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Exploring the Canadian
Market
Russ Sawchuk, Director
North Carolina Canada Office
Topics
Canada: An Overview
Why Canada
Trade Facts
Canada and North Carolina
Key Areas
Considerations
Additional Resources
Canada – An Overview
Population 33.4 million with 10
provinces and 3 territories
 GDP ($1.576 Trillion, 9th in the world)
 ~$39,600 GDP/capita
Second largest country, 7th largest
economy
Why Canada?
 Affluent, industrial economy
 Similar business practices and attitudes
 Geographic proximity reduces transit times & costs
 90% of Canadians live within 100 miles of the border
 Common language, corresponding time zones
 Open border
 Sound financial & distribution systems
Canadian Sales should be at least 10% of
your US Sales
The Canadian Economy
Canada’s Economy is growing again
• Stimulative monetary and fiscal policies
• Improved financial conditions
• Firmer commodity prices
• Rebounding business and consumer confidence
• Growth in domestic demand
Canadian GDP Growth
• 3% for 2010
• 2.9% for 2011 [forecast]
• Canadian $ at par with US $
Canada-U.S. Investment:
One of the world’s largest investment
relationships
US FDI in Canada: $288 Billion 2009
52% of foreign investments in Canada
Canada FDI in US: $251 Billion 2009
44% of Canadian foreign investment
Canada-U.S. Trade:
Statistics
Canada-US trade - largest in world
Over $1.4 billion in goods and services daily in
2010
US exports to Canada up 65% since 1995, under
NAFTA
55% of all Canadian imports come from the U.S.
 75% of all Canadian exports go to the U.S.
Canada and North Carolina
Merchandise Trade
NC Exports to Canada
NC Imports from Canada
$4.3 billion
$3.3 billion
Bilateral Trade
$7.6 billion
Canada is NC’s largest export market
Over $20 million/day traded between N.C. and
Canada [2010]
Canada and North Carolina
Top NC Exports to Canada (2010)
Industrial Machinery (Including
Computers)
$ 1.2 billion
Electrical Machinery (Inc. Audio/Video)
$ 670 million
Motor vehicle & parts (excluding rail)
$ 576 million
Pharmaceutical Products
$ 519 million
Plastics & Rubbers
$ 370 million
Medical & Optic Instruments
$ 274 million
Furniture
$ 123 million
Fact: 21% of NC exports are sold to Canada
Canada and North Carolina
Top NC Imports from Canada (2010)
Pharmaceutical Products
$ 334 million
Plastics
$ 303 million
Industrial Machinery (Inc. Computers)
$ 279 million
Paper & Paperboard Articles (Inc. Pulp)
$ 278 million
Lumber
$ 222 million
Electrical Machinery (Inc. Audio/Video)
$ 177 million
Organic Chemicals
$ 154 million
Motor vehicle & parts (excluding rail)
$ 82million
Canada and North Carolina
Travel & Tourism
Canadian Overnight
Visits to North
Carolina: 443,300
Spending by
Canadian Tourists in
NC: $123 million
North Carolinian
Visits to Canada:
157,000
Spending by North
Carolinians in
Canada: $94million
Ontario
 13 million people and 43% of Canada’s GDP
[2010]
 Canada’s largest market, and most similar to
the US
Low-risk entry point into Canada
 35% of all Canadian R&D
 Toronto: largest city in Canada, home to half
the country’s largest financial institutions,
90% of its international banks, and over 75%
of U.S. subsidiaries in Canada
2011 Best Prospect List
Security
Aerospace and Defence
Energy & Environment
Construction & Engineering
ICT
Considerations when Exporting to
Canada
Product Adaptation, Approvals & Certifications
•CSA
Metric System (Dimensions, Temperature, Mass)
Bilingual (English/French) Language Requirements
•Product Labeling
Border Considerations
•NAFTA Certificate of Origin for Duty Free Treatment
Sales Taxes (GST, HST)
Logistics and Transportation
Resources for NC Exporters to
Canada
• NC Dept of Commerce,
Intl Division, Raleigh
www.nccommerce.com
• NC District Export
Council www.ncdec.us
• NC World Trade Center
www.wtcnc.org
• US Export Assistance
Centers
www.buyusa.gov/northca
rolina/location.html
• US Commercial Service in
Canada
http://www.buyusa.gov/c
anada/en/bsp.html
• Independent Consultants
with Canada Experience
• Logistics, Shipping,
Freight Forwarding Co’s
• Attorneys & Law Firms
with Canadian Presence
Useful Canadian Websites
www.strategis.ic.gc.ca
www.investontario.com
North Carolina
Department of Commerce - Canadian Office
Contact Information
Russ Sawchuk, Director
13A Princess Street
Mississauga Ontario
L5M 1Z8 Canada
Phone: (905) 826-6000
Fax:
(905) 826-6009
Email: [email protected]
www.thrivenc.com