Good afternoon, Madam Chair and members of the committee.
Thank you for inviting me to testify about the work done by Canada Economic Development for Quebec Regions, or CED, to help Quebec businesses break into global markets. With me today is Marie‑Claude Petit, who is vice‑president of operations.
I would like to acknowledge that we are on the traditional territory of the Algonquin Anishinabe Nation.
The agency's mandate is to support the economic development of all regions of Quebec by paying particular attention to those with less growth potential. We support SMEs and the organizations that support them in projects that have a positive impact in their regions. Market development is a preferred way for companies to grow by accessing new customers and integrating into global value chains. In doing so, they generate new revenue that is invested in the regions.
That said, these SMEs, which make up the vast majority of businesses, face challenges in achieving their full potential through exporting and internationalizing their operations. Quebec’s SMEs face a number of challenges, including their production capacity to meet the demands and requirements of major suppliers, along with increased compliance with various standards, the cost and risks associated with exporting activities, and the lack of expertise, knowledge and market access in a rapidly evolving and complex world characterized by a changing geopolitical context, rising protectionism and supply chain disruptions.
While exports accounted for 27% of Quebec's gross domestic product in 2022, there has been a relative decline since 2000, when it was 39%. However, over the past five years, we've seen an increase in manufacturing production, where exports have rebounded.
To help small and medium-sized businesses address these challenges, the agency uses three approaches. These are the innovation assistance program, support for the ecosystem that helps businesses, and referral and networking services, including the implementation of the industrial and technological benefits policy.
In all cases, CED provides services tailored to the reality on the ground in the region. CED's 12 business offices, located across the province, are community-focused and understand the features and needs of small and medium-sized enterprises and economic organizations in their respective areas.
Through the regional economic growth through innovation program, or REGI, Canada Economic Development, or CED, can invest across the entire business development and growth continuum to make businesses competitive, from start‑ups to the deployment and adoption of technologies, to the marketing and export of products and services. For example, CED supported CONFORMiT Technology Inc., based in Chicoutimi, in the international marketing of innovative health, safety and environmental software platforms.
Second, we support the ecosystem that supports SMEs and provides the referrals and market information they need to grow. In this regard, CED supports 18 regional export promotion organizations, the ORPEXes, which provide Quebec SMEs with local and front‑line services to facilitate their efforts to develop international markets. CED also supports incubators and accelerators, and college technology transfer centres.
Third, CED itself provides referral and networking services to businesses. We do so, for example, by guiding SMEs to good sources of funding or support. CED also implements the Industrial and Technological Benefits Policy in Quebec. Through this policy on national defence procurement, CED supports SMEs to help them integrate into the global supply chains of major stakeholders in the defence and security sector.
I should add that all work is done in close collaboration with key players in the ecosystem, including the Quebec government. We also have excellent working relationships with federal government departments such as Global Affairs Canada, Export Development Canada, Innovation, Science and Economic Development Canada, Indigenous Services Canada and the Business Development Bank of Canada.
Canada Economic Development, or CED, supports businesses at every stage of their development, encouraging them to take advantage of international trade to contribute to regional prosperity. This is how we help them grow, leverage their competitive advantages and integrate global supply chains.
We would be pleased to answer any questions you may have.