Evidence of meeting #50 for International Trade in the 41st Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was need.
A recording is available from Parliament.
Conservative
Nina Grewal Conservative Fleetwood—Port Kells, BC
I would like to pass the rest of my time to Mr. Allen.
Conservative
Mike Allen Conservative Tobique—Mactaquac, NB
Thank you, Chair.
Professor Reuber, I'd like to ask you a question on some of the things that we don't know, and then maybe.... Well, I'll start with the ones that we know and then go perhaps to the ones we don't know, if we move quickly.
You talked about technology and consistent global standards, and some of the types of things that we're exporting fall well into global standards. Then you talked about our having as many stoppers as we have starters in any given year on the export side.
Do you see the stoppers as being the ones who are exporting more things that are perhaps not consistent with global standards; as just trying it once and saying, “We can't make it in that market”? Can you differentiate that?
Professor of Strategic Management, University of Toronto, Rotman School of Management
Do you know what? I don't think we have data on that. I think it's an absolutely critical question: Why do firms stop? What differentiates the ones that, when the going gets tough, keep at it? Is it funding? What is the difference?
It's a good question, but I don't have the answer.
Conservative
Mike Allen Conservative Tobique—Mactaquac, NB
My next question, because I only have a minute left, is this. The Chamber of Commerce last week, based on the announcement the Prime Minister made, said, or Perrin Beatty said, “This is a big deal. By helping entrepreneurs manage the costs of international expansion and by strengthening our trade offices in priority countries, we’ll be making a real difference on the ground.”
Do you see that as one area to deal with one of those gaps you talked about before—in terms of local taste preferences and understanding the countries we're in—by making those investments?
Professor of Strategic Management, University of Toronto, Rotman School of Management
The entrepreneurs I talk to who do business in foreign markets talk very highly of the trade people associated with our embassies and consulates, but I think because the nuances of each company are different and what they're selling is different, it's unrealistic for them to have detailed knowledge. They can make introductions, but they're not going to guarantee that this is going to be a great partner with me, because there's so much more that has to go on.
So I think certainly it's useful, but it's not sufficient.
Conservative
Mike Allen Conservative Tobique—Mactaquac, NB
Hopefully investment to beef that up will help some.
Thank you, Mr. Chair.
Conservative
The Chair Conservative Randy Hoback
You have 20 seconds, if you want to use them, Mr. Allen.
All right, Mr. MacAulay, the floor is yours.
Liberal
Lawrence MacAulay Liberal Cardigan, PE
Thank you very much, Mr. Chair.
Professor, thank you very much for your presentation.
It's interesting, as you indicated, that you need the person, more or less, along with the Internet, if you find the market; that's if I understand you correctly. I come from Prince Edward Island. We sell the blue mussel. I don't know if you've ever eaten it, but we produce a lot of blue mussel. That seems to have been successful worldwide. It basically goes all over the world. We have probably the best lobster in the world, and we cannot seem to find the proper market for that.
You just look at what takes place...and it was interesting to hear what you were saying about the Internet. I attended a trade show in Shanghai, and what you.... It wasn't presented properly. What needs to be done here? These are quite small businesses that are doing this exporting. What kind of help can the government give these small businesses? They survive, and they sell the product. But looking at the product that comes from other parts of the world, such as Australia, in my opinion and the opinion of a lot of people it's not the quality that we produce and it gets a lot more money.
I would just like you to expand on what we would need to do. I don't believe it's all the government's responsibility, either; I think it's business, too, but we need the information. For example, there were some products there that were displayed the way that the people in Shanghai would want them. The lobster was not. Could you expand on that?
Professor of Strategic Management, University of Toronto, Rotman School of Management
I completely agree. I think that's huge. If you have a product or service, how to put it into a foreign market so that it's appealing there is big.
I don't know whether the producers can band together and find somebody who's based in, for instance, Shanghai—agents are always difficult, I know—or someone who's conversant with both cultures and have them do it on perhaps an industry basis.
Liberal
Lawrence MacAulay Liberal Cardigan, PE
I think it follows on the line that you need the human touch along with finding the market.
Professor of Strategic Management, University of Toronto, Rotman School of Management
Yes. Actually, it sounds like you need to find ways to educate the market. I completely agree that Canadian lobster is way better than that of any of the other markets, but you have to think about how you are going to educate a market that doesn't know that, right?
Conceptually, it's not that much different from educating a market that you need an iPhone or that you need a smartphone. Everybody lived just fine without one, and suddenly we had to educate people that this was necessary. They are all living without this product now, so there has to be a concerted and detailed effort to differentiate it and position it into, say, their New Year's or various things they are doing.
Does that make sense?
Liberal
Lawrence MacAulay Liberal Cardigan, PE
It sure does. I could be wrong, but possibly the major corporate sectors are not so involved in the lobster industry as they are in other areas of the fishing industry. As I said earlier, I believe you have to have the entrepreneur involved, not just the government, to know how to do this. I think that's something we are missing.
I also think that sometimes we relax, both government and industry, because of the American dollar. Now it has changed in our favour again, and if we get more for the lobster, I would hope that we don't go back to the American market again. Do you believe that we depend entirely too much on it? Looking at what's available in Asia, it is an emerging market beyond. If we could sell our product and indicate that to the population, or a very small segment of the population, we wouldn't even be able to supply the market, at any price. I think sometimes we depend too much on the Americans. They are great neighbours to have, and great consumers, but Asia is also big.
Professor of Strategic Management, University of Toronto, Rotman School of Management
I agree; I mean, the other thing you might do for the lobster is look at other industries that want in. For example, icewine: that goes not bad with lobster—
Professor of Strategic Management, University of Toronto, Rotman School of Management
—and I know that the wine producers are all wanting to get into it. Perhaps there could be a food, or food and beverage, consortium that works on trying to adapt foreign tastes.
Conservative
The Chair Conservative Randy Hoback
I'm going to have to stop you there. All this talk about lobster and wine is getting me hungry.
Liberal
Conservative
The Chair Conservative Randy Hoback
Thank you, Professor, for your time. We appreciate your time here this afternoon. We appreciate your taking the time out of your schedule to help us with our study.
Professor of Strategic Management, University of Toronto, Rotman School of Management
Thank you for having me. I appreciate it.
Conservative
The Chair Conservative Randy Hoback
Colleagues, we're now going in camera.
[Proceedings continue in camera]