Embed Size (px)
Citation preview
Exporting to CanadaOttawa, Canada
16 September 2016
Canada-Indonesia Trade and Private Sector Assistance Project (TPSA)
TFO Canada
Mandate History
• Founded by the Government of Canada in 1980, became an NGO in 1985
• Headquarters in Ottawa, regional representatives in Quebec, Ontario and British Columbia
• Clients: SMEs Exporters and Trade Support Institutions (TSIs)
• Funding from:• Department of Foreign Affairs, Trade
and Development
• Partner governments and other donors
• Cost sharing by participants, partners, Canadian corporation.
2
Statement of Purpose
TFO Canada improves lives through the creation 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 facilitating sustainable international trade opportunities for small and medium enterprises in developing countries
Our Services
• Comprehensive online trade information service
• Guide on Exporting to Canada
• Market Information Papers
• Webinars, Newsletter, Trade News and Events
Information
• Trade capacity building projects with TSI partners
• Market familiarization tours in Canada’s major cities
• Market Entry Studies with Canadian MBA programsAdvice
• Promotion of product offers to Canadian importers through our Foreign Supplier Database
• In-bound and out-bound trade missions
• Trade Shows and B2B meetings with Canadian buyers
Contact
3
Canada: Consumers & Market Trends
Overview
5
Canadian Geography and Governance
• Second largest country in the
world by land mass
• Six geographic regions divided
into 10 provinces and 3
territories
• 3 levels of government:
federal, provincial/territorial,
municipal
• Type of government: a parliamentary democracy, a federation, and a constitutional monarchy
British
Columbia
The Prairies
Ontario
Québec
The North
Atlantic
Canada
Source: Statistics Canada, Population estimates and projections (2013)
6
The Canadian Population
Small, concentrated population:
• Total population: 35.7 million (October 2014 estimate)
• 10% size of U.S. population
• 62% of Canadians live in Ontario and Quebec
• 80% of Canadians live within 160 km of the U.S. border
• 81% of the population is urban
• 1 in 3 Canadians lives in one of Canada’s three largest cities (Toronto, Montreal, and Vancouver)
British
Columbia
The Prairies
Ontario Québec
The North
Atlantic
Canada
Source: Statistics Canada, Population estimates and projections (2013)
7
Atlantic Provinces:
Québec:
Ontario:
Prairie Provinces:
British Columbia:
The Territories:
Million
Million
Million
Million
Million
Million
2.3
8.1
13.5
5.3
4.5
0.1
• 1 in 7 Canadians are senior
citizens (age 65+)
• Baby boomers (born 1946 to 1965)
dominate the Canadian market
Source: Statistics Canada, Census (2011) Source: Globe & Mail (2012)
8
Aging Population
• 1 in 5 Canadians are immigrants
(highest % in G8 countries)
• 1.6 million new immigrants settled in
Canada from 2006 to 2011
• 62% of new immigrants settle in
Toronto, Montreal and Vancouver
Source: Statistics Canada, Census (2011), National Household Survey (2011)9
Immigrant Population4%
Caribbean5%
Other 6%Latin
America
9%Middle East
10%Europe
15%Africa
51%Asia
New Immigrants to Canadaby Region in 2013
Source: Citizenship and Immigration Canada, Permanent
residents by source country (2013)
Source: TFO Canada, Statistics Canada, CANSIM Table 203-0021, Survey of
household spending, 2013.
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 10
Household Spending:
• Shelter/Accommodation: 34%
• Income taxes: 14%
• Food: 8%
• Discretionary Spending: 20%
Increasingly multicultural
Tech-savvy, purchase over internet/mobile
Regional differences
Health, socially and environmentally
aware
Well informed but demanding
Affluent but price conscious
Home owner
Double income (although many
single parent homes)
11
Canadian Consumers
Source: TFO Canada Market Information Papers
Importance of Corporate Social Responsibility (CSR)/Environmental considerations
Helps make your business more competitive,
productive and innovative, through:
• Improved reputation and branding
• Enhanced operational efficiency, risk
management, and access to investment & capital
• Stronger relationships with employees and
communities
CSR is important for SMEs when doing business
with a growing number of Canadian businesses
Know the regulations and legislative context related
to environmental considerations
Source: Industry Canada12
Elements of CSR (some examples)
• No child labor
• Living wage
• Working hours, holidays
• Overtime pay
• Healthy and safe environment (e.g. fire
escape, medical facilities)
• Community involvement
• Gender sensitivity
• Social issues
• Child-care facilities
• Environment management
Why Support Women Entrepreneurs?
• Women own 1% of the world’s wealth, have a 10% share in global income and occupy 14% of leadership positions in the private and public sector
• Of 1.4 billion people living on less than $1 a day, 70% are women and girls
• Women do 2/3 of the world’s work, but earn only 10% of the income
• Women invest 90% of their income into their families and communities
Source: WTO/UNCTAD/UNGEI
14
Ready to Export!
An IETC Coaching Program for Business Women
(Indonesia)
Supporting Women in Trade
15
Success Stories
Shattell Chocolate
Lisi Montoya, Peru
Amazon Authentics
Irene Bacchus-Holder, Guyana
Gone Rural
Philippa Thorne, Swaziland
“I would advise women to stick with what you want to do.
Don’t be caught up with what you feel is ‘man’s work’. There is always a way around
the hurdles. Do your research, find out what help is offered and go after it!”
- Irene Bacchus-Holder, Owner of Amazon Authentics
Lessons Learned about Women Exportersin Developing Countries
• Cultural challenges exist but vary from region to region
• Take small, steady steps, due to time and resource constraints
• Respond best to individual coaching which meets their specific needs
• All must work together to achieve success – governments, trade promotion organizations, business support organizations, donor agencies
• Women who are economically empowered, can make a positive impact on family health, education and overall economic well-being.
16
17
Market Comparison and Trade Relations between Canada and Indonesia
Market Comparison between Canada and the USA
Canada USA
Population 35.7 million 317 million
GDP $1,654 billion $16,086 billion
Exports $525 billion $1,792 billion
Imports $511 billion $2,660 billion
Values in $CAD estimates (2014)
Source: Canadian & US Government Sources, ITC Trade Map
18
Canada USA
Population 35.7 million 317 million
GDP $46,320 $50,140
Exports $14,680 $5,580
Imports $14,310 $8,290
Values in $CAD estimates (2014)
Source: Canadian & US Government Sources, ITC Trade Map
19
Market Comparison: Canada and USA per capita
Why Canada?Significant volume of imports
valued at $411 Billion (2014)
• Imports represent 31% of GDP
• 5% average yearly growth in
imports over the past 5 years
• 11th largest import market in the
world
Diversification of trade partners
• Canada is undertaking a major
effort to diversity trade
opportunities, including signing
new Free Trade Agreements
Excludes minerals (HS Codes 26-27 and 71-80)
Source: Industry Canada, Trade Data Online (2014)
20
$ 324 $ 347 $ 365 $ 380 $ 411
2010 2011 2012 2013 2014
Canadian Imports on the Rise($CAD billions, excludes minerals)
Source: Industry Canada, Trade Data Online (2014)
Regional breakdown based on countries with imports valued over $500,000.
Excludes $3.2 billion in re-imports to Canada.
54%United States23%
Asia
13%Europe
8%Latin
America
Canadian Imports by Region
United States (54%)
Asia (23%)
Europe (13%)
Latin America (8%)
Middle East (0.5%)
Africa (0.4%)
Caribbean (0.3%)
Australia (0.3%)
East Europe (0.1%)
Other (0.4%)
Canadian Imports by CountryAsia
22
Excluding mineral products (HS2 Codes 26-27 and 71-80)
Source: Industry Canada, Trade Data Online (2014)
Asia Imports 2014 % of Total Growth Rate
TOTAL 80,214,747,281 100% 1%
China 54,659,331,494 68% 3%
Japan 12,632,002,465 16% 14%
South Korea 6,294,971,272 8% 3%
Taiwan 3,927,597,906 5% -5%
Vietnam 2,700,844,144 3% 8%
Excluding mineral products (HS2 Codes 26-27 and 71-80)
Source: Industry Canada, Trade Data Online (2014)
23
Canadian Imports by Sector (2014)
For more information:
Download TFO Canada
Market Information Papers
www.tfocanada.ca/mip.php
Overview of trade from Indonesia to Canada
24
• Imports into Canada from Indonesia
totaled CA $1,392 M (excluding
minerals) in 2014 and are growing at
a rate of 5% CAGR over the past 5
years
• Indonesia’s exports to Canada are
primarily in 3 product categories:
Rubber articles: $241 million or 23%
Woven apparel: $164 million or 16%
Knitted apparel: $ 151 million or 14%
Source: TFO Canada Trade Data Analysis Tool
$ 1,115
$ 1,356
$ 1,242$ 1,281
$ 1,392
2010 2011 2012 2013 2014
Canadian Imports from Indonesia($CAD millions, excluding minerals)
5% growth over the
past 5 years
Excluding minerals (HS codes HS2 26-27 et 71-80)
Source : Industry Canada, Trade Data Online 25
23%
16%
14%
13%
9%
6%
6%
5%
4%4% 1. Rubber (23%)
2. Woven Apparel (16%)
3. Knitted Apparel (14%)
4. Electronics (13%)
5. Footwear (9%)
6. Cocoa (6%)
7. Machinery and Appliances (6%)
8. Furniture (5%)
9. Paper Products (4%)
10. Coffee, Tea and Spices (4%)
Top 10 Indonesian Exports to Canada
by HS2 Product Codes (2014)
26
Market Share of Indonesia (2014)
Excluding minerals (HS codes HS2 26-27 et 71-80)
Source : Industry Canada, Trade Data Online
Top 10 Products Exports to Canada
(millions)
Addressable Market in Canada
(millions)
Market Share
(%)
1. Rubber $ 241 $ 7,413 3.3%
2. Woven Apparel $ 164 $ 4,865 3.4%
3. Knitted Apparel $ 151 $ 5,267 2.9%
4. Electronics $ 136 $ 48,820 0.3%
5. Footwear $ 90 $ 2,744 3.3%
6. Cocoa $ 65 $ 1,636 4.0%
7. Machinery and Appliances $ 64 $ 74,675 0.1%
8. Furniture $ 57 $ 10,206 0.6%
9. Paper Products $ 39 $ 6,177 0.6%
10. Coffee, Tea and Spices $ 38 $ 1,826 2.1%
CoffeeGlobal market
• Market size: Approx. USD 20B (2014); CAGR 9% (USD) and CAGR 4% (kg), 2005-2014
• Exporters: Top 3 (Brazil, Vietnam, Colombia) control 60% (value) and 62% (volume)
• Indonesia: 4th largest global exporter; Global market share 5.1% (value); fairly stable (5%-7% in 2005-
2014); declining volume 9.3% to 5.6%
• Importers: US, German together control 40%; Italy (14%); Japan (15%); Canada 8th largest importer
(3.2%)
Canadian market
• Market size: CAD 714M and 166 M Kg (2014); 8.3% CAGR (value); CAGR 3.6% (volume), 2002-2014
• Top 3 players (Colombia, Brazil, Guatemala) control 65% of value
• Indonesia 6th largest exporter (4% market share)
• Differences from Global market :
• Significant players: Guatemala, Nicaragua, Peru, Honduras, Mexico; Vietnam low market share
• Indonesian prices in Canada are 37% higher than average coffee import price
28
FootwearGlobal market
• Market size: Approx. USD 67.8B (2014); CAGR 18.6% (USD); 2012-14
• Exporters: Top 2 (China-53%, Vietnam-9.4%) control >62% of market share; Belgium, Germany, Italy,
Netherlands & Spain other significant players w/ 2%-5% market share
• Indonesia: 8th largest global exporter (global market share 2% and increasing)
• Importers: US largest (24-25%);Germany, Japan, France, UK and Italy (4-9%); Canada 12th largest importer
(2% of global imports)
Canadian market
• Market size: CAD$ 1.46 billion (2015); 8.3% CAGR since 2002 (value); Projected CAD 2.55B by 2020
• Top 2 players (China:65-80%, Vietnam 17%); Indonesia 3rd largest in Canada (4.3% market share)
29
Apparel (Dresses, Shirts, Shorts, Trousers)
30
Global market
• Market size: Approx. $71B (2014); CAGR 9.3%, 2012-2014
• Exporters: China (36%); India, Turkey, Vietnam, Germany and Spain (4%-7%)
• Indonesia: 12th largest global exporter; Global market share 2.1%
• Importers: US(21%); Germany, United Kingdom, France, Japan and Spain; Canada 10th largest
importer (2.3%)
Canadian market
• Market size: CAD 2.04B (2015); 11% CAGR (value), 2002-2014; CAD 3.6B by 2020
• China top player (38% in 2015 down from 50% in 2010); Cambodia, Bangladesh and Vietnam
• Indonesia 6th largest exporter (4.2% market share in 2015)
Accessing the Canadian Market
A Step-by-Step Guide
31
Steps to Export to Canada
1. Implementationof market entry strategy
2. Classification of goods to determine rate of duties and taxes
3. Documentation to get goods across the border
4. Transportationof goods to importer
Your starting point:
Access Canada Guide &
Market Information Papers
www.tfocanada.ca32
• Canadian Importer Database
• Industry Associations, Chambers of
Commerce, Trade Commissioners
• Trading, Banks, & Freight Companies
• Trade Shows, Commercial Missions
• Publicity & Promotion
Step 1: Gather Market Intelligence
Research the demand for your product in the
Canadian market
Understand the Canadian Regulatory
Environment
Identify Potential Importers/Buyers
• Size and scope
• Trends and opportunities
• Players in the market
• Price competitiveness
• Quotas, Norms and Standards
• Provincial laws, Prohibited Products
• Strict Labelling requirements
• Food, cosmetics & pharmaceuticals
Activities to create your
Market Entry Strategy to
access the Canadian market
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
35
Identify Distribution Channels
36
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:
• Canadian trade shows (98%)
• Catalogues (93%)
• Websites (90%)
• Sales reps (90%)
• LinkedIn (85%)
Source: Retail News Magazine, Market
Pulse 2014 (for home décor sector)
37
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
Agro-Food
SIAL Canada
Processed Foods
www.sialcanada.com
Toronto, May 02-04, 2017
CHFA West
Natural and Organic Products
www.chfa.ca
Vancouver, April 08-09, 2017
Canadian Coffee & Tea Show
www.coffeeteashow.ca
Toronto, September 25-26, 2016
Canadian Produce Marketing Association
Fresh Produce
www.cpma.ca
Toronto, May 09-11, 2017
Grocery Innovations Canada
www. cfig.ca/grocery-innovations-canada
Toronto, October 17-18, 2016
Canadian Blooms Flowers
www.canadablooms.com
Toronto, March 10-19, 2017
Giftware & Decoration
Toronto Gift Fair
www.cangift.org
Toronto, January 29-February 2, 2017
Canadian Furniture Show
www.canadianfurnitureshow.com
Toronto, May 27-29, 2017
Apparel & Footwear
Mode Accessories (incl. Apparel/Fashion)
Toronto, January 29-31, 2017
www.mode-accessories.com
Toronto Shoe Show
February 26-28, 2017
August 27-29, 2017
www.torontoshoeshow.com38
Identify Major Trade Shows in Canada
Understand Canadian Tariff TreatmentRules of Origin
• Very complex and vary by products and trade agreements
• It is the exporter, not the certifying agency i.e. Chamber of Commerce or Ministry of Trade designate (varies by country), that signs the Certificate of Origin
• Indonesia has MFN status
39
Most Favoured Nation Tariff Treatment
• Canada applies the MFNTT, as a default tariff to goods originating from all countries which are members of the WTO
Special rates of duty through bi- or multi-
lateral trade agreements
• Canada-Peru Free Trade Agreement: Peru Tariff (PT)
• Canada-Jordan Free Trade Agreement: Jordan Tariff (JT)
Rates of duty based on preferential tariff
provisions
• General Preferential Tariff (GPT)
• Least Developed Country Tariff (LDCT)
• Note: To qualify for the tariff treatment, goods must move from GPT or LDCT
Access the Canadian Customs Tariff Schedule
40
HS Code
Important Note: Where a country qualifies for multiple preferential tariffs, the lowest applicable
tariff will apply
Direct link: http://www.cbsa-asfc.gc.ca/trade-commerce/tariff-tarif/2014/html/tblmod-03-eng.html#s1
Preferential tariffs
Based on GPT,
LDCT or bilateral
Free Trade
Agreements (FTAs)
Logistics: Identify the Best Modes of Transport
27,608 km of core highway routes
13 international airports
48, 000 km of railway tracks
18 port authorities
There are a number of ways commercial goods can enter Canada, depending on how the goods are being shipped:
41
Next Steps for Your Business
1. Register at www.tfocanada.ca/register.php to access online trade information
2. Regularly update your supply offers in your TFO Canada dashboard
3. Download the Access Canada: A Guide on Exporting to Canada and use as a guide to access the Canadian market
4. Download the Market Information Paper for your sector and use to gather market intelligence
5. Look up the regulations and tariff for your product using your HS code
6. Identify potential Canadian buyers, exercise due diligence when choosing business partners, and answer all correspondence (email) you receive
7. Attend a Canadian trade show for your sector
8. Create and implement your Market Entry Strategy
42
Steven Tipman, Executive Director
Zaki Munshi, Project Manager-Asia & Middle East
TFO Canada
130 Slater Street, Suite 1025
Ottawa, ON Canada
K1P 6E2
T: +1 1613 233 3925
T: +1 800 267 9674
E: [email protected]; [email protected]
www.tfocanada.ca
Thank You!
Contact us:
@TFOcan
linkedin.com/TFOCanada
43
Canada-Indonesia Trade and Private Sector Assistance Project (TPSA)
