So youre thinking of exporting

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• So youre thinking of exporting
• Where to Begin How ITCs can Help
• Peter Furesz
• International Trade Centre (Winnipeg)
• May 4th, 2004

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Unnusakkut. Quviasukpunga Iqaluunituunarama!
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Overview

• What is an International Trade Centre (ITC)?
• What can the ITC do for me?
• What can our Embassies abroad do for me?
• Assess your export readiness
• Create an Export Plan
• Tools to Use
• Financial Programs to Assist Companies

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What is an International Trade Centre (ITC)?

• A branch of new Department of International Trade
  (ITCan) co-located with Industry Canadas
  regional offices
• We are a national network of centres dedicated to
  supporting Canadian export-ready companies in
  expanding and diversifying their exports into new
  markets
• Based out of Winnipeg provide assistance to
  Nunavut and NWT businesses
• Our backgrounds

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Our Core Clients and Services

• SME Exporters
• Export counseling, market intelligence, financial
  support for marketing initiatives
• Communities
• Foreign Investment Attraction and Retention
• Science Technology Community
• Partnering technology needs from abroad

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What ITC staff can do to help companies

• 1. EXPORT COUNSELLING
• Evaluate export preparedness
• Identify potential markets
• Develop export marketing plans for the market
  they wish to pursue
• Devise a market entry strategy

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What ITC staff can do to help companies (contd)

• 2. Market Entry Support
• Program for Export Market Development (PEMD)
• Trade Routes (for arts and cultural industries)
• For companies implementing marketing activities
• in an identified export market

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Some of the export counselingtools available

• Diagnostics and tools (i) Export Readiness
  Assessment, (ii) Interactive Export Planner,
  (iii) Step-by-step Guide to Exporting
• Team Canada Inc www.exportsource.ca
• Market Intelligence and Reports
  www.infoexport.gc.ca
• Information and Research Web sites
• ITCan www.itcan-cican.gc.ca
• Trade Show sites www.tscentral.com
• Other government departments

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Visit TCS Web site
www.infoexport.gc.ca
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Link you with our Trade Commissioner Service
abroad 6 Core Services

• Market Prospect
• Key Contact Search
• Local Company Information
• Visit Information
• Face-To-Face Briefing
• Troubleshooting

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Referrals to Team Canada Inc partners/programs

• Business Development Bank
• Export Development Canada
• Canadian Commercial Corporation

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Exportingwhere to begin?
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Exporter Needs Continuum
Exporter Cycle
Potential Exporter
Preparing Exporter
Exporter
Export Information Service 1-888-811-1119 Export
Source exportsource.gc.ca
Core Services
Market Prospect Key Contacts Search Visit
Information Face-to-face Briefing Local Company
Information Troubleshooting
Export Preparation Guides Export Skills
Training Preparation for U.S. Preparation for
other markets
Market Information and Intelligence Missions,
Fairs and Trade Related Events Market/Sector-spe
cific Advice Guidance Market
Development Funding
Needs Assessment Counselling Provision
of Working Capital Foreign Risk Mitigation Mediu
m/Long Term Foreign Buyer Financing
Export-readiness Assessment Export
Plan Development Export Plan Implementation
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Assess your Export Readiness

• Considerations
• Human and Financial Resources
• Competitiveness
• Expectations
• Costs
• Higher Financial Risks

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Benefits of Exporting

• Enhanced Domestic Competitiveness
• Diversified Markets
• Greater Economies of Scale
• Increased Sales
• Higher Profits

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Challenges of Exporting

• Increased Costs
• Level of Commitment
• Sensitivity to Cultural Differences
• Paperwork
• Accessibility
• Competition

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Create an Export Plan

• Evaluate and identify your companys strengths
  and weaknesses
• Set goals for your business and a course of
  action to achieve those goals
• Necessary to receive funds from most financial
  institutions and lending agencies

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Tools to Use

• Virtual Trade Commissioner (formerly WIN
  Exports)
• Team Canada Inc. on-line tools
• Websites
• www.infoexport.gc.ca
• www.exportsource.gc.ca
• www.strategis.gc.ca
• www.itcan-cican.gc.ca
• www.canada.gc.ca

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Virtual Trade Commissioner (WIN Exports Database)

• Personalized web page with access to market
  reports, Trade Commissioner contact info, and
  trade leads from specific markets
• Commercially confidential database used by
  International Trade Centres and Trade
  Commissioner Service to source company
  capabilities
• Register on-line at www.infoexport.gc.ca

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Personalized Web Pages for Canadian Exporters
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Team Canada Inc Website

• Here you can
• Complete the Export Readiness Diagnostic
• Utilize the Preparing to Export Section
• Use the the Interactive Export Planner
• www.exportsource.gc.ca

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Step-by Step Guide to Exporting
Designed specifically for small and medium sized
businesses in Canada. Includes the best of the
best from previous export preparation guides
published by TCI partners. Available in both
print and online versions. Developed with
assistance from FITT.
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Financial Programs to Assist Companies

• Program for Export Market Development (PEMD)
• Trade Routes

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Program for Export Market Development (PEMD)

• PEMD provides
• Financial assistance in the form of a
  conditionally repayable contribution
• Repayment based on incremental sales into the
  target market

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PEMD (contd)

• Three kinds of assistance
• 1.   New to Exporting
• 2.   Market Development Strategies
• 3. Capital Projects Bidding

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PEMD (contd)

• 1. New to Exporting
• For first-time exporters
• For a single activity (i.e. single
  market/single event), e.g.
• Market visit
• Trade show participation
• Covers 50 of eligible costs up to a maximum
  contribution of 7,500
• Repayment is made on sales into target market at
  a rate of 4 for two years after contract date

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PEMD (contd)

• 2. Market Development Strategies
•   Supports a well-developed marketing plan for a
  specific target market for up to one year
• Covers multiple activities in that target market
• Trade-show participation / visits to market
• Web site development
• Product testing
• Labelling compliance
• Training
•    Covers 50 of eligible costs up to a maximum
  contribution of 50,000
• Repayment is based on incremental sales into
  target market, at a rate of 4 for four years
  after contract date

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PEMD (contd)

• 3. Capital Projects Bidding
• For companies bidding or preparing proposals
  against international competitors for major
  capital projects outside Canada (minimum C1
  million bid)
• Minimum contribution of 5,000 maximum of
  50,000
• Repayment is expected, in full, if company is
  successful in their bid

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Basic general eligibility criteria

• incorporated or professional company
• sound financial situation
• annual sales from 250K to 10M
• currently operating in Canada and the product has
  more than 50 Canadian content
• registered in Virtual Trade Commissioner Database
• have an international marketing plan
• capacity to undertake plan and repay contribution

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Eligible Costs

• Program typically covers 50 of
• Airfare or equivalent transportation costs
• Trade Fair participation
• Legal fees in target market
• Product demonstration or testing
• Promotional materials
• Translation
• Shipping
• Website development
• Incoming buyer visits
• Advertising
• Intellectual property

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How to Apply

• Four Key Steps
• Ensure you meet basic eligibility criteria
• Gather required company / marketing information
• Gather information on market / activity
• Contact our International Trade Centre
• For program information, go to www.dfait-maeci.gc.
  ca/pemd or to www.infoexport.gc.ca and click on
  Links to Other Services

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Trade Routes

• Designed for the international business needs of
  cultural entrepreneurs and cultural organizations
• Has 3 prongs
• 1. Contributions program
• 2. Information Resources and
• 3. Skilled Advisors across Canada and the World

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Cultural Sectors Included

• Film
• TV/Video
• Sound Recording
• Publishing
• New Media

• Performing Arts
• Visual Arts
• Design
• Crafts
• Heritage and Restoration

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Contributions Program

• Grants can be awarded in 2 areas
• Export Preparedness Efforts
• International Market Development

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Export Preparedness

• Trade Routes can fund cultural organizations to
  become more export-ready
• ie training, developing marketing strategies,

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International Market Development

• Assists Export Ready organizations through
• - market information
• -support at key international trade shows
• -incoming buyers missions to events in Canada

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NakuungmiikContact Us

• International Trade Centre
• Peter Furesz, Senior Trade Commissioner for North
• Tel [phone]
• Email furesz.peter_at_ic.gc.ca
• Cultural Industries
• Nicki Dewar,Trade Commissioner
• Tel [phone]
• Email dewar.nicki_at_ic.gc.ca