International Trade Committee on Nov. 8th, 2017

[Michelle Jorge]

I think that would be a huge resource for Canadian companies here. Like I said, everyone there is ready and willing to support, assist, and develop. Everybody who comes here is very anxious to enhance opportunities for trade, for networking, and for everything imaginable between the two countries. They're very open and receptive.

[Matthew Correia]

Can I chime in as well?

I have a suggestion. I think we should also run some sort of citizenship program or business networking program whereby we can have businesses from Portugal come here and learn how to become Canadian citizens, how you start a business here, and the legalities. I know that the German equivalent has been done through their organization—they've been around longer—but for the Portuguese, that's something we could guide them to do.

[Kyle Peterson, Liberal, Newmarket—Aurora, ON]

Mr. Beck, I'll ask you the same question. Is there something we ought to be doing as the federal government to help facilitate the trade between our two nations, especially in light of CETA and the opportunity that I think is going to present itself on both sides of the Atlantic? In order to help leverage and capitalize on the good work that you and your organization already do, is there anything we should be doing that we're not?

[Thomas Beck]

Again, I think the Canadian government does quite a bit for their companies in helping them get to other markets. What I would suggest is, why don't we do some seminars or something here in Canada, in Toronto or Montreal, let's say, or wherever, to really help them with experts and tell them what they have to expect when they want to go to Germany, and how the market is, and to help them in Germany as well.

They have the same problems that our companies have in Canada. They need somebody to tell them about the trade laws in Germany, which are totally different from the laws here. What do they have to do to set up a company? How much will it cost them? What is the best location for them? How do they hire German people? What are the work laws? There are these kinds of things. It is very difficult.

In my opinion, if you can set up something at the embassy or the consulates in Germany, that would be very helpful. It's similar to what we do. From our point of view, that's exactly what the companies need. They know their markets somehow, and they know what trade fairs they have to go to, but they don't know what the legal issues are and how to hire people, or whether it is better in Munich or in Hamburg and these kinds of things.

Canada is doing a lot of trade fair participation. I think that is a very good instrument and it works very well. Again, I can only speak for Germany. We have 70 participants in the MEDICA trade fair, which is starting next week, and we have 35 for ProWein, and so on. That is very good. Canada should continue that and even strengthen it and take more companies to trade fairs, like I mentioned. That's always a good start. Again, it's about helping them to get into the German market: what do they have to do there? I am talking about the daily business

[The Chair, Liberal, Mark Eyking]

Thank you.

Mr. Carrie.

[Colin Carrie, Conservative, Oshawa, ON]

Mr. Correia, you brought up a couple of things, and I was wondering if we could expand that a bit about potential opportunities for Canada in Portugal. You mentioned maple syrup, lumber, and beef. That spurred me to think about the trades, for example. Is there also a recognition of trades between Portugal and Canada? Are qualifications recognized? As well, could you comment on how the European Union does it? Are trades able to move back and forth between countries?

[Matthew Correia]

We find that there are a lot of tradesmen and -women coming here from Portugal. There's a big population in Alberta in the labour sector.

[Colin Carrie, Conservative, Oshawa, ON]

Are there any other thoughts about potential sectors that might have opportunities in Portugal, other than the ones you brought up?

[Michelle Jorge]

Icewine.

[Colin Carrie, Conservative, Oshawa, ON]

I think that has great opportunities everywhere.

Mr. Beck mentioned the challenges for German companies when they want to set up in Canada. How significant are the differences between Canadian laws and business practices and those of Portugal? Does that appear to be a challenge that you hear about over and over from people wanting to set up over here?

[Michelle Jorge]

I don't think that I've heard complaints from our membership in that regard.

I don't know if you have, Mr. Correia.

[Matthew Correia]

No.

[Michelle Jorge]

It might just be that it hasn't been experienced as a big issue amongst the people that we are crossing paths with. I'm not saying that there aren't challenges, but it's not something that has been brought to my attention.

[Colin Carrie, Conservative, Oshawa, ON]

It's nothing that can't be solved.

[Michelle Jorge]

Yes.

[Matthew Correia]

It's easier to go and open up a business in Europe versus coming here. The laws are a lot stricter here.

[Michelle Jorge]

There are significant incentives to open up businesses in the Azores. The incentives provided by the European Union are absolutely incredible with regard to interest-free loans, the return on investment that is guaranteed, and the incentives to hire people and have their salaries partially covered. They are very willing to provide a lot of support for members from other countries to come in and invest. I can't imagine there being a lot of additional restrictions or too many challenges in that regard.

[Colin Carrie, Conservative, Oshawa, ON]

You're saying for somebody to come from Portugal to here that there are more hoops to jump through, that type of thing.

[Matthew Correia]

Yes.

[Colin Carrie, Conservative, Oshawa, ON]

Are there recommendations you could make on how to streamline that?

[Matthew Correia]

Some recommendations would be some sort of manual, some sort of training program, maybe putting something together on how to start a business and then where to go. Do you just go to Toronto, Ontario, or do you go a province to find your target market? Your niche is important.

[The Chair, Liberal, Mark Eyking]

Thank you.

We have a few minutes.

Mr. Davies, do you want to ask a question?

[Don Davies, NDP, Vancouver Kingsway, BC]

Thank you, Mr. Chair.

Mr. Beck, you mentioned that tariffs really aren't that much of an issue anymore. They were already low under the WTO. They are eliminated now. Often what is a barrier to trade are the non-tariff barriers, those things that we don't really get to see, but are there. Are there any significant non-tariff barriers in Germany that Canadian businesses ought to be aware of?

[Thomas Beck]

I would think it's similar and vice versa. When German companies come to Canada, the technical standards are a big issue in both directions. As I mentioned before, there are some small and medium-sized companies that told me they were not selling to Canada because it costs them too much. I can imagine that's the same with Canadian companies going to Germany. If you have a medical device, it takes some effort to make it ready for the European market, of course. I can imagine that some companies say, “Well, then we'd rather go to the United States where we'll have the same standards than go into Europe.” In the long run, this is a mistake because Canadian companies should become more international, not only with the U.S. as a partner. But again, there are obstacles. That goes for both directions. I think it's the same level of difficulties, probably, for both in certain areas.

[Don Davies, NDP, Vancouver Kingsway, BC]

I note that there is a motion before us that really focuses on the issue of multiculturalism in trade. I want to leave you with one question, the same question to each.

If you had one bit of advice for Canadian businesses about a cultural insight that you would want Canadians to know about Portugal and Germany that might help achieve business success, what would that be?

Maybe, you, Ms. Jorge, can go first.