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Under Canada’s Global Markets Action Plan (GMAP), the government’s pro-export, pro-jobs plan, new markets around the world have been opened for Manitoba exports. These historic trade achievements will benefit hard-working Canadians in Manitoba and throughout Canada.
In just one year, the government has delivered on its GMAP commitment to eliminate tariffs and support Canadian companies, especially small and medium-sized enterprises (SMEs), and to boost exports, including through:
- the conclusion of negotiations and release of the complete text of the historic Canada-European Union trade agreement. The agreement will eliminate tariffs on virtually all of Manitoba’s exports. On the first day of the agreement’s coming into force, almost 94 percent of tariffs on agricultural and agri-food products and 99 percent of tariffs on manufactured products entering the EU will be duty-free. Manitoba is well positioned to benefit from increased export opportunities to the EU market and its 500 million consumers.
- the conclusion of Canada’s first free trade agreement in Asia with the landmark Canada-Korea Free Trade Agreement (CKFTA), which will come into force on January 1, 2015. Manitoba will see tremendous opportunities for export growth, given the complete elimination of South Korean duties on many Canadian products. For example, as of January 1, tariffs on 97 percent of Canada’s current agricultural exports will be eliminated. This will allow Manitoba’s producers of wheat, pork and other products to compete with other agricultural and agri-food exporters in the South Korean market.
Historic trade agreements require historic trade promotion, and under GMAP the Harper government is supporting workers and businesses in Manitoba and ensuring that SMEs have all the necessary tools to seize new opportunities and realize their full export potential.
Key elements of the trade promotion efforts include:
Go Global Export Workshops
Over the next several months, the Honourable Ed Fast, Minister of International Trade, is holding workshops across Canada in collaboration with Canadian Manufacturers & Exporters and all the Government of Canada’s export support agencies. Under GMAP, the Canadian Trade Commissioner Service, Export Development Canada, the Business Development Bank of Canada and the Canadian Commercial Corporation have been aligning their activities, facilitating referrals, sharing market intelligence and information, and providing a whole-of-government approach to boost SME exports. Over 300 SMEs participated in Go Global workshops in 2014.
Regional Trade Commissioner Service (TCS) Activities
In 2014, the TCS’s Prairies and Northwest Territories Regional Office assisted 446 SMEs, providing them with on-the-ground international business support, including 1,062 targeted services, and connecting them to new business opportunities.
Trade commissioners have been embedded with public and private sector partners across Canada, including in Manitoba with the Canola Council of Canada in Winnipeg, so they may work closely with businesses to ensure the Government of Canada is responsive to their needs.
Export Development Canada (EDC)
EDC helped 172 Manitoba companies finance or insure $2.15-billion worth of international sales and investments. For example, EDC provided bonding support to Empire Industries Ltd. of Winnipeg in relation to an $18-million contract to build a roller coaster for a new amusement park in Canada. EDC also provided a Canadian Direct Investment Abroad loan to Cormer Aerospace, a defence and aerospace company that opened a new manufacturing facility in Mexico.
Manitoba’s thriving agri-food industry and well-diversified industrial mix drove a 12-percent increase in the province’s exports this year, to be followed by a predicted 7-percent increase in 2015, according to EDC’s recent economic forecast.
Canadian Commercial Corporation (CCC)
In 2013-14, CCC worked with specialized companies in Manitoba on export opportunities abroad, including Magellan Aerospace Winnipeg.
Attracting Job-Creating Investments in Manitoba
Significant investments were made in Manitoba in 2014 that created jobs and opportunities for Canadians. For example, Jack Doheny, an American company that is one of the world’s largest suppliers of industrial cleaning equipment for municipal and industrial markets, announced the opening of a new operation in Winnipeg that will supply and service Manitoba municipalities with vacuum truck services. The investment value is $1.0 million, primarily in purchases of equipment.
Through the Invest Canada – Community Initiatives program, the Government of Canada provided a total of $73,000 to three Manitoba communities or community organizations: Beausejour Brokenhead Development Corporation, City of Dauphin and Economic Development Winnipeg Inc.
As part of GMAP, the government attracts investment to Canada, benefiting hard-working Canadians and their families. In the 2013-14 fiscal year, the Canadian Trade Commissioner Service (TCS) worked with provincial, territorial and municipal investment partners to facilitate 146 successful investment projects worth $3.65 billion and create over 5,500 new jobs within Canada.
Opening Markets and Supporting Manitoba Businesses Abroad
In 2014, Minister Fast led 13 trade missions to 20 countries. Trade missions connect Canadian businesses, especially SMEs, with new opportunities to boost their exports, which creates jobs, growth and prosperity across all regions of Canada, including Manitoba.
In June, a representative of RANA Mine Refuge Systems of Manitoba joined Minister Fast on his trade mission to Africa. On his trade mission to Ukraine in July, the Minister was joined by a representative of Manitoba-based Shape Foods Inc. He was also joined by a representative of Winnipeg’s Intelligent Hospital Systems Inc. on his trade mission to the United Kingdom in September.
Innovative companies from Manitoba can also count on the support of the Canadian Technology Accelerator (CTA) program. Manitoba’s 3D Signatures Inc. participated in a CTA in San Francisco, and Cubresa Inc. will be joining the CTA in Boston in 2015.
Minister Fast encouraged Manitoba-based businesses to take advantage of the Enterprise Canada Network. Provided in partnership with EDC and Canadian Manufacturers & Exporters, this network provides online access to more than 30,000 business profiles and information on opportunities in the European market to help Canadian companies take full advantage of the historic Canada-EU trade agreement.
Under GMAP, the Harper government committed to developing comprehensive strategies in key sectors. Strategies released this year that support Manitoba businesses include the International Education, the Extractive Sector and the Corporate Social Responsibility strategies, and an export-oriented Defence Procurement Strategy.
Minister Fast invited businesses in Manitoba to accompany him on his first trade mission of 2015. This trade mission to South Korea, which will take place from February 8 to 13, will enable businesses to take full advantage of the Canada-Korea Free Trade Agreement and benefit from on-the-ground support from the Government of Canada.
“This year, 2014, has been the most successful year for international trade in Canadian history, benefiting hard-working Canadians in Manitoba and in every region of the country. Under Canada’s Global Markets Action Plan, we will continue our vigorous trade promotion efforts to boost our exports.
“In 2015, we will continue to focus on the real priorities of hard-working Canadians: creating new jobs and prosperity.”
– Ed Fast, Minister of International Trade
Quotes from Manitoba Stakeholders
Trade Commissioner Service
“Big kudos to Foreign Affairs, Trade and Development Canada and the Trade Commissioner Service for arranging such excellent and worthwhile meetings and business programs in South Africa. As a Canadian exporter, I can say that we are so fortunate to have the Trade Commissioner Service.”
– Hemant Shah, Director of Global Sales and Government Relations, RANA Mine Refuge Systems (division of RANA Respiratory Care Group)
Canada-European Union Comprehensive Economic and Trade Agreement (CETA)
“Manitoba Beef Producers applauds the successful conclusion of the CETA negotiations. We estimate that this agreement offers more than $600 million in potential benefits to the Canadian beef sector. Over and above these concrete fiscal benefits, the agreement includes a process to resolve significant non-tariff trade barriers. This process could benefit our industry almost as much as the elimination of tariff barriers.”
– Trevor Atchison, former president, Manitoba Beef Producers
“The largest canola crop on record is in the final days of harvesting. Our farms depend on trade, and CETA is an excellent example of how the Government of Canada is helping Canadian farmers achieve export success.”
– Rick White, CEO, Canadian Canola Growers Association
“The EU is obviously a very large, affluent market with a strong investment presence in Canada and vice versa. If you think about how, increasingly, global trade is built around intra-company supply chains or coordinated supply chains globally, you can see how a free trade agreement really can build up investment that’s in both respective jurisdictions.”
– Roy McAlpine, Vice President, Government and Industry Relations, Maple Leaf Foods Inc.
“The Canada–EU agreement will create new opportunities for western producers to increase their presence in the European market and to attract investment from key financial sectors in Europe. The importance of the agreement is in securing advantages ahead of the United States; as such it positions western Canadian companies and producers with a new window of opportunity that they, and the rest of the country, must move quickly to seize.”
– Carlo Dade, Director, Centre for Trade & Investment Policy, Canada West Foundation
Canada-Korea Free Trade Agreement
“The chambers support the free trade agreement with South Korea, which will benefit Manitoba’s dynamic economy across all sectors. We look forward to working with government and our members on the new opportunities this agreement will provide.”
– Chuck Davidson, President and CEO, Manitoba Chambers of Commerce
“We applaud Parliament for their cooperation in bringing this agreement to implementation. Farmers have been waiting anxiously to capitalize on the Canada-Korea Free Trade Agreement’s opportunities. Canadian canola products, including seed and oil, will now be on similar tariff terms with our oilseed competitors, including the U.S. and Australia.”
– Brett Halstead, President, Canadian Canola Growers Association