Thank you very much for inviting me as a witness to the Standing Committee on Transport, Infrastructure and Communities.
I'm Jayesh Menon, representative of the Niagara foreign trade zone located in Fort Erie. It is the first foreign trade zone established in Ontario.
Niagara is an international border crossing that includes a robust multimodal transportation network. As businesses around the globe grapple with ever-increasing challenges of moving goods and services between countries, decisions made daily that impact trade and transportation systems are vital. Also, this gives rise to the concept of foreign trade zones, which remains a viable, fundamental option for any organization to consider.
The Niagara foreign trade zone is a single point of access to information on export-related government policies and programs that can greatly improve a company's operating costs and overall competitiveness. The Niagara foreign trade zone point happens to be the first foreign trade zone point in Ontario. There are nine of us in the country. This point promotes the use of federal, provincial and regional programs that support export development. In Niagara, this partnership has been between Niagara Region and the Niagara Development Corridor Partnership, an incorporated consortium of the Niagara Falls, St. Catharines, Welland, Port Colborne, Fort Erie, and Lincoln economic development offices. I am the conduit, and we all work together as a co-operative team.
As foreign trade zone coordinator, I have a dual role. One, I help our companies learn about export-related trade incentives and opportunities; therefore, I work as expediter for them. Two, I facilitate foreign direct investment through inbound missions, connecting through foreign trade centres, and later, lead outbound missions for identified markets.
The main goal of a foreign trade zone point is to help businesses reduce administrative costs and burdens associated with international trade by facilitating access to various trade programs available to importers and exporters in Canada. Just to give you insight into what has happened in the past year and a half, we have a consolidated database of 400 companies across various sectors, manufacturing services, and so on. I personally have reached out to almost 150 companies, and we have, to date, 42 Niagara foreign trade zone clients we are serving.
Those services typically involve the companies going in for duty or tax exemption programs, or for parking their goods in a customs bonded warehouse, or it could be absolutely in terms of helping these companies into international markets. That's what we refer to as market development programs. They come in to understand the information that is available in terms of government incentives and programs.
I bring to you also a message from economic development director Domenic Ursini, on behalf of Niagara Region, which I want to read into the record. He has written:
[W]e would like to outline for you two key strategies that encompass the area of transportation. The first pertains to an east-west corridor that would run from the border in Fort Erie all the way to the Hamilton airport.
That is what we refer to as the mid-peninsula corridor. He continues:
This much needed transportation route would serve as the key travel for commercial vehicles moving goods amongst geographies including the export market. Furthermore, this would in turn alleviate the congestion currently in place for pedestrian traffic looking to travel to work and/or come to Niagara for its numerous tourism offerings and beauty. In order to achieve this much discussed vision, it will require the collaboration of both the province and federal government to assist in the moving forward of environmental assessment and capital commitments for construction. This will prove effective in creating further synergies amongst the Niagara and Hamilton economies along with export into the United States. It will also play a role in Niagara's efforts to explore an industrial hub of land between Fort Erie and Niagara Falls along the QEW corridor. We look forward to working with your committee on this very important initiative.
The second pertains to the establishment of a commercial port here in Niagara along the Welland Canal System. In working closely with our colleagues at the Hamilton Port Authority, it has become evident that the demand for this venue far exceeds the supply currently in place. In fact, Hamilton Port Authority is at over capacity. A Niagara port provides a strategic location for commerce activity given its logistical proximity to both GTHA and eastern United States. Within a one day's drive, Niagara is situated next to 2 Canadian provinces, nine U.S. states and approximately half of the entire American population. This port would serve as an economic engine within the Niagara market and also provide another strategic advantage to the prospective global and national companies looking to relocate for commerce. Finally, the port would also fit well with Niagara's Foreign Trade Zone and our commitment to fostering this into a fully functional free trade zone. Again, we look forward to working with the federal government to bring these very important economic initiatives to fruition.
Thank you.