Evidence of meeting #4 for International Trade in the 41st Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was firms.
A recording is available from Parliament.
Liberal
Wayne Easter Liberal Malpeque, PE
There are two areas among several, namely trade promotion and trade assistance. At one time on the trade promotion side, there was the Team Canada approach where the Prime Minister led everybody, from premiers to businesses, in visiting countries, and I think did a reasonable job of establishing some markets. We've veered away from that now.
Is there any merit, in your opinion, of doing that again? It's now left more to the offices in countries, I gather.
And what do you do, beyond the discussion we just had, for trade assistance on the ground in countries, including the United States?
Assistant Deputy Minister, Asia and Chief Trade Commissioner, Department of Foreign Affairs and International Trade
I will address the issue of trade missions. Our new minister, Mr. Fast, has informed us that he wants to travel with business people. I think that's a recognition that the trade mission format is a successful one in certain markets. It's certainly something I can speak to with a fair amount of knowledge. I ran Team Canada for four years and organized those missions, so I'm aware of the successes that are attached to that kind of activity.
The minister is open to any initiative that assists Canadian exporters. He's not taking anything off the table. He's ready to consider any approach if we can prove to him that it will pay a dividend. As a matter of fact, he's just back today from a successful trip to Indonesia, where he met a wide range of business people. When you travel, you see first-hand how you can assist Canadian firms. That's job one.
Conservative
The Chair Conservative Rob Merrifield
Thank you.
Mr. Easter, as for those rotten potatoes, I know that the Wheat Board will have a little extra time, and maybe we can put the potatoes into a dual marketing system to solve that problem.
Conservative
NDP
Conservative
Ron Cannan Conservative Kelowna—Lake Country, BC
That's okay. We've got the spud from the great big mud, and we're happy to keep it rolling down across the borders and around the world. That's why we're here to do—to create jobs and help grow our economy.
I thank you gentlemen for the great work that the trade commissioner's office continues to do to help Canada. Today we were recognized by Forbes magazine as the best place in the world to do business.
Conservative
Ron Cannan Conservative Kelowna—Lake Country, BC
Recognition like is helping Canada to continue to grow and build our economy. But we need to export, as almost two-thirds of our GDP is trade related.
I want to speak specifically to my trade commissioner, Harvey Rebalkin, and the great work that he's doing in the Okanagan and the Southern Interior, partnering with other organizations. He's in the BDC office, so it's a great partnership.
For the edification of the committee members here, I'll walk through a scenario. Say I'm a small business owner, part of that 98% of our country's economy, the SMEs, that are the economic engine driving the economy. What would happen if I walked into your office and sat down with one of your trade commissioners? Give me the scenario of how would I be able to use your services.
Acting Assistant Deputy Minister, International Business Development, Investment and Innovation, Department of Foreign Affairs and International Trade
The prospective client of the trade commissioner service walking into that office would benefit from an interview and an informal discussion of the firm's capabilities and commitment to international trade. Is it doing business within Canada already? Is it a born global company or just a startup? Is it already active in the U.S. but looking to go beyond the U.S. market?
Based on that conversation, which might take one or two meetings, the Canadian client, the taxpaying client, would have an opportunity to be directed to other players in the federal and provincial families of support—BDC, EDC, CCC, other departments of government, including of the province, and the regional offices working to build up the capability of a firm like that.
Based on their interests, we like to have these companies limit themselves to five markets. One of the success factors is to be focused. We would ask them to register on the Virtual Trade Commissioner, which is our online register database. It allows the company to be known to anybody in our global network around the world. The company's profile is in there, including where it's active already, and where it wants to be active.
Based on that conversation, the regional office could direct them to a particular embassy or consulate around the world to begin the dialogue. Eventually, based on information exchanged early on, they may arrange for meetings with key people. The value of our posts around the world is their on-the-ground knowledge and networks. They can save the client a lot of time and money, particularly in a complex market like China or Brazil.
Conservative
Assistant Deputy Minister, Asia and Chief Trade Commissioner, Department of Foreign Affairs and International Trade
If I may, I'd like to add to what the other Peter was saying.
One of the real challenges you face with SMEs is that the person you're dealing with is generally not only the CEO, but also the CFO and the chief marketer. We try to ensure that they're focused. If they want to go to China, we will assist them so they're not going to arrive and just flounder around. They'll know whom to talk to and where to go. They'll have a focused program. They'll be able to meet the key individuals they need to meet to make an assessment of whether there is a real opportunity there or not. That's the kind of facilitation that we do in our trade networks around the world.
Conservative
Ron Cannan Conservative Kelowna—Lake Country, BC
That's very helpful. I was always keen as a young entrepreneur about foreign investment, but it was always kind of scary, the fact that you're going outside that comfort zone in the Okanagan. With some of the international award winning wines that are produced there, I had some wineries trying to do business in China.
But how do you, as a service, provide some pre-qualification for potential customers? Is that a service you offer as well?
Acting Assistant Deputy Minister, International Business Development, Investment and Innovation, Department of Foreign Affairs and International Trade
With regard to the wine industry, we have what we call a virtual practice in wine. We have a sommelier, an expert in wine, here in Ottawa. She works closely with wine industry groups in British Columbia and Ontario, in particular, but also in Quebec and Nova Scotia, where wine is produced.
She chairs an advisory board, which includes the wine associations, and it was the first time nationally that we brought them all together. To follow on from Peter's comment, instead of going all over the world, it currently focuses these wineries on the metropolitan Chicago market in order to make a breakthrough there; in the London, U.K., market for media; and in Shanghai as a future market.
We only have a certain amount of exportable wine, and we want to go beyond ice wine to table wines. We increasingly have very good wines in Canada, so that virtual practice with somebody who knows wines helps us pursue that.
I should also mention that we serve Canadian wine all around the world through our embassies, as part of our marketing of the Canadian brand, and it's increasingly respected and appreciated by our foreign clients.
Conservative
Ron Cannan Conservative Kelowna—Lake Country, BC
I know we're working on giving Canadians the opportunity to access Canadian wines as well; it's another interprovincial trade issue. But I appreciate your work on expanding internationally.
I have one last question, specifically regarding Minister Fast and the expansion of our trade. We've had nine trade agreements in the last five and a half years and are negotiating with 50 countries. Minister Fast is returning from another successful mission abroad, and I'll be going again to Asia.
Do you make the SMEs aware of the FIPAs and the trade agreements and some of the opportunities that are emerging, or almost evolving daily?
Assistant Deputy Minister, Asia and Chief Trade Commissioner, Department of Foreign Affairs and International Trade
Yes, we do. An element of each of these trade negotiations, as they unfold, is the consultations with stakeholders.
We also have a SME advisory board, where the minister meets with a group of SMEs drawn from across Canada. An element of the work we do with them is to ensure that they and the associations they're part of, or the provinces they come from, are aware of the full range of trade liberalizing initiatives we're pursuing.
Conservative
NDP
Raymond Côté NDP Beauport—Limoilou, QC
Thank you, Mr. Chair.
Gentlemen, thank you for joining us.
I want to start with a question about exportation. Do you provide support for companies that want to import products into Canada in order to distribute them?
Assistant Deputy Minister, Asia and Chief Trade Commissioner, Department of Foreign Affairs and International Trade
No, we don’t. We sometimes give them advice, but providing them with support is not part of our mandate.
NDP
Raymond Côté NDP Beauport—Limoilou, QC
My next question is about small businesses, which are faced with numerous difficulties when attempting to do business internationally. Larger companies have a lot or resources and means. Therefore, their costs are proportionally much lower. I am talking about all the administrative procedures and costs involved in doing international business, either in terms of paperwork or broker services. Those costs can be rather high in proportion to the company's sales volumes.
How do you support and help those businesses reduce these costs so that they don’t make up such a large proportion of their sales volume?
