EXPORT ESSENTIALS THE NEW CANADIAN FREE TRADE AGREEMENT - HOW TO TRADE WITH OTHER PROVINCES

Transcription

1 EXPORT ESSENTIALS THE NEW CANADIAN FREE TRADE AGREEMENT - HOW TO TRADE WITH OTHER PROVINCES Presented by: Allison Boulton Export Navigator Program Manager September 14, 2017

2 Agenda Introduction, Agenda & Goals Getting to Know You 10 minutes 10 minutes 1. What is the CFTA? 30 minutes (Guest Speaker - Stephanie Newman Senior Manager, International Trade Policy) 2. Accessing Opportunities Across Canada 30 minutes Final Thoughts/Q&A 10 minutes 2

3 Goals At the end of the webinar, participants will: Learn what products and services are covered under the Canadian Free Trade Agreement Understand the licensing and certification requirements across the country Find out how to access the opportunities made possible by the agreement 3

4 Activity Getting to Know You Introduce yourself: 1. Your name 2. What B.C. community are you from? 3. Have you exported to other provinces? If so, to what province and what product or service? 4. Are you considering exporting within Canada? If so, where and what product or service? 4

5 Benefits of Trade Within Canada Q: What could be some benefits of trade within Canada? 1. Potentially less costly than international trade 2. More familiar (i.e.: language and culture similarities) 3. Opportunity to learn and test export of your product/service 5

6 What is the CFTA? The Canadian Free Trade Agreement (CFTA) is an intergovernmental trade agreement signed by Canadian Ministers that entered into force on July 1st, Internal trade represents about one-fifth of Canada s annual GDP, or $385 billion. It also accounts for almost 40% of provincial and territorial exports. The CFTA replaced the existing Agreement on Internal Trade (AIT), which had been in place since Objective is to reduce and eliminate, to the extent possible, barriers to the free movement of persons, goods, services, and investments within Canada and to establish an open efficient, and stable domestic market. Source: 6

7 Comprehensive Free Trade Rules In contrast to the AIT, the CFTA s rules will apply automatically to almost all areas of economic activity in Canada, with any exceptions being clearly identified. This change will enhance innovation as new goods and services such as the sharing economy, or clean technologies, will be covered by rules designed to promote Canada s long-term economic development. The CFTA will cover most of the service economy, which accounts for 70 per cent of Canada s GDP. Coverage will also be extended to the energy sector for the first time, accounting for roughly nine per cent of Canada s GDP. Source: 7

8 Modernized Trade Rules Under the CFTA Like the NWPTA, the CFTA s general and specific roles apply to all government measures, across all sectors of the economy. The rules include: Non-Discrimination: All goods, services, workers and investments from anywhere in Canada must be provided with the same non-discriminatory treatment across the country. This obligation applies equally to new goods and services as industries continue to evolve (for example, new technology emerging in the green energy sector). Free Flow of Goods: Rules ensure that technical regulations do not create unnecessary obstacles to trade. Governments may also continue to adopt measures to protect food safety and human, animal and plant life or health, while preserving the highest health and safety standards for Canadians. Open Markets for Services: Canadian service providers, such as engineering and construction firms, will not face discriminatory licensing or residency requirements or other restrictions that would impact their ability to provide services across Canada (e.g. limits on the number of service suppliers that may operate in a province or territory). 8

9 Modernized Trade Rules Under the CFTA Investment Protections: Rules ensure that investors will not be barred or restricted from investing in another jurisdiction. This will enable investors to more freely seek economic opportunities across the country. Monopolies and Government Enterprises: When monopolies and government enterprises are undertaking commercial activities in Canada, they must provide non-discriminatory treatment and act solely in accordance with commercial considerations in their purchase or sale of a good or service, or their treatment of investors. Government Procurement: Rules ensure a level playing field for companies operating across Canada. Open procurement will be subject to dispute mechanisms that allow individual suppliers to challenge contested bids. These mechanisms will be in place for all federal, provincial and territorial governments. Governments will cooperate to implement a single electronic portal, which will make it easier for Canadian businesses, especially small and medium-sized companies, to find procurement opportunities across the country. 9

10 The CFTA: Supports Canadian Businesses improves the flow of goods, services and investments across provincial and territorial borders; commits all governments to reduce the patchwork of rules and regulations that can hinder trade and stifle the growth of Canadian businesses; allows licensed professionals with Canadian credentials to work in different parts of the country; and better aligns domestic procurement rules with those in Canada s international trade agreements. B.C. businesses will be able to compete on an equal footing with foreign companies operating under Canada s international trade agreements. 10

11 New Procurement Opportunities for Canadian Suppliers The CFTA better aligns domestic procurement rules with those in Canada s international trade agreements. Canadian businesses will be able to compete on an equal footing with foreign companies operating under Canada s international trade agreements. Parties have made ambitious commitments to expand open procurement practices that will help create a level playing field for companies operating across Canada. For the first time, the energy sector will be covered by open procurement rules, resulting in more than $4.7 billion per year in procurement being opened up to broader competition. Regulated professionals, such as engineers and architects, will be able to compete more easily for government contracts across the country. 11

12 Improved Dispute Resolution Provisions The CFTA incorporates the AIT s dispute settlement chapter with important enhancements that will ensure jurisdictions are actively living up to the Agreement s rules. The maximum monetary penalties for governments that act in a manner inconsistent with the Agreement have been increased from the previous AIT up to $10 million for the largest jurisdictions by population. Changes have been made to improve the administrative efficiency of personto-government disputes, which will help to reduce associated costs. A new summary dismissal process has been added to ensure that a dispute brought by an enterprise or individual against a Party can proceed quicker. Source: 12

13 Enhancing Interprovincial Trade in the Future The CFTA contains a forward-looking agenda of important initiatives to further strengthen Canada s economic union. For example: Alcohol: Within one year of the CFTA taking effect, a working group will report back to Ministers responsible for Internal Trade with recommendations to enhance trade in wine, beer and spirits within Canada. Financial Services: Within six months, the Parties will engage in exploratory discussions to assess the incorporation of rules applicable to financial services into the Agreement. Fisheries sector: The Parties will establish a working group on trade in fish and fish products to consider how to further enhance trade in this sector. 13

14 What Products and Services are Covered Under the Canadian Free Trade Agreement? Goods, services and construction services All goods, services and construction services are covered by the CFTA Procurement Chapter unless specified in the Schedule of Canada under Section B: Exceptions and Notes (Annex 520.1: Party-Specific Exceptions). Source: 14

15 Understanding the Licensing and Certification Requirements Across the Country Questions to consider: Where is your active office, warehouse and/or employees? Where are your buyers? What type of insurance do I need? 1. Worksafe 2. Self-employed 3. ICBC coverage Should my business incorporate provincially or federally? 15

16 How to Access Opportunities Across Canada 1) Government Procurement Municipal, Provincial and Federal 2) Market Research 3) Tradeshows Search by Sector 16

17 1) Government Procurement Provincial Tenders 17

18 1) Government Procurement Merx - Canada s Public Tenders ( 18

19 1) Government Procurement OSME The Office of Small and Medium Enterprises ( 19

20 2) Market Research Canadian Business Network

21 2) Market Research Databases in Local Library 21

22 2) Market Research SBBC Market Research Services (Fee for service) Seminar: Market Research Services: 22

23 Thank you for your participation! 23

24 Export Navigator Pilot Offers businesses access to community-based export specialists who provide a personalized, step-by-step approach to exporting 24

25 Export Navigator Pathway 25

26 Export Essentials A Learning Series to Grow Your Sales Beyond B.C. Tues, September 26 (9:00am to 10:30am) Smart Global Money - Currencies, Credit, & Cash Previous Export Essentials Webinars - Recordings Available! Introduction to the Export Process CETA Benefiting from Canada s Newest Free Trade Agreement Preparing for International Travel & Tradeshows 26

27 For More Information Contact: Allison Boulton Program Manager, Export Navigator Web: 27