Filipino exporters set eyes on Canada export market, guidelines available on October 5

By Victoria “NIKE” De DiosGood news for the Filipino exporters who wish to explore the Candian market. The Access Canada guide is scheduled for release by the Trade Facilitation Office (TFO) Canada on October 5. This updated guide includes information on the Canadian market including the impacts of COVID-19 on the market. The full guide can be accessed on the TFO website at https://www.tfocanada.ca/home.php.TFO is a non-profit organization supported by the Canadian government that assists small and medium-sized enterprises (SMEs) and trade support institutions from developing countries to access international markets through information, advice and contact services.

With a population of 37.6 million, Canada is the 10th largest import market in the world. The North American county depends on foreign trade, reflected in the many bilateral and multilateral trade agreements Canada has negotiated and continues to negotiate with countries around the world. The top consumer markets are located in three provinces: Ontario, Quebec and British Columbia. Most importers are in Toronto in Ontario and Montreal in Quebec. More than 85% of all imports are cleared in the provinces of Ontario and Quebec and then are distributed throughout Canada.

There are three key sectors in the Canadian import market of interest for developing country exporters: agri-foods, textiles and clothing and home décor. Agri-food imports totaled CAD11.2 billion in 2019, textiles and clothing imports reached CAD14 billion in 2019, and home décor imports reached CAD540 million in 2019.

Canada has its own customs tariff structure based on the World Customs Organization Harmonized Tariff System (HS). The Canadian Border Services Agency (CBSA) is the Canadian government agency responsible for customs services and compliance with Canada’s borders legislation. The CBSA also provides the list of countries with the applicable tariff treatments.

Canadian and international certifications are an important consideration for SMEs contemplating Canada as an export market, said TFO. In addition to complying with Canadian laws and regulations, exporters may wish to pursue additional third-party certifications such as Global G.A.P., Rainforest Alliance and ISO as some importers may require such certifications.

Several options are available to exporters wanting to sell to Canada. SME exporters must decide whether to export directly to an importer, distributor, or retailer in Canada or to export indirectly through intermediaries either in their country or in Canada such as distributors, brokers and agents or trading houses.

There are several ways to identify buyers in Canada. Trade shows have traditionally been a great source to find buyers although, with the pandemic, the future of this type of activity remains uncertain. Trade magazines and directories are also a good tool to identify buyers. Exporters can use a number of tools (such as the Canadian Importer Database) to identify buyers. They can also contact their embassy and consulate in Canada to get assistance.

TFO Canada advises exporters contemplating selling to Canada to first develop a market-entry strategy with the following components: analyze the market demand for your products, understand the regulatory environment in Canada and identify potential buyers.

“To become export-ready for Canada, it is important that exporters do their homework diligently and thoroughly,” it said.