Archive for July, 2010

July 26th, 2010

Strategic summer reading

Here is some suggesting summer reading on Québec’s and Canada’s performance in the international marketplace.

1)      Adapting to a strong Canadian dollar

EDC has just published a white paper titled Adapting to a Strong Canadian Dollar aimed at suggesting strategies that exporters can use to increase their international competitiveness despite a strong dollar.

While the Canadian dollar fell after the U.S. financial crisis and stayed below US85 cents between fall 2008 and spring 2009, it has since risen sharply and EDC expects that it will stay at around US90 cents until 2012. Even if the dollar were to remain below parity, providing Canadian exporters with a slight edge, the loonie’s rise since 2003 has eroded their competitiveness in U.S. and foreign markets.

In this regard, EDC presents the key strategies adopted by Canadian exporters in order to thrive despite the high Canadian dollar, namely, market diversification and innovation.

2)      2010-2103 Que?bec Research and Innovation Strategy (QRIS)

In the same vein, the ministère du Développement économique, de l’Innovation et de l’Exportation has just published its 2010-2013 Québec Research and Innovation Strategy, which places innovation at the forefront of Québec’s economic development. The QRIS focuses on four key areas of intervention:

More competitive research recognized internationally;
A more creative, enterprising population;
Enhanced productivity and competitiveness through innovation;
Major developmental projects.

The “enhanced productivity and competitiveness through innovation” component is of particular interest to us because it focuses on international commercialization. In fact, two new measures are being implemented, one devoted to low-carbon footprint products and the other to commercialization plans for technological innovation. Over 30 innovation commercialization projects are planned between and 2013. It will be interesting to see how these measures are implemented. Please consult the directory of financial assistance sources to stay informed about the different programs available to Laval exporters.

What’s also interesting is that measures pertaining to technical validation and technology showcases will be relaxed.  The technology showcase component of the Business Assistance Program (BAP) is especially relevant for businesses seeking to export a technology as it will now be easier for these innovators to penetrate international markets.

3)      Québec in the world

If you like statistics, the Institut de la Statistique du Québec has just published Le Québec dans le monde, available free of charge. It compiles the most current economic indicators on 235 countries and territories, broken down into four main sections:

A summary placing Québec in the world;
Tables comparing the 235 countries and territories based on 95 economic indicators;
235 profiles of countries and territories, providing economic profiles using these same 95 indicators;
Maps of countries by continent.

We hope you enjoy the readings!

Bruno Séguin

July 8th, 2010

EDC’S 2010 export forecast

Each spring, Export Development Canada (EDC) publishes its Global Export Forecast for the year ahead. EDC’s vice-president and chief economist, Peter G. Hall, then embarks on a nationwide tour, presenting the analysis at always well-attended luncheon conferences. This forecast has become a reference in Canadian international trade and a highly useful tool for those involved in international business development, helping them set priorities and plan their activities for the year.

The following are a few highlights that could be of interest to Laval SME leaders:

-         EDC predicts global growth of 3.7% in 2010, a huge improvement from the 1.1% recorded last year. Still, EDC refuses to call it a recovery given the many risks still threatening the world economy, for instance, the maturation of huge stimulus measures, instability on the financial and commodity markets, fear of inflation, and a potential new wave of protectionism.

-         Within NAFTA, Mexico is expected to post the strongest GDP growth, projected at 3.5% in 2010 and 4% in 2011. Globally, BRIC countries (Brazil, Russia, India China) will dominate, with China and India leading the way. Solid gains are also expected in Southeast Asia and Sub-Saharan Africa.

-         After a tough year in 2009, Canadian merchandise exports should rebound to the tune of 13% this year.  Québec exports are projected to increase 9% in 2010, placing it seventh among the Canadian provinces.

-         The EDC predicts a 22% jump in Canadian merchandise exports to Brazil, the sharpest growth among the principal trading countries. Last year, exports to Brazil represented a mere 0.4% all Canadian merchandise exports and had tumbled 41.4% from 2008. What this means is that Canadian companies would do well to establish stronger business ties with this now indispensable market.

-         U.S.-bound exports should also improve, picking up 14%. Given the relative importance of this market (75%) for Canadian exporters, this bit of news is encouraging.

-         As regards industries, exports will increase mostly in energy, commodities, and vehicles and auto parts. Aeronautics, the only sector where exports grew last year, and agrifood, will be the only two with negative growth in 2010.

After reading this analysis, I noticed that the activities we have planned for 2010 fit in well with these forecasts. In fact, we just recently returned from a very successful mission to Mexico and are in the process of organizing others for the fall, namely to China and Brazil. We will also be very proactive on the U.S. market, which is still the number one destination for most Laval exports. When you return from vacation, make sure to check out our fall program – it’s packed with activities!

You can read the Global Export Forecast on the EDC Web site.

Bruno Séguin