Government of Canada expanding trade opportunities at home and abroad
Canada is moving along its aggressive trade strategy by establishing 10 new trade offices in three countries and is expanding its Trade Commissioner Service in Canada with four new satellite offices. The announcement was made by the Honourable David Emerson, Minister of Foreign Affairs and International Trade and Minister for the Pacific Gateway and the Vancouver-Whistler Olympics, during a speech delivered for International Trade Day, in Mississauga.
“Canada is a trading nation. We are expanding our international footprint to maintain Canada’s competitive advantage in key markets, and to bolster our domestic economy and quality of life for all Canadians,” said Minister Emerson. “Today’s announcement is another example of our government’s commitment to keep our economy strong. These new trade offices will help provide our companies with the tools they need to access global supply chains and expand their commercial activities.”
Minister Emerson announced that new trade offices will open in six cities across China (Chengdu, Nanjing, Qingdao, Shenyang, Shenzhen, Wuhan), two in Mexico (Tijuana, Villahermosa) and two in Brazil (Porto Alegre, Recife). These are in addition to two new offices in India (Hyderabad, Kolkata) and one in Mongolia (Ulaanbaatar) announced in April. The government will also add new trade staff to existing offices in Brazil, Chile, China, Colombia, India and Panama.
“Canadian business has been demanding more service in growing markets abroad as well as enhanced local service in Canada,” said Minister Emerson. “Today this government is delivering on our commitment to the business community to improve these services.”
At home, new satellite offices will be established in Kitchener, Ottawa, Victoria and Windsor. Additional trade officers will also be added to existing regional offices.
“These offices play a key role in encouraging small and medium-sized enterprises to seek international opportunities and succeed in new markets,” said Minister Emerson. “Expanding our domestic points of service means more Canadian businesses will be active on the world stage.”
During his International Trade Day speech, Minister Emerson outlined the milestones Canada reached in trade and investment over the past year. The government has vastly increased bilateral ties with Canada’s global partners, in keeping with its commitments under the Global Commerce Strategy. This year, Canada signed a new free trade agreement (FTA) with the European Free Trade Association countries of Iceland, Liechtenstein, Norway and Switzerland. In addition, Canada signed an FTA with Peru and concluded negotiations with Colombia. The government is continuing negotiations with Korea, the Caribbean Community, the Dominican Republic, Jordan, Singapore and the Central American Four countries of El Salvador, Guatemala, Honduras and Nicaragua, while at the same time looking ahead to possible new initiatives with countries such as Panama.
Canada has concluded negotiation of foreign investment promotion and protection agreements with India and Jordan, and negotiations with a number of other countries are ongoing. Canada also concluded new air agreements with Jordan, Iceland, New Zealand, Singapore, Mexico, Barbados, the Philippines and Panama, and launched negotiations with the European Union for a comprehensive open skies agreement that would govern air services between Canada and all 27 EU countries. Moreover, Canada expanded its work with China and India through existing science and technology agreements. Just last week, our country took another step to deepen and broaden our commercial and economic relations with France with the signature of a Canada-France Joint Action Plan.
“We know that trade follows investment,” said Minister Emerson. “With all these bilateral arrangements, Canada is attaining a stronger position to climb global value chains, increase inward and outward investment, gain preferential market access for Canadian firms and, ultimately, generate prosperity at home.”
The new trade missions are part of the government’s Global Commerce Strategy, which provides $50 million per year to further develop Canada’s trade and investment interests at home and abroad.
The TCS helps Canadian companies and organizations do business through four key services: preparing for international markets, assessing market potential, finding qualified contacts and resolving problems.
With more than 115 years of experience, the TCS currently maintains offices in 150 cities abroad and 13 cities in Canada.
Minister Emerson also marked International Trade Day by launching, on behalf of Foreign Affairs and International Trade Canada, the latest versions of two annual publications: Canada’s State of Trade: Trade and Investment Update 2008, which reviews Canada’s performance in international trade and investment in 2007, and Canada’s International Market Access Report 2008.
Every year, International Trade Day brings together the business community, senior government officials, industry stakeholders and academics to discuss issues and priorities in international trade and economics.
Backgrounder
New Trade Offices
In Canada
Regional or satellite offices are usually the first point of contact for firms into Canada’s international trade and investment network. These offices have unique links to the local business community and are the doorway to the Canadian Trade Commissioner Service worldwide network.
Kitchener
Kitchener is a key partner within Canada’s Technology Triangle, a region of southern Ontario with key education and research facilities that support mature industrial sectors such as information technology, automotive, advanced manufacturing, and biotech and life sciences.
Ottawa
Ottawa is the fourth-largest city in Canada. Home to more than 1,800 technology companies, it is a global technology centre where innovation prospers. With top researchers in the public, private and university sectors, Ottawa is one of the world’s top sites for research and development.
Windsor
The Windsor-Essex Region is a dynamic urban area with a diverse economy driven by outstanding transportation infrastructure, internationally renowned educational institutions as well as a skilled workforce. Key industries are centred on the auto sector, advanced manufacturing technologies, research and development and engineering, agribusiness and food processing, and education.
Victoria
Victoria is a key player in Canada’s Asia-Pacific Gateway and Corridor Initiative. The city’s chief industries include pharmaceuticals, engineering, architecture, telecommunications, investment and banking, book publishing and light-aircraft manufacturing.
Abroad
The Trade Commissioner Service’s worldwide network helps Canadian firms succeed in the global marketplace. Offices in more than 150 cities provide on-the-ground intelligence for Canadian clients.
Brazil
Porto Alegre
Porto Alegre is regarded as the “capital” of the Southern Cone and is one of the most prosperous cities in Latin America. With a population of 4.6 million, it is strategically situated to take advantage of regional synergies and the Mercosur market.
Recife
Recife is the fifth-largest city in Brazil with a population of 1.5 million. It has a modern information technology sector, housed in its Digital Harbour, which was inaugurated in 2000. The metropolitan region is an important medical centre, with more than 400 hospitals and clinics and three medical schools.
China
Chengdu
Chengdu is the capital of Sichuan province and has a population of 11 million. A transportation and communications hub, it is one of the most important economic centres in China.
Nanjing
Nanjing is a national education, research, transportation and tourism hub. With a population of over 5 million, it is also the second-largest commercial centre in the East China region, behind Shanghai.
Qingdao
Qingdao is the largest city in Shandong province, with a population of more than 7 million. It boasts the third-largest port in the country and has become a key centre for regional value chains.
Shenyang
Shenyang is the capital of Liaoning province and has a population of over 7 million. Along with nearby cities, Shenyang is an important industrial centre and is the transportation and commercial centre of China’s northeastern region.
Shenzhen
Shenzhen is a centre for foreign investment and is one of the fastest-growing cities in the world. With a population of over 8 million, Shenzhen is the second-busiest port in China after Shanghai.
Wuhan
Wuhan is China’s fifth-largest city with 8.3 million people. It is the third-largest centre for education in the country, with 50 universities and colleges.
India
Hyderabad
With a population of 10 million, Hyderabad is the gateway to southern India. It is a major information technology centre where about a quarter of India’s software professionals work. It has several universities, technical institutes and research centres, and its entertainment and multimedia sectors are growing in importance.
Kolkata
Kolkata is the business, commercial, financial and transportation hub of eastern India, with a population of 14 million. It hosts some of India’s biggest manufacturing plants and its economy is supported by the region’s considerable mineral and agricultural resources.
Mexico
Tijuana
The state of Baja California is one of the largest importers of capital goods in Mexico. With a population of 1.5 million, Tijuana possesses one of the strongest potentials for technology development in areas such as information and communication technology, aerospace, biotechnology, nanotechnology and electronics.
Villahermosa
Villahermosa, with a population of almost 700,000, is a key centre for Mexico’s oil and gas industry. Mexico continues to be one of the world’s largest crude oil producers, with multibillion-dollar annual expenditures on oilfield equipment and services.
Mongolia
Ulaanbaatar
Canada’s new presence in Mongolia’s capital will be instrumental in assisting Canadian companies active in the region’s important mining sector. Canada is the second-largest investor in Mongolia. Ulaanbaatar is the largest city in Mongolia with a population of 1 million.
Canada’s State of Trade: Trade and Investment Update 2008
Canada’s State of Trade: Trade and Investment Update is Foreign Affairs and International Trade Canada’s annual flagship report highlighting Canada’s international trade and investment at home and abroad.
This year’s edition, on 2007, includes a special report on Canadian direct investment abroad, outlining its role as a catalyst for globalization as well as its linkage with exports.
The document covers developments in the world economy that have affected Canada’s economic performance and summarizes Canadian trade and investment flows by sector and by region of the world.
Highlights of this year’s publication:
• The Canadian economy has been performing quite solidly. Gross domestic product growth was 2.7 percent last year and unemployment reached a 32-year low of 6.0 percent.
• Canadian exporters demonstrated resiliency in 2007 despite the further appreciation of the Canadian dollar and slowing growth in the United States. Canadian exports of goods and services increased by 1.9 percent to a record $532.7 billion. On the imports side, imports of goods and services advanced 3.2 percent to $502.5 billion, aided by the strong value of our dollar.
• The industrial goods and materials sector led all major categories of exports in 2007, fuelled by continued strength in both demand and prices for metal ores and alloys. Exports of agricultural and fish products, energy and consumer goods also made important contributions.
• Imports were led by agricultural and fish products, energy and consumer goods.
• Canadian exporters are diversifying. Goods and services exports to the European Union grew by 17.6 percent, while those to markets outside of the U.S., the EU and Japan rose by 13.3 percent.
• In 2007, China replaced Japan as the third most important market for Canadian merchandise exports.
• Canadian direct investment abroad fell by $15.4 billion to $514.5 billion last year, as additions of $53 billion were more than offset by a $67 billion downward revaluation of foreign currency denominated assets due to the appreciation of the Canadian dollar. Inward investment reached $500.9 billion last year—a 14.4 percent increase over the previous year.
• Since the 1990s, Canadian outward investment has had a complementary relationship with exports.
