I also found that business students ran into many of the same problems, even though one may expect them to have learned about international business in detail. I was surprised to find out that, while many undergraduate business programs have courses in international commerce, they typically serve more as high-level introductions than detailed, practical instructions on how to succeed in the global marketplace.

When I discovered the FITTskills program, I appreciated that it is designed as a practical how-to guide for professionals in international trade.

The online courses move beyond theory and are designed for practitioners. The course textbooks often include checklists of what needs to be done in any given business scenario.

As a result, I decided to complete the FITTskills program as an undergraduate student, and I found it to be incredibly beneficial as a supplement to my existing studies. FITTskills brought the economic concepts I learned to life, provided the details and practical step-by-step instructions I was looking for, and gave me a sense of the real problems and opportunities that businesses face.

While many people wait until they’re already in the workplace to take training like this, I believe that students too, not just professionals, should take the FITTskills program.

FITTskills helped me get a job

Completing the FITTskills program while I was a student required multi-tasking and time management skills. Furthermore, I had to pay for the FITTskills courses, in addition to my regular tuition payments.

However, it was well worth it. I saw it as an investment (of time and money) in my future, which has now paid off. I’m new in my career, at just 24, but I firmly believe the program helped me become more competitive in the job market and get my first post-university job.

When I graduated with my Bachelor of Arts at the University of Windsor, I applied to an opening at the Asia Pacific Foundation of Canada, the leading think-tank on Canada-Asia relations. When I applied, I was nervous because I only had a Bachelor’s degree—I assumed most applicants would have a Master’s degree or other qualifications. Nonetheless, I was grateful to be hired on.

While many factors went into my successful application, the FITTskills program was a major benefit.

The project I was to work on dealt with export promotion to Asia, and I touted the FITTskills program (and particularly the International Market Entry Strategies course) several times in my interview. FITTskills added something to my resume that most other applicants did not have. In an ultra-competitive jobs market, every extra qualification can set you apart.

FITTskills helped me build my career – and will help you too

The FITTskills program is great for professionals who are mid-career and want to re-focus their attention on international markets. However, I wanted to focus my attention on international markets from the beginning of my career. Having the background knowledge from the FITTskills program gave me a running start, and the opportunity to enter my career with a practical understanding of international business from the beginning. This benefited me when I entered the world of global trade—but it will also benefit me if I enter domestic markets too.

Students today, as I did, graduate in an international world—their careers are impacted by global forces. Understanding the minutiae of international business at the beginning can be incredibly helpful, and can play an important part in getting your first job.

The post Practical training was the competitive edge I needed to land my first job in international trade. It can be yours too. appeared first on Trade Ready.

Japan was the major market in the negotiations with which Canada did not already have a trade agreement—and thus was the real prize for Canadian businesses and workers. However, American withdrawal from the TPP has left the issue of Canada-Japan trade lingering.

Despite the apparent demise of the TPP, the Japanese market (the world’s third-largest) is too rich an opportunity to let pass by. Canadian leaders should make a trade deal with Japan a priority.

The Canadian and Japanese markets are complementary in many ways—for example, Canadians buy Japanese consumer electronics, and Japan needs our natural resources and food products. This complementary nature can be conducive to win-win trade negotiations with significant long-term benefits.

TPP laid the groundwork for the future

Despite long and difficult negotiations, the TPP trade deal fell through at the last minute, with U.S. President Donald Trump scrapping the deal before it was ratified. Though there has been movement to keep the TPP without the U.S., the outcome of these talks is far from certain.

With the TPP process having just wrapped up, there is a prime window of opportunity for Canada to negotiate a bilateral free trade deal with Japan. Due to the detailed negotiations it took to finish the trade pact, Canadian officials will have the market knowledge and connections needed to begin bilateral talks soon.

Canadian officials are already up-to-date on the latest market information related to Japan’s exports and trade agenda. Furthermore, trade officials in Canada have connections with the Japanese bureaucracy from the TPP negotiations. This knowledge, and the connections between our two bureaucracies, provide an opening to restart bilateral talks as soon as possible.

Natural resource-based industries would benefit most from a Canada-Japan FTA

Numerous Canadian industries and their workers will benefit from a Canada-Japan FTA. In 2016, Canada sold $10,575,158,000 worth of merchandise exports to Japan. The top three categories were oil seeds and miscellaneous fruits/grains (14.81% of exports); ores, slag and ash (14.56%); and meat/edible meat offal (11.40%). Together, these three, along with other natural resource and food exports, would benefit hugely from a free trade deal.

Is Canada in position to meet Japan’s energy needs?

In 2011, following the crisis at the Fukushima Daiichi nuclear power plant, Japan shut down and reviewed its nuclear energy system. Prior to the disaster, which is still affecting communities in Japan today, nuclear plants provided about 30% of Japan’s energy mix. While some reactors have come online since that review, most remain offline. As a result, Japan has faced, and will continue to face, a critical need for energy from abroad.

That includes liquefied natural gas (LNG) and oil, both of which Canada has the potential to export in large amounts. Canada’s oil industry is well-established, though there are questions from environmentalists, Indigenous peoples and local communities to be answered regarding pipelines. British Columbia has enormous potential for LNG exports to Japan, though the recent change in government at the provincial level makes the future of this industry unclear. With these domestic political uncertainties, the energy industry’s potential benefit from a Canada-Japan FTA is less clear.

Seafood will be another big winner

The Japanese diet is dominated by seafood, as one might expect from an island nation. Japan’s love for seafood has led to incredible export success for several provinces already.

For example, Newfoundland and Labrador’s herring roe is very popular in Japan. In 2016, the province sold $44 million worth to Japanese buyers. British Columbia has likewise seen seafood export success, selling millions of dollars’ worth of sea urchins to the country. An FTA would only expand these opportunities, while also reducing costs for those already engaged in this avenue of trade.

The future is bright

The future of Canada-Japan trade is bright. The two countries have shared values—democracy, the rule of law, free markets—and have complementary economies. Many Canadian industries and their workers stand to benefit from a free trade agreement with Japan. With the TPP pact likely over, Canada can seize the moment and hastily restart bilateral trade talks with the world’s third-largest economy.

The post Why Canada needs to seize the moment and start negotiating a free trade agreement with Japan appeared first on Trade Ready.

In January, I wrote an article for FITT arguing the government needed to show China it was serious about pursuing a bilateral free trade agreement (FTA), if that indeed was what they wanted to do.

In his most recent cabinet shuffle, Canadian Prime Minister Justin Trudeau appointed a sitting minister, John McCallum, as the ambassador to China. Appointing an ambassador straight from cabinet sent a clear message to Beijing that Trudeau was eager to explore an FTA. McCallum knows the prime minister well, having sat with him in caucus and cabinet for nearly a decade. The ambassador can be a direct line of communication between Beijing and the Prime Minister’s Office. During negotiations, the Chinese will know that McCallum has the ear of his country’s leadership.

However, as much as it will be a Canadian sales pitch in Beijing, any trade deal will require a sales pitch here at home as well. The Trudeau government will need to convince Canadians that a trade agreement is good for the Canadian economy, businesses, and workers.

Public support will be crucial for a trade deal of this magnitude—it will be a deal with the world’s third-largest economy, and it may transform entire industries.

The Asia Pacific Foundation of Canada, a Vancouver-based think-tank, released a 2017 National Opinion Poll (NOP) on Canadians’ feelings toward China, especially on trade. The numbers revealed support for a trade agreement, but they also revealed some concerns the government will need to address if such an agreement is to receive public approval.

Majority support for a trade agreement

The NOP revealed that a majority of Canadians (55%) support an FTA with China, while 36% do not, and 9% are unsure. During trade negotiations, the 36% opposed will need to have their concerns addressed. Similarly, the 9% who are unsure if they support or oppose it will need to be convinced of its merits.

The recent trend is towards support for an FTA. The NOP noted that support, currently 55%, was only 46% in 2016 and 36% back in 2014. In three short years, support has gone from just over one-third of Canadians to a majority. Support is growing, but there are public concerns  the government will need to address.

Support comes with concerns for the government

While 55% of Canadians may support an FTA with China, the NOP revealed a more nuanced situation. Prime Minister Trudeau will need to communicate the deal to Canadians in a manner that keeps the concerns below in mind.

An FTA is not a top priority for Canadians

While a majority of Canadians support an FTA with China, it is not their priority for Canada-China bilateral relations. According to the NOP, only 13% saw an FTA as their priority. The plurality (27%) cited environmental cooperation and 15% identified democratic reforms in China.

These numbers indicate Canadians are multifaceted in their approach to China—they may reveal an uneasiness about trade relations with the world’s third-largest economy. This means that any trade talks are likely to involve, in the domestic political sphere, discussions surrounding democracy and the environment.

If the Trudeau government hopes to sell a trade deal with China to the Canadian people, it will need to be prepared to answers questions on these issues.

Concerns over trade with China

The NOP further showed Canadians are concerned about the impacts of an FTA with China. While a majority believe it will be good for Canadian businesses (76%), a smaller majority (64%) is also concerned about the economic and political influence China may have on Canada, should our economies become so closely intertwined.

The 64% number is perhaps as important as the 55% support rate for an FTA. Should the trade deal go through, it may produce a public reaction similar to the one that occurred when Chinese company CNOOC invested in Canada’s oil sands. If the Trudeau government wants to pursue an FTA with China, they may face a lot of concerns that the Harper government faced during the CNOOC affair.

Other concerns that Canadians have include the impact of China’s volatility on the Canadian economy if there is an FTA (71%); cheap Chinese goods entering the Canadian market (56%); and that China will benefit more than Canada in any agreement (51%).

Work still to be done to get public on board with Canada-China FTA

The NOP reveals that, while a majority of Canadians support an FTA with China, that support is incredibly nuanced. There are a lot of concerns, from cheap goods flooding our markets to unequal benefits. Support for an FTA is not unconditional, and it is only the bilateral priority of 13% of the public.

Unless many of the concerns raised by the NOP are addressed, the government may find a public reaction similar to the one that faced the Harper government during the CNOOC situation.

While public support is growing, it is not absolute. There is a lot of work to be done to convince the public an FTA with China is good for Canada.

The post The people have spoken: public opinion on free trade with China appeared first on Trade Ready.

To some degree, that answer has to be yes; but not entirely.

Washington goes bilateral

For decades, trade policy has been led by Washington. No other capital has had a bigger influence on global commerce. Being the largest economic, military and geopolitical power certainly means that any major shift in U.S. trade policy will impact global trade policy as well.

This is seen most clearly with the Transatlantic Trade and Investment Partnership (TTIP) and the Trans-Pacific Partnership (TPP). President Trump has already withdrawn from the TPP, though that doesn’t mean the deal is wholly dead (more on that below). If we extend his logic on the TPP to the TTIP, as investors would be wise to do, that agreement between the U.S. and the E.U. is likely at the end of its road as well.

Under President Trump, Washington has indeed gone bilateral. Trump decries multilateral trade deals as bad for America. His focus, he says, will be on establishing bilateral trade relations and negotiating from a position of strength. He thinks the U.S. can get better deals for its workers that way.

After all, the U.S. is the biggest economy in the world, and it can easily overpower many other countries in bilateral talks. The U.S. negotiators will have an enormous amount of leverage in bilateral negotiations, even with other major economies. By contrast, American bargaining power often decreases when it is negotiating with multiple countries, as was the case with the TTIP and the TPP.

NAFTA’s future is more certain than either the TTIP or the TPP, since it is an existing, entrenched trade deal. With established links and interests, it will be much harder to nix the regional pact. However, a renegotiation is almost certainly going to occur. Donald Trump’s re-election depends on it—he won office because of votes in the Rust Belt, and those voters feel passionately that NAFTA should be scrapped or renegotiated.

NAFTA renegotiations will be an historic challenge for Ottawa. While America’s sights are largely set on trade with Mexico, Canada needs to brace itself for what could be a rough ride as well. Though trade with Canada almost never made its way into a Trump campaign speech, complacency will not serve our policymakers.

Is the TPP dead?

There were two major players in the TPP negotiations—the U.S. and Japan. It was commonly believed during the negotiations that if either of those two countries failed to ratify it, the deal was dead. While Japan ratified the pact, the U.S. will not.

However, that doesn’t mean the TPP is dead per se. Australia is pushing for the deal to continue without the U.S., though this is unlikely. Even if the deal doesn’t get ratified and the TPP is gone in name and country make-up, many of the innovations that came from it may find their way into future trade deals. The TPP was often heralded as the new gold standard for trade—these ideas don’t go away with the end of the pact. Expect to see some of those processes replicated in future deals.

Is the world following the U.S. to bilateral trade?

As Washington pivots away from decades of multilateral trade policy, will the rest of the world follow? To some degree, they will be forced to. Countries that want a trade deal with the world’s largest market will be forced to negotiate bilaterally with the U.S. This includes Japan and the U.K.

However, there is no evidence yet that the rest of the world will only negotiate bilateral deals with other countries.

In Asia, China is still pushing the Regional Comprehensive Economic Partnership (RCEP), which consists of 16 Asia-Pacific countries. Furthermore, ASEAN countries are continuing their economic integration.

Multilateral trade isn’t dead in Europe either. After Trump’s election, Canada and the E.U. ratified the Comprehensive Economic and Trade Agreement (CETA). The United Kingdom, too, is keeping a multilateral E.U. trade deal on the table in its Brexit negotiations.

Nevertheless, there are still storm clouds for multilateral trade in Europe. While the TTIP has not been officially abandoned, anyone who took in Trump’s rhetoric on the TPP cannot imagine he supports the E.U. deal.

The TTIP is further complicated by an E.U. election calendar which is not favourable to the agreement. Over the coming years, France and Germany (the major E.U. players) will both have elections in which populist candidates are either leading in the polls or rising in popularity. The result is that French and German mainstream leaders will be forced to make concessions. While they are unlikely to abandon the TTIP altogether, they may have to tamp down enthusiasm and make some changes. Of course, the victory of right-wing populists in either country could kill the deal as well.

There is no doubt that Donald Trump’s election will change world trade, marking a break from the multilateralism that has become popular in recent decades. However, there is currently no evidence that the rest of the world will shift its policy framework just yet, placing the U.S. at odds with many other countries over the future of international free trade.

The post Does the Donald Trump era mark the end of multilateral trade? appeared first on Trade Ready.

1. Take the China trade talks seriously

The Chinese market is the second largest in the world, and the country’s growing middle class ensures that firms with market access could strike gold. China watchers were therefore delighted when International Trade Minister Chrystia Freeland announced she would hold meetings with Chinese officials to explore a free trade agreement (FTA) between our two countries.

This is a great opportunity, but we have to keep our eye on the ball—talks will take a long time and the Chinese are known to be tough negotiators. Furthermore, with the world at Beijing’s doorstep looking for business, other markets are competing for China’s attention. We need to constantly show Beijing that we mean business on trade.

Canada can do that by devoting serious attention from senior leaders. Minister Freeland needs to be actively engaged in the process. That means regular meetings in Ottawa, and regular trips to China. Frequent high-level meetings in Ottawa will help us flush out our negotiating position and ensure we are adequately prepared for intense discussions.

Regular visits to China will show Beijing that we are serious about trade with the world’s second-biggest economy. It will demonstrate that an FTA is at the top of our bilateral agenda, and that it should be at the top of theirs as well.

That being said, there is only one person in Canada who can give the real symbolic credibility that the free trade talks need—Prime Minister Justin Trudeau.

The prime minister will need to “own” the China trade talks in the same way that Brian Mulroney took ownership of NAFTA.

The PM will need to meet regularly with ministers and public servants, passionately communicate the potential of such a deal to Canadians, and keep in touch with Chinese leaders on the subject.

Prime ministerial ownership will provide real benefits to the talks. It will speed them up by giving them CEO-style leadership that will demand accountability from ministers and public servants, while bringing in a broader strategic view that only the head of the Cabinet can provide. But prime ministerial ownership will also be highly symbolic—Beijing will notice and take Canada seriously in the negotiations.

2. Advocate for the TPP

A large part of the Canadian trade discussion since the Great Recession has been about diversification away from the U.S. market. The Trans-Pacific Partnership (TPP), the mega-trade agreement between Canada and eleven other Pacific Rim countries, was an integral part of that strategy – but it now faces an uncertain future.

The agreement’s two major economies, the U.S. and Japan, are at odds over its implementation. Despite domestic opposition, Japanese Prime Minister Shinzo Abe is still pushing for the trade deal.

With the election of Donald Trump, the American position on the TPP is uncertain. Though President-Elect Trump has stated his opposition, TPP leaders still hope he will change his mind.

Though Canada’s federal government has not confirmed whether it will implement the TPP, Minister Freeland did sign it last year, indicating the government is not wholly opposed to the FTA. Canada can still join Abe and other TPP leaders in putting pressure on the Trump Administration to back the deal.

With Donald Trump already reversing some of his campaign pledges—such as the Muslim immigration ban and the undocumented immigrant mass deportation force—there is a chance he could change his position and support the TPP (though he would likely have to seek modifications in order to save face with his base). It is by no means certain, or even likely, but it is distinctly possible that the TPP could still be a reality in 2017. Canadian leaders should push for it.

3. Re-start trade talks with Japan

As mentioned above, the TPP could still be implemented, but it is very far from certain. The Canadian government should resolve to defend our interests in the event that the TPP is not implemented. And that means going after the big gem among the TPP signatories: Japan. Canada already has a free trade agreement with the U.S., so the prize for Canadian businesses in the TPP is access to the Japanese market, the third-largest in the world.

If the TPP falls through, Canadian leaders, including the prime minister, need to utilize all that Canada has gained from the TPP negotiations, and apply these assets to immediate free trade talks with Japan.

These assets—contacts between officials, goodwill from negotiations, knowledge of the Japanese market gained through the talks, corporate contacts, etc.—are only good for so long. Officials retire or get shuffled, and agenda items get moved down the priority list as time moves on. The Canadian government needs to utilize its public service and business contacts in Japan now.

While any bilateral FTA talks will clearly be different in substance than the multilateral TPP talks (in which Japan was admittedly more focused on the U.S. than Canada), the foundations are there and the connections are too. Talks have stalled in recent years, but the potential demise of the TPP could provide a boost to bilateral efforts.

Canadian leaders should take advantage of this window of opportunity in 2017 and begin negotiations for a bilateral FTA that gives Canadian businesses access to the large and developed Japanese market.

If the government makes these three resolutions, it can deliver market access for Canadian businesses and growth for the Canadian economy.

The post 3 New Year’s resolutions for Canada on Asian trade appeared first on Trade Ready.

With the ratification of the Canada-Korea Free Trade Agreement and the signing of the Trans-Pacific Partnership, it is imperative that Canadian companies explore opportunities in Asia.

Asia Pacific Foundation of Canada finds B.C. SMEs under-utilize available resources

In 2015, the Asia Pacific Foundation of Canada (APF Canada) conducted a survey of nearly 150 British Columbia small- and medium- sized enterprises (SMEs) doing business abroad. Most exported to Asia, but some exported only to non-Asian markets.

The survey had four key findings:

1. Only half use export promotion services to expand to Asia
2. Business-to-business connections are seen as key
3. Country-level governance is viewed as a challenge
4. Employees with a background in Asia are a bridge to the region

The first key finding, that many B.C. SMEs don’t use any resources to help them export to Asia, is particularly striking. When respondents were asked about services they had used, 20% reported using the services of a Canadian Embassy, 15% used those provided by Export Development Canada (EDC), and 14% used provincial resources.

Twelve percent of respondents used the Trade Commissioner Service, and 10% used Asian-Canadian business associations, such as the Canada China Business Council. However, 48% of B.C. SMEs reported using no services. These findings were comparable with the non-B.C. Canadian SMEs surveyed, with 46% reporting the same.

With relationships serving such a central role in Asian business culture, the networks of organizations like EDC can be incredibly useful. Thus, such under-utilization of export development resources is concerning.

There must be a greater effort by trade promotion organizations, and trade advocates, to enhance awareness of the various services on offer. Small business owners can get one-on-one consulting, networking help, due diligence assistance, financing and much more—but they need to know where to look.

Read the Guidebook to Doing Business in Asia

On May 25^th, 2016, the B.C. Government launched the Guidebook to Doing Business in Asia: An Online Resource for B.C. Businesses. Created by the Asia Pacific Foundation of Canada, and supported by the B.C. Ministry of International Trade, the Guidebook is an online resource containing links to different services SMEs can utilize if they are considering exporting to Asia, or have already started their venture.

Free of charge, the Guidebook to Doing Business in Asia contains resources on market research, financing, business culture, networking and much more.

Though primarily for B.C. businesses, it contains many Canada-wide services which can be of use to business owners across the country.

Asia is growing. It is of increasing importance that Canada’s SMEs pay attention to this dynamic region. Right now, many Canadian SMEs aren’t taking advantage of the services available to them. The Guidebook to Doing Business in Asia can play a role in ensuring that these SMEs know what is out there, from the federal and B.C. governments to the private sector and abroad.

The post Is your business missing out on key resources you need to get ahead in Asia? appeared first on Trade Ready.