PLENTIFUL, DIVERSE TRADE OPPORTUNITIES AWAIT IN CANADA

Wisconsin enjoys a strong bilateral trade relationship with Canada—one that provides abundant opportunities for Wisconsin companies to expand their exports. To help build that relationship and grow Wisconsin’s international trade, the Wisconsin Economic Development Corporation (WEDC) will lead a trade venture to Toronto and Montreal from March 20-25, 2022.

The trade venture will help Wisconsin companies enter or broaden their influence in the highly developed, diversified Canadian economy by connecting them with prospective partners including distributors, retailers and even prospective customers/end users throughout the Canadian market to leverage even greater success. In each city, participants will be scheduled for customized one-on-one meetings with prospective partners in the market. These partners are chosen specifically for each participating company based on the company’s business needs and objectives. Each participant in the global trade venture will also receive market intelligence specific to his or her company, detailing considerations to keep in mind when introducing the company’s product or service into the Canadian market. WEDC has eyes and ears on the ground in Canada, in the form of an authorized trade representative based in Toronto—thus making it easier for Wisconsin companies to find local partners they can trust, and taking some of the guesswork out of launching in a new market. Traveling as part of a trade venture also provides the opportunity for peer-to-peer networking and sharing of experiences and business connections among participants.

There are powerful reasons why Canada is Wisconsin’s top international trade partner. In addition to geographic proximity, the U.S. and Canada share a high level of trust in each other’s products and a common, familiar business culture—and partners in these markets are well-versed in handling logistical and regulatory issues because of the historically strong volume of trade. These factors make Canada an easy-to-access market for new-to-export companies, and a natural fit for experienced exporters as well. This trade venture to Toronto and Montreal—the nation’s two largest cities and vital hubs of commerce—provide an avenue to expand trade for businesses spanning a wide variety of industry segments.

CANADA OUTLOOK

According to the Bank of Canada, Canadian gross domestic product is forecast to grow 4.25% in 2022 and 3.75% in 2023 as the economy works to recover from the pandemic and supply chain disruptions. As of 2020, Canada had the world’s ninth-largest economy.

Canada is a highly receptive, open and transparent market for U.S. products and services, with Canadians spending more than 60% of their disposable income on U.S.-made goods and services. U.S. exports of services to Canada were valued at $53.6 billion in 2020, and Canada is the largest export market for U.S.-produced goods, totalling $310 billion in 2020. The same year, U.S. exports to Canada exceeded total U.S. exports to China, Japan and Taiwan combined.

Wisconsin plays a significant role in that trade relationship. In 2020, Wisconsin exported more than $6.2 billion in goods to Canada, making it the state’s largest trading partner. The prior year, before the pandemic began, Wisconsin exported more than $6.7 billion in goods to Canada. In fact, Wisconsin exports more goods to Canada than to its next five largest foreign markets combined. Leading export categories from Wisconsin to Canada includes industrial machinery, plastics, paper products, non-rail vehicles and parts, food and beverages, and optical and medical instruments.

Another example of an exciting emerging market involves energy technology. Canada has committed to net-zero carbon emissions by 2050, with significant reduction targets by 2030. That opens the door for Wisconsin companies to many products and technologies, including those related to energy efficiency, carbon capture, battery technology and other energy technologies. Canada ranks as the U.S.’ second-leading renewable energy market, after Mexico.

Canada also offers a strong market for farm and food products and is the largest destination for U.S. exports of high-value agricultural products­—like those typically sold in supermarkets and used in restaurants. Those exports support an estimated 130,000 U.S. jobs, and many of the suppliers are small and midsize businesses.

The U.S. and Canada also share a historically stable trade relationship. In July 2020, the U.S.-Mexico-Canada Agreement took effect, resulting in what the U.S. Department of Commerce calls “freer markets, fairer trade and robust economic growth across North America.” The agreement also helps clarify cross-border e-commerce transactions, providing Wisconsin businesses with opportunities to sell via their e-commerce platforms to Canadian customers.

Canada is an ideal market for new-to-export companies, as well as those seeking to further expand their business/distribution networks in country. The Canadian market seeks innovative, advanced-technology product and service solutions—so whether a company is a first-timer or a seasoned exporter, this market should be a key component of its export growth strategy. 

Some current sectors of opportunity include: 

• Food and beverage
• E-commerce
• Green infrastructure and net-zero emissions initiatives
• Construction digitization
• Health care and related technologies
• Technology in the mining sector