Trade deals are only a small part of the solution to Canada’s global business challenges

Posted on May 17, 2013 by John | Permalink 0

Canada has taken great strides in the past generation to share our country’s wealth of products and services with the world. These impressive steps cover a range of formal activities inspired and led by our federal, provincial and territorial governments.

As a country, we’ve sealed a comprehensive trade deal with our closest trading partner and our other continental neighbour. We’ve leveraged this success to forge free-trade agreements with a variety of emerging economies, including Israel, Chile, Peru and Colombia, and to fuel negotiation of promising accords with some of the most vibrant, diverse and successful economies in the world—India, Japan, the Republic of Korea and the European Union.

Canada has also struck numerous bilateral agreements to protect and promote investments by Canadian companies in countries in every region of the world. Our nation has been a key player in the world’s most important trade forums. And Canada’s governments have carried out Team Canada missions to countries and regions around the world and placed an expert corps of trade commissioners in offices in more than 150 countries throughout the globe.

Canada doesn’t trade internationally; it’s global businesspeople do

All of this hard work is truly impressive and deserves praise from all Canadian businesses who rely on global trade to fuel their success, and from all Canadians whose enviable standard of living is sustained by vibrant trade activity.

Yet when we get right down to it, let’s keep one fact clearly in mind: Canada doesn’t trade internationally. Canadian global businesspeople do—one business at a time, one relationship at a time, one transaction at a time. Nothing from our country is traded until a company sells a product or service to a person or enterprise abroad. Until then, anything our governments do—every agreement and MOU, every policy and program, every office and official—is just overhead. It’s the businesses of Canada and the men and women in them who produce, transport, market and sell goods and services to consumers all around the world.

Our country, therefore, cannot take full advantage of these trade deals, agreements, offices and commissioners unless these men and women—our exporters, importers, customs brokers, compliance specialists, logistics experts and others—are equipped with the knowledge, skills and abilities they need to be high performers in global business.

International Trade Workforce Strategy provides the rest of the solution

International Trade Workforce Strategy tackles this challenge. It identifies the knowledge, skills and abilities that international-trade practitioners must have now to be high performers in global business. It considers whether or not current global business specialists are equipped with this combination of knowledge, skills and abilities. And it determines if sufficient numbers of new workers—armed with the right stuff—are emerging to take full advantage of international trade.

See the results of the groundbreaking International Trade Workforce Strategy for yourself.

human resources, international, national

Trade talks squeeze Canada’s refugee-protection system

Posted on May 16, 2013 by John | Permalink 0

In Cali, Colombia, next week, Stephen Harper will ponder a choice driven by the forces of globalization. Trade talks are increasingly applying pressure on Canada to lower restrictions on foreigners entering the country, and in turn, squeezing the refugee-protection system.

Mr. Harper will travel to Colombia to meet the leaders of a new trade bloc, the Pacific Alliance, to consider whether Canada should join. The alliance might be the next big thing in Pacific Rim trade, quickly reducing barriers between emerging Latin American nations and then with Asia.

But the biggest obstacle for Canada isn’t reducing barriers on goods crossing the border, it’s lowering restrictions on people.

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national

CETA deal almost done

Posted on May 16, 2013 by John | Permalink 0

For both Canada and the EU, the CETA will boost economic growth at a time when it is most needed. For Canada, the CETA is projected to deliver a boost to trade of $12-billion annually; for the EU, $18-billion.

The updated architecture for investment, procurement, intellectual property, services and labour mobility should lead to even more substantive gains in investment, a key driver of innovation and job creation.

There is speculation that Prime Minister Harper wishes to announce the completed CETA at the June G8 Summit in Northern Ireland. This presents an excellent opportunity to do so, as it would show unity of purpose among G8 nations (a Canada-EU deal would include five members: Canada, U.K., France, Germany, Italy). A summit announcement would also set the stage for the U.S.-EU talks and show Canada’s and the EU’s other trading partners that their negotiations can be concluded if the necessary commitments are forthcoming.

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national

Alberta export growth steady through 2014 thanks to rising energy production, weaker dollar: EDC

Posted on May 16, 2013 by John | Permalink 0

Alberta’s international exports are set for steady growth over the next two years, across all sectors, according to Export Development Canada’s (EDC) Global Export Forecast.

EDC’s Chief Economist, Peter Hall, was in Edmonton today to deliver his provincial export forecast to the Canadian Manufacturing and Exporters (CME) membership, where he predicted Alberta’s exports will grow by 9 per cent in 2013 and a further 6 per cent in 2014.

“Alberta’s export story over the next two years will be determined by both the capacity to ship crude oil and pricing of natural gas. Conditions will be helped by a dollar that’s eased back from parity,” said Mr. Hall.

The energy sector dominates Alberta’s exports, accounting for approximately 73 per cent of the province’s total international sales. Mr. Hall predicted that provincial exports of energy products will grow by 9 per cent in 2013 and 7 per cent in 2014, on the heels of only 2 per cent growth in 2012.

“While global crude prices have stabilized, Alberta’s crude has been sharply discounted because of tight transportation capacity constraints,” Mr. Hall explained. “Earlier this year, the price gap between WTI and Western Canadian Select crude averaged about USD 20/bbl, a wedge that adds up to about $16 billion in annual losses. Rail capacity increases and pipeline repurposing have together boosted shipments, and for the moment have narrowed the price gap. However, constraints remain a threat to the industry. Even so, crude exports to the U.S. should rise this year and next, the value of which is helped by an easing Canadian dollar.”

“Lower U.S. inventories and rising prices will lift Alberta’s natural gas export earnings at a double-digit pace this year and next,” continued Mr. Hall. “Unfortunately, there’s little incentive to increase Canadian production as long as Henry Hub prices remain below USD 5/mmbtu. For Alberta gas, this forecast is all about prices. Volumes will likely decline as natural gas rigs are redeployed to more profitable crude oil servicing.”

The U.S. recovery is expected to help the machinery/equipment (M&E) and forestry sectors, with industrial activity in the U.S. spurring M&E sales, while a resurgent U.S. housing market will be a boon to lumber exports

EDC’s forecast noted that other export categories will perform well this year, but 2014 will be more of a mixed outcome. Fertilizer prices are predicted to slip a notch, even though Alberta is expected ship more this year. Metals and minerals will be up considerably in 2013, but chemicals will grow at a slower rate.

government, industry

How to optimize customer value: an international perspective

Posted on May 14, 2013 by Daniella | Permalink 0

Customer value is the measure of a company’s contribution to its customer based on the company’s entire range of products, services offered and intangibles. Effective supply chain management aims to provide optimal customer service for minimal cost.

However, companies cannot fulfill customer needs if they do not have a clear understanding of customer requirements. The most successful international companies are those that know how to assess customer needs effectively and apply the findings to their strategies for supply chain management. They must ensure that their offerings are adapted to suit local tastes and preferences and must have their products available when customers want them. Companies must also offer a price for their goods or services that is both competitive and profitable.

Before mapping out global supply chain management strategies, companies need to have a thorough understanding of customer requirements in all targeted international markets. This information will be critical in mapping out networks and supply chain strategies.

Selecting where to make improvements
Providing optimal customer service is different than providing a maximum level of service. Sometimes the cost of providing additional services is prohibitive and the competitive environment does not require it. There is no need to plan a supply chain that will result in a faster delivery time if it does not result in happier customers or an increase in sales, profit and market share.

Although satisfying clients’ needs is a primary objective of the global supply chain management process, companies must ensure that their operations are viable and are conducted in a manner that does not exceed their capabilities. For example, companies must evaluate their distribution options based on:

  • the size of the target market for a product; and
  • the service requirements of potential customers.

Required levels of customer service are closely linked with distribution options. For example, if customers expect a product to be delivered in twelve weeks and the supplier’s lead time is five weeks, the company can be confident that there is no need to maintain a distribution facility close to the customer base. However, if customers seem to demand a product on an irregular basis, and they can readily obtain a competitor’s product, companies will have to decide how they can adapt their supply chain to accommodate this need. For example, they might have to consider opening a local distribution facility, using a local distributor or shipping the product by air freight to the customers. Which choice they make will depend on costs and the level of customer satisfaction afforded by each choice.

It is usually more complex for a company to provide high levels of service to international clients than to domestic clients. This is often due to factors such as the distances to reach foreign markets, the variety of transportation modes that might have to be used, multiple transfers and handling procedures, and regulations involved with transporting goods or service personnel across international borders. Therefore, companies selling their products in international markets must develop strategies that provide the same high level of customer service offered in domestic markets. This might require opening and operating facilities in foreign markets. The facilities should then be staffed with personnel that are familiar with customer needs and with the degree of customer service required in those markets. An adequate level of inventory and a number of replacement or repair parts would also need to be maintained at the facility.

(Sourced from FITTskills Global Supply Chain Management—Online course coming soon: Learn how to manage your global supply chain efficiently. Learn more!)

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Canada to Pursue Trade and Investment Agreement with Ghana

Posted on May 14, 2013 by John | Permalink 0

Foreign Affairs Minister John Baird today signalled Canada’s intent to deepen trade and investment with Ghana—one of the world’s fastest-growing economies. Baird and his Ghanaian counterpart, Hanna Tetteh, agreed that finalizing a foreign investment promotion and protection agreement is a matter of priority in relations between the two countries.

“Our government is committed to increasing trade and diversifying our engagement with fast-growth countries like Ghana,” said Baird. “Ghana is very much a symbol of the new Africa—one in which aid recipients are becoming important trading partners, and political stability allows for economic dynamism.”

He added, “Such an agreement, once in effect, will help bolster investment confidence to make the most of the abundant opportunities that exist here, contributing to job creation and economic growth in both countries.

Ghana has seen extremely high economic growth in recent years, which has positive implications for the people of Ghana and for Ghana’s trading partners, including Canada. Canadians and Canadian companies are well placed to be part of Ghana’s exciting transition.

International Trade Minister Ed Fast’s trade mission to Ghana in February 2013 demonstrated Canada’s commitment to helping Canadian businesses and workers take advantage of the new opportunities such high-growth markets have to offer.

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government

India trade deficit jumps over 70% on gold imports

Posted on May 13, 2013 by John | Permalink 0

India’s trade deficit in April widened more than 70% from March as imports of gold and silver shot up over twofold, eclipsing an improvement in exports.

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international

Divide over beef last bridge to cross on road to EU trade pact

Posted on May 10, 2013 by John | Permalink 0

The European Union’s ambassador to Canada said special access for agriculture goods is the last obstacle to a trade deal between Brussels and Ottawa, and drew a line in the sand over how much market access the EU could offer Canadian beef producers.

Ambassador Matthias Brinkmann engaged in public negotiation Thursday in comments to reporters in Ottawa, saying the EU could admit upward of 40,000 tonnes of Canadian beef per year but couldn’t go much further without upsetting countries such as Ireland and France.

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national

Minister Fast Marks New Canada-EU Partnership at Europe Day Celebrations

Posted on May 9, 2013 by John | Permalink 0

The Honourable Ed Fast, Minister of International Trade and Minister for the Asia-Pacific Gateway, today celebrated Europe Day by marking Canada’s entry into the Enterprise Europe Network (EEN), an initiative that will provide Canadian businesses with a one-stop point of access for information, contacts and resources for business opportunities in the European market. Canadian Manufacturers & Exporters (CME) has been named Canada’s lead organization in the EEN.

“Our government is focused on what matters to Canada’s world-class manufacturers and exporters: opening up new markets that create new business opportunities and new sources of jobs, growth and long-term prosperity,” said Minister Fast. “That is why we are grateful to organizations like CME for rising to the challenge and making proactive efforts to help Canadian businesses take advantage of the new opportunities that stem from our trade and investment agreements, including our ongoing negotiations toward a comprehensive Canada-EU trade agreement.”

“Our partnership in the EEN will provide Canadian companies with critical linkages to find new customers, identify new technology partnership opportunities and grow their businesses,” said Jayson Myers, President and CEO of CME. “It’s an exciting initiative for CME—and Canada—to be a part of. Through the EEN, we can clearly see the immense scope of technology and business opportunities open to Canadian businesses in European markets. Our job will be to help link businesses together across the Atlantic.”

The EEN, a network of more than 600 business-support organizations located in 50 countries worldwide, is dedicated to helping small and medium-sized companies identify and take advantage of opportunities for international technology and business partnerships. The EEN has facilitated more than 13,000 partnerships since 2008. CME will be working with other business-support organizations across Canada to help Canadian companies find highly qualified partnership opportunities in Europe.

A joint study concluded that an ambitious trade agreement with the European Union would be of significant benefit to Canada, resulting in a 20-percent boost in bilateral trade and a $12-billion increase in Canada’s annual income (gross domestic product). This translates to the equivalent of an increase of $1,000 to the average Canadian household’s income or 80,000 new jobs.

“An ambitious agreement with the European Union would produce substantial gains in key sectors across every region of Canada, generating significant benefits for businesses, workers and their families,” said Minister Fast. “Lowering tariff barriers would provide better access to the lucrative EU market of 500 million consumers and increase sales of world-class Canadian exports.”

The EU is Canada’s second-largest trading partner and the world’s largest integrated economy, with more than 500 million consumers and a GDP of $17 trillion. A comprehensive economic and trade agreement (CETA) with the European Union is, by far, Canada’s most ambitious trade initiative to date, broader in scope than the historic North American Free Trade Agreement.

For more information on the CME-EEN partnership visit Enterprise Europe Network (Canada).

For more information on the CETA, visit Canada-EU Trade Agreement: Opening New Markets in Europe.

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government

House trade committee releases report on comprehensive partnership agreement between Canada and India

Posted on May 9, 2013 by John | Permalink 0

According to the report tabled today by the House of Commons Standing Committee on International Trade, the Government of Canada should conclude – as soon as possible – a comprehensive economic partnership agreement (CEPA) with India that is of net benefit to Canada.

The report contains six recommendations that are designed to strengthen ties and encourage trade between Canada and India, as well as to encourage both countries to adopt ambitious negotiating positions.

“The Committee’s primary objective during this study was to ensure that an agreement between Canada and India, once signed and implemented, would be in the best interests of Canadians. In that regard, on behalf of the Committee, I wish to thank the groups and individuals who shared their thoughts about the ongoing CEPA negotiations,” said the Honourable Rob Merrifield, P.C., M.P., chair of the Committee.

The Committee held hearings in Ottawa from December 2011 to March 2013 in order to obtain input from Canadian stakeholders and experts with regard to the principal issues in the Canada-India CEPA negotiations. During that period, the Committee heard from more than 30 organizations and individuals.

The Committee’s report can be accessed at: http://www.parl.gc.ca/CommitteeBusiness/ReportsResponses.aspx?Cmte=CIIT&Language=E&Mode=1&Parl=41&Ses=1

government, industry, national