People still want to know what’s keeping Stephen Poloz up at night. The ever-astute

Unsurprisingly, the book is a national bestseller, with many individuals seeking his word on what lies ahead—while others still want to know what’s keeping him awake at night.

So, what’s keeping him up at night?

This was a question Mr. Poloz was often asked during his tenure as the Governor of the Bank of Canada and was asked once more during FITT’s most recent fireside chat with him, hosted by FITT President, CEO and CITP Caroline Tompkins. As usual, his answer was in-depth and well thought-out, mainly focusing on political polarization and the concern that “politics somehow are going to get to a place where things really can’t get done.”  

But it isn’t just polarization that’s keeping him awake at night, it’s also the rising income inequality most countries are seeing, which, in his opinion, is fuelling the type of atmosphere where polarized political sides only seem to work together when crisis hits. This is a weakness that could lead to a trend of governments stumbling from one crisis to another to get things done, he thinks. If the past year’s events, from the global pandemic to the war in Ukraine, are any evidence of Mr. Poloz’s knack for nailing a prediction on the head, then he might have a second career as a clairvoyant (though he would disagree with this assessment). 

Despite the multiple looming risks discussed throughout the chat, Mr. Poloz also showed his famous sunny side, giving insightful solutions and strategies that businesses and everyday individuals can use to better prepare for uncertainty. These include things like empowering teams with values-based leadership and ensuring that companies have solid long-term forecasts. These forecasts should include strategies for managing tectonic changes like inflation, political polarization and an aging workforce. He also highlighted the openness of individuals in government to work together toward better solutions for the economy. 

Other interesting topics discussed during the chat include: 

• The exacerbation of inflation (which Mr. Poloz had predicted in his book over a year ago—but did not think would happen so quickly) 
• Canada’s slow trade growth and contributing factors such as low productivity hampered by logistical and regulatory inconsistencies that prevent businesses from growing 
• Canada’s strengths, which include a strong influx of immigrants who contribute to our workforce and productivity, our excellent education system and better handling of income inequality when compared to other countries. 

A rich and insightful 60 minutes, we’re grateful to have hosted Stephen Poloz for the second time and hope there will be many more opportunities in the future. 

Watch the event here:

[youtube https://www.youtube.com/watch?v=TO0PfS4OcWw]

The post Diving into the World’s Mounting Tectonic Economic and Trade Forces with Stephen Poloz appeared first on Trade Ready.

The new Canadian Federal Budget 2021 outlines plans for a total spend of $101.4 billion. With new pandemic business support options, including $17.6 billion towards cleantech innovation to combat climate change, it plans for a strong recovery and growth for all Canadian businesses.

SMEs and other businesses looking to understand how the budget can help their industry, business or other professional endeavors can check out the list of proposed initiatives below:

New options for small business recovery and growth

The budget proposes to provide continued business support during COVID-19 including:

• $12.1 billion in additional COVID-19 support to extend the CEWS, CERS, and lockdown support options for businesses and other employers until September 25, 2021.
• $4 billion for the new Canada Digital Adoption Program to help up to 160,000 small and medium-sized businesses buy the new technologies they need to grow and train up to 28,000 young Canadians.
• $2.6 billion to the Business Development Bank of Canada to offer grants, loans, incentives, and further business support options.
• $595 million for a new Canada Recovery Hiring Program (CRHP), which will run from June to November 2021, and will make it easier for businesses to hire back laid-off workers and/or to bring on new employees.
• $560 million to improve the Canada Small Business Financing Program.
• $500 million to revitalize community spaces through the Canada Community Revitalization Fund.
• $470 million over three years, beginning in 2021-22, to Employment and Social Development Canada to establish a new Apprenticeship Service.
• $101.4 million to create a Small Business and Entrepreneurship Development Program.

Funding investments for Canadian cleantech innovation

The budget also proposes to provide cleantech innovation investments including:

• $7.2 billion over the next seven years for the Strategic Innovation Fund (SIF).
• $2.2 billion to strengthen Canada’s biomanufacturing and life sciences sector.
• $500 million to the Industrial Research Assistance Program (IRAP).
• $450 million renewal of VCCI, with $50 million dedicated to life science tech and $50 million to create a new Inclusive Growth Stream to increase access to venture capital for underrepresented groups, such as women and racialized communities.
• $443.8 million for the Pan-Canadian Artificial Intelligence Strategy.
• $400 million over six years, starting in 2021-22, in support of a Pan-Canadian Genomics Strategy to kick-start the new strategy, and complement the government’s existing genomics research and innovation programming.
• $360 million over seven years, starting in 2021-22, to launch a National Quantum Strategy.
• $90 million over five years on a cash basis, starting in 2021-22, to the National Research Council to retool and modernize the Canadian Photonics Fabrication Centre.
• $60 million for the Innovation Superclusters Initiative.

Support options and opportunities for Canadian youth

There are also plans to provide a wealth of support to Canadian youth including:

• $4.1 billion to provide direct support for more affordable postsecondary education.
• $721 million over the next two years to help youth connect with employers and provide them with over 100,000 new, quality job opportunities.
• $100 million over three years to support projects for innovative mental health interventions and support programs.

Further notable federal budget 2021 investments

To ensure that Canada prevails in the global fight against COVID-19, creates a stronger economy for all Canadians, and advances in cleantech innovation, the plan will invest:

• $3 billion over five years, starting in 2022-23, to support the provinces and territories in creating and upholding high standards of care inside long-term care facilities.
• $424 million in 2021-22 to ensure the “safe reopening” of Canada’s borders, through funding further air travel protections and mandatory quarantine measures.
• $375 million to Global Affairs Canada to support Canada’s international COVID-19 response, with a focus on addressing the health needs of developing countries. This would facilitate the world’s poorest countries to access the tools necessary to help contain the spread of COVID-19.
• $271.1 million in 2021-22 to CATSA to maintain operations and enhanced screening services at the 89 airports where it works.
• $195 million over two years, starting in 2021-22, to Health Canada, the Public Health Agency of Canada, and the Canadian Institutes of Health Research to help develop national mental health service standards, in collaboration with provinces and territories, health organizations, and key stakeholders.
• $82.5 million in 2021-22 to Transport Canada to support major Canadian airports in making investments in COVID-19 testing infrastructure.
• $41.3 million over six years, starting in 2021-22, and $7.7 million ongoing, for Statistics Canada to improve data infrastructure and data collection on supportive care, primary care, and pharmaceuticals.

Additional federal budget 2021 funding and programs

To learn more about the overall breakdown of the Federal Budget 2021, including options for industry-specific support, regional support, municipal and non-profit support, and other additional support options for Canadian businesses, please read the detailed overview of the Federal Budget 2021.

The post Federal budget 2021: New support options for Canadian businesses appeared first on Trade Ready.

How COVID-19 delays could affect your supply chain from contracts to insurance and custom clearance

This article reveals the potential delays and issues that businesses could encounter in the aftermath of the pandemic, from contracts and insurance problems to custom clearance and force majeure cases.

8 helpful tips to improve your customer service quality

The level of customer service your business provides greatly impacts its success. In this article, discover useful tips for improving customer service using feedback, cross-selling, referral programs and more.

9 factors exporters should consider when selecting sales channels

From market location to local business practices, international trade practitioners need to consider several important factors when choosing their sales channels for the distribution of products and services. Learn about the most important ones in this article.

Top 10 most read global business articles of 2019

Last year had some great reads too! This article covered the top ten most popular articles from 2019, giving insights on important trade-related topics that readers loved.

9 ways to reduce the total costs of customs clearance

Customs clearance is an expensive aspect of international trade, but there are many ways to reduce the costs. Learn effective strategies and steps businesses can take to make this process cheaper. 

Choosing the wrong Incoterms® can mess up your contract – here’s how to get it right

Understanding Incoterms® is a critical part of ensuring your contracts and business agreements run smoothly. See how to avoid some common mistakes when using them.

The state of Canadian SMEs involved in international trade

Are you a Canadian SME involved in international trade? This article is a must-read for understanding where small and mid-size Canadian enterprises and businesses are thriving and lagging on the international stage. 

China too risky? Do you need a new strategy for your FDI in the face of COVID-19?

COVID-19 has forced many businesses to re-assess their global strategies over the past year. Get insights on Asia development in the aftermath of the pandemic and see why you should option the ASEAN region.

Act now to minimize your political risk in foreign markets

Political changes in international government can spell big trouble for businesses operating in various regions around the world. To adapt to the disruptions, companies need to make rapid adjustments when these changes occur. Learn some effective strategies for minimizing political risk in foreign markets.

10 things you can do from home to boost your export business

The pandemic has severely limited regular routines for SMEs around the world. However, there are still many things individuals can do from home to support their business during the coronavirus crisis. See which steps you can take from home to foster growth during this time.

The post Best of 2020: Our top 10 most popular international business articles from the past year appeared first on Trade Ready.

Canadians, members of one of the largest economies in the world, are largely aware of the benefits foreign trade can bring them. Over 70 years ago, Louis St. Laurent shared his opinion on this matter by stating that Canadians are dependent on foreign markets for products they make but don’t consume, and for the ones produced abroad that are essential to their well-being. Nevertheless, Canada’s exporting remains relatively low for an economy of its size – why? 

A lack of opportunity or confidence?

When we see the importance of international trade for other countries, we can rightfully ask why there is a lack of it in Canada. It’s not that Canadians are unable to see the opportunity, they are simply afraid of it.

A study from 2016 reports that two-thirds of Canadian SME’s feel like their businesses are not suitable for international expansion. The reasons? According to the survey, there are four main barriers to global development: knowledge, talent, resources, and risk exposure. SMEs reported they don’t have suitable (local) partners, and they lack in right local insights to consider expansion.

The obstacles of importing goods

Importing is crucial for a high number of Canadian small businesses; however, the whole process can be tedious and difficult to manage. Once they’ve determined what they want to import, Canadian businesses have to check whether there’s a demand for that product on the Canadian market and if it’s legal to use and sell. They also have to prepare paperwork for it: both in English and French, which is complicated enough.

Furthermore, there are complications in the logistics of imported products due to different taxes in each jurisdiction, product classification (where the same product is classified differently between jurisdictions), labeling, and safety requirements. All of this can be overwhelming, especially for new businesses.

Today’s Canadian SMEs trade in services

When we look at the data from 2017, we see there were 1.18 million employer businesses in Canada. The vast majority (97.9%) were small businesses, almost 2% were counted as medium-sized businesses, and only 0.2% were large businesses. More than half of them were concentrated in Ontario and Quebec. A vast majority of these businesses (78.4%) were in the service sector, while the goods-producing sector held second place.

The provinces that trade the most

Although Canadians are not great exporters, businesses involved in exporting can be found in every province. The province with the highest concentration of exporters per thousand establishments remains Ontario (48.4), while Manitoba (43.9) and Quebec (43.1) hold second and third place. Newfoundland and Labrador (17.2) are underdogs.

The contribution of Canadian SMEs

Canada’s export of goods increased to around $483.6 billion in 2017, which was a 6.19% increase from the previous year. SMEs contributed to 41.9% of 2017’s total export value. They managed to increase their export output from $186.2 to $202.5 billion. The most lucrative industrial sectors were responsible for more than 90% of the value of exported goods: manufacturing, wholesale trade, management of companies and enterprises, mining, and oil and gas extraction.

Top international business industries and breakdown of export value

When it comes to export, the biggest moneymakers in Canada are motor vehicles, aircraft, coal, and fertilizers. What’s more: Canada is the fourth-largest producer of oil in the world thanks to its tech-oriented industrial society, preferred by international markets. Canada is responsible for 5% of global oil production, and this trend will only grow – by the estimates of EIA International Energy Outlook 2019, Canada’s oil production could double by the end of 2050.

Canada’s hottest product in terms of export is cars: they are valued at almost $50 billion and have placed Canada in 10th place when it comes to auto-producing countries. Aircrafts, helicopters, and spacecrafts are ranked as the second most-exported products (more than 7 million), while natural resources, such as coal, are being ranked third ($6.7 million).

(Source)

The vast majority of Canadian exporting companies have less than 100 employees. However, that doesn’t stop them from producing a quarter of the total value of Canadian exports.

Main export destinations

Over a period of seven years (between 2010-17), the total value of exported goods increased to 4.3% per year, resulting in a profit of $484 billion. Canada’s main export destinations are the United States, China, the United Kingdom, Japan, Mexico, and South Korea.

Worth of goods imported by Canadian SMEs

In 2017 the import of goods made by Canadian SMEs increased by over 5% in comparison to 2016. What’s more, SMEs were responsible for almost 99% of all imports and nearly half of total Canadian imports by value. A vast majority of companies imported from Asian and European markets, decreasing their imports from North America.

SMEs and international trade: the final verdict

Even though they’re faced with many obstacles in international trade, Canadian SMEs are paving the way for future successful trading activities. One thing is for sure: there’s a lot of potential out there.

The post The state of Canadian SMEs involved in international trade appeared first on Trade Ready.

The logistics, freight forwarding and transportation industry has some incredible conferences which help to educate, inspire, and connect people involved in the field. These conferences are a great way for industry members to network and develop key knowledge for success.

Here are some of the top conferences in North America for freight forwarders and logistics.

1. WERC National Conference

April 28-May 1, 2019 | Columbus, OH

The WERC (Warehousing Education and Resource Council) National Conference is a fantastic annual event for members of the logistics community to come and learn more about their trade. Because this conference is specific to warehousing, it is ideal for anyone in the logistics industry who is primarily involved with storage and warehousing.

A unique aspect of the WERC National Conference is its interactive simulation activities. These powerful learning tools are ideal for anyone aiming to gain practical knowledge in this area. Learning from experts in such a hands-on way can help you build on your skillset in this industry.

Finally, this conference also features facility tours and exclusive sessions with several companies. All present exciting opportunities to advance supply chain knowledge.

2. Gartner Supply Chain Executive Conference

May 13-16, 2019 | Phoenix, AZ

The Gartner Supply Chain Executive Conference is another wonderful annual event for members of the supply chain industry. Those in attendance will be treated to speeches, networking sessions, and workshops, like many of the other events.

However, this conference also has several unique components that separate it from others. For example, it features a ceremony called the “Gartner Top 25,” in which the top 25 organizations that embody supply chain excellence and innovations are honored with a special dinner. This is a great way to get to know the key movers and shakers in the field.

This event is geared toward innovation and advances in the supply chain industry. It even offers sessions with industry analysts, where you can learn the latest technology in the industry. It’s a great place to rub elbows with those at the cutting edge of the trade.

3. CTRF 53rd Annual Conference

May 26-29, 2019 | Vancouver, BC

This annual conference is a chance for freight forwarding professionals to meet and reflect on the history of the industry. It is also a chance to discuss current trends and developments in freight forwarding, and talk about the future of the industry.

This event is being held at the Pinnacle Harbourfront Hotel in Vancouver, from May 26-29, 2019. It is a great way to enjoy springtime, and learn more about the supply chain industry!

The Canadian Transport Research Forum holds this conference every year. It is known as one of the leading events for transportation professionals in Canada. There are many open forums which promote discussion and propose research ideas for freight forwarding. It is a great place to learn and network for those in the transportation industry.

4. 3PL and Supply Chain Summit

June 10-12, 2019 | Atlanta, GA

Based in Atlanta, the 2019 3PL and Supply Chain Summit is a key gathering for those in the logistics industry. Some important topics that this conference will focus on include e-commerce, high and low tech solutions, urban, suburban, and rural delivery, and keeping pace with the consumer.

The event will feature speeches and panels with CEOs and important members of the logistics business. Other new features include a special networking party, an exclusive blockchain workshop and an informative session focused on temperature-controlled logistics solutions.

The conference will be held at the Westin Peachtree Plaza, right in the heart of downtown Atlanta and within walking distance of many city landmarks. It’s always great when a conference offers the chance to do some sightseeing too!

5. Cargo Logistics Canada Expo and Conference

Exact date TBA, 2020 | Vancouver, BC

Billed as Canada’s largest supply chain event, this annual expo and conference helps connect cargo owners with cargo movers. It is the perfect event to make the right connections to advance your business or career in the supply chain industry.

This conference features targeted summit events, more than a hundred speakers and industry experts, and thousands of square feet of exhibit space. In the words of the organizers, “The entire supply chain will be under one roof!”

This is the seventh annual Cargo Logistics Canada Expo and Conference, and has taken place in Vancouver all but one year, when it was located in Montreal.

If you are in the supply chain industry in Canada and you are looking to either connect with cargo transporters, or people who have cargo that needs to be moved, this is the place to be. Just imagine the incredible business opportunities you’ll have as you meet countless professionals in the field. It is the perfect event to grow your business.

Did we miss an event that you think should be on the list? What events do you plan on attending this year?

The post Top 5 North American conferences you don’t want to miss if you are in freight forwarding and logistics appeared first on Trade Ready.

In today’s somewhat volatile global trade environment, Canada is enjoying a period of increasingly open trade, as well as political and economic stability. Should you add Canada to your export strategy? Here are five factors to think about as you answer that for your business.

1. Customers have money to spend, and they’re not going anywhere

Canada was ranked 10^th for overall GDP in 2016, placing it amongst the world’s wealthiest countries. Within this top ten, Canada has a higher GDP per capita than seven of them, meaning there is a higher likelihood the average Canadian will have disposable income to purchase new imported goods or services.

Canada also has the highest population growth of any of the G7 countries, so this population of consumers is only going to grow with time. Interestingly, two-thirds of the population growth from the past five years has come through immigration. Therefore Canada is gaining a more diverse population that can potentially support niche markets for international products.

While assessing new markets and export opportunities is never easy, Canada certainly shows promising signs for businesses considering it as their next target.

2. Fewer barriers to doing business

Overall, Canada ranks 22^nd out of 190 in the World Bank’s Ease of Doing Business rankings. It also ranks second worldwide in ease of starting a business, and among the top 10 in getting credit and protecting minority investors.

While ranking 46^th in trading across borders might raise eyebrows, many of the top countries in this category are located in Europe, where several border agreements have been in place for years. Among non-European nations, Canada would rank 10^th in this category.

While Canada doesn’t receive high marks in every category – Canada is 108^th for getting electricity and 112^th for enforcing contracts – overall, entrepreneurs looking at exporting to Canada should have a relatively easy time.

3. New trade agreements mean fewer impediments

Canada has enjoyed free trade with the U.S. since the late 1980s, and been part of the NATFA agreement with the U.S. and Mexico for over 20 years. Recently, new agreements have opened similar opportunities with markets outside of North America.

Most notably, CETA will remove tariffs on 98% of goods and services from EU countries once provisionally implemented in late 2017. This will increase to 99% once the agreement is ratified by each European national government.

Canada also has free trade agreements (FTAs) in place with 12 other countries, including South Korea, Chile, and Israel, and is currently negotiating with several others, such as India and Japan.

Businesses operating in any country involved in an FTA with Canada should start looking into potential opportunities. Want to see if your country is on the list? You can view a full list of every country Canada is negotiating with, or has signed an agreement with, the status of their relationship, and the type of agreement through the Global Affairs Canada website.

With the signing of the recent Canadian Free Trade Agreement, businesses will also find the number of barriers within Canada reduced. While some obstacles remain, particularly regarding the sale of alcohol, exporters should find greater opportunity to expand across Canada once they’ve entered the market.

4. Beyond Canada-U.S. trade, Canada is a net importer

For better or for worse, Canada’s international trade has been largely defined by its trading relationship with the United States. Canada shares one of the world’s longest borders with the largest economy in the world, and has had a longtime free trade relationship with the U.S. This has resulted in a situation where 75% of Canada’s product exports went to the U.S., and 65% of the products imported into Canada were from the U.S. in 2016.

If you live outside of the U.S., however, there are a few things that should give you hope. While Canada had a net positive trade balance in 2016, it becomes a trade deficit once Canada-U.S. trade is removed from the equation.

This means if you’re a business outside of the United States, Canadian businesses are currently more likely to buy from you than sell to you.

In some industries, opportunities are already wide open for businesses outside the U.S. to export to Canada. According to Steve Tipman, Executive Director of Trade Facilitation Office (TFO) Canada, “two examples where this is especially noticeable are apparel and food. A lot of Canadian clothing is from outside Canada or the U.S., and if you walk into a grocery store, many of the fruits and vegetables are from Mexico, Latin America or elsewhere.”

He also adds that Canadian importers and consumers are also interested in unique, price competitive products from around the world. “In the example of fruits or vegetables, with urbanization happening in many Canadian cities, anything that’s sized a little differently or can be purchased individually by customers instead of in a carton is going to stand out and appeal to that segment of the population.”

Canada-U.S. trade will continue to be important, but Canada’s greater diversity in imports should demonstrate that opportunities are available for companies wanting to export to Canada.

5. Plenty of help available to find potential partners

One of the most important elements of entering any new market is building connections and forming partnerships, alliances, supplier agreements, and other business relationships.

One place companies can start is the Canadian Importers Database, put together by Industry Canada. You can search lists of companies importing goods into Canada by product type, country of origin and Canadian city, to see who’s already importing what and from where.

The Canadian Trade Commissioner Service (TCS) is also a valuable resource for anyone looking to do business in Canada or with Canadian companies. With 161 international offices around the world, Trade Commissioners near you will be able to give you the information and advice you need. They can put you in contact with potential partners and leads and help you evaluate the ones you already have. Trade Commissioners may also know about trade shows or missions relevant to your needs.

As Varun Anthony, CITP|FIBP, a Trade Commissioner in Mumbai, India explains, “The Canadian Trade Commissioner Service is your one stop shop to doing business in Canada. Trade Commissioners across Canada’s global network provide tailor-made services to suit your business requirements so that you can invest in one of the best economies to do business with in the G20 – Canada!”

TFO Canada is another organization to look at for those in emerging markets. “The first thing any SME in a developing country should do is register on our website, www.tfocanada.ca,” Tipman explains. “It’s important to fill out your entire profile, so we can share it with Canadian importers who might be interested in your products. From there, there’s lots of data and resources you can find – sector-specific market information papers, a comprehensive guide on exporting to Canada, and regular webinars on a wide range of trade-related topics are just a few examples.”

With many potential opportunities for businesses around the world, Canada could be an important addition to many businesses’ market entry strategies. Canada offers stability, openness and a large number of potential consumers for your products or services, all important ingredients for any successful export strategy.

The post Top 5 things you need to know to export to Canada appeared first on Trade Ready.

Speaking at an event in Ottawa in June, Canada’s Ambassador to the United States David MacNaughton spoke at length about his outlook on Canada-U.S. trade relations and the upcoming NAFTA renegotiations. He reassured the audience that,

To significantly change the core of NAFTA would also hurt the U.S. It’s just not in the U.S.’ best interest.

From the very start of his campaign, President Trump has nevertheless consistently spoken about the “bad deal” that is NAFTA. But with trade between Canada, Mexico and the United states topping $1.1 trillion in 2016, there has been major concern over what would happen to these significant trading relationships should NAFTA be ripped up or re-negotiated.

After months of speculation, the U.S.  released their plans, contextualized by MacNaughton as a “position paper”, last Monday. This was followed closely by the announcement that the first round of renegotiation talks will officially begin August 16 in Washington.

What does the U.S. want?

Though there are a few pointed items that will likely make negotiations challenging, MacNaughton said he saw no real surprises in the “laundry list” of negotiation objectives released by U.S. Trade Representative Robert Lighthizer.

Most of the items in the 18-page objectives summary match up with the priorities in Trade Promotion Authority (TPA) legislation established in 2015. Much of the document was also consistent with U.S.-Canada-Mexico negotiations from the Trans-Pacific Partnership trade deal that Trump pulled out of in January.

But the United States’ objective of removing NAFTA chapter 19, a dispute resolution clause that allows countries to appeal anti-dumping duties, will be met by significant resistance from both Canada and Mexico. In the ongoing spat between Canada and the U.S. over Canadian softwood lumber, this clause has allowed Canada to avoid significant countervailing duties.

MacNaughton said Canada would be willing to discuss whether this chapter needed to be “improved or modernized. … But there needs to be some kind of a dispute resolution mechanism. It’s part of the agreement.”

Dairy farmers in Canada and the U.S. will also be fighting to be heard throughout the negotiations. U.S. farmers have argued that Canada has been hurting their industry by unfairly protecting its dairy market. A provision to remove these protections from Canada’s dairy industry is included in the Lighthizer’s list of objectives.

What does Canada want?

Months ago, Canada stated that it was ready for NAFTA negotiations. When discussing the biggest trade issues Canada faces with the U.S.  – a proposed Border Adjustment Tax, softwood lumber disagreements and NAFTA renegotiation – Ambassador MacNaughton stated that he expects discussions to go well for Canada, but added the caveat that there will be bumps in the road.

In preparing for NAFTA renegotiations, MacNaughton said “It was discussed in advance that with the 24 year old agreement – pre-existing Amazon and the ecommerce boom – there is a lot that can and should be updated.”

In the U.S., the law requires full disclosure of negotiation objectives. However, this transparency is not required of the Canadian government. Last week MPs from both opposition parties requested a meeting be held to discuss Canada’s approach to the negotiations.

Several groups have voiced their concerns regarding the renegotiations. The United Steelworkers Union have submitted their desire to remove the controversial investor-state dispute resolution clause in NAFTA’s chapter 11. Modernized customs processes and increased labour mobility are among the Canadian Manufacturers & Exporters proposals.

A number of Canada’s industries are also set to push back on U.S. objectives stating Canadian and Mexican companies should face increased restrictions from U.S. state and local governments when bidding on their contracts.

“Obviously if we could get a clarification on the trading relationship sooner rather than later it would be better, but having said that we’re not going to rush in to a bad deal,” MacNaughton said last week.

What does Mexico want?

The current terms of the NAFTA agreement protect Mexico and Canada from trade barriers imposed by the U.S. to protect their more vulnerable industries. Mexico’s Economy Minister Ildefonso Guajardo spoke about his apprehension over the U.S. removing these protections from the agreement.  “This will all have to be subject to the three sides, being in agreement in the process,” he stated last week.

Guajardo also raised concerns over removing NAFTA’s chapter 19. “What I have said insistently in my conversations with my colleagues is that we’re delighted to review trade balances provided that we focus on how to improve them by expanding commerce, not by reducing it,” he said.

On the more encouraging side, Guajardo stated, “what is positive is that the U.S. themselves paraphrased that they won’t reintroduce quotas or tariffs during this process (of renegotiation).”

Who will be involved in negotiations?

Ambassador MacNaughton will play a key role in the negotiations from the Canadian side. And we can expect involvement from all of Canada’s premiers at every stage of the negotiations. Kirsten Hillman, the lead negotiator for the TPP talks and a senior official on softwood lumber issues, will act as MacNaughton’s deputy in Washington and will also play a significant role. Canada’s negotiating team will be led by Steve Verheul, the chief negotiator for CETA.

Representing the U.S. at the negotiating table is the Trump administration’s chief negotiator John Melle, the assistant trade representative responsible for U.S. trade policy in the Western Hemisphere.

Economy Minister Guajardo will be integral to negotiations for Mexico, alongside Mexico’s Foreign Minister, Luis Videgaray who is also expected to take a senior role at the table.

All parties involved seem to want a timely agreement, but rather than looking at months or weeks, legislators warn that this could be a long process. With upcoming Presidential elections in Mexico and mid-term elections in the U.S. coming in 2018, the shuffle in focus, policies, and players could have a major delaying effect on negotiations and ratification. However, all three parties have agreed to aim for a close to negotiations by the end of 2018.

Although renegotiations of this pivotal trade agreement throw a shade of uncertainty over the future of trade between the three nations, Canada’s Ambassador remains positive in his outlook.

“The U.S. is realizing that Canada is a trusted partner – important for creating jobs all over the United States. As long as we can continue to demonstrate that, we will be successful in our trade relationship with the U.S.,” Ambassador MacNaughton stated.

The post NAFTA renegotiations to start August 16 – here’s what we know going into the talks appeared first on Trade Ready.

I have a Master of Arts in International Relations. However, I wanted to understand how policies affect businesses, and how businesses make their sourcing and procurement decisions.

After discussing some of my ideas with my friends, mentors and colleagues in food technology, marketing, manufacturing and other industries, I set out to do two things:

First, I wanted to learn what’s involved in importing and exporting products.

Second, I wanted to build a niche business that offers unconventional and unique products to the Canadian market from socially responsible suppliers.

Starting my international trade business

In 2012, I created Linkus. We specialize in providing ingredients from the Amazon rainforest from renewable non-timber sources. Our manufacturers partner with local co-ops to obtain wild-harvested fruits and seeds, then process the raw material in first-class manufacturing facilities in Brazil to deliver the finest quality pulps, purees, powders, concentrates and oils.

In order to assist companies in finding unique and unconventional ingredients from quality manufacturers, I first developed a relationship with officials in Brazil who could help me find and meet with manufacturers interested in exporting to Canada. At the same time I reached out to a number of CITPs, who have taken the time to listen and mentor me.

Getting some help from a network of experts

Through this professional network, I was able to learn about processes for exporting goods into Canada, including the legal aspects of being an agent, regulatory compliance and tariffs. Through this legwork, I have also been able to liaise with manufacturers to provide them with an understanding of the regulatory environment in Canada.

The FITT community has been a really invaluable resource in my pursuit of a career in international trade.

CITPs have always found the time to guide me and help me find answers to my questions. They have helped me develop an understanding of where to be cautions when international transactions happen, what legal framework is necessary to operate successfully in Canada, and what to expect and be aware of during international trade round-table discussions.

In 2012 and 2013 I had the honour of being invited to participate in trade round-tables organized by Apex Brasil, an organization that has been instrumental in assisting my business partner and I find partners in Brazil. In 2012, I represented Linkus Global Inc., and was able to develop a good relationship with 100% Amazonia, who we are privileged to represent in Canada. In 2013, I represented OrganicaPure at trade round-tables in Manaus as we were looking to source a new product line.

FITT for the future

In the past two years, my business partner Antoine Kahn and I have incorporated Linkus, established excellent relationships with suppliers in the Amazon and participated in numerous food trade-shows in North America. It’s now that the rubber hits the road. My goal is to make our efforts visible through sales, and to establish Linkus as a serious player in the Canadian market.

I plan to enroll in the FITTskills International Trade Finance course and continue leveraging the exceptional FITT network to access food professionals and to help food and beverage businesses innovate and incorporate some of the unique ingredients my company has to offer.

While there are different certifications available for professionals in the trade and supply chain business, I do not think they have the same level of resources and reputation to start and grow a career in international trade in the ever-changing international markets: FITT “fits” the bill.

The post How joining a community of international trade professionals helped build my global business appeared first on Trade Ready.

Regardless of whether or you support the Trump administration, it is obvious that Mr. Trump has re-written the global rules of marketing.

Marketing was traditionally based on careful research, forecasting of trends, evaluation of current economic growth and feedback from the market itself. But today’s successful marketing seems to be based on the concept of “perception equals reality”.

Non-stop self-promotion backed by constant imagery of the name TRUMP, a continuous media presence, bizarre hairstyle, and references to billion dollar real estate deals, all create a self-fulfilling prophecy that few want to disagree with.

Canadian business executives have typically been cautious when it comes to blowing their own horn, and this has been part of Canada’s success internationally – people like us because we are low-key. Close to 75% of our population lives within 100 miles of the U.S. border, and internationally we are seen as North Americans – but not Americans, a subtle difference that often works in our favour.

Numbers work in the States

The senior partner of an international business services firm told me the other day that his company was thinking of changing its U.S. advertising to include results – “numbers work!” He was thinking of informing visitors to his website that the firm had helped eight of their many clients to sign strategic alliances in 15 countries, resulting in agreements worth $145 million.

Another contact, a manufacturer of office furniture, has asked his Linkedin network for recommendations about his products, asking permission to include some of their comments in his U.S. advertising copy. Both of these canny executives are aware that it is impossible to know what will hook a potential American client, but one said: “In the current U.S. market, my best chance of being noticed and getting new business is to rely on a perception of success. I don’t want to be cynical, but in the States we have just seen proof on the adage that perception equals reality!”

The other way: relationships

That being said, it is worth noting that experienced exporters with clients in other countries are not changing their traditional promotional activities to boast of their prowess. Instead, they prefer to rely on long-lasting relationships with suppliers and clients abroad.

In most countries, the effort of establishing a personal bond with local contacts pays off in the long run.

A Canadian sportswear exporter to Latin America told me that, “… my Brazilian importer has become part of my extended family, and his son is now living with us in Canada. You can’t beat the kinds of relationships that can develop over time!”

Another Ontario-based franchise consultant made a concerted effort to learn Spanish, and now has a network of associates in Latin America and Southern Europe that he visits regularly. Without developing these contacts, his business would have remained a small domestic operation.

The Canadian way

Experience shows that every market must be served individually. While marketing methods may be successful in one market, it may not bring the hoped for results in another. There are no quick fixes in international trade – maintaining a steady focused effort to be the best in what you do will always succeed in the end.

The Canadian way still works:

1. adjust to your target market’s needs
2. rely on investing in personal relationships… and
3. avoid excessive bragging.

The post The success of U.S. marketing methods shouldn’t affect the Canadian way of selling appeared first on Trade Ready.

That same year, Canada imported five times more to Mexico than it exported, with total exports of nearly $6.6B CAD and imports totaling $31.2B. This means many Mexican companies are already in the Canadian market and could serve as business partners to Canadian companies interested in importing from Mexico.

Interestingly, the inverse trend presented itself in foreign direct investment, as Canadian companies have found huge opportunities in the Mexican market which should continue to grow. Mexico invested $1.4B in Canada in 2015, while Canada invested $14.8B in Mexico.

Recent signs point to a deepening Canada-Mexico trade relationship

Canada’s relationship with Mexico has never been better. In fact, on June 28th^, 2016, the Governments of Canada and Mexico agreed that a strong relationship between their two countries is vital to creating jobs, strengthening the middle class, and ensuring sustainable economic growth.

During their bilateral meeting, Prime Minister Justin Trudeau and President Enrique Peña Nieto renewed their close relationship on the environment, climate change and energy, and highlighted the opportunity for North America to become the world’s most competitive player in the clean growth economy.

Canada and Mexico also have a strong and growing relationship when it comes to education. This cooperation is supported by over 400 inter-institutional agreements between Canadian and Mexican higher education institutions, as well as significant collaboration between Canadian provinces and territories and Mexican states.

Both governments also offer scholarships to attract students or researchers from the other country. Mexico is now Canada’s 10th largest source country for international students, hosting more than 5,000 Mexican students in 2015.

Not only do Mexican students come to study, it is estimated that in British Columbia alone there are at least 21,000 dual citizens who have decided to stay in Canada.

The Mexican-Canadian community of British Columbia is full of individuals with the highest academic degrees from universities around the world; businessmen developing new industries in the province, technology developers, post-graduate students, artists, and overall individuals with very strong attachments to this country we now call home.

Nearly 2 million Canadians also travel to Mexico every year for both business and pleasure. A significant number of Canadians, particularly retirees, have purchased property in Mexico and spend extended periods of time there enjoying the warm weather. Northbound, Canada has recently seen an increase in visitors from Mexico as well. According to the Canadian Tourism Commission, more than 200,000 Mexicans vacationed in Canada during 2015.

In addition, Canada receives approximately 20,000 agricultural workers annually under the Seasonal Agricultural Workers Program, often cited as a model for international labor mobility arrangements. The workers provide much needed help to local farmers.

What makes the Mexican market an intriguing option for Canadian businesses?

Mexico is ranked 38th worldwide in the World Bank Group’s Doing Business 2016 rankings, an improvement from 42nd in 2015. Mexico is also ranked 5th this year in its ability to obtain credit, a major improvement from 12th in 2015.

This means that it is relatively easy for entrepreneurs who want to develop their business in Mexico to access credit from financial institutions .

As of June 2016, according to Statistics Canada’s Harmonized System data, Canada exported more than it imported from Mexico in live animals, pulp of wood or other fibrous cellulosic material, and base metals. The data shows Canada has the lead in those products and more of these goods can be exported to Mexico because of high demand.

Export Development Canada (EDC) is present in Mexico to help Canadian companies interested in exporting to the country. Likewise, offices for ProMexico, the country’s trade and investment promotion organization, are also present in Canada to help Canadian companies that want to do business in Mexico. Canadian entrepreneurs should consult with both organizations before starting a business in Mexico.

Are you prepared to take advantage of the opportunities available to you?

There is a tremendous opportunity for Canadians interested in the Mexican market, and the time is right to take comprehensive global business training such as the FITTskills program. An informed and knowledgeable trader is the only one who is prepared to capitalize on the global business opportunities available. Preparing entrepreneurs and employees to deal with the challenges of today’s business is what organizations like FITT are here for.

To further discuss the economic implications and explore future business opportunities, I will be speaking at the Mexican-Canadian Forum on International Trade in Vancouver, British Columbia on September 7th, 2016

This year’s topic is “International Trading and the Free Trade Multilateral Treaties”. The Forum will have keynote speakers from Mexico, Canada, and Europe delivering their presentations and experience with particular attention to the industries that connect Canada and Mexico such as mining, banking, technology and services.

If you’re interested in better understanding the latest trading trends between Canada and Mexico, please visit the event page to find out more and register for the event.

The post Why the Mexican market is more important than ever for Canadian businesses appeared first on Trade Ready.