Evidence of meeting #56 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 business.
A recording is available from Parliament.
5 p.m.
Chief Executive Officer, Caboo Paper Products Inc.
I think the main thing is our credibility internationally as a small to medium-sized business. We definitely could benefit from trade missions and from more networking and more resources for networking overseas. Credibility is very big for us; we need to be taken seriously. And our industry does deserve it.
5 p.m.
Conservative
5 p.m.
Conservative
Nina Grewal Conservative Fleetwood—Port Kells, BC
Mr. Bergan, International Road Dynamics has had considerable success in international markets, with operational installations in countries like the United States, Saudi Arabia, Pakistan, India, China, Indonesia, Korea, Malaysia, Brazil, and Colombia, to name just a few. What has been your experience when attempting to sell internationally, and what stumbling blocks have you encountered? In your opinion, what kinds of opportunities are there for Canadian companies looking to expand internationally?
5 p.m.
President and Chief Executive Officer, International Road Dynamics Inc.
As I said in my original presentation, the first challenge, if you're dealing with a Canadian bank, is dealing with the payment cycles. Many times the contract isn't as tightly specified as you're used to and you can get into a situation where you have to spend a lot of time trying to figure out what the customer wants and trying to get paid. As far as corruption goes, I can't say enough. It doesn't matter where in the world you go, if you get into a situation where you have to go to a customer to ask for any leniency, there's a question of “What can you do for us?”
I encourage the trade commissioners. They're excellent at what they do, they're excellent at finding customers, and they're excellent at making contacts and helping and advising us, but I think they have to go out and deal with the local chambers and make very clear that we expect to be paid as businesses doing business in their country and supplying the best world-class products, as Mr. Hicks mentioned, and we expect there to be no under-the-table payments, which seem to be the norm in many of those countries. That goes right to the highest levels of government, right to ministers. I've been approached to make payments. It's a challenge.
5 p.m.
Conservative
5 p.m.
Liberal
Wayne Easter Liberal Malpeque, PE
I want to go back to Google for a second.
On your export business map, which I think was given out to the committee, do you have a chart on Canada? I don't have it in this one.
5 p.m.
Head, Public Policy and Government Relations, Google Canada
We don't have a chart on Canada for Canadians. That is something we would likely serve to customers in Europe, where we have a similar site.
5 p.m.
Head, Public Policy and Government Relations, Google Canada
We also provide that information to Canadian businesses to help them make those decisions about advertising in country.
5 p.m.
Liberal
Wayne Easter Liberal Malpeque, PE
This is interesting, as you look through the various countries, in terms of online shopping, there's a high in North Korea of almost 13%-plus on groceries, for instance, whereas in the United States I think it's 2%.
Anyway, I want to come to Mr. Hicks and Mr. Bergan. Partly it's a spinoff from that last question. It's clear that people have utilized CCC, the Export Development Corporation, and likely the Business Development Bank as well. We have a lot of people utilizing those as well, and yes, they do a good job. But to your point about corruption and the kinds of shenanigans you can run into when you do business, without experience, in a new country, is there a need for the Department of Foreign Affairs, with the trade commissioners, embassies, or consul generals, to have a specialist available or someone who can assist small businesses? Even large businesses—I deal with McCain Foods and Irving Forestry a lot—run into trouble unexpectedly.
How does the government or agencies try to cover off every angle, because regardless of your size you can run into a difficulty that will basically put you out of business? Do you have any thoughts?
5:05 p.m.
President and Chief Executive Officer, International Road Dynamics Inc.
Maybe I'll start off. The first thing, as I said, is that they have to go to the local chambers and have to go to the government agencies to make sure they know the way Canadians are going to do business. They can also monitor the business environment to be able to identify the companies that are problematic.
Last week I was in China. The week before I was in India. I've met with the ambassadors and the commercial officers in both. They're very, very helpful and they know. I think there's more they can do, not only warning the Canadian companies but making sure that the customer base and the clientele know what the expectations are on our part: payment, non-corruption, and honest business with as little bureaucracy as possible.
5:05 p.m.
Vice-President, Canadian Association of Moldmakers
The tapes are rolling, but unfortunately corruption has been around forever. I agree that it shouldn't be there. Again, I think it's up to the companies to manage it.
Really, I don't think there's anything you can do as a government to control it, because it's there. It shouldn't be there and we wish it wasn't there, but as I said, it's up to the individual companies to know how to manage it, and to know how and when to walk away, and so on and so forth.
Corruption has been around forever, no matter which country you deal in. It does happen, even in Canada in a minor way.
5:05 p.m.
Liberal
Wayne Easter Liberal Malpeque, PE
Yes, I've heard the line, “It's just the way they do business”, but I also know that the individual who told me that also got in trouble and that we had to work to try to get him out of it. There might be something that the government could do through various sectors, in terms of outreach to a customer base, with the weight of the Canadian government behind it, saying that this is the way we do business. I think the Chamber of Commerce idea may not be a bad one. Anyway, it's something the committee can consider.
I'd like to come back to the Canadian Border Services Agency again for a second.
5:05 p.m.
Liberal
Wayne Easter Liberal Malpeque, PE
We have lots of trouble with that. What do you recommend be done there? They simply do not seem to understand that time is money; it's a cost. Taking three days to inspect a container really can affect a business. Do you have any suggestion on how to get around that?
5:05 p.m.
Chief Executive Officer, Caboo Paper Products Inc.
There are a couple of suggestions we can make. In terms of our going around it, that's impossible. Definitely we think that tagging the value of the contents, of the commodity, and comparing that to the price they're charging might be a good idea to align these more closely.
The other thing is their procedures. They have to remove it to a special bonded warehouse where they de-stuff the container. Why do they have to de-stuff the whole thing? Grab a couple of samples of the contents—
5:05 p.m.
Conservative
The Chair Conservative Randy Hoback
You're right, but I'll have to stop you there. We're well past his time.
Could you send those recommendations in writing to the committee?
5:05 p.m.
Conservative
The Chair Conservative Randy Hoback
That would definitely help us.
I want to thank the witnesses for being here today. I appreciate the input you have provided us here. We know that your time is very valuable, so we're going to release you right now and adjourn this meeting.
The meeting is adjourned.
