Market of the Month – Canada

Build Your Bridge to Prosperity in the Global Market with Canada First!

Why Canada?

Canada’s Economic Outlook

Best Prospects in Canada

Doing Business in Canada

Special Events

One Company’s Success in Canada

Canada at a Glance

Market Research

Upcoming Events

Contact Us Today to Connect with a World of Opportunity

More Information

Why Canada?

The United States and Canada share the longest common border between any two nations in the world - a border that spans more than 5,000 miles with 140 border crossings, and offers access to most of Canada's 33.5 million inhabitants, who live within 160 miles of the border. Our combined trade in goods, services and foreign direct investment adds up to a trillion dollar economic partnership.

This geographical proximity coupled with common free market values, language, business practices, and a similar standard of living - where U.S. goods and services account for approximately 60 percent of purchases - make Canada our most important export market in the world, and an ideal market for U.S. companies wanting to make their first export sale. And thanks to the North American Free Trade Agreement (NAFTA), there are no tariffs on industrial and most agricultural products imported from the United States.

Map of Canada

Canada’s Economic Outlook

Canada had strong economic growth, historically low unemployment, and financial stability through 2007. However, the recent drop in global trade and production adversely affected the country due to its strong international trade linkages. Canada’s exports have fallen, domestic demand has shrunk, and unemployment has risen. However, the economic strain felt in other countries is markedly less serious in Canada.

Canada's real estate markets has fared much better that in other major countries, and the financial sector remains stable with solid credit growth. The fiscal stimulus incorporated in the 2009 federal budget will ameliorate the downturn in tandem with the Bank of Canada's aggressive easing of monetary policy.

Canada continues to be the most receptive market in the world for U.S. goods and services, as companies and consumers are always interested in high quality, competitive products that will improve market competitiveness and quality of life. Now is the time for U.S. small and medium-sized firms to enter the Canadian market with the help of the U.S. Commercial Service in Canada in order to position themselves for the economic recovery ahead.

Best Prospects in Canada

U.S.-Canada bilateral trade presents opportunities in a wide range of industries for U.S. exporters, including in these best prospect sectors:

There are also many major projects in Canada that present new export opportunities for U.S. firms. Details on projects, such as the ones listed below, are available in our Market Research Library.

Toronto Skyline

Doing Business in Canada

Canada is consistently rated as one of the best places in the world for business. However, doing business in Canada is not the same as selling in the United States. Canada has its own customs regime, bilingual labeling and packaging requirements, as well as federal and provincial sales taxes. Canada's trade rules and regulations are transparent and relatively easy to comply with given the support and guidance that is readily available from the U.S. Commercial Service, as well as from many international business professionals and service providers.

The North American Free Trade Agreement (NAFTA) also makes trade easier and more lucrative for U.S. firms. Since NAFTA came into force in 1994, the United States and Canada have progressively eliminated tariff and nontariff barriers to trade in goods, improved access for services trade, established rules on investment, strengthened protection of intellectual property rights, and created an effective dispute settlement mechanism. In January 2008, Canada eliminated tariffs on all remaining industrial and most agricultural products imported from the United States. Today, over 95 percent of all trade passes across the border without incident or controversial trade restrictions, as a result of increased and continuing U.S. and Canadian harmonization of product standards.

Another tip for U.S. companies is to consider registering as a non-resident importer in order to replicate domestic sales transactions to the extent possible, and expand export sales in Canada.

Special Events

The U.S.-Canada Cross Border Initiative helps prospective U.S. exporters identify opportunities and address challenges for small and medium-sized firms. As part of this initiative, the Canada First Webinar Series will feature 10 programs on the nuts and bolts of doing business in Canada, beginning in the Fall of 2009. Topics include market opportunities in the different Canadian regions, NAFTA documentation and how companies can take advantage of the Non-Resident Importer Program. For more information, visit our website or contact CS trade specialists Eric Hsu or Tracey Ford.

RepCAN 2009 is our flag ship trade promotion event that provides U.S. small-to-medium sized, export-ready companies with an efficient, cost-effective opportunity to enter the Canadian market by finding prospective agents, distributors, end-users and joint venture partners. U.S. companies can participate in one or all three of the multi-sector matchmaker/exhibit stops - Toronto, Ontario on September 29; Montreal, Quebec on October 1; and Vancouver, British Columbia on October 6. Please visit our site for more information and to register by July 31.

President Obama is welcomed to Canada
by Royal Canadian Mounted Police

One Company’s Success in Canada

Erda Leather is a Maine manufacturer of fabric and leather handbags. Recently, owner Patti Dowse decided to expand her business into the Canadian market and contacted CS Portland for assistance. Our CS Portland trade specialist worked with his colleagues in Vancouver and Calgary, Canada to arrange a matchmaking service. CS Canada conducted a search for qualified sales representatives and scheduled appointments for Ms. Dowse with several potential partners in British Columbia. One of the appointments was with Winning Edge Sales (W.E.S.), a company that supplies a large number of gift stores, resorts, ferry terminals and galleries throughout Western Canada.

As a direct result of Commercial Service support, Erda Leather signed a sales representative agreement with W.E.S. for Western Canada and wrote that: "We have tried before to open new marketing territories, and expect it to be a fairly lengthy process. By opening a few accounts on our own in the territory, to help establish some credibility, we knew we were ready to approach a representative. But, it would have taken us days or weeks to find the appropriate one. With [CS Canada’s] help, we did it in two days! We look forward to great success in our new territory!"

Canada at a Glance

Market Research

CS Canada produces market research reports to help U.S. companies determine market potential, market size and potential competitors. Visit our site to access our reports, including the latest market research reports about:

Upcoming Events

President Obama with Canadian Prime Minister Stephen Harper

Contact Us Today to Connect with a World of Opportunity

In 2008, the U.S. Commercial Service helped 92 companies export over $22 million of goods and services to Canada. We are located in major cities across Canada in order to better assist your company. Visit the CS Canada website to learn how we can help you today!

Key Contacts:

Ottawa: Lucy Latka, Senior Commercial Specialist
Montreal: Pierre Richer, Senior Commercial Specialist
Toronto: Madellon Lopes, Senior Commercial Specialist
Calgary: Crystal Roberts, Commercial Specialist
Vancouver: Cheryl Schell, Senior Commercial Specialist

More Information

Other Resources Available to You

Canadian Trade and Industry Associations

Federal Canadian Government Contacts in Canada