8 international trade experts share non-NAFTA export trends

“The 2017-18 outlook sees Canadian exporters focused on innovation, trade and new market entry opportunities. Expanding on breakthroughs in artificial intelligence, robotics, 3D printing and automation, Canada is continuing its excellence in research and development to foster increased trade. However, the innovative trends currently shaping the Canadian landscape are also combined with policy decisions, such as global protectionism and self-interests. These complexities leave exporters with a sense of uncertainly, but also in a strategic position to take reasonable risks and assess new trade avenues in Asia and Europe. Capturing new international markets to buy our goods and establishing positive economic relations with the faster growing economies of the world is key to successful exporting as a Canadian company.”

“New York is in the process of transforming its energy sector through the state’s REV initiative. REV, which stands for “Reforming the Energy Vision”, is an ambitious effort to generate 50% of the State’s electricity from renewables, reduce GHG emissions 40% below 1990 levels, and significantly reduce energy consumption in buildings. Many Canadian companies have found opportunities in this shift – a good example is Opus One, which is helping New York understand how power from distributed resources interact with traditional power flows.

The opportunities in building energy efficiency are also significant – both because of the REV goals, and because of the size and age of the building fleet in the State. New York City’s OneNYC plan sets out significant goals for the City in this regard, including a target of reducing emissions 80% below 2005 levels by 2050. A large portion of these reductions will come through more efficient buildings, and innovative companies that can provide solutions in this regard are in high demand.”

“Canadian exporting industries are suffering from recent success: capacity is tightening in a number of sectors, and for the first time in a long while, decision-makers have to consider significant new investments. And let’s not forget rising interest rates, which are troubling exporters on multiple fronts, like the rising cost of borrowing; the increased challenge of securing funding in emerging markets; and the potential strengthening of the Canadian dollar. There is also the worry of rising global protectionism, whether the overt or more subtle kind. Strange, then at the very same moment Canadian exporters are readying for the CETA deal, bringing immediate opportunities in a significant number of industry sectors. U.S. and increasingly global economic momentum is strong.”

“Given that NAFTA negotiations could last well into 2018, due to review and waiting periods mandated in the U. S. Trade Promotion and Priorities act; NAFTA may not be the big story of 2018 for Canadian exporters. The more imminent trade agreement, the Trans Pacific Partnership (TPP) agreement should take that distinction.

What will be news to Canadian exporters is that the agreement is moving forward with an announcement that countries will proceed and how they will do so during the upcoming November Asian Pacific Economic Cooperation Summit. Should the agreement come into force, economic modelling done by Canada West Foundation shows that Mexico, followed by Canada would be the biggest beneficiaries. The agreement would essentially allow exporters to take market share in Japan and Vietnam from their American competitors. In other words, Canada and Mexico actually do better in a TPP without the Americans as they hold on to privileged access to the U.S. market and also get better access to Japan and Vietnam than either country could have negotiated on its own. Canada could see an additional $500M CAD annually in exports – above what would have been achieved in a TPP with the U.S..”

“Increasing access to customers at home and in international markets is critical for the long-term growth of Canada’s manufacturing sector. But, to take advantage of the opening of new markets such as the CETA and possible opportunities with China and other Asian countries, Canadian manufacturers must be competitive on a global scale. CME, through its Industrie 2030 initiative – a detailed analysis of the state of the manufacturing sector aimed double manufacturing output in 15 years – has assessed that to fulfill Canada’s trading potential, manufacturers must focus on three key aspects: investment at home; innovation and commercialization. To perform on the global stage and translate opportunities created by free trade agreements into growth, Canada needs strong, coordinated actions from governments and industry around technology adoption and, enabling the capital and human investment required. Without deliberate action, Canada is at risk of falling behind and becoming too high cost and not technically advanced enough to compete globally.”

“With 300 million middle class consumers, 700 million people online every day and annual online sales greater than the next 5 countries combined, e-commerce in China is on every Canadian brand’s mind. Even a small slice of the pie can represent a windfall of sales for any sized company. While entering any new market can be daunting and the distance between Canada and China is great, the opportunity is greater. Take the time to understand the major platforms, decide which is best for you, work with a local partner (the platforms can help you meet potential partners) on local advertising and social media strategy and of course, get to know Export Development Canada and the Trade Commissioner Service to better understand how they can help you along your journey. China may be far but Chinese e-commerce is only a few clicks away.”

“This is an exciting time for Canadian exporters. The Canadian government’s current international trade agenda is ambitious and positions businesses of all sizes to thrive in several foreign markets. Emerging markets represent 500 million potential buyers for Canadian goods and services, a number of who live within the borders of the European Union (EU). The Canada-European Union Comprehensive Economic and Trade Agreement (CETA) will give businesses in various sectors, such as automotive, aerospace, clean-tech and oil and gas, the leverage they need to compete internationally. Once CETA is implemented, 99 per cent of tariff lines on Canadian goods will be eliminated compared to the current 25 per cent. This will make it easier for Canadian and EU businesses to sell their goods between both markets. CETA provides a wealth of new opportunities that Canadian businesses should not overlook to expand globally.”

“Canadian exporters are benefiting from a synchronized upswing across the world’s major economies that is driving up growth in global trade volumes. Improving economic outlooks in Europe and China, combined with strong performance in the US, should support further increases in demand for Canadian exports into 2018. Additionally, a number of key emerging markets have adjusted to tepid commodity prices and have pushed through domestic reforms that should lead toward stronger aggregate demand for Canadian exports in the year ahead. Many Canadian export-dominated sectors are, however, producing near capacity and further investment will likely be needed to enable them to respond to a supportive international market for their goods and services.”