84 Notre Dame W | Suite 100M ontréal, QC H2Y 1S6

T +1 (514) 907-2350F +1 (514)666-9872

w w w.cidepiqc.com

New Castle Count yChamb er of CommerceS eptemb er 7th, 2016

Presentation

Business O pp or tunit ies in Canada

Prepared by : Ludovic O r tuno

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• 35,957,616 (population) • 2nd largest country in the world • 10 provinces, 3 territories • ~9 K km border with the U.S (largest in the world) • 90% of Canadians within 100 mi. of U.S. • 2 official languages: English/French • $1.8 T (GDP) (10th economy in the world) • $612 B ( Total Debt) • 1.0% (Inflation) • 7.0% (unemployment) • 0.38% (economic growth) • Soundest Banking System (In 2012, for the fifth year in a row, the World Economic Forum ranked Canadian

banks as the soundest in the world)

Market Overview – Canada at a Glance

CIDEP – Delaware | Canada - Presentation - September 2016

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Canada - US

• $ 337 B. (U.S. exports to Canada) $ 662.7 B (Bilateral Trade)

• Up 32% since 2005

• 180% growth since 1993 (NAFTA)

• Average of $1.9 B per day / $1.6 M every minutes

Canada- Delaware Trade (2015)

• $2.4 B (Bilateral Trade)

• $626 M (Delaware Exports to Canada)

• Canada is one of Delaware’s largest export market

• % foreign-bound goods sold to Canada: 12%

• 27,000 jobs in Delaware depend on CDN/DE Trade

• 70,000 Canadian visits to Delaware contribute over $16 M in tourism

Market Overview

CIDEP – Delaware | Canada - Presentation - September 2016

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• Fruits & nuts: $179 million

• Medicine, in dosage: $147 million

• Optical, medical & precision instruments: $46 million

• Plastics & plastic articles: $35 million

• Heating, cooling & refrigeration equipment: $17 million

• Agribusiness: more than 50% of total export markets

• Crude petroleum: $1.4 billion

• Aircraft: $138 million

• Plastics & plastic articles: $62 million

• Fuel oil: $48 million

• Wood Pulp: $12 million

Market Overview Delaware’s leading exports to Canada

Market Overview Delaware’s leading imports from Canada

CIDEP – Delaware | Canada - Presentation - September 2016

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Business Opportunities: Automotive

CIDEP – Delaware | Canada - Presentation - September 2016

Major Motor Vehicle Assembly Plants in Canada • General Motors of Canada Ltd., Oshawa, ON • Chrysler Canada Inc., Brampton, ON • Chrysler Canada Inc., Windsor, ON • Ford Of Canada Ltd., Oakville, ON • Toyota Canada, Woodstock, ON • Toyota Canada, Cambridge, ON • Honda Canada Manufacturing Inc., Alliston, ON • CAMI Automotive Inc., ON Market Segment with Growth/Export Potential - Motor Vehicle Electric and Electronic Equipment: $2.9 billion (up 17% from 2010) - Motor Vehicle Body and Trailer: $2.8 billion (up 13 percent from 2010) - Motor Vehicle Steering and Suspension Components: $2.4 billion (up 8% from 2010)

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Business Opportunities: Aerospace

Major Aerospace Companies in Canada • Bombardier Aerospace, QC • Pratt & Whitney Canada • CAE Inc. • Bell Helicopter Textron • Rolls-Royce Canada • L3 Communications • Héroux-Devtek • Esterline CMC Electronics • GE Canada Aviation • MDA Space • Messier-Dowty • Sonaca NMF • Mecachrome • Lockheed Martin • Thales (Aerospace Division) Market Segment with Growth/Export Potential • Civil and military aircraft, and aircraft parts • Aircraft engines and engine parts • Avionics and instrumentation • Aircraft maintenance, repair and overhaul • Air defense and combat technology • Air surveillance systems • Simulation software

CIDEP – Delaware | Canada - Presentation - September 2016

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Business Opportunities: ICT

CIDEP – Delaware | Canada - Presentation - September 2016

Best Prospects: • Near field communications & mobile commerce including mobile games and

applications • Web TV • Enterprise: Cloud Computing: Software as a Service (SaaS), Infrastructure as a

Service (IaaS) and Platform as a Service (PaaS) • Green IT • IT Security products, especially as they pertain to fighting CyberCrime • HealthIT companies • E-Publications

This market is highly dependent on Imports and represent $155B.

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Business Opportunities: Clean Tech

Best Prospects: • New Tertiary Membrane Treatment Plants • Chlorine Tanks • Upgrades to Secondary and Tertiary Treatment Facilities • UV Disinfection systems

Business Opportunities: Food & Ag

Best Prospects: • Snack foods • Processed fruits and vegetables • Red meats / Processed Meats: sausages, dried meats, steaks • Gourmet Food: rubs, spices, marinades, specialty cheese (!), chocolate &

sweets • Organic, natural foods and gluten free products – market is growing at 20%

per year

CIDEP – Delaware | Canada - Presentation - September 2016

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Business Opportunities: Medical & Health

Best Prospects: • Technologies that provide cost saving solutions • Products and services geared towards seniors The United States accounts for half of all imports of medical products, devices & equipment into Canada.

Business Opportunities: Other Sectors

• Building Products & Technologies: innovative & energy efficient • Safety and Security Technologies • Canada’s Defense Industry • Canadian retail market: in expansion mode

CIDEP – Delaware | Canada - Presentation - September 2016

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National Standard System (Development, Promotion &

Implementation)

Standard Council of Canada

(Accredits Testing & Certification org.)

CSA Canadian Std Associations

ULC Underwriters

Laboratories of Canada

CGSB (Canadian General Standards Board)

BNQ (Bureau de la

Normalisation du Québec)

9

Standards

CIDEP – Delaware | Canada - Presentation - September 2016

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Develop an export strategy and action plan: • Research • Market compliance • Carry out export strategy • Visit the market

MARKETING PLAN Market Entry

CIDEP – Delaware | Canada - Presentation - September 2016

Costs to Take Into Account • Freight & insurance • Inventory handling costs • Customs clearance/duties • Inco terms; buyer/seller responsibility • Goods & Service Tax (GST 13%) – (QST 9.5%) • Distributor mark ups • Rep/brokerage fees (5-10%)

Costs

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• Weakening of the Canadian Dollar • Increased cost and disruption to commerce from added border

security. • Canada’s EU Free Trade agreement and the increased trade momentum with

China. • Dealing in the French Canadian marketplace (language barrier) • Import Regulations & Certifications • Labeling & Marking:

• English and French Language • Labeling Consumer goods: o Product Identity Declaration o Net Quantity Declaration o Dealer's Name and Principal Place of Business o “Made in USA” o “Environmentally-friendly” claims

MARKETING PLAN Challenges

CIDEP – Delaware | Canada - Presentation - September 2016

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• Weakening of the Canadian Dollar • Increased cost and disruption to commerce from added border

security. • Canada’s EU Free Trade agreement and the increased trade momentum with

China. • Dealing in the French Canadian marketplace (language barrier) • Import Regulations & Certifications • Labeling & Marking:

• English and French Language • Labeling Consumer goods: o Product Identity Declaration o Net Quantity Declaration o Dealer's Name and Principal Place of Business o “Made in USA” o “Environmentally-friendly” claims

MARKETING PLAN Our Services

CIDEP – Delaware | Canada - Presentation - September 2016

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CONTACT

Montreal Office Address

84 Notre Dame W. Suite 100 MONTREAL (QC) H2Y 1S6

Toronto Office Address

2, Bloor Street West Suite 741 TORONTO (ON) M4W 3R1

Tel.: +1 (514) 907-2354 Fax: +1 (514) 666-9872

Tel.: +1 (514) 907-2354 Fax: +1 (514) 666-9872

CIDEP – Delaware | Canada - Presentation - September 2016