1. Exploring the Canadian Market Russ Sawchuk, Director North Carolina Canada Office

2. Topics  Canada: An Overview  Why Canada  Trade Facts  Canada and North Carolina  Key Areas  Considerations  Additional Resources

3. Canada – An Overview  Population 33.4 million with 10 provinces and 3 territories  GDP ($1.576 Trillion, 9 th in the world)  ~$39,600 GDP/capita  Second largest country, 7 th largest economy

5. Why Canada?  Affluent, industrial economy  Similar business practices and attitudes  Geographic proximity reduces transit times & costs  90% of Canadians live within 100 miles of the border  Common language, corresponding time zones  Open border  Sound financial & distribution systems Canadian Sales should be at least 10% of your US Sales

6. The Canadian Economy Canada’s Economy is growing again Stimulative monetary and fiscal policies Improved financial conditions Firmer commodity prices Rebounding business and consumer confidence Growth in domestic demand Canadian GDP Growth 3% for 2010 2.9% for 2011 [forecast] Canadian $ at par with US $

7. Canada-U.S. Investment:  One of the world’s largest investment relationships  US FDI in Canada: $288 Billion 2009 52% of foreign investments in Canada  Canada FDI in US: $251 Billion 2009 44% of Canadian foreign investment

8. Canada-U.S. Trade : Statistics  Canada-US trade - largest in world  Over $1.4 billion in goods and services daily in 2010  US exports to Canada up 65% since 1995, under NAFTA  55% of all Canadian imports come from the U.S.  75% of all Canadian exports go to the U.S.

9. Canada and North Carolina NC Exports to Canada$4.3 billion NC Imports from Canada$3.3 billion Bilateral Trade$7.6 billion Merchandise Trade Canada is NC’s largest export market Over $20 million/day traded between N.C. and Canada [2010]

10. Industrial Machinery (Including Computers) $ 1.2 billion Electrical Machinery (Inc. Audio/Video)$ 670 million Motor vehicle & parts (excluding rail)$ 576 million Pharmaceutical Products$ 519 million Plastics & Rubbers$ 370 million Medical & Optic Instruments$ 274 million Furniture$ 123 million Fact: 21% of NC exports are sold to Canada Top NC Exports to Canada (2010) Canada and North Carolina

11. Pharmaceutical Products$ 334 million Plastics$ 303 million Industrial Machinery (Inc. Computers)$ 279 million Paper & Paperboard Articles (Inc. Pulp)$ 278 million Lumber$ 222 million Electrical Machinery (Inc. Audio/Video)$ 177 million Organic Chemicals$ 154 million Motor vehicle & parts (excluding rail)$ 82million Top NC Imports from Canada (2010) Canada and North Carolina

12. Travel & Tourism Canadian Overnight Visits to North Carolina: 443,300 Spending by Canadian Tourists in NC: $123 million North Carolinian Visits to Canada: 157,000 Spending by North Carolinians in Canada: $94million Canada and North Carolina

13. Ontario  13 million people and 43% of Canada’s GDP [2010]  Canada’s largest market, and most similar to the US  Low-risk entry point into Canada  35% of all Canadian R&D  Toronto: largest city in Canada, home to half the country’s largest financial institutions, 90% of its international banks, and over 75% of U.S. subsidiaries in Canada

14. 2011 Best Prospect List Security Aerospace and Defence Energy & Environment Construction & Engineering ICT

15. Considerations when Exporting to Canada Product Adaptation, Approvals & Certifications CSA Metric System (Dimensions, Temperature, Mass) Bilingual (English/French) Language Requirements Product Labeling Border Considerations NAFTA Certificate of Origin for Duty Free Treatment Sales Taxes (GST, HST) Logistics and Transportation

16. Resources for NC Exporters to Canada NC Dept of Commerce, Intl Division, Raleigh www.nccommerce.com www.nccommerce.com NC District Export Council www.ncdec.uswww.ncdec.us NC World Trade Center www.wtcnc.org www.wtcnc.org US Export Assistance Centers www.buyusa.gov/northca rolina/location.html www.buyusa.gov/northca rolina/location.html US Commercial Service in Canada http://www.buyusa.gov/c anada/en/bsp.html http://www.buyusa.gov/c anada/en/bsp.html Independent Consultants with Canada Experience Logistics, Shipping, Freight Forwarding Co’s Attorneys & Law Firms with Canadian Presence

17. Useful Canadian Websites www.strategis.ic.gc.ca www.investontario.com

18. North Carolina Department of Commerce - Canadian Office Contact Information Russ Sawchuk, Director 13A Princess Street Mississauga Ontario L5M 1Z8 Canada Phone: (905) 826-6000 Fax: (905) 826-6009 Email: ncco@on.aibn.comncco@on.aibn.com www.thrivenc.com