Foreign Direct Investment Attraction and Contribution Programs EDA - PowerPoint PPT Presentation

Global Affairs Canada Foreign Direct Investment Attraction and Contribution Programs EDA Alberta Annual Conference Kananaskis – April 7, 2016

Invest in Canada Mandate Invest in Canada Mandate  Market Canada as the location of choice for international businesses  Attract new investors to Canada  Facilitate expansions by existing investors  Work with provincial, territorial, and municipal partners on new investments and investment retention  Identify FDI impediments and advocate for policy changes

Strategic Approach Key Elements of the FDI program 3 2 4 1 After-sale Strategy Investor Sales Services development Engagement Proactive Systematic Strategic FDI aftercare marketing prospecting Orientation services  Refine priority  Raise Canada’s  Target key companies  Follow-up and sectors/markets visibility as a in proactive sectors back-to-back outcalls  Improve investment competitive FDI & key markets location climate  Benchmark performance 5 Built on strong partnerships

Strategy Development 1 Objective and Focus The department seeks to attract, expand and retain FDI projects - greenfield or expansion of existing investors - that directly contribute to:  the production of high value-added goods and services in Canada Objective  the promotion of skilled employment and high wages  the introduction or development of new products and process technologies  the globalization of Canadian industries  where Canada has clear competitive advantages; and Proactive  proactive promotion will make a difference sectors Focus  major sources of FDI worldwide for our proactive sectors Key  where sector experts think we should be markets  targeted by our partners Dynamic  which demonstrate high propensity to invest in the near term firms Note : Mergers and acquisitions are not proactively targeted but information; path finding services are provided to facilitate these transactions where and when warranted.

Proactive Sectors Life Sciences  Biopharmaceutical Agrifood  Medical devices Chemicals and Plastics Clean Technologies  Renewable energy technologies Advanced Manufacturing  Environmental technologies  Aerospace & Defence  Automotive  Machinery & Equipment Services ICT  Business Services  Wireless communication  Financial Services  Software  Digital Media 14 key sectors that offer the best prospects for FDI attraction 5

Key Markets The Americas Europe Asia/Oceania Norway (0.6%) Netherlands (9.4%) Japan (2.4%) Sweden (0.4%) Luxembourg (7.3%) United States (49.4%) China (3.4%) Finland (0.3%) United Kingdom (6.6%) Brazil (2.7%) Italy (0.2%) Australia (0.8%) Switzerland (3.8%) South Korea (0.5%) Denmark (0.1%) Germany (1.9%) Austria (0.1%) India (0.5%) France (1.6%) Spain (n.a.) Belgium (0.8%) Israel (n.a.) 22 Key Markets accounting for over 90% of Canada’s Inward FDI Stock in 2014  6

Investor Engagement 2 Signature Products Partnerships Champions Events & Branding Program & Website  International Asset  Website Management C-level executive  FDI Roadshow Council  speakers for: Social Media Missions  CEO Connection  Flagship  Post-led  APEC CEO   Investment Value Initiatives Summit Events Program propositions  Signature Events  Sector Global  Daily news  Investment  Invest in Canada Events: Roadshows  Key messages Banner Program e.g. Mobile World  Video Congress, Farnborough Trade Commissioners abroad participate in/host key FDI events and seminars

Developing New Prospects: Expanding The Pipeline FDI Tools and Products Invest + Innovate Website Newsfeed 16 sector-specific value propositions Twitter Factsheets 8

Sales 3 Missions with the Investor Services Division’s Support:  Identify the most promising FDI targets for outcalls  Conduct outcalls with potential investors  Qualify the potential investors ( Lead, Prospect)  Follow-up with the target company to provide answers to companies’ specific needs  Refer the lead/prospect to the domestic network  Encourage the prospect to visit Canada

Proactive Prospecting Broadly Targeted, Less Interactive All Companies Identify Targets Targets Engagement Assess Leads Leads Prospects Qualify Prospects Win Investment Win Narrowly Targeted, Highly Interactive

After-Sale Services 4 Through our extensive network of international and domestic representatives, Invest in Canada collaborates with partners to:  Raise the profile of aftercare in the broader partnership  Coordinate o With provinces and Territories who are largely responsible for aftercare o Introductory calls to investors to ensure the smooth implementation of new investments o A « back-to-back » call program on foreign subsidiaries of target firms to encourage retention or expansion o Canadian missions conduct retention and expansion calls  Provide aftercare assistance to foreign investors o Link investors to government programs o Provide intelligence and links to suppliers or private sector contacts o Engage investors in an ongoing dialogue to identify investment impediments and advocate a resolution

Canada’s FDI attraction partnership 5 International Domestic Network Network Other Federal Government Global Affairs Canada Departments, Agencies, Posts Abroad Crown Corporations Provinces & Global Affairs Canada Territories Headquarters Provinces & Canadian Foreign Territories’ Invest in Canada Locations Investors Sector Practices offices abroad Trade Policy Municipalities etc. Foreign Governments & Business Associations Associations

Building a network in Investor Services Canada Investor Services : support to Canada’s FDI network  Maintains ongoing relationships with provincial, territorial and municipal investment promotion agencies  Refer leads/prospects to provincial, territorial and municipal partners  Through the Invest Canada Community Initiative program, and the Foreign Trade Zones - Marketing Program, helping to build investment attraction capacity across the country

Invest Canada – Community Initiatives Overview  Contribution program to help Canadian communities and non-profit locally- based organizations to attract, retain and expand FDI.  Matching funds of up to 50% of eligible expenses for FDI projects.  Non-repayable contributions range from $3,000 to $300,000.  ICCI only supports FDI initiatives (attracting investors from within Canada or promoting Canadian businesses is not part of the scope of the program). Annual Cycle  September-October: Application (Partners@International portal)  November-December: Assessment and Adjudication  January-December: Projects implementation

Project Eligibility Projects need to be aligned with Global Affairs Canada’s priority sectors and markets (also available on the ICCI website). Priority Sectors Priority Markets • Agrifood : Food Processing • Advanced manufacturing : • Americas : United States, Brazil. automotive, aerospace and defence, machinery and equipment • Asia : Japan, China, Korea, Taiwan, • Chemicals and plastics India. • Clean technologies : Renewable- energy technologies, environmental • Europe : United Kingdom, Germany, technologies France, Spain, Italy, Netherlands, • Information and Communication Belgium, Luxembourg, Switzerland, Technology : Digital media, Finland, Sweden, Norway, software, wireless communications Denmark, Israel, Austria. • Life Science : Biopharmaceuticals, medical devices • Services : Business services, Financial services

Project Eligibility Examples of Examples of ineligible expenses eligible expenses  Research and studies  Research activities not associated with FDI  Economic data  Purchase of statistical data not associated with FDI  Strategic FDI planning  Development of training courses/modules.  Website development  Consultants hired to facilitate a training session.  Translation  Hiring consultants to develop ICCI applications.  Promotional materials /Advertising:  Regular website maintenance (design and layout only)  Corporate logo design  Investment Training  All giveaways (including travel costs)  Personnel or in-kind contributions  Meeting room rental  Travel costs (in-Canada).  Taxes  Software customization  Hospitality  Consultants  Trade show/conference participation  Projects related to tourism and motion picture industries  Capital costs  Overhead costs

FDI Continuum FDI Continuum Lead FDI Strategy Generation FDI Tools FDI Training and Material Competitive Meetings Development Analysis with Potential Investors Factors to consider  Size of the community/organization  FDI projects already undertaken by the community/organization