Canada-Philippines Trade Relations and Prospects Karra-Lee Gerrits - - PowerPoint PPT Presentation

Canada-Philippines Trade Relations and Prospects

Karra-Lee Gerrits Senior Trade Commissioner Embassy of Canada to the Philippines

What is Canada known for?

Now how about…

What is the Canadian Trade Commissioner Service (TCS)

Canada’s most comprehensive network of Canada’s most comprehensive network of international trade professionals. Provide services to help Canadians in the international marketplace

Building Canada’s economy

The TCS promotes Canada’s economic interests in the global marketplace by facilitating:

• Foreign-market access
• Trade leads
• Exports
• Business contacts
• Events
• Technology transfer
• Licensing agreements
• Joint-venture development
• Investment in Canada
• Research and development

(R&D) partnerships

About Canada

• World’s 9th largest economy
• Highest growth in G-7
• The best place in G-7 to do business for the

next 5 years Economist Intelligence Unit next 5 years Economist Intelligence Unit

• World’s soundest banking system World Economic

Forum

• World’s 3rd largest exporter of engineering

services

• Lowest overall business costs in the G-7 KPMG

Canada-Philippines Relations at a glance

• Established formal diplomatic relations in 1949
• Profile of Canada in the Philippines growing fast
• Over 600,000 of Filipino origin living in Canada
• Over 600,000 of Filipino origin living in Canada
• 10% of remittances from OFWs come from Canada
• Philippines is Canada’s 45th source of imports, 35th

destination for exports

• Foreign Investment Protection and Promotion

Agreement (FIPA)

• Joint Commission on Bilateral Cooperation (JCBC)

Philippines positive developments for business

• ASEAN regional growth
• Anti-corruption efforts are taking hold
• Public-private Partnerships (PPP) for infrastructure
• Public-private Partnerships (PPP) for infrastructure
• Increasing education levels
• Sound fiscal management and monetary policy
• Diversifying from traditional sectors
• Tourism to drive economic development

Canadian Exports to the Philippines, 2000-2011

Top 5 Canadian exports to the Philippines

In millions of USD 2011 2010 2009 Copper concentrates 137.7 181.6 112.8 Copper concentrates 137.7 181.6 112.8 Meats (pork & poultry) 84.0 81.6 37.0 Cereals (wheat & oats) 46.6 88.4 102.2 Potassic 45.5 21.1 11.8 Lumber 37.7 39.0 24.6

Source of data: Statistics Canada

Canadian Imports from the Philippines, 2000-2011

Top 5 Canadian imports from the Philippines

In millions of USD 2011 2010 2009 Electrical machinery (cable, circuitry) 522.6 474.7 303.2 Optical components 62.1 25.0 42.2 Computers, office machinery 57.8 63.4 62.7 Knit apparel 30.1 23.2 23.9 Tires 26.5 51.6 28.8 Coconut, dried mango 25.2 13.0 11.4

Source of data: Statistics Canada

Sectors of opportunity

• Agriculture and Agri-food
• Infrastructure
• Mining
• Mining
• Information & Communications Technology
• Defence
• Clean Technologies
• Education

Canadian brands in the Philippines

• Sun Life
• Manulife
• Research in Motion
• Bombardier
• Fruits & Passion
• Aldo
• La Senza
• Blenz Coffee
• Bombardier
• Bell Helicopters
• TELUS
• IMAX
• TVI Pacific Inc
• Blenz Coffee
• Qoola Yogurt
• Maple Leaf Foods
• McCain
• Metro-Briska

Canadian Agri-food Sector

Abundant, quality agricultural raw materials at competitive costs, innovative research and development, and easy access to global markets. Canada’s 2nd largest manufacturing industry.

The food- and beverage-processing industry accounts for approximately 14% of total manufacturing shipments worth $83.7B or 2% of GDP. manufacturing shipments worth $83.7B or 2% of GDP.

Canada is one of the top-10 exporters of agri-food products in the world.

45% of Canadian domestic food and agricultural production is exported either directly as primary products or indirectly as part of processed products.

Canadian manufacturers exported $39 bil to nearly 200 countries in 2010. Main exports to the Philippines: meat and cereals, animal feeds, frozen potatoes/ fries, peas, soybeans Imports from the Philippines: dried fruits, pineapple juice, tuna, sardines

Animal Feeds

Canada officially gained access in October 2011

Ruminant meat and bone meal (MBM), non-ruminant meat and bone meal, porcine spray dried blood (plasma, red cells), rendered fat, blood meal

Relevant associations for MBM: Canadian Renderers Association and Canada Beef Inc. Canada Beef Inc. Canadian companies: West Coast Reduction, Sanimax, Rothsay, Cargill Indonesia is Canada’s largest market for MBM in Southeast Asia Possible animal feeds from Canada aside from MBM: soy, canola, forage, wheat, flax, peas, oats

Building Products

• Canada is the 2nd largest exporter of primary forest products in the world, next to

the U.S., and the 4th largest for all forest products.

• Canada is the largest exporter of wood pulp, newsprint and softwood lumber, and

is the fourth largest exporter of wood panels.

• The U.S. is the destination for 65% of Canadian forest product exports.
• Solid wood products, including engineered wood products, log homes, furniture,
• Solid wood products, including engineered wood products, log homes, furniture,

pallets, shingles and millwork (such as for doors and windows) are not yet widely available in the Philippines.

• Construction machinery manufacturing has been growing due, in part, to Canada’s

booming mining, oil and gas sectors.

• Manufacturing shipments topped $30 billion in 2005, an increase of 37% from
• 1997. Canada’s 8,500 machinery manufacturers employed almost 150,000 workers

in 2005 (more recent data not available)

Environment – Clean Technologies

Canada's clean technology industry, with over 700 technology companies, is a global leader in the market currently valued at $1 trillion. Areas of interest: renewable energy, energy efficiency, compressed natural gas-fuelled mass transport, remediation and soil treatment, water and wastewater management. Feed-in-Tariff (FIT) rates in Philippines a positive sign for Canadian Feed-in-Tariff (FIT) rates in Philippines a positive sign for Canadian Renewable Energy companies, especially in hydropower and biomass. Canadian companies are known for small wind, a technology best suited in generating power for the country's island resorts. Canadian capabilities in water and wasterwater extend to a few key areas: 1) water management; 2) infrastructure for water provisioning; 3) advanced water treatment; and 3) waste-to-product

Trade Shows and Events

Agriculture

• SIAL Canada (Toronto, May 1-2, 2013)
• Canadian Western Agribition (Regina, November 11-16, 2012

Building products

• Construct Canada (Toronto, December 4-6, 2013)
• Construct Canada (Toronto, December 4-6, 2013)
• Canada Green Building Council (CaGBC) National Conference and Expo

(Vancouver, June 4-6, 2013)

Clean Technology

• GLOBE Conference and Exhibition on Business and Environment (Vancouver,

March 26-28, 2014)

• Canadian Wind Energy Association's (CanWEA) Annual Conference & Exhibition

(Toronto, October 7-10, 2013)

• Solar Canada Conference and Exposition (Toronto, December 2013)

Investment Opportunities

Why invest in Canada? Attractive tax environment Sound public finances Natural resource giant Stable banking system Where to invest in Canada? Aerospace Automotive Machinery and Equipment Agri-food Stable banking system Efficient border system Access to US market Highly educated work forces Business-friendly immigration High standard of living Multicultural Strong on innovation and R&D Agri-food Chemicals and Plastics Clean Technologies Digital Media Wireless and mobile comm Life Sciences and pharma Technical services Financial services

Trade Facilitation Office Canada

www.tfoc.com Source of information on Exporting to Canada:

• Canadian market information
• Information on labeling requirements
• Information on tariffs and duties
• Exporting to Canada handbook
• Only 13 Filipino companies registered across all industries

THANK YOU

www.tradecommissioner.gc.ca/ph Infocentre-manila@international.gc.ca