Canada-Indonesia Trade and Private Sector Assistance Project (TPSA) Exporting to Canada Jakarta, Indonesia 22 October 2015
TFO Canada Mandate History • Founded by the Government of Canada TFO Canada confronts the challenge of in 1980, became an NGO in 1985 global poverty by promoting sustainable • Headquarters in Ottawa, regional economic development through export representatives in Quebec, Ontario and information , advice and contact . British Columbia We facilitate access to the Canadian • Clients: SMEs Exporters and Trade Support Institutions (TSIs) marketplace and share Canadian trade expertise for the benefit of smaller male • Funding from: • Department of Foreign Affairs, Trade and female owned/managed exporters and Development from developing countries and for the • Partner governments and other donors men and women they employ. • Cost sharing by participants, partners, Canadian corporation. 2
TFO Canada Online: 3 Types of Users Trade Support Foreign Suppliers Canadian Buyers Institutions • Free matchmaking • Foreign Supplier • Registered Suppliers service with Canadian Database Database for their buyers country • Client Country Profiles • Access to the Canadian • Market Links • Market Links Importer Database • Responsive activities: • Import Info Newsletter • Market Information co-financing of trade Papers missions, market entry studies for companies • Exporting to Canada with 4 MBA university Handbook programs, training on the Canadian market • Exporting to Canada (priority countries only) Newsletter • Note: TSIs can also register on our website 3
Canada: Consumers & Market Trends Overview 9
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, The North municipal British • Type of government: a Columbia parliamentary democracy, a The Prairies Québec federation, and a constitutional Atlantic Ontario Canada monarchy Source: Statistics Canada, Population estimates and projections (2013) 10
The Canadian Population Atlantic Provinces: 2.3 Million Small, concentrated population: Québec: 8.1 Million Ontario: 13.5 Million • Total population: 35.7 million (October Prairie Provinces: 5.3 Million 2014 estimate) British Columbia: 4.5 Million The Territories: 0.1 Million • 10 % size of U.S. population • 62% of Canadians live in Ontario and Quebec • 80% of Canadians live within 160 The North km of the U.S. border British Columbia • 81% of the population is urban The Prairies Ontario Québec • 1 in 3 Canadians lives in one of Atlantic Canada’s three largest cities Canada (Toronto, Montreal, and Vancouver) Source: Statistics Canada, Population estimates and projections (2013) 11
Ageing Population • 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) 12
New Immigrants to Canada Immigrant Population by Region in 2013 4% Caribbean 5% 6% Other Latin America 9% Middle East 51% • 1 in 5 Canadians are immigrants Asia (highest % in G8 countries) 10% Europe • 1.6 million new immigrants settled in Canada from 2006 to 2011 15% • 62% of new immigrants settle in Africa Toronto, Montreal and Vancouver Source: Citizenship and Immigration Canada, Permanent Source: Statistics Canada, Census (2011), National Household Survey (2011) 13 residents by source country (2013)
Income Per Capita by Province 14
Canadian Consumers Household Spending: Shelter/Accommodation: 34% • Income taxes: 14% • Food: 8% • Discretionary Spending: 20% • 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, Statistics Canada, CANSIM Table 203-0021, Survey of household spending, 2013. Source: TFO Canada Market Information Papers 15
Canadian Consumers Increasingly Well informed but multicultural demanding Regional differences Affluent but price conscious Tech-savvy, purchase over internet/mobile Home owner Health, socially and Double income environmentally (although many aware single parent homes) 16 Source: TFO Canada Market Information Papers
Importance of Corporate Social Responsibility (CSR)/Environmental considerations Helps make your business more competitive, Elements of CSR (some examples) productive and innovative, through: No child labor • Improved reputation and branding • Living wage • Enhanced operational efficiency, risk • management, and access to investment & capital Working hours, holidays • Stronger relationships with employees and • Overtime pay • communities Healthy and safe environment (e.g. fire • escape, medical facilities) CSR is important for SMEs when doing business Community involvement with a growing number of Canadian businesses • Gender sensitivity • Know the regulations and legislative context related Social issues • to environmental considerations Child-care facilities • Source: Industry Canada Environment management • 17
Corporate Social Responsibility (CSR) A Six Step Implementation Process 2 3 1 4 5 6 Regulatory Assess Develop an How to Best Tell Requirements Performance Action Plan to the Story of Monitor and Commitment and Stakeholder Against Address Your CSR Review and Leadership Expectations Expectations Priority Issues Performance Source: TFO Canada “Changing Expectations: A Guide to Corporate Social Responsibility for Small and Medium Sized Enterprises Exporting to Canada” (2014) 18
Environmental Management Systems for Exporters Step 1 Step 2 Step 3 Step 4 Develop an Monitor and measure environmental Set environmental progress in achieving Review progress of the goals/policy and objectives and targets, the objectives and EMS and make ensure employees’ analyze environmental and establish programs improvements impacts and legal to meet them awareness and requirements competence Source: TFO Canada “Environmental Management for Exporters: An Environmental Management Guide for Small and Medium Sized Enterprises Exporting to Canada” (2014) 19
Market Comparison and Trade Relations between Canada and Indonesia 20
Market Comparison between Canada and the USA Canada USA 35.7 million 317 million Population $1,654 billion $16,086 billion GDP $525 billion $1,792 billion Exports $511 billion $2,660 billion Imports Values in $CAD estimates (2014) Source: Canadian & US Government Sources, ITC Trade Map 21
Market Comparison: Canada and USA per capita Canada USA 35.7 million 317 million Population $46,320 $50,140 GDP $14,680 $5,580 Exports $14,310 $8,290 Imports Values in $CAD estimates (2014) Source: Canadian & US Government Sources, ITC Trade Map 22
Canadian Imports on the Rise Why Canada? ($CAD billions, excludes minerals) $ 411 $ 380 $ 365 $ 347 $ 324 Significant volume of imports valued at $411 Billion (2014) 2010 2011 2012 2013 2014 • Imports represent 31% of GDP Excludes minerals (HS Codes 26-27 and 71-80) Source: Industry Canada, Trade Data Online (2014) • 5% average yearly growth in imports over the past 5 years Canadian Imports by Region • 11 th largest import market in the United States (54%) 8% wor ld Asia (23%) Latin America Europe (13%) 13% Diversification of trade partners Latin America (8%) Europe Middle East (0.5%) 54% • Canada is undertaking a major Africa (0.4%) United 23% States Caribbean (0.3%) effort to diversity trade Asia Australia (0.3%) opportunities, including signing East Europe (0.1%) new Free Trade Agreements Other (0.4%) Source: Industry Canada, Trade Data Online (2014) Regional breakdown based on countries with imports valued over $500,000. 23 Excludes $3.2 billion in re-imports to Canada.
Canadian Imports by Country Asia & Middle East Asia Imports 2014 % of Total Growth Rate Middle East Imports 2014 % of Total Growth Rate TOTAL 80,214,747,281 100% 1% TOTAL 2,114,226,310 100% 5% China 54,659,331,494 68% 3% Israel 959,417,730 45% 2% Japan 12,632,002,465 16% 14% Turkey 854,507,270 40% 9% South Korea 6,294,971,272 8% 3% UAE 65,644,730 3% 20% Taiwan 3,927,597,906 5% -5% Jordan 58,932,393 3% 26% Vietnam 2,700,844,144 3% 8% Oman 50,582,417 2% 23% Excluding mineral products (HS2 Codes 26-27 and 71-80) Source: Industry Canada, Trade Data Online (2014) 24
Canadian Imports by Sector (2014) For more information: Download TFO Canada Market Information Papers www.tfocanada.ca/mip.php Excluding mineral products (HS2 Codes 26-27 and 71-80) Source: Industry Canada, Trade Data Online (2014) 25
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