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?

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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.

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I was drawn to the new opportunities available to qualified international business professionals who are capable of doing business in developing countries.

I had imagined a new world of potential for Canadians resulting from the ratification of free trade agreements like NAFTA, the rise of China in global economics, trade in the Americas, and an increased demand for petroleum products and services from Alberta in the United States and overseas.

Navigating the complexities of international trade in this new world sounded like a rewarding and lucrative endeavor for those willing to accept a less standard career path, compared to a more easily definable career in a discipline like finance or accounting.

Seeing the world anew

Prior to earning my degree, I completed five terms abroad (Mainland China, Taiwan, Peru, Spain, and the Amazon) which were organized by the University’s Study Abroad Centre and financed mostly via University scholarships, government research grants, and corporate donations provided from Shell Canada.

These international academic experiences helped me establish a cultural understanding of Asia and Latin America, by providing me with firsthand experience working in those geographies in the local language.

Much of the work had to be done with stakeholders who weren’t comfortable enough to work in English. This allowed me the opportunity to strengthen my Spanish and Mandarin communication skills, which had been previously developed through university courses and travel.

Through hard work and dedication, I was awarded six scholarships during my academic career, including the Shell Experimental Energy Learning Scholarship, and achieved a 3.94 out of 4 average GPA for my five Strategy and Global Management (SGMA) courses.

The first steps into the world of international business

After university, I took a position with Canada Mortgage and Housing Corporation International (CMHC) as an international trade consultant.

I helped coordinate international finance projects in Alaska and Texas, while working with industry and government to develop international business strategies to help Canadian clients export their goods.

I then accepted a new challenge with the American oilfield services and supply giant National Oilwell Varco (NOV) in their international employee development program. During the program. These three month projects spanned Alberta, Texas, and Beijing, introducing me to the company’s operations in China and Houston.

Throughout the program I was required to use my Chinese language skills, and upon completion I was offered a two year expatriate assignment in China with NOV.  This required me to turn down a similar opportunity in Houston. I was a little apprehensive at first, to say the least.

The anxiety of moving halfway around the world

I remember feeling equally excited and nervous to leave behind my entire life in North America and move to the opposite side of the world, to a country where I knew nobody.

In the end, I decided that the adventure, career opportunities, and perspective gained from such an assignment were worth the risk, and I took it.

In China, I worked out of the company’s Beijing office in a series of international business development and manufacturing projects. I was responsible for communicating and developing the company’s market intelligence platform towards the relatively new manufacturing base for offshore drilling equipment being built in Chinese shipyards.

This required me to constantly set up meetings, make proposals, and conduct sales calls to clients and manufacturing facilities on site, both in English and Chinese. The field experience was extremely challenging, but rewarding.

Due to the nature of the assignment, I would sometimes spend weeks by myself out in the industrial sectors of China’s manufacturing districts without seeing another foreigner for more than a few minutes.

This really helped solidify my knowledge of Chinese work culture, as well as the challenges of doing business in China, which I strongly believe is only achieved from this type of firsthand experience.

Working in China in this environment requires an immense amount of patience and a delicate balance of cultural awareness and persistence. Also, speaking at least some Mandarin is a must.

Upon completion of the assignment, I was moved full time to the division’s corporate office in Houston. By this time I was ready to return to North America, and was excited about setting up shop in the U.S.

I often find myself missing some of the excitement involved with expatriate life, but I am happy to be back.

Taking a legal perspective on international trade

In my new Houston role with NOV, I settled into a technical marketing and inside sales position.

I was responsible for delivering technical sales support for NOV sales managers abroad, expanding a new market intelligence platform for drilling technology products in developing markets, and reviewing NOV trademark requirements for product renewals and customer compliance.

This is when I was first introduced to the NOV legal team and developed my interest in the legal side of international business.

I later took a part time role working as a research assistant at the South Texas College of Law for Professor Cherie Taylor, where I aspire to one day earn my Juris Doctorate degree, specializing in international trade & transactional law.

I want to specialize in international law because I believe that the global nature of the energy industry will continue to grow along with increased energy demand from China and low cost production of hydrocarbons in the U.S. due to shale drilling technologies.

I enjoy dealing with the complex legal requirements and FCPA regulations associated with these international transactions and contracts.

I’ve also always been interested in the FITTskills courses and I plan on applying for my Certified International Trade Professional (CITP) designation later this year.

So far, I have completed FITT’s International Market Entry Strategies, International Trade Finance, Global Supply Chain Management, Global Business Environment, International Trade Research, and Legal Aspects of International Trade courses.

My favourite courses were International Trade Finance and Legal Aspects of International Trade.

In May 2015, I accepted a consulting contract in petrochemical export sales with the Canadian petrochemical brokerage Prochem International Corporation, focusing on the export of plastics resins overseas.

Now I spend my time traveling between my home in Houston, and where I grew up in Calgary. Prochem International Corp strongly supports my professional ambitions to study international trade and transactional law, and I look forward to one day assisting the team from a legal perspective for their future export transactions.

I’ve been very fortunate in my career to have worked with some fascinating people all over the world and it would not have been possible without the help of a few amazing mentors along the way. I’ve worked very hard throughout my career for the chances that I have been awarded, but I’ve also had some amazing opportunities offered to me throughout my journey from a select few who really believed in me.

Pursuing my international dreams has been a daunting endeavour filled with extreme moments of hopeful ambition, excitement, self reflection, loneliness, disappointment, and reward. I wouldn’t have had it any other way.

“A ship is safe in harbor, but that’s not what ships are for.”

― William G.T. Shedd

The post Discovering new global business experiences while exploring the world appeared first on Trade Ready.

Yet, despite the critical importance of global trade, the details and statistics behind these constant activities are largely invisible to the average person.

In fact, most people probably have no clear picture of the real scope of global trade. Here are some incredible international trade statistics to help give perspective to this crucial industry.

1.  America exceeded a record breaking $5 trillion in total trade volume in 2013.

$5 trillion is an incredible amount of money, and this amount just goes to show how important the United States is to world trade.

The U. S. exports important staples such as wheat and corn, and it is also a mega consumer for the imports of the world. $2.27 trillion came from exports, and $2.73 trillion came from imports.

2013 was a great year for American world trade, especially considering that in post-recessionary 2009 the total trade volume for the country was 42 percent lower, at $3.54 trillion.

The 2013 total trade volume also completely dwarfed the 1985 total trade volume of just over 1 trillion.

Whether it is electronics from Asia, wine from France, or cars from Germany, the United States imports in extremely high volume, and thus provides a critical market for global trade.

2. 5-6 million containers are transiting the ocean at any given time.

The average shipping container is twenty feet long and is large enough to hold forty to fifty refrigerators, or four hundred flat screen TV’s.

So, to think that there are at least five to six million of them on the high seas at any given time is pretty astonishing. These containers carry trillions of dollars of goods over the oceans. That’s what it takes to keep up with the needs of society.

3. There are more than 100,000 ships at sea that carry out trade.

In order to carry the minimum of 5-6 million containers that are constantly traveling the oceans, an army of ships is needed. That is exactly what the world has.

In comparison, the 55 largest national navies in the world combined have a total of 3,000 ships, less than 1/30 of the number of cargo ships carrying goods around the world.

The largest of these ships can carry around 18,000 containers. They are so huge that they resemble several city blocks worth of buildings that have been made to float.

4. Maersk’s containers alone would stretch halfway around the world if they were put in a line.

You know that a shipping company is big when its containers can span half the circumference of the planet, or approximately 12,000 miles.

Just imagine how much clothing, iron ore, oil, solar panels, shoes, and building materials could fit in a line that stretched from Buenos Aires, Argentina to Shanghai, China!

5. About 90 percent of the things an average person in a developed country owns is involved with international trade in some way.

If you look at a man in Canada, America, Great Britain, etc., he may be wearing shoes that were made in China, a watch made in Switzerland, a shirt made in Indonesia, driving a car made in Japan, and fueling it with gasoline from Saudi Arabia.

So many of the things that people use in everyday life come from distant locations. People may purchase their goods locally, but oftentimes those goods have gone through quite a journey to get to that retail location. Thankfully for the billions of people who rely on global trade, the shipping industry keeps delivering these items where they are needed.

6.  There are 750,000 people who work as seafarers on ship crews involved with trade.

Journeys across oceans can take weeks for the large ships that carry goods. These ships all need crews to help navigate and run the ship while it moves from point A to point B.

So not only does the shipping industry move trillions of dollars of goods around the world every year, but it also employs three quarters of a million people. That is approximately the equivalent of the entire population of El Paso, Texas employed by shipping.

7. In 2013, there was close to $19 trillion of global merchandise exports.

$19 trillion is such a large amount of money that it is difficult to even think about. For perspective, the richest man in the world, Bill Gates, has a net worth of $80 billion.

So, the global merchandise exports of 2013 were roughly two hundred and thirty-five times the total wealth of the richest man on earth.

8. Over $220 billion of gold was exported in 2014.

The average price of gold in 2014 was $1,226.4. This means that in that year, over 17 million ounces of gold were exported. That’s a lot of gold!

Gold has always been a desirable commodity, so it is not surprising that it was exported in high volumes. This makes even more sense when considering the high price that gold was trading at in 2014.

9. Global exports have risen over 3000% since 1950.

In 1950, the total volume of global exports was roughly $61 billion. In 2013, it was nearly $19 trillion, or over three hundred times more than in 1950.

That is a tremendous amount of growth for roughly 65 years.

In fact, for the sake of perspective, just the total exports of crustaceans in 2013 (roughly $30 billion), would account for nearly half of the dollar amount of all of the global exports combined in 1950.

The main reasons for this growth are fewer global tariffs, better technology, product innovation, and increased foreign demand.

International trade is vital to sustaining the global economy, and life as we know it.  The world is more integrated than ever before, and it will most likely continue in that direction for a long time to come.

Do any of these international trade statistics surprise you? Do you think international trade will continue to grow at this rate?

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Maria Bofill, CITP®|FIBP®, is a Trade Commissioner – Oil and Gas for the Canadian government in Houston, Texas.

Responsible for a crucial economic sector in one of North America’s most iconic oil and gas producing regions, Maria is excited to help Canadian businesses in the industry enter and succeed in the competitive South Central USA market.

Early experience in international trade

Maria’s global business career began while she was in college in Mexico City, facilitating meetings between Mexican and foreign delegations during bi-lateral trade agreement negotiations for Mexico’s Secretariat of Foreign Affairs.

She continued her education with a MBA and then after completing a Masters in Computers, her next role took her career in another direction, working as the E-Commerce Manager for Gillman Services, the largest car dealership chain in Texas.

The position was a great chance for her to take on leadership responsibilities.

As E-Commerce Manager, she planned and coordinated the entire online sales strategy for the company. Maria managed and trained web development and call center staff, initiated over fifty different on-line marketing campaigns, and used new software to track various trends responding to them as needed.

Through her various efforts, Maria increased the productivity of the e-commerce department by 30% in less than two years. The marketing, planning and management experience she gained in the role was also crucial to her return to international trade.

Helping oil and gas companies excel in the competitive South Central USA market

In 2004, Maria took on a new challenge: the role of Program Coordinator with the Belgian Trade Commission in Houston.

The position was a perfect blend of her two previous roles. She was heavily engaged with Belgian companies interested in international trade with the US, but in ways that allowed her to best apply the IT, marketing and management experience she brought to the table.

Maria worked closely with Belgian businesses in the oil and gas, electric power and aerospace sectors to prepare marketing materials and take a leading role in their budget tracking.

She also maintained a database of contacts and contractors and used it to connect them with businesses she worked with. She facilitated meetings for business executives, and provided guidance to businesses to select the right trade shows and events to attend.

With greater experience in international trade, and specifically the oil and gas industry, Maria moved into her current role as a Canadian Trade Commissioner in 2006.

Building upon the skills she had developed in her previous roles, Maria now has greater responsibility than ever before.

She forms and develops relationships with senior business executives, government officials and non-profit organizations across the South Central USA to promote trade and investment opportunities in the oil and gas sector, and finds opportunities for partnerships between them.

Her contacts expand across the Oil and Gas sector, from service companies like NOV, Schlumberger, etc. to independent producers, national oil companies and exploration and production companies (E&Ps).

Maria promotes and provides support for Canadian companies participating in Trade Events in the USA, like OTC (largest oil and gas show in North America) and LAGCOE, and encourages American companies to participate in Canadian events, like GPS.

She also creates material for federal representatives of the region highlighting the accomplishments of Canadian businesses, such as Enbridge or Encana, and their positive impact on local economies.

Becoming a CITP®|FIBP®

Maria already had a strong business education – she completed her MBA on top of working as a Trade Commissioner, and raising her two year old while pregnant with her second child!

Even with all of that on her plate, she “jumped at the opportunity” to work towards the elite Certified International Trade Professional (CITP®|FIBP®) designation when approached by her supervisors, “because of its reputation and because it provided a great way to update and improve my knowledge.”

Maria had to find ways to balance completing her online courses with her work, but she enjoyed the courses, and said that she feels up to date on everything in international trade after taking them.

The material was very well presented. I think that has helped to have a better perspective of International Trade as a whole and also to help me understand the types of challenges that my clients face to penetrate foreign markets.

Now that she is a proud CITP®|FIBP®, she is excited to better serve her clients and help them excel in the southwestern US.

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Northstar Trade Finance was founded in Canada in 1994, specifically to address the unique needs of Canadian SMEs and their international trading partners.

Outstanding strategic partnership model

Northstar first caught the US Ex-Im Bank’s attention several years ago with their strategic partnership model. Northstar works closely with many financial institutions and public sector partners, several of which are shareholders of Northstar.

They have also developed a series of alliances with world-class export credit and export insurance agencies, as operations expanded beyond Canada to the United States, United Kingdom, and continental Europe, among other markets.

The partnership approach, combined with the world-class technical competency of the Northstar team, led the US Ex-Im Bank, America’s export credit agency, to authorize them as a delegated lender.

That meant they were approved to make credit decisions and lending transactions on behalf of Ex-Im: a privileged role accorded to very few trusted organizations.

After several years as a Delegated Lender, their strong continuing efforts have been rewarded with this prestigious honor.

Scott Shepherd, CITP®|FIBP®, the President and CEO of Northstar, notes that “This recognition, by one of the top export credit and insurance organizations in the world, is a tremendous win for the Northstar Team.”

It’s an undeniable acknowledgment of the value and effectiveness of our partnership approach, as well as our single-minded focus on and commitment to SMEs pursuing opportunities in the global marketplace.

Addressing a crucial need for SMEs

International trade forms a significant portion of many nation’s GDPs, and SMEs are increasingly recognized as engines of growth, job creation and economic value. Yet access to trade financing to fund these activities has often been underappreciated or difficult to acquire.

More recently, the direct and critical link between trade success and access to financing – including traditional trade finance and emerging solutions in supply chain finance – has been recognized at the most senior levels of political leadership and by heads of key international institutions like the WTO and various multilateral development banks.

Many small and medium-sized enterprises pursuing opportunities in international markets, however, still have trouble accessing trade financing – including highly effective risk mitigation solutions – through traditional providers of trade and supply chain finance.

Northstar has therefore developed an effective business model aimed specifically at addressing the unique challenges and needs of SMEs in Canada and internationally.

Even as major financial institutions reduce their international exposures or exit lines of business like trade finance, Northstar is actively working to extend its footprint, both directly and through expansion of its international partnerships.

Shepherd, a long-time supporter of FITT and a CITP®|FIBP®, notes, “At Northstar, we have gathered a team of top-level credit, risk and international market experts.”

“In addition to developing and structuring effective financing solutions in support of trade, we are uniquely positioned to provide advice and support to SMEs operating in or aspiring to operate in international markets, from OECD economies to emerging markets.”

“Our network of partners and associates provides an additional resource-base upon which Northstar can draw to help enable SME trade activity.”

Providing excellence in trade finance with innovation and expertise

It is clear that no single bank, export credit agency, multilateral institution or other entity can meet all of the trade financing needs in Canada or internationally.

It is equally a reality that SMEs continue to experience disproportionate difficulty in obtaining adequate, affordable levels of financing – including trade financing – despite the increased rhetoric about the importance of this market segment.

In Canada, the clear directive of the federal government through the Global Markets Action Plan, to support SMEs in their pursuit of international opportunity, is consistent with similar priorities in many markets around the world.

The reality, however, is that 80-90% of trade activity is supported by some form of trade finance, yet SMEs continue to experience difficulty in accessing trade finance, and the traditional providers of this form of financing are now increasingly challenged by credit and capital constraints and by limitations in capacity linked to increasing regulatory pressure.

As trading patterns evolve and exporters expand and diversify beyond traditional trading partners, the needs of SMEs for expert advice and well-structured financing will increase exponentially, as will the need for alternate sources and additional capacity.

Northstar, however, is nothing short of a world-class innovator in the financing of international commerce, benefitting from strategic alliances with organizations like FITT, numerous shareholder financial institutions, and various top-tier export credit and international institutions.

The award from US Ex-Im reflects the technical competency of the Northstar team: a key element of international business and trade.

Through more than two decades of evolution, building a network of effective partnerships, alliances and collaborations around the globe, they have been able to serve a crucial need for SMEs at a time when access to effective and innovative trade financing is more important than ever.

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In the hopes of avoiding a drawn out or failed negotiation of the Trans Pacific Partnership (TPP), the U.S. Congress is negotiating legislation that would allow trade deals to be put on the fast track with few delays and even fewer amendments, also referred to as a trade promotion authority (TPA).

The legislation would also protect other countries by ensuring that negotiating partners in trade agreements won’t be pressured by Congress to revise their conditions.

Though the Obama administration is pushing the legislation, the deal has more support from Republicans than it does Democrats.

Legislation is expected to be  finalized now that Sen. Paul Ryan, who chairs the House of Representatives’ influential Ways and Means Committee, has returned from a trip to Asia.

Congress is under some pressure to approve the measure. Twelve countries are waiting on the U.S. to push through the legislation so the TPP, a trade and investment regime involving Australia, Canada, Chile, Mexico, Peru, Brunei, Japan, Malaysia, New Zealand, Singapore and Vietnam, can come into existence.

China is expected to join the group at a later date.

If it does so, the TPP countries would then account for 50 percent of global gross domestic product.

Trade analysts expect the countries to come to a deal in March, although a major Senate hearing scheduled for February 26 was postponed. Insiders say this is a sign that productive negotiations between Congress and President Barack Obama are continuing.

Criticisms of the TPA

Democrats (and some Republicans) are primarily concerned about currency manipulation, especially from China, which have resulted in the U.S. trade deficit ballooning by several hundred billion dollars.

Countries engage in currency manipulation by selling their currencies on exchange markets, which results in a strong dollar while maintaining weak exchange rates for their currencies.

One top economist has called currency manipulation “the world’s most protectionist international economic policy in the 21^st century.”

Nine legislators—from both the House and the Senate—introduced legislation earlier this month to crack down on countries looking to improve their trade balance by relying on currency games

However, U.S. Chair of the Federal Reserve Janet Yellen came down against incorporating currency manipulation on February 24, saying such a provision in a free trade deal could “hamper or even hobble monetary policy.”

Republican-leaning voters appear to be staunchly opposed to any fast-track option for international trade deals, according to a Republican polling firm.

In the February poll, 87 percent of Republican voters were against the fast-tracking mechanism, as the Republican electorate holds a deep distrust of President Barack Obama and does not have confidence in his capacity to negotiate a trade deal which is beneficial to U.S. firms.

They are also concerned that low wages for workers in other countries pose an unfair competitive advantage to American workers.

However, it should be noted that Republican congressmen—led by U.S. House Speaker John Boehner—are actively pushing for the passage of the TPA, and in turn the TTP.

They are calling the bill “critical to expanding American exports and creating jobs”.

Could NAFTA memories imperil new trade deal moving forward?

For all the enthusiasm in some circles about free trade deals, there remains a slight distaste for large trade deals thanks to the less-than-desirable side effects of the North American Free Trade Agreement, negotiated in 1994 with Canada and Mexico.

Though the gains that were promised by the tripartite trade deal were arguably never attained, many in the U.S. blamed the deal on the decline of jobs in the manufacturing sector—and it can be argued that this sector has yet to rebound fully, if it ever will.

But since the passage of NAFTA, the U.S. has negotiated and approved a spate of international trade deals, including the Australia-U.S. FTA (2004), the Singapore-U.S. FTA (2004), and the South Korea-U.S. FTA agreement (2011).

Critics argue that such trade deals do not benefit the U.S. trade balance, pointing in particular to the U.S.-South Korea deal. In the first year the accord was in effect, the U.S. trade balance with South Korea plunged to a $4.8 billion deficit.

Still, momentum appears to be on the side of the TPA and the TPP, and the U.S. appears to be intent on ironing out differences between Congress and the executive and finalizing trade concessions with Japan and China.

Do you think trade promotion authority is the best solution to getting the TPP signed?

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This may spell trouble for ongoing negotiations to secure one of the biggest trade deals in history—the free trade agreement between the European Union and the United States.

How could the TTIP help economic growth?

Global trade and economic growth have still not completely recovered since the 2009 financial crisis. The World Bank predicts that import demand will drop 19 percent below its predicted level for 2015, and that medium-term global trade growth will rise to just five percent, still short of the seven percent per year average from the thirty years before the financial crisis.

The Transatlantic Trade and Investment Partnership (TTIP), however, is forecasted to help start to reverse those trends.

If signed, it is expected to increase the EU’s economy by $152 billion, while the U.S. economy would grow by U.S.$110 billion.

In a global trading system in which high-income countries like the U.S. and EU nations account for 65 percent of total global imports, the deal holds a lot of potential for international trade to make a rebound.

Several issues holding the TTIP back

Nevertheless, in mid-January, EU Trade Commissioner Cecilia Malmstrom called for further study on one of the more contentious aspects of the deal, which may slow down the return to negotiations by as much as six months.

The controversial provision in question concerns the Investor-State Dispute Settlement, which would allow companies investing in foreign countries to sue those countries’ governments should changes in local environmental or health laws impact their profits.

The clause is tremendously unpopular in the EU. Opposition groups in the EU are also unhappy with negotiations they characterize as non-transparent, and believe that it will result in an agreement that will erode governments’ capacity to independently make policy decisions.

Meanwhile, some Americans are concerned that U.S. companies will lose their advantage in bidding for U.S. government contracts (the TTIP, when signed, would require equal opportunity for foreign and domestic firms to compete).

Why is growth through trade so important?

While the fears are based on a desire to protect their own economies or legal practices, statistics prove that trade growth is becoming more dependent on general economic growth, due to a range of elements such as the maturing of global value chains, lowered spending in investment, and an increase in government spending.

For example, global GDP is expected to grow by 3 percent (down from an earlier projection of 3.4 percent) in 2015. The World Trade Organization had similarly cut its own expectations for 2015 global trade growth in September 2014, lowering its estimate from a 5.3 percent growth rate to 4 percent. Trade is therefore expected to grow only 1 percent more than global GDP, compared to original forecasts of 1.9 percent more, nearly double the current figure.

This cut only deepens the dependency of rising trade numbers on economic growth, and further demonstrates the need for new trade agreements to increase global trade growth independent of global GDP growth. Trade growth must be nurtured through deals like the TTIP to ensure it continues to occur independently.

What lies ahead for the TTIP

There are concerns that the slowdown of the EU economy, particularly in Germany and in France, may put the trade talks on hiatus, with EU countries being less willing to open up their economies to additional competition from across the pond at the expense of domestic firms’ profits.

Trade specialists on both sides of the negotiations are trying to close the deal before this becomes a major obstacle to the creation of this massive trading bloc.

The two sides have already gone through seven rounds of negotiations since the process began in early 2013, with the next round of negotiations had been expected to begin at the start of February at EU headquarters in Brussels.

How do you think all this is going to unfold? Will protectionism hamper global trade growth?

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It’s evident Canada is taking some action to diversify its trading endeavours. Exports to China increased 26.9 percent between 2010 and 2011 from $13.2B to $16.8B, exports to the U.K. increased 14.8 percent during the same time period from $16.4B to $18.8B, and exports to Mexico have increased 9.3 percent from $5B to $5.5B.

However, a huge portion of Canada’s international trade is still being kept close to home.

In 2001, the U.S. was Canada’s largest trading partner with 75 percent of Canada’s total merchandise trade (exports and imports combined). This strong dependence has shown some erosion over the years, but 62.6 percent of Canada’s trading still occurs with the U.S.

Canadian exports, top five countries of destination in 2011

Note(s): Totals may not equal the sum of their components. Chart from Statistics Canada (https://www.statcan.gc.ca/daily-quotidien/120404/t120404a001-eng.htm)

It’s the individual companies within Canada that need to start leading the way and expanding into new markets, says Vita-Finzi.

We have to find a way to shake the complacency of Canadian companies and urge them to be a bit more aggressive in the marketplace. It’s not up to the government to do it for us. We have to do it ourselves. But how do you instil that hunger in people?

Countries around the world are interested in trading with Canada because of its great reputation, says Vita-Finzi. He believes that while Canadians do want to be more international in terms of business, the ease with which Canada trades with the U.S. has made the U.S. the prime destination for Canadian goods and services.

The main issue then is that Canadians have become too comfortable with this close-proximity trading strategy.

“It’s like a kid who’s been given everything his entire life,” says Vita-Finzi. “He doesn’t have to worry about going out and getting a paper route because he just doesn’t need to. For too long Canadian companies have been hand-fed booming market activity, and now that things are shifting, we are scared and unsure of how to proceed.”

When FITT asked Vita-Finzi what Canadian companies can start doing to broaden their international trading strategies, he mentioned three tactics on which to focus:

1. Canadian companies need to shake their trade complacency and start being more aggressive in the international marketplace:
“I came to Canada 50 years ago,” says Vita-Finzi. “I love it here, and I wouldn’t go anywhere else, but we’re lazy. We’re sitting here used to having all our products go south, so we’re not looking anywhere else.”

Canadian companies need to start doing their research and knocking on doors to find new business opportunities, says Vita-Finzi. They need to be willing to take some business risks, and they need to be willing to try and perhaps fail.

We’re just a little pebble of sand on a great big beach, and we need to start inventing new ways of doing business or we may have big problems.

2. From a business perspective, Canadians need to start improving their language skills:
As Canadians, we are all concerned with learning French and English, he says. However, the world market is changing, and so too are the languages of business.

“I’ve done a lot of international travel to countries where I didn’t speak the language,” says Vita-Finzi. “I always learn at least ten basic-phrases so that people know I’m making an effort to understand them.”

The Anglo-Saxon Canadian is often so comfortable with the fact that English is spoken globally, says Vita-Finzi. They wonder ‘why should I learn another language?’

“This is unbelievably short-sighted,” he says.

3. Canadian companies need to start recognizing that new immigrants are a great source of potential in terms of their international knowledge and experience:
“Immigrants have contacts in international countries, they speak the languages, and they are a great resource for any company looking to get into foreign markets,” says Vita-Finzi.

New immigrants can offer Canadian companies all sorts of unique insights and opportunities into different international markets they might otherwise be without.

“These members of Canada’s population should be valued for what they bring to our country. We need to start seeing them as assets who can add to our success in international trade, as opposed to seeing them as threats to our status quo.”

Article originally published June 2, 2012

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“A lot of companies are surprised by what EDC can do for them,” says Mélanie Carter, Account Manager on EDC’s Small Business Solutions Team. “We are very creative in our different solutions, and it’s our mandate to help Canadian exporters.”

EDC is most known for its credit insurance solutions, but it also helps Canadian companies with working capital needs, financing costs associated to an export contract for example; or it can free up working capital that might be otherwise used to back a Performance Bonds or a Warranty Bond.

Mélanie has been working for EDC for over five years managing a diverse portfolio of Canadian companies that export globally. And she has seen the benefits of exporting first-hand. Since the Small Business Solutions Team deals strictly with companies that have annual sales under $10M, she has revelled in seeing clients enter her portfolio, increase their exporting, and grow. And in fact, many expand to sizes that require her to pass them up to EDC’s Commercial Group for companies that make over $10M.

A company that exports will definitely grow more and stand for much longer than a company that stays domestic. You’ve got to keep up with the changes, you’ve got to stay on top of the new technologies, and you’ve got to take advantage of going outside of the country, otherwise you won’t survive.

About 80 percent of the companies Mélanie has in her portfolio trade with the United States. And if they’re going elsewhere, it’s probably because they’re already involved in trading with the states, she says.

Being in the Ottawa region, Mélanie works with a lot of high-tech companies, and she has seen a lot of growth in this sector because of their propensity to export.

“With most high tech companies, the first sale will be in the U.S.,” she says. “Very rarely will it be in Canada or another foreign country. And then, once they’re comfortable in the U.S., they tend to expand elsewhere.”

The U.S. is an obvious first market choice for a lot of Canadian companies considering foreign growth, says Mélanie. In addition to the close proximity, which reduces some of the freight challenges, there are fewer restrictions in terms of bonding requirements and financial guarantees.

If you do the proper market research, develop the right marketing tools and protect yourself, you can really experience a lot of growth by expanding your business outside of Canada.

And asking for assistance from an export credit agency like EDC can make your growth into international markets like the U.S. even easier. They can help you secure insurance on your accounts receivable, work with your bank to share in a line of credit or guarantee your government tax credits to get you the working capital you need now, or even help on the overall operating line for your day-to-day operations if you export enough.

Between the relationships EDC maintains with Canadian and foreign banks and the contacts EDC has here at home and abroad, it’s worth finding out if they have solutions  that fit for your company.

In the Ottawa region? Register for the New Exporters to Border States (NEBS) seminar October 23, 2013 to hear Mélanie talk more about EDC’s export solutions.

Have a question that can’t wait? Leave a comment below for Mélanie.

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