• 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!)

Available at www.tfocanada.ca/mip.php

Market Information Papers – Leather Products

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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

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Part 1: The Canadian Market

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)

Import market and competitive dynamics

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Part 2: Exporting to Canada

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

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Part 3: Canada’s Market Access Initiative

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 alma.farias@tfocanada.ca Amandine Gakima Project Manager - Africa amandine.gakima@tfocanada.ca 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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