Why Canada?
The United States and Canada share the longest common border between any two nations in the world – a border that spans more than 5,000 miles with 140 border crossings, and offers access to most of Canada’s 33.5 million inhabitants, who live within 160 miles of the border. Our combined trade in goods, services and foreign direct investment adds up to a trillion dollar economic partnership.
This geographical proximity coupled with common free market values, language, business practices, and a similar standard of living – where U.S. goods and services account for approximately 60 percent of purchases – make Canada our most important export market in the world, and an ideal market for U.S. companies wanting to make their first export sale. And thanks to the North American Free Trade Agreement (NAFTA), there are no tariffs on industrial and most agricultural products imported from the United States.
Map of Canada
Map of Canada
Canada’s Economic Outlook
Canada had strong economic growth, historically low unemployment, and financial stability through 2007. However, the recent drop in global trade and production adversely affected the country due to its strong international trade linkages. Canada’s exports have fallen, domestic demand has shrunk, and unemployment has risen. However, the economic strain felt in other countries is markedly less serious in Canada.
Canada’s real estate markets has fared much better that in other major countries, and the financial sector remains stable with solid credit growth. The fiscal stimulus incorporated in the 2009 federal budget will ameliorate the downturn in tandem with the Bank of Canada’s aggressive easing of monetary policy.
Canada continues to be the most receptive market in the world for U.S. goods and services, as companies and consumers are always interested in high quality, competitive products that will improve market competitiveness and quality of life. Now is the time for U.S. small and medium-sized firms to enter the Canadian market with the help of the U.S. Commercial Service in Canada in order to position themselves for the economic recovery ahead.
Best Prospects in Canada
U.S.-Canada bilateral trade presents opportunities in a wide range of industries for U.S. exporters, including in these best prospect sectors:
Medical Devices
Safety and Security Equipment
Agricultural Machinery and Equipment
Aerospace and Defense
Consumer Electronics
Travel and Tourism
Automotive Aftermarket Parts & Accessories/Service Equipment
Computer Hardware
Telecommunications Equipment
Computer Software
Oil and Gas Field Machinery
Electrical Power Systems
There are also many major projects in Canada that present new export opportunities for U.S. firms. Details on projects, such as the ones listed below, are available in our Market Research Library.
Alberta oil sands development
Atlantic Canada renewable energy projects
Ontario energy sector and Canada power projects
British Columbia construction and port development projects
Security projects for maritime and ports
Ontario highway infrastructure projects
Canada’s strong defense budget
Image of Toronto Skyline
Toronto Skyline
Doing Business in Canada
Canada is consistently rated as one of the best places in the world for business. However, doing business in Canada is not the same as selling in the United States. Canada has its own customs regime, bilingual labeling and packaging requirements, as well as federal and provincial sales taxes. Canada’s trade rules and regulations are transparent and relatively easy to comply with given the support and guidance that is readily available from the U.S. Commercial Service, as well as from many international business professionals and service providers.
The North American Free Trade Agreement (NAFTA) also makes trade easier and more lucrative for U.S. firms. Since NAFTA came into force in 1994, the United States and Canada have progressively eliminated tariff and nontariff barriers to trade in goods, improved access for services trade, established rules on investment, strengthened protection of intellectual property rights, and created an effective dispute settlement mechanism. In January 2008, Canada eliminated tariffs on all remaining industrial and most agricultural products imported from the United States. Today, over 95 percent of all trade passes across the border without incident or controversial trade restrictions, as a result of increased and continuing U.S. and Canadian harmonization of product standards.
Another tip for U.S. companies is to consider registering as a non-resident importer in order to replicate domestic sales transactions to the extent possible, and expand export sales in Canada.
Special Events
The U.S.-Canada Cross Border Initiative helps prospective U.S. exporters identify opportunities and address challenges for small and medium-sized firms. As part of this initiative, the Canada First Webinar Series will feature 10 programs on the nuts and bolts of doing business in Canada, beginning in the Fall of 2009. Topics include market opportunities in the different Canadian regions, NAFTA documentation and how companies can take advantage of the Non-Resident Importer Program. For more information, visit our website or contact CS trade specialists Eric Hsu or Tracey Ford.
RepCAN 2009 is our flag ship trade promotion event that provides U.S. small-to-medium sized, export-ready companies with an efficient, cost-effective opportunity to enter the Canadian market by finding prospective agents, distributors, end-users and joint venture partners. U.S. companies can participate in one or all three of the multi-sector matchmaker/exhibit stops – Toronto, Ontario on September 29; Montreal, Quebec on October 1; and Vancouver, British Columbia on October 6. Please visit our site for more information and to register by July 31.
Image of President Obama with Royal Canadian Mounted Police – White House Photo
President Obama is welcomed to Canada
by Royal Canadian Mounted Police
One Company’s Success in Canada
Erda Leather is a Maine manufacturer of fabric and leather handbags. Recently, owner Patti Dowse decided to expand her business into the Canadian market and contacted CS Portland for assistance. Our CS Portland trade specialist worked with his colleagues in Vancouver and Calgary, Canada to arrange a matchmaking service. CS Canada conducted a search for qualified sales representatives and scheduled appointments for Ms. Dowse with several potential partners in British Columbia. One of the appointments was with Winning Edge Sales (W.E.S.), a company that supplies a large number of gift stores, resorts, ferry terminals and galleries throughout Western Canada.
As a direct result of Commercial Service support, Erda Leather signed a sales representative agreement with W.E.S. for Western Canada and wrote that: “We have tried before to open new marketing territories, and expect it to be a fairly lengthy process. By opening a few accounts on our own in the territory, to help establish some credibility, we knew we were ready to approach a representative. But, it would have taken us days or weeks to find the appropriate one. With [CS Canada’s] help, we did it in two days! We look forward to great success in our new territory!”
Canada at a Glance
Population: 33.5 million
Area: 3.8 million square miles
Capital: Ottawa, Ontario
Other major cities: Toronto, Ontario (5.1 million); Montreal, Quebec (3.6 million); Vancouver,
British Columbia (2.1 million); Calgary, Alberta (1.1 million); Edmonton, Alberta (1.0 million); Quebec City, Quebec; Winnipeg, Manitoba; and Hamilton, Ontario
Government Type: Federation, Parliamentary Democracy and Constitutional Monarchy
Country Subdivisions: 10 provinces, 3 territories
GDP: $1.1 trillion in 2008
Real GDP growth rate: 0.7% in 2008
Per capita GDP: $38,435 in 2007
U.S.-Canada Two-Way Merchandise Trade: $597 billion in 2008
U.S. exports to Canada: approximately 20 percent of total U.S. exports
U.S. Share of Canadian Import Market: nearly 70 percent
Natural Resources: petroleum and natural gas, hydroelectric power, metals and minerals, fish, forests, wildlife, abundant fresh water
Primary Industries: motor vehicles and parts, machinery and equipment, aircraft and components, other diversified manufacturing, fish and forest products, processed and unprocessed minerals
U.S. merchandise exports to Canada: $261.4 billion in 2008 (5% more than in 2007) – motor vehicles and spare parts, industrial and electrical machinery, plastics, computers, chemicals, petroleum products and natural gas, and agricultural products
Market Research
CS Canada produces market research reports to help U.S. companies determine market potential, market size and potential competitors. Visit our site to access our reports, including the latest market research reports about:
Electrical Power Systems
Water Filtration Equipment Industry
Canada: Home Care Market
Ski and Snowboard Market
Canada Aircraft and Aircraft Parts
Upcoming Events
May 13 – Canada Regional Webinar Series – Quebec
May 16 – 19 – U.S. Embassy Delegation from Canada to the National Restaurant Association (NRA) Show in Chicago, IL
May 27-28 – Americas Business Forum in Los Angeles, CA
June 9-11 – GO-EXPO 2009 in Calgary, AB
June 15/17/18 – U.S. Master Franchise Promotion 2009 in Vancouver, BC; Montreal, PQ; and in Toronto, ON
June 17-19 – U.S. Embassy Delegation from Canada to InfoComm09 in Orlando, FL
Fall 2009 – Canada Regional Webinar Series – Ontario
September 9-10 – Trade North America Conference in Detroit, MI
September 17 – U.S. Information Technology Security Software Seminar in Ottawa, ON
September 29 – RepCAN 2009 Business Matchmaking Event in Toronto, ON
October 1 – RepCAN 2009 Business Matchmaking Event in Montreal, PQ
October 6 – RepCAN 2009 Business Matchmaking Event in Vancouver, BC
Image of President Obama with Canadian Prime Minister Stephen Harper – White House Photo
President Obama with Canadian Prime Minister Stephen Harper
Contact Us Today to Connect with a World of Opportunity
In 2008, the U.S. Commercial Service helped 92 companies export over $22 million of goods and services to Canada. We are located in major cities across Canada in order to better assist your company. Visit the CS Canada website to learn how we can help you today!
Key Contacts:
Ottawa: Lucy Latka, Senior Commercial Specialist
Montreal: Pierre Richer, Senior Commercial Specialist
Toronto: Madellon Lopes, Senior Commercial Specialist
Calgary: Crystal Roberts, Commercial Specialist
Vancouver: Cheryl Schell, Senior Commercial Specialist
More Information
Other Resources Available to You
Country Commercial Guide
CIA World Fact Book
U.S. Department of State Background Notes
Canadian Trade and Industry Associations
Aerospace Industries Association of Canada (AIAC)
Canadian Manufacturers and Exporters
Automotive Industries Association of Canada
CATA Alliance (Canadian Advanced Technology Association)
Canadian-American Business Council
The Canadian Association of Importers & Exporters
Canadian Franchise Association
Canadian Marketing Association
Information Technology Association of Canada (ITAC)
Canadian Association of Defence and Security Industries (CADSI)
Federal Canadian Government Contacts in Canada
Canadian Federal Departments and Agencies Portal
Department of Agriculture and Agri-food Canada
Foreign Affairs and International Trade Canada
Industry Canada
Public Works and Government Services Canada
Canada Revenue Agency
