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Hit the BRICs – How The Trade Commissioner
Service Can Help You Succeed in New International
Markets
Strategies for the New Economy:
Canadian Manufacturers & Exporters Small Business Summit
February 17, 2011
-Joshua Hodgson, C.I.T.P., Acting Deputy Director and Trade Commissioner
Regional Office of the Trade Commissioner Service, Ontario Region
Foreign Affairs and International Trade Canada (DFAIT)
Agenda
•
BRIC Markets
– What are they?
– Why the BRICs?
• Comparisons on Key Indicators
– Canadian Trade with the BRICs
– Sectors of Opportunity for Canadian Businesses
•
How TCS Can Help
–
–
–
–
–
–
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DFAIT Overview
Canadian Trade Commissioner Service (TCS) Clients
Services Offered
What we facilitate – Integrative Trade
Global reach of TCS
TCS Value Proposition
VTC
Other Resources
The BRICs
• Term coined by Jim O'Neill of Goldman Sachs in a
2001 paper "Building Better Global Economic
BRICs"
– Downloadable book on the BRICs:
http://www2.goldmansachs.com/ideas/brics/book/BRIC-Full.pdf
 Brazil
 Russia
 India
 China
BRIC Market Rationale:
Other Factors
•
•
•
•
•
•
Demographics
Growth rates and longer term potential
Recovery rates and the “new normal”
Diversification of markets – risk mitigation
Increasing competition
New markets and new sources of
technology, partners and investment
• Points of access to other regional markets
16000
1200
14000
GDP (US $ billion)
1400
1000
800
600
400
200
12000
10000
8000
6000
4000
2000
Source: EIU January or February 2011 Country Reports;
Nominal GDP converted to US $ billion for comparison
Cana
da
USA
Chin
a
India
Russ
ia
Braz
il
Can
ada
USA
Chin
a
India
0
Rus
sia
0
Braz
il
Population (millions)
The BRICs: Population and GDP
The BRICs: GDP per Capita
50000
45000
40000
35000
30000
25000
20000
15000
10000
5000
0
Brazil Russia
India
China
USA
Canada
Source: EIU January or February 2011 Country Reports;
GDP per Capita at PPP
The BRICs: Growth Rates
GDP Growth Rates
12
Brazil
Russia
India
China
USA
OECD
Canada
8
6
4
2
20
13
20
12
20
11
0
20
10
Per cent
10
Source: EIU January or February 2011 Country Reports
Brazil
• Most Promising
Business Sectors:
3500
Millions of CAD$
– Information and
Communication
Technology (ICT)
– Environmental
Industries
– Oil and Gas Equipment
and Services
– Electric Power
Equipment and Services
– Arts and Cultural
Industries
Canada's Trade with Brazil
3000
2500
2000
Exports
Imports
1500
1000
500
0
2007
2008
2009
2010
Source: Global Commerce Strategy and DFAIT Office of the Chief Economist, based on
statistics from Statistics Canada
Russia
• Most Promising
Business Sectors:
2000
1800
1600
Millions of CAD$
– Oil and Gas Equipment
and Services
– Metals, Minerals and
Related Equipment and
Services
– Agriculture, Food and
Beverages
– Agriculture, Technology
and Equipment
– Building Products and
Construction
Canada's Trade with Russia
1400
1200
Exports
Imports
1000
800
600
400
200
0
2007
2008
2009
2010
Source: Global Commerce Strategy and DFAIT Office of the Chief Economist, based on
statistics from Statistics Canada
India
• Most Promising
Business Sectors:
2500
Millions of CAD$
– Agriculture, Food and
Beverages
– Service Industries and
Capital Projects
– Information and
Communication
Technology (ICT)
– Oil and Gas Equipment
and Services
– Electric Power
Equipment and Services
– Aerospace and Defence
Canada's Trade with India
2000
1500
Exports
Imports
1000
500
0
2007
2008
2009
2010
Source: Global Commerce Strategy and DFAIT Office of the Chief Economist, based on
statistics from Statistics Canada
China
• Most Promising
Business Sectors:
45000
40000
Millions of CAD$
– Agriculture, Food and
Beverages
– Information and
Communication
Technology (ICT)
– Automotive
– Aerospace and Defence
– Metals, Minerals and
Related Equipment and
Services
– Bio-Industries
Canada's Trade with China
35000
30000
25000
Exports
Imports
20000
15000
10000
5000
0
2007
2008
2009
2010
Source: Global Commerce Strategy and DFAIT Office of the Chief Economist, based on
statistics from Statistics Canada
Foreign Affairs and
International Trade Canada
• Represents Canada around the world
through:
 embassies, consulates and trade offices
• Structured in three main pillars:
Consular
Services
Political
Economic
Public Affairs
Trade
Commissioner
Service
Our TCS Clients
•
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small, medium and large companies
established in Canada
ready to or already doing business abroad
undertaken research on their target market
Deliver Value to Businesses
We can help your company succeed globally
and lower your costs of doing business
through four key services:
1. Preparation for international
markets
2. Market-potential assessment
3. Qualified contacts
4. Problem solving
Canada’s most comprehensive network of
international trade professionals.
Recognizing the reality of Integrative
Trade, the TCS facilitates:
• Foreign-market access
• Trade leads
• Exports
• Business contacts
• Foreign Direct
Investments
• Technology transfer
• Licensing agreements
• Joint-venture development
• Research and development
(R&D) partnerships
• Canadian Direct
Investments Abroad
The TCS promotes Canada’s economic
interests in the global marketplace.
Global Reach
• Has an unparalleled network of contacts
around the world. And that network starts at
home.
 Through 18 regional offices across Canada
• Connects you to partners:
 Export Development Canada (EDC)
 Canadian Commercial Corporation (CCC)
 Business Development Bank of Canada (BDC)
 Provincial economic development organizations
 Business and industry associations
• More than 1,000+ Trade Commissioners in 150+ cities
worldwide
Our TCS Network at Home
Our Network Abroad
Our Value Proposition
• Extensive Network of Qualified Contacts
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Representatives and Distributors
Service Providers
Manufacturers
Other Key Contacts
• Market Intelligence
– Regulatory Issues
– Competitive Context
• In-Market Program and Activities
– Trade Fairs
– Partnering Activities
VTC: Personalized online
experience…anywhere, anytime
• Single-service window to information and international
business services specific to your sector and markets of
interest.
• Free service available 24 hours a day, 7 days a week.
• Secure, direct access to our partners and over 1,000
trade commissioners in Canada and abroad.
• Quality and up-to-date content.
– Access to current market reports, country information,
business opportunities, sector-specific news, trade events
and more.
To Register:
www.tradecommissioner.gc.ca
Other Resources
•
Global Value Chains
– Linking in to GVCs: A Guide for SMEs
• http://www.international.gc.ca/tcs-sdc/assets/pdfs/gvc_guide_cvm-eng.pdf
– GVC Portal
• http://www.tradecommissioner.gc.ca/eng/gvc/home.jsp
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Programs
– Going Global Innovation (GGI)
• a component of the Global Commerce Support Program (GCSP)
• http://www.tradecommissioner.gc.ca/eng/science/document.jsp?did=88059
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Investment Guides
– Countries currently available include China, Vietnam, The Philippines and
Turkey
– To support firms that need to invest abroad to access foreign
opportunities
• http://www.tradecommissioner.gc.ca/eng/document.jsp?did=106564
Other Resources (cont.)
•
BDC
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Mr. Ian MacFadden, Regional Manager presented earlier
Consulting Services
Financing services (e.g. business expansion to access exp-ort opportunities)
Subordinate financing
VC financing
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http://www.bdc.ca/en/Pages/home.aspx
EDC
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Insurance products
Financing services
Bonding services
http://www.edc.ca/english/index.htm
Also:
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EXPORT Check – credit profile service
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Global Export Forecast
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http://www.edc.ca/english/creditinformation.htm
http://www.edc.ca/english/docs/ereports/gef/country_information_EFindex.htm
CCC
–
Government-to-government procurement and contracting service
•
http://www.ccc.ca/eng/home.cfm
Other Resources (cont.)
• Government of Ontario
– Ministry of Economic Development and Trade
• Calendar of Missions can be found at:
– http://www.sse.gov.on.ca/medt/ontarioexports/en/Pages/TradeEventsListing.aspx
– Opportunity to meet with Ms. Pamela Kanter, Manager International
for the USA and European Union at MEDT at afternoon roundtable
• Program Guides
– Ontario Business Program Guide – a comprehensive listing of
programs available to businesses in the Province of Ontario
• http://www.ontario.ca/en/business_program/index.htm
• Travel Reports and other information: www.travel.gc.ca
– Travel Warnings
– Advice
– Contacts
Contact us today!
The Canadian Trade Commissioner Service
Everywhere you do business
110+ years of experience
150+ cities worldwide
18 regional offices across Canada
Joshua Hodgson, C.I.T.P.
A/Deputy Director & Trade Commissioner
Energy Sector and Global Value Chains
416-973-5082
[email protected]
tradecommissioner.gc.ca