Exporting to Canada Entering the Canadian Market … - TFO Canada.pdf• Exporting to Canada •...
Transcript of Exporting to Canada Entering the Canadian Market … - TFO Canada.pdf• Exporting to Canada •...
• Exporting to Canada
• Entering the Canadian Market through the
Market Access Initiative
This presentation is produced with the financial support of the Government of Canada provided through Global Affairs Canada
© Trade Facilitation Office Canada 2016
TFO Canada Statements Statement of Purpose: TFO Canada improves
lives through the crea8on of sustainable trade
partnerships for exporters from developing
countries with Canadian and foreign buyers.
Vision Statement: TFO Canada is a recognized leader at improving lives through facilita8ng sustainable interna8onal trade opportuni8es for small and medium enterprises in developing countries
History • Founded by the Government of Canada in 1980, became an NGO in 1985
• Headquarters in OJawa, regional representa8ves in Quebec, Ontario and Bri8sh Columbia
• Clients: SMEs Exporters and Trade Support Ins8tu8ons (TSIs)
• Funding from: • Global Affairs Canada • Partner governments and other donors • Cost sharing by par8cipants, partners, Canadian corpora8on.
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Canadian Market Access Services
• Web-based Canadian market access services
• Outreach and promotion activities for trade representatives based in Ottawa, Montreal, Toronto and Vancouver
Market Access Support
• Awareness-raising seminars in LDCs on Canada’s duty-free LDC Market Access Initiative
• Trade-related events/shows in Canada
Canadian Market Access Capacity Building Services
• A training programme for new trade representatives based in Canada
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TFO Canada Services
Trade Information Services
• Practical guide to access the Canadian market Exporting to Canada Handbook
• 21 detailed reports on key sectors in the Canadian market
Market Information Papers
• Quarterly updates on the Canadian import market Export to Canada Newsletter
• How to use TFO Canada Online Services and Presentations on Canadian regulation and sectors Webinars
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Online information: www.tfocanada.ca Empower yourself with practical information ü Exporting to Canada readiness
quiz ü Guide to exporting to Canada
ü Product specific market trends, rules and regulations
ü Present your export offers to Canadian buyers
ü Find relevant news, events & webinars
Find out more by creating an account and login in
Once you have registered at www.tfocanada.ca (all web services are free!) then simply “SIGN-IN” using your access codes to get to…..……………
Homepage for SIGNED–IN EXPORTERS
RICH CONTENT IS HERE. Customized
“Dashboard”
Full access to our “Guide to
Exporting” and all 20+ sector-based
Market Information Papers
Complete access to ALL RICH CONTENT
Live Connection to Industry Canada’s Importer Database
Updated List of Trade Events, including ones that you wish to promote through TFO!
Updated “Trade News”
Market Entry Info tailored to your
needs
Quarterly Exporting to Canada e-
newsletter
Here’s what a complete and well filled out profile looks like to importers ……… (Note: this is an actual TFO registered company profile)
Full Contact Details
About this Company
Quick Facts about the
company, their exports, etc.
Product Profile (as many
products as you want to include!)
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Webinars: • Regular webinars for registered members on how to use TFO Canada Online Services • Guest presentations from industry experts on sector-specific trends, regulations, legislation, etc. • Upcoming webinars: May 3, 2016 -‐ Webinar Series on Intellectual Property Jun 16, 2016 -‐ The Retail Buying Process: Sobeys Canada Aug 2, 2016 -‐ Services en ligne de TFO Canada : Présentation de nos nouveaux outils de recherche
Source: Statistics Canada, Census (2011) Source: Globe & Mail (2012) 12
Two major demographic trends 1. Important immigrant population 1 in 5 Canadians are immigrants
2. Aging population 1 in 7 Canadians are aged 65+
Source: Macleans Canada (2014)
Canadian Consumers
Trends/Opportunities: • Ethnic Products (agro-food, halal, cosmetics) • Health (natural products, certified bio/organic) • Personal Care (natural products- market
growing +3% per year, forecast to $2 billion by 2018)
• Fast moving consumer goods (retail) • Niche and specialty (premiumization in health
foods, alcoholic beverages) • Household products (home décor) • Hobbies (sport, gardening, recreational
equipment) • Holiday/Seasonal markets (Christmas,
Halloween, Valentine’s Day)
Source: TFO Canada Market Information Papers 13
Household Spending: • Shelter/Accommodation: 34% • Income taxes: 14% • Food: 8% • Discretionary Spending: 20%
Canada USA Population 35 million 317 million
GDP $54,285 $58,675
Exports $13,485 $5,362
Imports $13,600 $7,570
Values in $CAD estimates (2013) Source: Canadian & US Government Sources, ITC Trade Map
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Market Comparison: Canada and USA per capita
Excluding mineral products (HS2 Codes 26-27 and 71-80) Source: Industry Canada, Trade Data Online (2013)
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75%
16%
5% 3%
1. Coffee (75%)
2. Oil Seeds & Oleaginous Fruits (16%)
3. Plants, Cuttings & Slips (5%)
4. Footwear- Upper Leathers (3%)
5. Buckwheat, Millet & Canary Seed (0.5%)
6. Peppers of the Genus Pipe (0.3%)
7. Cereal Groats, Meal & Pellets (0.2%)
8. Beer (0.2%)
9. Locust Beans, Seaweeds & Sugar Beet/Cane (0.2%)
10. Bread, Pastry, Cakes & Biscuits (0.2%)
Top 10 Ethiopia Exports to Canada by HS4 Product Codes (2013)
Know the Canadian Regulatory Environment
Products Examples of Regulations Government Department Food, plants, animals (terrestrial and aquatic) and related products Food labelling and food recalls Wood packaging International waste and used machinery/equipment
• Fish Inspection Act • Canadian Agricultural Products
Act • Consumer packaging and
Labelling Act (as it relates to food)
• Fertilizer Act
Canadian Food Inspection Agency www.inspection.gc.ca
Clothing labels Marking of precious metals Packaging and labelling of non-food products
• Competition Act • Textile Labelling Act • Consumer Packaging and
Labelling Act
Competition Bureau www.competitionbureau.gc.ca
Consumer goods, drugs, food, medical devices, natural health products, pesticides, pharmaceuticals, radiation-emitting devices, toxic substances, vitamins
• Canadian Consumer Product Safety Act
• Food and Drug Act
Health Canada www.hc-sc.gc.ca
Agricultural products, firearms, goods under trade embargoes, steel, textiles and clothing
• Export and Imports Permit Act Foreign Affairs, Trade and Development Canada www.international.gc.ca
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Understand the Distribution Channels
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Importers/ Distributors
• Most goods are exported to an importer who either sells directly to a retailer or through a broker
• Markups vary by sectors • CID database/Trade shows
Agents/ Brokers
• Most food and specialty items enter the market by way of an agent/ broker who sells directly to retailers
• Markups vary by sectors • Trade shows/ online search/industry association database
Retailers
• Multinational and large national retailers purchase directly from exporters in a number of sectors and via food brokers in others. Smaller retailers usually make purchases directly from exporters and/or importers
• Markups vary by sectors • Trade shows (mostly consumer focused)/ industry association database
Retailers use different sources to find suppliers: • Canadian trade shows (98%) • Catalogues (93%) • Websites (90%) • Sales reps (90%) • LinkedIn (85%)
Source: Retail News Magazine, Market Pulse 2014 (for home décor sector)
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Available on
www.tfocanada.ca or www.ic.gc.ca/cid
Search options § product key
words § HS6 or HS10 § destination city § country of
origin
Generates a list of company names
Find Buyers: Search the Canadian Importers Database
What is the Market Access Initiative?
• Came into force on Jan. 1, 2003
• Main objec8ve to promote economic growth in Least Developed Countries (LDCs)
• Provides duty-‐free and quota-‐free entry into the Canadian market for products exported from Least Developed Countries
• Quota Excep8on: Some agricultural products not included (e.g., poultry, diary and egg products)
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Trade Facts on the Market Access Initiative
• The tariff treatment under this ini8a8ve is called the Least Developed Country Tariff (LDCT) and is governed by the LDCT Regula8ons
• There are 48 eligible countries of which 34 are African na8ons • Products entering Canada are s8ll subject to the Goods and Services Tax (GST) of 5% at the 8me of importa8on Note: Some goods are exempt from GST (e.g., prescrip8on drugs, medical & assis8ve devices, basic groceries, agriculture & fishing goods)
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Countries Eligible for Market Access Initiative
Africa (34) • Angola • Benin • Burkina Faso • Burundi • Cape Verde • Central African
Republic • Chad • Comoros • Democra8c Republic
of Congo • Djibou8 • Eritrea
Others (14) • Afghanistan • Bangladesh • Bhutan • Cambodia • Hai8 • Kiriba8 • Laos • Nepal • Samoa • Solomon Islands • Timor-‐Leste • Tuvalu • Vanuatu • Yemen
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• Ethiopia • Gambia • Guinea • Guinea-Bissau • Lesotho • Liberia • Madagascar • Malawi • Mali • Mauritania • Mozambique • Niger • Rwanda
• Sao Tome and Principe
• Senegal • Sierra Leone • Somalia • South Sudan • Sudan • Tanzania • Togo • Uganda • Zambia
$ 73 $ 77 $ 71 $ 72 $ 71 $ 84
$ 106
$ 174
$ 241
$ 210
$ 251
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Canadian Imports from African Countries Eligible for Market Access Initiative (2003-2013, $CAD millions @ 15.98 ETB/$CAD)
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Over the past 10 years, imports from eligible African
countries have grown by 13% CAGR (compared to 3%
growth for all countries)
Excluding mineral products (HS2 Codes 26-27 and 71-80) Source: Industry Canada, Trade Data Online (2013)
Excludes mineral products, which represent 88% of
total imports (or $1.9 billion)
Next Steps for Your Business 1. Register at www.jocanada.ca/register.php to access online trade informa8on
2. Regularly update your supply offers in your TFO Canada dashboard
3. Download the Expor8ng to Canada Handbook and use as a guide to access the Canadian market
4. Download the Market Informa8on Paper for your sector and use to gather market intelligence
5. Look up the regula8ons and tariff for your product using your HS code
6. Iden8fy poten8al Canadian buyers, exercise due diligence when choosing business partners, and answer all correspondence (email) you receive
7. AJend a Canadian trade show for your sector
8. Create and implement your Market Entry Strategy
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Alma Farias Ontario Regional Representative [email protected] Amandine Gakima Project Manager - Africa [email protected] TFO Canada 130 Slater Street, Suite 1025 T: +1 1613 233 3925 Ottawa, ON Canada T: +1 800 267 9674 K1P 6E2 www.tfocanada.ca
Thank You! Contact us:
@TFOcan linkedin.com/TFOCanada
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