tel.:(703) 557-8626.

Product: Upholstered House-hold Furniture.Expected contract value: $200,000.Number of vendors on currentschedule: 36.Next solicitation expected tobe issued: Open season - Oct.'92.Contract Period: 1May '91 - 30April '96.Contact: GSA Furniture Com-modity Center, Jimmy Reid, tel.:(703) 557-5211.

To find out about U.S. federalcontract opportunities for otherproducts or for more general infor-mation on this procurement proc-ess, contact Judith Bradt, Cana-dian Embassy, Washington, D.C.,tel.: (202) 682-7746; the fax is (202)682-7619.

Export ControlSeminar SeriesContinued from page 1

.-----------1: CANADExPORT ~1----I-S-S-N-0-8-23---33-3-0"""

Editor-in-Chief Telephone: (613) 996-2225Rene-Fran~ois Desamore Fax: (613) 992-5791Editor: Don Wight Circulation: 33,000

Articles may be reprinted with credit to CANADExpORT

CANADExpORT is published twice monthly, in both English and French, by ExternalAffairs and International Trade Canada (EAITC), Trade Communications Division(EPT).CANADExpORT is available in Canada to interested exporters and business orientedpeople. For subscription send your business card. For address changes and cancella-tions, please send your mailing label. Allow four to six weeks.Mail to : CANADExpORT (EPT), External Affairs and International Trade Canada,125 Sussex Drive, Ottawa KIA OG2.

External Affairs and International Trade Canada (EAITC)

2

The one-day seminars, costing$80.00 (including GST, one-on-oneinterviews, buffet luncheon), areorganized by the Export ControlsDivision of External Mfairs andInternational Trade Canada inassociation with the Canadian Ex-porters' Association and the In-ternational Trade Centres acrossCanada (see page listing 10).For more information and an

application form, contact GeorgeRogerson, Canadian Exporters'Association, Ottawa. Tel.: (613)238-8888.

January 15, 1992

148«38CANADExPORT Trade Opportunities

Panamanian Importers

has been issued by KarnatakaPower Corporation Ltd. ofBangalore for the transporta-tion, erection, and commis-sioning of three 50MW gener-ating units, auxiliary and as-sociated equipment and con-trol systems for the Kadra Dampower house. Documents costUS$136. Contact Consulate of

Canada, Bombay,India. Fax: (011-91-22) 287-5514.NEWZEALAND- A companywishes to contactman ufacturers/suppliers of in-dustrial gradepolyethylenesheet, rod andextruded pro-files (in low,highand ultra-highgrade range - notflexible grades).Contact BarryPett, GeneralManager,Addington Engi-neering CompanyLimited, P.O.Box4289, Christ-church, New Zea-land. Fax: 64-3-794-739.SWITZER-LAND - A trad-ing company isseeking large

quantities ofobsolete goods andoverstock. Included are: toys;washing powder (for laundryand dishes); and cosmetics.Contact General StockLots, SwissDivision, 40 Rue de Neuchatel,CH-1400, Yverdon-Les-Bains ,Switzerland. Tel.: 024-21-00-47.Fax:024-21-34-20.Telex:457-2999TXCCH.

glass products) seeks potentialcommercial partners and/orinvestors. Contact Atilla Muller,General Manager, Parad GlassFactory Ltd.,H-3242,ParadsasvarRakoczi ut 46-48.Budapest, Hun-gary. Tel.:(36)36-64-123.Fax: (36)36-64-494.INDIA - A tender, with a bidclosing date of March 5, 1992

product line seeks a cooperative/joint venture arrangement withCanadian firms. Contact KarelJ emelka,PlasticoDomazelice,P.O.Box 1, 751 15 Domazelice uPrerova, Czechoslovakia.Tel.: 42-641-91539. Fax: 42-641-91293.HUNGARY - This country's old-est glass manufacturer (pro-ducing top-quality, hand-made

Trade Commissioners in Costa Rica now have a solid database ofqualified Panamanian importers seeking a var.iety of representationalbusiness from Canada. Some of these are listed below. InterestedCanadian firms should contact these companies directly.• Juan D. Medrano, Presidente de Grupo Cofisa, S.A. importsconcrete additives, plumbing supplies, bathroom andkitchen accessories. Apartado Postal 11055, Panama 6,Panama. Tel.: (011-507)241877. Fax: (011-507)216860.• MarioChamorro, Gerente, Hopsa, imports wall board, whirl-pools, spas, decorative building products, screws andfasteners. Apartado B-2, Panama 9A.Tel.: (011-507)363000.Fax: (011-507) 362875.• Julian Palacio, Gerente de Mercado, Grupo Rodelag S.A., isinterested in water pumps, electric cables, scaffolds, hu-midifiers/fans, locks, security equipment, and lumber.Apartado 4503, Panama 5. Tel.: (011-507) 362333. Fax: (011-507) 363187.• AlfredoEnrique Vargas, Presidente, Inversiones Sagrav, S.A.(with branches in Venezuela, Colombia, Costa Rica, Jamaicaand Puerto Rico) is interested in tiles, building hardware,decorative building products, plumbing supplies, lum-ber, locks, security equipment,insulating materials, ply-wood and veneers. Apartado 9A-1050,Panama 9A.Tel.: (011-507) 330902. Fax: (011-507)335685.

Before entering blto a contractualagreement with J company, readersare advised to verify the bona fides ofthe companies listed here.BANGLADESH - A companywishes to represent Canadianmanufacturers/exporters of in-dustrial and consumer prod-ucts. Contact Anil K. Dey, Man-aging Director, Deybon Trade-ways, 10, Motijheel CommercialArea, G.P.O.BoxNo. 102306Dhaka, Bangla-desh. Fax: (8802)411197. Telex:642460 BHL BJDEYBON.BRITAIN - Asolid companywith good con-tacts in the in-dustry wishes tocontact manu-facturers ofhardware orsoftware asso-ciated with en-vironmentalmoni toringand processcontrol equip-ment. The com-pany's aim is todistributesuch products(both separatelyand built intosystems it hasdesigned) in theUK and Europe. Contact BobWhiley, Marketing Manager,Marconi Environmental Systems,Eletta Avenue, Waterlooville,Hampshire P07 7XS, England.Tel.:011-44-705-264466.Fax:011-44-705-260246.CZECHOSLOVAKIA - Aplas-tic and metal products manu-facturer, wishing to expand its

External Affairs and International Trade Canada (EAITC) January 15, 1992

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CANADExPORT Trade Fairs

u.s. Health Care Products Show

Recruitmel1lt Ul1lderway forUSSR Oil, Gas Trade Fair

Atlantic City - Canadian suppliers of health care products andservices have an opportunity to make inroads into a vast U.S. marketvalued annually in excess of $39 billion (hospital expenditures only).All they need do is participate in the Canadian National Stand at the1992 Middle Atlantic Health Congress (MARC) Trade Show,being held May 20-21 in Atlantic City, New Jersey.The MACH Trade Show enables members of the Middle Atlantic

Health Congress (representing over 700 health care facilities in NewYork, New Jersey, Pennsylvania and Delaware) to meet - for thepurpose ofmaking purchasing decisions - with health care products/services suppliers.For further information on participating in this trade show, contact-

by February 15, 1992- Donald H. Garretson, Jr., Canadian ConsulateGeneral, New York City. Tel.: (212) 768-2400. Fax: (212) 768-2440.

Moscow - Companies meetingeligibility requirements now arebeing recruited to participate inthe External Mfairs and Interna-tional Trade Canada-sponsoredNational Stand at Neftegaz'92, amajor oil and gas trade fair beingheld May 19-27 in Moscow.The Sovietrepublics (particularly

the Russian Federation) presentmany commercial opportunities forthe Canadian energy sector, withCanadian firms already beginningto play an important role in re-building Russia's oil and gas basein Western Siberia, the CaspianBasin, and the Arctic.Western joint ventures, featur-

ing production sharing, obtain re-turns on investment through in-cremental energy exports. Indeed,External Affairs and InternationalTrade Canada's Central and East-ern Europe Trade DevelopmentDivision reports that the energysector is the most active and suc-cessful focus of Canadian firms inthe Russian Federation andKazakhstan.Specific projects exist in en-

hanced oil recovery, oil well reha-bilitation, geological exploration,

pipelines, petrochemicals refin-ing, construction and energyconservation.To be eligible to exhibit in the

National Stand, participants mustmeet Program for Export MarketDevelopment (PEMD) criteria forgovernment-initiated trade fairs.This means they must be an in-

corporated business; be export-ready; be registered or in theprocess of registering with WINExports (External's world infor-mation network); be establishedand operating in Canada for atleast two years and have salesperformance data for those twoyears or have annual sales ex-ceeding $100,000; and have ful-filled reporting requirements ofany previous PEMD assistance.For further information on

Neftegaz'92 or on the eligibilitycriteria for exhibitors, contact -as early as possible - ThereseGervais, Trade Fairs and Missions-Europe Trade Development Divi-sion (RWTF),External Affairs andInternational Trade Canada, 125Sussex Drive, Ottawa KIA OG2.Tel.: (613) 992-7001. Fax: (613)995-6319.

Trade CalendarGeared to Info

Technology Marketin Belgium

To capitalize on the growing in-formation technology (IT) marketin Belgium - a country consid-ered bymany to be the entry pointfor companies wishing to gain afoothold in the Single EuropeanMarket of 1992 - and to promoteCanadian IT know-how and tech-nology, the Canadian Embassy inBrussels will be participating inthree major Belgian trade showsin the IT field.Canadian companies are invited

to participate in:• Software Automation -March 25-26, 1992 - Kortrijk: anannual trade show for advancedsoftware.

• TMAB Exhibition - April 8-9,1992- Brussels: an annual meet-ing of Belgium's telecommunica-tions industry.

• InterEleoc-November 18-25,1992 - Ghent: the major tradeexhibition for automation, compo-nents and test-measuring equip-ment.The Embassy will also organize

a seminar on Canadian Telecom-munications in November of1992.Companies interested in partici-

pating with the Embassy in theseactivities or wishing more infor-mation, may contact Mrs. CelineBoies, Western Europe Trade, In-vestment and TechnologyDivision(RWT), External Affairs and In-ternational Trade Canada, 125Sussex Drive, Ottawa KIA OG2.Tel.: (613) 995-7544.Firms may also contact directly

Freddy Dutoit, Commercial Of-ficer, Canadian Embassy, 2, Av-enue de Tervuren, 1040 BrusselsBelgium. Tel.: (011-32-2) 735-6040. Fax: (011-32-2) 735-3383.

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January 15, 1992

CANADExPORT

Central America

Central America Supplement

Guatemala Development PlansMatch. Canadian Capabilities

By Don Wight, EditorWith expectations of continuedpeace and renewed economicgrowth through the next decadeand beyond, Central America is aregion that Canadian exportersshould consider very seriously.The region is comprised of Gua-temala, EI Salvador, Honduras,Nicaragua, Costa Rica andPanama.Relatively lowwage rates, fairlywell educated populations (30mil-lion) with growing wealth, stateswith increasing capacity to bor-row funds for capital projects andinfrastructure - all lead to theconclusion that there are signifi-cant new opportunities for Cana-dian business in the region.This favourable climate is fur-ther reinforced in that the govern-ments of the area are in the proc-essof reducing tariffs, relaxingimport restrictions and currencycontrols, and promoting foreigninvestment in order to developmore competitive, export-orientedeconomies.Aswell, all except Honduras andPanama (which have applied foraccession) are members of theGeneral Agreement onTariffs andTrade (GATT),with work progress-ing on renewed regional coopera-tion on customs and tariff issues.Furthermore, with the region'sdebt burden subsiding, interna-tional financing institutes (lFIs)are once again beginning to ad-vance capital loans.In the next decade, between $1billion and $2billion willbe loanedto the region by the World Bank(WB), the Inter-American Devel-opment Bank (lADB)and the Cen-tralAmerican Development Bank.In 1990, Canada's exports toCentral America amounted to ap-

proximately $105 million, withCanadian imports totaling about$195 million, giving Canada atrade deficit of$90 million. Tradi-tionally, Canadian exports havebeen raw materials, ranging frompulp, paper, fertilizers, plastics andchemicals to grain, fuel, edible oil,milk powder, dairy products andvegetables.As the countries continue theirupward swing, however, these tra-ditional Canadian exports, while

With an economythat is private-sector driven, Guatemala is acountry in which there are almostno import restrictions.Themarket, as in most ofCentralAmerica, is very competitive and,while product quality is a consid-eration, the better price usuallydictates success in sales.Guatemala imports goods andservices in the order of US$1.7billion annually. Of that amountCanada, in 1990, exported $28.1million, primarily dairy and foodproducts, prepared fish, paper andpulp, fertilizer and plastics.The most populous (9.2 millionpeople)country in Central Americahas development plans that closelymatch Canadian supply capabili-ties: energy, transportation, tel-ecommunications, health andeducation are the prime areas ofconcentration for public invest-ment.Agriculture and industry also aretwo dynamic sectors that offeropportunities for the sale of rawmaterials, technology and con-sulting services.

continuing, are likely to be supple-mented by finished products,newer, more advanced technolo-gies, services and expertise.Herewith, a general breakdownby country, incorporating informa-tion that should be of interest toCanadian exporters already doingbusiness in the region or to thosecontemplating exploring the op-portunities in this market ofgrow-ing interest and importance.

Short-term sales opportunities- for which the trade section ofthe Canadian Embassy can sug-gest local representation andwhich have immediate potential- include computer equipmentand accessories, raw materials forthe plastics and pharmaceuticalindustries, prepared foodstuffs,small agricultural equipment, andpaper specialties.In the petroleum sector, there issignificant potential for geophysi-cal and drilling equipment, pipe-line equipment and technologyandpetroleum-related services.Indeed, in the area of capitalprojects, the Guatemalan govern-ment plans, in 1992, to executethree projects in the petroleumsector: the Pen ate petroleumproducts storage facility on thePacific coast; an LPG storage fa-cility on the Atlantic coast; andthe construction of a nO-km pe-troleum products pipeline.These three projects - ofspecialinterest to Canadian companieswith the required expertise, tech-

Continued on page 6-Guatemala

External Affairs and International Trade Canada (EAITC)

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January 15, 1992

CANADExPORT Central America Supplement

Trade, :B:llvestment ClimateHospitable ill EI Salvador

GuatemalaContinued from page 5

nologyand equipment - are likelyto be declared national prioritiesand proceed to tender as soon asbid documents and specificationsare completedGuatemala, with high unem-ployment, low labour costs, and alow tax burden, has become anattractive destination for foreigninvestment, particularly in themanufacturing sector.The government offers tax in-centives to foreign investments inexport industries.When it comes to marketing, it ismost important for exporters andwould-be exporters to visit themarketplace: to meet with pro-spective representatives, dis-tributors and customers; to studythe competition and, if the pros-pects are promising, to repeat theprocedure. It usually takes fromtwo to three visits before somesuccess is achieved.For further information on com-mercial opportunities, informationand project updates, contact theCommercial Section, CanadianEmbassy, 7AAvenida 11-59,Zona9,EdificioGalerias Espana, 6nivel,Guatemala City, Guatemala. Tel.:(011-502-2) 321411/321418/321426. Fax: (011-502-2) 321419.

EmbassiesCanadian Embassy, ApartadoPostal 10303-1000, San Jose,Costa Rica. Tel.: (011-506) 55-35-22. Fax: (011-506) 23-23-95.Telex: (Destination code 376)2179 (DOMCANCR).Canadian Embassy, P.O. Box400, Guatemala City, Guate-mala. Tel.: (011-502-2) 321411/321413/321426. Fax: (011-502-2) 321419. Telex: (Destinationcode 372) 5206 (5206 CANADAGU).

Canada's export performance inEl Salvador, the smallest and mostdensely populated (5.3million peo-ple) country in Central America,swings widely from year to year

'Patience Paysin Hond.urasHonduras imports about US$lbillion a year, indicating that op-portunities exist - particularly inthe private sector which is begin-ning to reinvest.Canadian exports in 1990totaled$10 million and consisted prima-rily ofpaper products (linerboard,newsprint), foodproducts (proces-sed fish/seafood,milk powder), andindustrial chemicals and plastics.For the patient and persistent,whocan provide delivery and serv-ice superior to the competition,possibilities are numerous.These are in the supply of agri-cultural inputs, including agro-chemicals, fertilizers, breedingstock, a wide variety of industrialraw materials, and electronic/tel-ecommunications apparatus (tokeep the existing infrastructurerunning and to build new export-based industries which the gov-ernment is strongly promotingthrough the establishment of tax-free manufacturing zones).Investment incentives includetax holidays and export taxdrawbacks and are geared toexport-oriented industries.IFI pipeline projects are rela-tively large: in transportation(roads, bridges, ports); watertreatment; electricity generation;and environment. NewIFI projectsare likely to begin in the hydro,transportation, health and educa-tion sectors.

because of fluctuations in supplyand price competitiveness.In 1990, Canadian exports to-talled $15.2 million, with big vol-ume and traditional items beingbulk agricultural commodities,industrial raw materials, news-print, chemicals and plastics.The market now is open to otherCanadian commodities, includingbuilding products, tools, structuralmaterials, telecommunicationsequipment and electronic goods.There are also opportunities inthe export of agricultural inputs,including agrochemicals, geneticmaterial and veterinary supplies.And the national telephone com-pany, Antel, may purchase newlines and switching equipment.IFI pipeline projects are rela-tively small in the short-term butthe Inter-American DevelopmentBank is active in such sectors aselectricity, road building and edu-cation. With an end to civil strife,El Salvador will be in line for in-frastructure projects ofinterest toCanada.Civil and commercial laws makefor an hospi table trade and invest-ment climate and the governmentattitude is open and fair regardingforeignownership and investment,capital, dispute settlement, andrepatriation of capital.The country has an active in-vestment promotion infrastruc-ture providing incentives (tax holi-days, free zones, export tax draw-back) to manufacturers wishing toestablish in the country-particu-larly if the industry will earn ex-port revenues.Normal precautions should betaken in conducting business af-fairs and it is worth noting thatCanada has no bilateral invest-ment protection agreement withEl Salvador.

b

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January 15, 1992

CANADExPORT Central America Supplement

Costa Rica in Privileged PositionNicaragua NeedsAll the Basics,and More

Canada has a goodreputation inNicaragua and, while exportershave to be imaginative when itcomes to transport- there is nodirect shipment from Canada -this market of 4 million peoplecould be interesting and lucrativefor those able to respond to thecountry's needs.Some Canadian companies al-ready have responded, with Cana-dian exports in 1990totalling $10.8million (down from $20.1 millionin 1989), earned primarily fromthe sale of vegetables (potatoes),machine and electrical parts.But goodopportunities also existfor the export of industrial rawmaterials and equipment, con-struction materials, medical sup-plies, and hospital, transport, elec-trical, telecommunications, andagricultural equipment.Indeed, after almost 12 years ofeconomic decline, Nicaragua is inneed ofvirtually every basic prod-uct imaginable.In particular, the priority beinggiven to the agriculture, manufac-turing and construction industrieswill mean a rapidly growing de-mand for machinery, equipmentand materials in these sectors.With a looming energy shortageand the need for major infrastruc-ture upgrading in the transport,water, sewage, environmental andeducational sectors, the futureshould bring internationally-fi-nanced projects of interest to Ca-nadian firms.As well, the government is seek-ing increased technology transferand investment and intends tochange its laws to make foreigninvestment more attractive. (Atpresent, Canada has no foreigninvestment protection agreementwith Nicaragua).

In 1990, Canada exported $25.6million worth of goods to CostaRica, a country with a population

. • Spanish is the official lan-i guage; but English generally is! used to conduct business.

• The Central American mar-ket is highly competitive byvirtue of its close proximity tosouthern United States ports.• Quality is very important,particularly when dealing withwell-to-do Central Americans.

• Canadian exporters mustprovide top-level support - interms of service - to their salesinto this region.• Exporters should be preparedto visit customers at least once,and preferably twice, a year.• Imports normally are paid foron confirmed letters of credit orcash-against-documents basis.• Quotations should always beon a c.i.f. basis and in U.S. dol-lars.• Goods, in most CentralAmerican countries, are subjectto two duties: a specific dutyquoted in U.S. dollars per grosskilogram; plus an ad valoremduty on the c.i.f. value.

• All major Canadian bankshave correspondent banks in theregion's capital cities, so thereusually is little difficulty in ar-ranging the necessary import!, export documentation.. • Trade commissioners at theembassies can provide adviceon a number ofmatters.• Participating in trade fairs(see EXPOCOMER page 9) is agood way to explore potentialmarkets.

ofabout 3million people and whichhas enjoyed political stability formore than 100 years.Canada's primary exports forthat year included pulp, paper,fertilizer, plastics, machine andelectric parts.Large government expenditureonmajor projects will be limited inthe near term, but there are anumber ofinteresting IFI -financedprojects that could interest Cana-dian firms in the transportation,electricity generation, water treat-ment, and environmental fields.Civil and commercial laws pro-vide an hospitable climate for tradeand investment. Foreign owner-ship and investment, commercialdispute settlement, and repatria-tion of capital are on a nationaltreatment basis and the govern-ment attitude is open and fair.Regulations are at times complexand business people are advised totake normal precautions in con-ducting their affairs.A variety of tax incentives areofferedbythe government to inves-tors who will export their prod-ucts. Indeed, there are definiteadvantages to any investment inCosta Rica that has an export com-ponent.The high quality of life, abun-dance ofskilled labour, and a well-developed infrastructure have re-cently put Costa Rica in a privi-leged position as an investmentdestination in Latin America andthe Caribbean. The Costa RicanInvestment Promotion Agency(CINDE) and the Ministry of For-eign Trade (CENPRO) are wellorganized to provide potential in-vestors with essential information.With a free market economy thatis based primarily on private en-terprise, Costa Rica has a broadmiddle class that is firmly on theeconomic tread mill of the globaleconomy.

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January 15, 1992

CANADExPORT Central America Supplement

Sources of Financing forCentral America Projects

Panama, traditionally, has beena goodmarket ($30 million annu-ally, despite U.S. sanctions duringthe Noriega regime) for Canadianproducts. Those exports fell to$15.1 million in 1990, due mainlyto the country's adjusting to demo-cratic institutionalization.Nowindications are that the nextfew years will see new opportuni-ties for Canadian suppliers, par-ticularly of agricultural inputs,foodstuffs, construction materials,telecommunications equipment,pharmaceutical products, autoparts, and consumer goods.Good opportunities exist inPanama for Canadian construc-tion products, as was evidenced atCAPAC, a building and construc-tion materials show held here re-cently that attracted buyers fromall over Central America. Accord-ing to CAPACorganizers, betweenUS$150 million and US$200 mil-lion will be imported annually.Canadian firms, whether sup-

pliers of goods or services to thepublic or private sector, will bebest served by a local representa-tive or agent. The CommercialSection of the Canadian Embassyin Costa Rica now has a solid database of qualified importers seekinga variety of Canadian products.Some of these are listed on page 3.Further favourable signs are thatthe government is under increas-ing pressure fromthe internationalfinancial community to liberalizethe economy, reduce tariffs, andabolish the remaining quotas.These barriers are expected tocomedownover the nextfew years,creating additional opportunitiesfor Canadian exporters.Prior to being advanced loansfrom international financing in-stitutions, Panama has to ration-alize its large debt load.When thisis achieved, the country is expectedto proceed with a number of capi-

tal projects in the transportationand energy fields.In addition to domestic marketopportunities, Panama offers theadvantages ofthe ColonFree Zone

Currently, financing is availableto countries in the region throughsuch International Financial In-stitutions (lFls) as the WorldBank(WB)and the Inter-American De-velopment Bank (IADB).Canadianexporters may also be eligiblesuppliers for projects financedthrough other sources. Smallerfunds, offering limited opportuni-ties - the Commonwealth Devel-opment Corporation, UNIDO's In-dustrial Development Fund, thePrivate Investment Corporation,and the Agricultural and Indus-trial Reactivation Fund - couldbe of marginal interest to someexporters.The Central American Develop-ment Bank (Honduras), in theprocessofbeing reinvigorated, mayalso become a source of future fi-nancing for capital projects inCentral America.While WB and IADB-financedprojects are worth hundreds ofmillions of dollars annually inCentral America, most of the con-tracts are awarded on a highlycompetitive basis.Canadian exporters ofgoods andservices interested in pursuingthese opportunities, but who arenot familiar with IFls, shouldcontact oneofthe followinglistingsto discuss marketing strategiesand to obtain information.In Ottawa, the Financial andBusiness Services Division, Ex-ternal Mfairs and International

- the second-largest free tradearea in the world - which servesas a distribution centre for hun-dreds ofmanufacturers selling intoSouth and Central America.

Trade Canada. Tel.: (613) 995-7251. Fax: (613) 943-1100.In Washington, DC, the Officefor Liaison with International Fi-nancial Institutions at the Cana-dian Embassy. Tel.: (202) 682-1740. Fax: (202) 682-7726.Additional information on thestatus of upcoming projects alsocan be obtained from the tradecommissioners at the CanadianEmbassies in Costa Rica and Gua-temala - see box item page 6).Information on Export Develop-ment Corporation (EDC)financingand insurance for projects andsales to Central America may beobtained from the Export Devel-opment Corporation, 151O'ConnorStreet, Ottawa KIP 5T9.Tel.:(613)598-2500. Fax: (613) 598-2504.Central America is a major re-cipient of development assistancethrough the Canadian Interna-tional Development Agency(CIDA)whoseprograms are valuedin the order of$50millionannually.Countries in the region are alsoeligible for CIDA Inc. projects tosupport pre-feasibility and feasi-bility studies by Canadian busi-nesses wishing to explore jointventure and technology transferinvestments.For information on CIDA-sup-ported programs, contact CIDAheadquarters, 200 Promenade duPortage, Hull, Quebec KIA OG4.Tel.: (613) 997-7905. Fax: (613)953-5024.

External Affairs and International Trade Canada (EAITC)

8

January 15, 1992

CANADExPORT Trade Fairs

ClhtileMining SlhtowNow RecrlllLiting Firms

Trade Sh.ows Slated for Ch.ile

Fairs in Panama, Puerto Rico

Santiago - Canadian miningequipment and services companiesnow are being invited to partici-pate, on a first-come, first-servebasis, at the Canadian pavilion atExpoMin'92, being held May 12-16 in this Chilean capital.The External Mfairs and Inter-

national Trade Canada NationalStand is expected to represent thelargest Canadian mining equip-ment/services presentation everheld outside the country. Would-be participants are advised toregister their interest early.At the 1990 show, 53 Canadian

companies reported sales expecta-tions of $14.6 million. Even moresignificant results are anticipatedat the 1992 event.That's because Chile, the world's

largest cash market for miningequipment, plans, between nowand the year 2000, to invest $4

A number of major trade showsis scheduled to be held in San-tiago, Chile throughout 1992. Ex-ternal Affairs and InternationalTrade Canada, together with theCanadian Embassy in Chile, ex-pects to participate in those eventsmarked with an asterisk.• FIDAE*-March8-15-Inter-national Air and Space Fair.• Feria del Hogar - March 19-April 5 - National Home Prod-ucts Fair.ExpoMin'92* - May 12-16 -Latin America-widemining equip-ment and services show at whichCanada will have a national pavil-ion. (See article above).• SOFTEL'92* - July 13-19 -Latin America-wide informaticsand telecommunications show atwhich Canada willhave a pavilion.• ExpoFrut'92 - August 30-

billion in the industry. Most ofthisinvestment will be used to solveproductivity problems and expandoutput capacity.Specifically, the expenditures

look like this:• $2.07 billion to solveoperationalproblems;• $350 million for environmentalprotection programs;• $1.26 billion for plant expan-sion; and• $320 million for a variety ofother programs.There is an additional market:

this mining show and technical

Panama City/San Juan - Lim-ited space at External Affairs andInternational Trade Canada-spon-sored stands still exists for compa-

September 5 - National FruitExporters' Show.• Edifica - September 29-0cto-ber 3 - Supplies, Equipment andServices Show for the Construc-tion Industry.• FISA'92* - October 28-No-vember 8 - Chile's largest inter-nationalfair, attracting exhibitorsfrom over 50 countries. Canadawill have a national pavilion.• ExpoPesca - December 2-5 -National trade show dedicated tothe fishing and aquaculture in-dustries.For further information on these

events, contact Gail Cockburn,Latin America and CaribbeanTrade Division (LGT), ExternalAffairs and International TradeCanada, 125 Sussex Drive, Ot-tawa KIA OG2. Tel.: (613) 996-5549. Fax: (613) 943-8806.

congress attracts delegations fromevery Latin American country en-gaged in the mining industry.Potential participants are re-

minded that all products are re-quired tohave a Canadian contentof at least 66 213 per cent.To apply to participate in or to

obtain further information onExpoMin'92, contact PaulSchutte, Latin America and Car-ibbean Trade Division (LGT), Ex-ternal Affairs and InternationalTrade Canada, 125 Sussex Drive,Ottawa KIA OG2.Fax: (613) 943-8806.

nies wanting toparticipate in tradeshows in PanamalPuerto Rico.EXPOCOMER'92, being held

March 11-16in Panama City, willbe of particular interest to Cana-dian foodproducts companies, con-struction and hardware firms,manufacturers of automotive ac-cessories, informatics and officeproducts supplies, as well as tel-ecommunications, medical andhealthcare companies.The 20th Annual Food and

Foodservices EquipmentTrade Show, being held April 25-27, 1992 in San Juan, is gearedprimarily to the Puerto Ricanmarket (where Canadian foodex-ports average around $525 mil-lion), but also attracts trades peo-ple fromnearby Caribbean islands.The show provides participants

the opportunity to meet potentialbuyers, agents and distributorsthroughout the region.Contact Jon Dundon, Latin

America and Caribbean TradeDivision (LGT), External Mfairsand International Trade Canada,125 Sussex Drive, Ottawa KIAOG2. Tel.: (613) 996-6921. Fax:(613) 943-8806.

External Affairs and International Trade Canada (EAITC)

9

January 15, 1992

CANADExPORT Contracts Awarded

Jordan MedicalContinued from page 1

Liftking Inc., Woodbridge, hasbeen awarded a CCCUS$1.5 mil-lion contract amendment tomanu-

International Trade CentresExternal Affairs and International

Trade Canada and Industry, Science andTechnology Canada have established In-ternational Trade Centres across Canadawhich provide a wide range of services tocompanies seeking export counselling.

Hermes Electronics Ltd.,Dartmouth, has been awarded aUS$5.2 million Canadian Com-mercial Corporation (CCC) con-tract to supply sonobuoys to theU.S. Navy.

Bristol Aerospace Limited,Winnipeg, has been awarded threeCCC contracts totalling US$2.6million for the manufacture andsupply to the U.S. Air Force ofhorizontal stabilizers and othercomponents for use on F-5 air-craft.

International Submarine Sa.faris (Canada) Ltd., PortCoquitlam, will supply a Jakarta,Indonesia firm with a 36-(tourist)passenger submarine. EDCfinanc-ing of up to US$3.4 million is sup-porting the sale.

Canadian Marconi Company,Montreal, under a US$3 millionCCC contract, will manufactureand supply specialized test equip-ment to the U.S. Army AviationSystems Command.

facture and supply rough terrainfork lift trucks to the U.S. AirForce.

Canadair Group of Bombar-dier Inc., Montreal, has sold oneChallenger 601-3A jet aircraft toTurkey. The transaction wasbacked by an Export DevelopmentCorporation (EDC)loan ofUS$15.8million.

Computing Devices Company,Ottawa, under a US$1.6 millionCCC contract and against a BasicOrdering Agreement, will provideto the U.S. Army technical sup-port services for the design, devel-opment, fabrication and testing ofsystems previously supplied byComputing Devices.

West Heights Manufacturing,Kitchener, will manufacture andsupply the U.S. Air Force withtruck assemblies for aircraft mainlanding gear. The CCCcontract isworth US$1.1 million.

Royal Machine ManufacturingLtd.,Woodbridge, will provide anextrusion line to a firm in Mexico.EDC will provide financing of upto US$501,500, through an exist-ing line of credit with the BancoNacional de Comercio Exterior,S.N.C.

ManitobaTel.: (204) 983-8036Fax: (204) 983-2187Saskatchewan(Saskatoon)Tel.: (306) 975-5315Fax: (306) 975-5334Saskatchewan(Regina)Tel.: (306) 780-5020Fax: (306) 780-6679Alberta (Edmonton)Tel.: (403) 495-2944Fax: (403) 495-4507Alberta (Calgary)Tel.: (403) 292-6660Fax: (403) 292-4578British ColumbiaTel.: (604) 666-0434Fax: (604) 666-8330

NewfoundlandTel.: (709) 772-5511Fax: (709) 772-2373Prince EdwardIslandTel.: (902) 566-7400Fax: (902) 566-7450Nova ScotiaTel.: (902) 426-7540Fax: (902) 426-2624New BrunswickTel.: (506) 851-6452Fax: (506) 851-6429QuebecTel.: (514) 283-8185Fax: (514) 283-8794OntarioTel.: (416) 973-5053Fax: (416) 973-8161

Canada-China Geoscience,Markham, has been awarded aCdn$286,000 China National CoalCorporation contract to supplygeotechnical and data processingequipment and geophysical instru-ments and training to coal miningconcerns in Inner Mongolia and aresearch institute in Beijing.

ofenteringjoint venture or licens-ing agreements, with a view toexporting products from Jordan.All pharmaceutical imports re-

quire an import license, normallygranted without undue difficulty.As well, only registered productsmay be imported and they can besold only when registered by theMinistry of Health.Regarding this, the report notes:

"The Jordanian authorities at-tempt to use registration delays asa means of deterring all but themost serious applicants from en-tering the market."Being a leading manufacturer of

a wide variety ofmedical devices,Canada - if the Jordanians foundthe quality justified the higherprice - could find a market in thissector.The best bets here, tb.e report

says, are devices that relate toanesthesiology and pulmonarymedicine; cardiovascular; dental;ear/nose/throat; and gastroenter-ology and urology.The report says as well that de-

vices also are required for use inhaematology; immunology; neu-rology; obstetrics and gynecology;ophthalmology; orthopedics; radi-ology; surgery; and toxicology.The post may have limited re-

sources, under the Canada FundInc. (CFI), to assist Canadian firmsin exploring some of these poten-tial opportunities.For further information on

Jordan's medical sector, or onhow the Canada Fund Inc. mayapply, contact:Commercial Division, CanadianEmbassy, P.O. Box 815403, Am-man, Jordan. Tel.: (011-962-6)666-124/5/6. Fax: (011-962-6) 689-227.Telex: (Destination code 0493)23080 (23080 CANADJO).

EXlernal Affairs and International Trade Canada (EAITC) January IS, 1992

10

CANADExPORT Trade News

Australia Market Strong for Truck PartsThe time could hardly be more

appropriate for Canadian truckparts exporters to explore thismarket in Australia. Virtually alltrends indicate strong growth in

Argentina ModifiesTariffs on ImportsRecent deregulation of the Ar-

gentine economy has resulted, ef-fective November 1, 1991, in themodification of a number of im-port tariffs:• Duties of22 per cent (unchanged)cover such products that have highadded value (capital goods, ap-parel, acrylic products, seamlesstubes).• Duties of 13per cent (previously11 per cent) pertain to intermedi-ate products (steel, iron); packag-ing (paper, tinfoil); petrochemicalmaterials (polyethylene, PVC);andprocessed foodstuffs (oil,milk prod-ucts, flour, canned goods).• Duties of5 cent (previously 0percent) apply to raw materials notfound in Argentina and raw mate-rials with a positive export bal-ance beef, cereals).• Items with 0 per cent duty in-clude capital goods not manufac-tured in Argentina, books and fineart.All imports face the following

additional charges: 3 per cent forstatistics gathering; 16 per centvalue added tax (VAT);if productsare shipped by sea, an extra 12percent is paid to the Merchant Ma-rine fund.For further information on these

and possible future import tariffmodifications, contact GailCockburn, Latin America and Car-ibbean Trade Division (LGT), Ex-ternal Affairs and InternationalTrade Canada, 125 Sussex Drive,Ottawa KIA OG2.Tel.: (613) 996-5549. Fax: (613) 943-8806.

this sector which is valued atapproximately A$750 millionannually.Those are the basic findings of

A Survey of the Market inAustralia for Imported, Non-OEM Medium and HeavyTruck Parts (including trailerparts, both new and remanu-factured), a September, 1991studyprepared by the Canadian Consu-late in Melbourne.

Strawberry Fields...Forever ...

AQuebec firm that participatedin aMiddle East agricultural showin November 1989 has literallysown the seeds of its own success.As a result of contacts made at

the show, Pappenier a Masse ofSt.Cesaire has completed the secondshipment of 750,000 strawberryseedlings to Mirak AgriculturalServices in Sharjah, United ArabEmirates.Fittingly, the sales should be self-

perpetuating, as the strawberrybushes have to be replaced annu-ally because of the summer heat.In what has been termed "opera-

tion strawberry", the seedlingswere shipped via Air Canada fromQuebec to London's Heathrow Air-port; transferred by truck toGatwick Airport; and flown toDubai by Emirates Air.Careful temperature, humidity

control and timing were critical.The seedlings were planted in theUnited Arab Emirates less than48 hours after being taken fromQuebec soil.The plants will be harvested

months earlier than usual - be-cause of the high quality of theplants and their smooth and rapidtransportation.

Market GrowthOther specific findings (from a

survey of the volume of importedparts between 1985 and 1989)which point to continued growth- and increased opportunities forCanadian exporters - include:• The market for imported en-gines and engine parts (blocks,pistons,crankshafts, etc.) grewfrom $121 million to $250 million.• The market for imported trans-missions and transmission parts(gear boxes, axle shafts, pumps,etc.) grew from $36.5 million to$70 million.• The market for imported differ-entials and differential parts (lubepumps, helical gears, crownwheels, etc.) grew from $52.5 mil-lion to $100 million.• The market for imported sus-pension and steering systems andparts (metal and rubber springs,air bags, king pins and sets, etc.)grew from $28.5 million to $50million.• The market for imported brakesand brake parts (disc brake pads,boosters, trailer control systems,etc.) grew from $78.5 million to$150 million.• The market for other importedparts (filters, mirrors, safety equip-ment, etc.) grew from $74.5 mil-lion to $130 million.In addition to providing infor-

mation on taxes, tariffs and distri-bution systems, the study listsimporters, trailer manufacturers,commercial vehicle organizations,trade shows, publications, andCanadian trade offices in Aus-tralia.Copies of the study may be ob-

tained from the Asia Pacific SouthTrade Division (PST), ExternalAffairs and International TradeCanada, 125Sussex Drive, OttawaKIAOG2.Tel.: (613)996-0917.Fax:(613) 996-4309.

External Affairs and International Trade Canada (EAITC)

11

January 15, 1992

CANADExPORT Publications/Business Agenda

PUBLICATIQNS

I

Business AgendaI I

Market Study of the SoftwareIndustry in Chile (#113LA),com-missioned by the Canadian Em-bassy in Santiago, indicates thatwhile the computer hardware sec-tor is well advanced, there is ashortage ofleading-edge software,thus creating market opportuni-ties for Canadian software export-ers.The specificareas where the soft-ware demand is greatest are in:• the mining sector (dedicatedsoftware for control systems,operations planning, reserve cal-culations, and engineering simu-lations and processes);• geographic information systems(remote surveying, geology,forest exploitation control, watertable management, fisheries, andagro-industrial investigation);and• financial, industrial and govern-ment institutions (dedicated andcustom-designed data base, andoperation planning and program-ming software);Copies of the study, which also

Numbersto Note

The new facsimile number forthe Canadian Commercial Officein Karachi, Pakistan is (011-92-21) 551175.The Canadian Embassy in

suggests that software exporterscould develop local partnershipswith the aim of supplying third-country Latin American markets,are available through InfoExport- see box below.

The Taiwan Business Primer,an easy-to-use cross-referencedinformation source on doing busi-ness in Taiwan, discusses, amongother subjects, preparations forentering the Taiwanese market,import classifications, tariff and

Toronto - January 21 - Ex-porting to the U.S.-The Challeng-ing Market is the theme of a half-day seminar geared to small-to-medium-size companies interestedin exploring or expanding into U.S.markets. To register ($50.00) orfor further information, contactOntario Ministry of Industry,Trade and Technology, Toronto.

Buenos Aires, Argentina has relo-cated to 2828 Tagle Street, 1425Buenos Aires, Argentina. Tel.:(011-54-1)805-3032. Fax: (011-54-1) 806-1209.The new facsimile number forthe Canadian Embassy in Bucha-rest, Romania is (011-40-0) 12-03-66.

non-tariff barriers, brand namesand packaging, distribution net-works, special contractual clauses,licensing agreements, and directinvestment. Costing $20.00 plus$5.00 postage and handling (GSTincluded), the primer, printedseparately in English and French,is available through its publish-ers, The Asia Pacific Foundationof Canada, 1253 McGill Avenue,Suite 195,Montreal, Quebec H3B2Y5. Tel.: (514) 871-9481. Fax:(514) 871-1269.

Tel.: (416) 491-7680.

Ottawa - February 12; Mon-treal - February 13;Halifax -February 14; Toronto - Febru-ary 17;Winnipeg-February 18;Calgary - February 20;Vancou-ver - February 21- Major NewChanges to Canada's Export Con-trol System and the GrowingMar-ket for Hi-Tech Products in East-ern Europe Seminars. ContactGeorge Rogerson, Canadian Ex-porters' Association, Ottawa. Tel.:(613) 238-8888. (See article p. 1).

Ottawa - February 20 - Inter-national offset policies, manage-ment and government industrialregional benefits are subjects to bediscussed at this Forum for Indus-trial Participation meeting. Con-tact BobBrown,Ottawa. Tel.: (613)733-0704. Fax: (613) 741-6013.

Info Export is a counselling and reference service for Canadian exporters.Canadian companies interested in exporting are invited to contact Info Export(toll-free) at 1-800-267-8376(Ottawa area: 993-6435).To order EAITC publications, fax (613-996-9709) your requests on companyletterhead. Include the publication code (in brackets).

Clnal!aPosICorporalion/Soc!6tllclnadtanMl!npos!nPostage paid Port pay~

MAIL~POSTE

Return requestedif undeliverable:CANADExpORT (BPT)125 Sussex DriveOttawa, OntoKIAOG2 BLK NBRE

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