Intrnational Mkt Research Canada

Intrnational Mkt Research Canada TABLE OF CONTENTS Preface Introduction Canada — USA’s Largest Trading Partner NAFTA Introduction Exporting Guidelines Incentives Customs Contacts Trade Contacts Company Specific — Massasoit Machine, Inc. Manufacturers’ Representative Recommendations Appendices A Country Data B Canadian Domestic Economy C Canadian Trade Statistics D Canada – New England Trade Summary, 1997 E NAFTA: A Partnership at Work F (SIC-3081) – Machine Shop Industry G List of Major Industries for SIC-3081 (Machine Shop) H Internet Access for International Business, Economics, Marketing and Trade Information PREFACE Massasoit Machine, Inc. requested the Rhode Island Export Assistance Center to perform a research study of the Canadian market for its product as a first step in the consideration of an increased effort to expand their market in Canada. If successful this could provide a methodology to address other international markets. This report presents the results of this research study. It includes an overview of Canada and of the market which Massasoit Machine, Inc.

could address. It includes a comprehensive presentation of the North American Free Trade Agreement (NAFTA) which is an agreement between United States, Canada and Mexico that provides almost unlimited access to these markets for American manufacturers. It also provides details of the custom requirements and procedures for exporting to Canada. A number of key contacts, manufacturers’, distributors are listed. Also presented are details of the Canadian machine shop industry.

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INTRODUCTION Canada — USA’s Largest Trading Partner The trading relationship between the United States and Canada is, by far, the largest in the world. Two-way trade in goods and services accounts for approximately US $1 billion per day, every day of the year. The U.S. share of total Canadian import is about 71 percent and the United States remains by far Canada’s largest export market, taking 76 percent of total Canadian exports. Economic growth in Canada is projected in the 3 percent range in 1997 and 1998 — good news for U.S.

exporters! Housing starts, retail trade and automobile sales have been particularly strong sectors in the first quarter of 1997, and domestic demand is expected to be its strongest in years throughout the first half of 1997. In addition, machinery and equipment investment should remain strong as ongoing upgrading of Canadian manufacturing plants and equipment continues. Despite some well-publicized trade disputes, overall market conditions are unlikely to experience any significant changes. U.S. Companies will continue to find Canada, the largest trading partner, an extremely attractive and easily accessible place to do business. With a population of about one tenth of that of the United States, the Canadian economy mirrors that of the United States in approximately the same ratio, and has developed in many ways along similar lines.

This has made Canada an ideal export and investment destination for many U.S. companies that have found an environment and marketplace very similar to that of the domestic United States. Country specific information about Canada has been annexed as Appendix A. We believe that for the export-ready U.S. firm, Canada First is an appropriate approach.

Canada offers an ideal first stop for U.S. businesses seeking to begin export marketing, with business practices, attitudes, conditions and environments here more similar to those found in the United States than in any other country in the world. Proximity to the United States also reduces a company’s time and expense while exploring opportunities in Canada. Notwithstanding these similarities, however, some cultural and linguistic differences, which vary across each of Canada’s five distinct regional markets, allow first-time U.S. exporters to develop an appreciation of the complexities of overseas marketing. Experience gained here can provide a solid basis for success in markets worldwide.

Canadian Domestic Economy – Appendix B gives a glimpse of the Canadian economy. Best Prospects for U.S. Firms Business opportunity in Canada falls within virtually the full spectrum of industry and agricultural sectors, and in virtually every business activity. More specifically, however, the five top best prospect sectors for U.S. products include: computers and peripherals; computer software; telecommunications equipment; automotive parts and service equipment; and pollution control equipment.

Geographic proximity, cultural and historic ties, and strong awareness of business and other developments in the United States are key accelerators for the sale of U.S. goods and services in the Canadian market. Third-country competition tends to be far less prevalent in Canada than in most other international markets. NAFTA helps U.S. exporters in the Canadian market relative to their competitors from Europe, Asia and elsewhere. Beginning of January 1, 1998, there has been introduced a duty-free trade between the United States and Canada under NAFTA.

Third-country competition is most often found in product areas where labor constitutes a significant part of the cost of production, and where domestic U.S. industries are less competitive. In other sectors, however, U.S. dominance remains almost a fact of life, and third-country competition is most prevalent in specific cases rather than across the board. Appendix C on Canadian Trade Statistics is attached as a ready reference. Trade Summary between Canada and New England is presented as Appendix D.

Generally, Canadians have strong national pride, and will often favor Canadian products, especially if they offer similar features at a similar cost to those from the United States. This is particularly true for any government procurement, local or federal, not covered under either World Trade Organization (WTO) or North American Free Trade Agreement (NAFTA) rules. Nevertheless, competition in Canada is generally fair and, as noted above, U.S. firms that can offer technical, cost or feature advantages over locally produced goods can do as well in the Canadian market as they can in the domestic U.S. market.

NAFTA (North American Free Trade Agreement) Introduction The North American Free Trade Agreement (NAFTA) between Canada, the United States and Mexico entered into force on January 1, 1994. Designed to foster increased trade and investment among the NAFTA partners, the Agreement contains an ambitious schedule for tariff elimination and reduction of non-tariff barriers, as well as comprehensive provisions on the conduct of business in the free trade area. These include rules regarding investment, services, intellectual property, competition and the cross-border movement of businesspersons. . The NAFTA has improved Canadian access to the U.S. and Mexican markets and enhanced the attractiveness of the Canadian economy to foreign investors. Since the NAFTAs entry into force, Canadian exports to those markets have shown impressive growth, and foreign direct investment in Canada from all sources has increased steadily. More importantly, the NAFTA and its predecessor, the Canada- U.S. Free Trade Agreement (FTA), have stimulated significant advances in productivity and specialization within the Canadian economy, and have promoted greater economies of scale, product quality, and cost competitiveness.

The result has been improved competitiveness of Canadian exports of both goods and services. Total trade is a key driving force for economical growth and employment creation in an open economy such as Canada’s. The ratio of exports of goods and services to gross domestic product (GDP) in 1996 was 38.4 percent, making Canada’s economy the most globally integrated of all G-7 countries. After three years of implementation, the NAFTA has further advanced existing trends toward market convergence in North America. This is demonstrated by the figures for 1996, which show $388.3 billion in total Canadian two-way trade with our NAFTA partners, over $200 billion in outward and inward foreign direct investment, and over $50 billion in trade in services between Canada and the United States.

These figures indicate that important markets for a wide range of goods, services, financial resources, and technologies already exist and have prospered in a well-integrated commercial environment. The detailed report NAFTA: A PARTNERSHIP AT WORK by the Department of Foreign Affairs and International Trade (DFAIT) of the Canadian Government is annexed as Appendix E. EXPORTING GUIDELINES Entry and Documentation The Canadian Customs Service (Revenue Canada) requires the following documentation for export: ? Customs Invoice or its equivalent (for imports valued over C$1,200) ? Certificate of Origin: Certain controlled imports are subject to import license requirements. Goods may be cleared at customs ports on the border or, if intended for inland destinations, may be forwarded in bonded carriers to the port or city nearest the destination at which customs examination may be made and duties and taxes paid. In addition, under Canada’s Release on Minimum Documentation (RMD) Policy, shipments can be allowed into Canada to be released before goods is classified for duty. When a shipment arrives at a port, an RMD package is presented to Customs to obtain a release.

Fully rated documentation, with payment of duties and taxes must then be presented to Customs within five business days following release. This facilitates rapid delivery since product classification and payment of duties and taxes can take places after the goods have been released from Customs. Tariff Classification Tariff classification is based on the Harmonized Commodity Description and Coding System generally referred to as the Harmonized System. Valuation Canada has acceded to the GATT Customs Valuation Code that provides that the customs value of imported goods shall be the transaction value. The transaction value generally will be accepted by Canadian Customs if the goods are sold for export to Canada and if the price paid or payable for the goods can be determined.

Ad valorum duties are assessed on the CIF value of the imported merchandise. Temporary Entry Revenue Canada has made specific provision for the temporary entry of certain goods into Canada for various purposes such as testing, demonstration, and display. Such goods may enter under an ATA (Admission Temporary Admission) Carnet or under a Temporary Admission Permit (Revenue Canada, Customs and Excise Form E2913) and may require either a refundable deposit or a proportional duty deposit, depending on the appropriate classification determined by Canadian customs regulations. Firms wishing to admit machinery and equipment, display equipment, and other items covered under Canadian temporary importation regulations are advised to contact Revenue Canada well in advance of shipment or arrival in Canada. ? Free Trade Zones and Warehouses Except for one special trade zone at the Sydport Industrial Park in Cape Breton, Nova Scotia, Canada has no free ports or free trade zones.

At present, there are no federal or provincial laws specifically governing the establishment and operation of such zones. Sufferance warehouses under private ownership have been established for the storage and deposit of all imports received by various transportation modes, pending customs examination and clearance. An entry for consumption or into bonded warehouse must be presented to Customs within 30 days. Goods may be entered into customs bonded warehouses without the payment of duty but must be cleared either for export or Canadian consumption within two years. Additional periods are provided for certain goods by regulation. Goods exported from bonded warehouses to third countries are subject to Canadian export regulations. Repackaging and sorting can be carried out in customs bonded warehouses with the permission of Canada Customs, but assembly or other industrial activity is prohibited.

Special Requirements Labeling, Marking and Packaging Requirements The three main pieces of legislation that regulate almost all product labeling and marking in Canada include: the Consumer Packaging and Labeling Act; the Weights and Measures Act; and the Agricultural Product Standards Act. Canada requires bilingual labeling (English and French) for most products. Bilingual designation of the generic name on most prepackaged consumer products is required by the federal Consumer Packaging and Labeling Act identified above. Under this act the following information must appear on the label of a consumer good sold in Canada: ? Product Identity Declaration ? Net Quantity Declaration ? Dealer’s Name and Principal Place of Business Canada Customs also requires an indication of the country of origin, such as Made in the USA, on several classes of imported goods and on all printed matter. Goods not properly marked cannot be released from Customs until suitably marked.

The goods can be marked, at the importer’s expense, either on Canada Customs premises or on the importer’s own premises under the supervision of Canadian customs officials. The Province of Quebec requires that all products sold in that province be labeled in French and that the use of French be given equal prominence with other languages on any packages or containers sold in Quebec stores. The Charter of the French Language requires the use of French on product labeling, warranty certificates, directions for use, public signs and written advertising. Technical Standards Under the aegis of the Standards Council of Canada (SCC), several private standards writing organizations administer technical codes and standards for areas ranging from electrical and plumbing products to health care technology. These organizations include: ? The Canadian General Standards Association ? Underwriter’s Laboratories of Canada ? The Canadian General Standards Board ? The Canadian Gas Association The Canadian federal government also has numerous commodity standards to safeguard the public welfare.

Standards organizations try to avoid duplication of responsibility, but there is some overlap. Under NAFTA, the basic rule is that standards must not create unnecessary barriers to trade. To reduce such barriers, the NAFTA applies basic principles to bilateral trade: ? Testing facilities and certification bodies are treated in a nondiscriminatory manner ? Federal standards-related measures will be harmonized to the greatest extent possible ? Greater openness will be provided in the regulatory process Restricted or Prohibited Imports Certain commodity such as oleomargarine, reprints of Canadian copyrighted work, and some game birds cannot be imported into Canada. Other goods are controlled, regulated, or prohibited under legislation failing within the jurisdiction of other government departments. Examples of regulated goods include: food products, clothing, drug and medical devices, hazardous products, some offensive weapons and firearms, endangered species, and motor vehicles.

Other items are regulated under the Export and Import Permits Act and require an import permit or certificate to be eligible for importation into Canada. The Act lists various agricultural products, a number of clothing and textile items, and certain steel products. Export Controls Canada limits the export of goods in circumstances of surplus supply or depressed prices; restricts the export of softwood lumber products; ensures that there is an adequate supply and distribution of any article; enacts intergovernmental arrangements or commitments; and ensures that military or strategic goods are not exported to countries or destinations representing a strategic threat to Canada. INCENTIVES Trade Agreements and Preferences Canada, the U.S., and Mexico are members of the North American Free Trade Agreement (NAFTA) which took effect on January 1, 1994. One of the main provisions of NAFTA is the elimination of tariffs on goods qualifying as North American under the rules of origin.

Canada is a member of the World Trade Organization (WTO) and is a founding member of its predecessor, the General Agreement on Tariffs and Trade (GATT). Drawback Canada Customs honored two types of drawback for US exporters. The first, a home consumption drawback, was designed to help manufacturers meet foreign competition by granting them relief from a portion of duties on specific imported good’s used in Canada. The second type of drawback, an export drawback, was designed to help Canadian manufacturers compete in foreign markets, by removing internal Canadian duties and taxes from the cost of Canadian goods exported. Drawback of 100% duties and sales taxes is granted on imported goods reexported in an unused condition and on imported goods incorporated into Canadian manufactured goods that are subsequently exported. CUSTOMS CONTACTS Department of Foreign Affairs and International Trade Export and Import Controls Bureau 4C Lester B.

Pearson Building, 125; Sussex Drive, Ottawa, ON K I A OG2 Phone: (613) 992-1363) Revenue Canada Ottawa Regional Customs Office 2265 St. Laurent Boulevard Ottawa, ON K I G 4K3 Phone: (613) 993 -0 530 4 NAFTA information Desk Revenue Canada Customs, Excise and Tax 1st Floor, 555 Mackenzie Avenue Ottawa, ON KI A OL5 Phone: (613) 941-0965; Fax: (613) 941-8138 The Director: Policy and Administration Antidumping and Countervailing Division Revenue Canada Customs, Excise and Tax 191 Laurier Avenue, W. Ottawa, ON K I A OL5 Tel: (613) 954-7251; Fax: (613) 941-2612 The Secretary, Canadian International Trade Tribunal 365 Laurier Avenue, W. Ottawa, ON K I A OG7 Tel: (613) 993-4601; Fax: (613) 998-4783 Title Secretary, Canadian Section NAFTA Secretariat 90 Sparks Street, Suite 705 Ottawa, ON KIP 5B4 Tel: (613) 992-9380; Fax: (613) 992-9392 Info Export External Affairs and International Trade Canada 125 Sussex Drive Ottawa, ON K I A OG2 Tel: (613) 944-4000 (Ottawa area), 1-800-267-8376 Fax: (613) 996-9709 Canada Communications Group Publications Ottawa, ON KIA OS9 Tel: (819) 956-4802; Fax: (819) 994-1498 Manager of Origin Audits 6th Floor, Sir Richard Scott Building 191 Laurier Avenue, W. Ottawa, ON K I A OL5 Tel: (613) 954-5641; Fax: (613) 954-4494 Chief, Interdepartmental Programs Commercial Operations Revenue Canada, Customs, Excise and Tax 5th Floor, 555 Mackenzie Avenue Ottawa, ON K I A OL5 Tel: (613) 954-7129; Fax: (613) 952-1698 TRADE CONTACTS ITDN Trade Contacts Canada Country Desks U.S. Department of Commerce Country Desk – Canada 15th St and Constitution Ave, NW Washington, DC 20230 Country/Area Code: 202 Phone: 482-0305 US Embassies in Foreign Countries American Embassy Canada 100 Wellington St., K1P 5T1 Ottawa, Ontario, Canada Country/Area Code: 613 Phone: 238-5335 Fax: 238-5720 Foreign Embassies in the US Embassy of Canada 501 Pennsylvania Ave.

NW Washington, DC 20001 Country/Area Code: 202 Phone: 682-1740 Fax: 682-7726 Consulates Commercial Section Consulate General Suite 1050, 615 Macleod Trail S.E. Calgary, Alberta Canada T2G 4T8 Country/Area Code- 403 Phone-266-8962 Fax: 264-6630 Consulates Commercial Section Consulate General Cogswell Tower, Suite 910 Scotia Square, Halifax Nova Scotia, Canada B3J 3K1 Country/Area Code: 902 Phone: 429-2480 Fax: 423-6861 Consulates Commercial Section Consulate General P.O. Box 65 Postal Station Desjardins Montreal, Canada H5B 1G1 Country/Area Code: 514 Phone: 398-9695 Fax: 398-0973 Consulates Commercial Section Consulate General 2 Place Terrasse Dufferin C.P. 939 Quebec, Canada, G1R 4T9 Country/Area Code: 418 Phone: 692-2095 Fax: 692-4640 Consulates Commercial Section Consulate General 360 University Ave. Toronto, Canada M5G 1S4 Country/Area Code: 416 Phone: 595-1700 Fax: 595-0051 Consulates Commercial Section Consulate General 1095 West Pender St. British Columbia, Canada V6E 2M6 Country/Area Code: 604 Phone: 685-4311 Fax: 685-5285 Foreign Banks in the US Bank of Nova Scotia R. E.

Waugh, SVP 165 Broadway New York, NY 10006 Country/Area Code: 212 Phone: 225-5000 Fax: 225-5090 Foreign Banks in the US Canadian Imperial Bank of Commerce Chris Rowland, VP 425 Lexington Ave. 5th Fl. New York, NY 100 17 Country/Area Code: 212 Phone: 856-4000 Fax: 856-6699 Foreign Banks in the US National Bank of Canada Roger P. Smock, SVP 125 W. 55th St. New York, NY 100 19 Country/Area Code: 212 Phone: 632-8500 Fax: 632-8616 Foreign Banks in the US Royal Bank of Canada Kenneth Bender, Mgr.

Financial Sq. 23rd Fl. New York, NY 10005 Country/Area Code: 212 Phone: 428-6200 Fax: 269-4378 Foreign Banks in the US Toronto-Dominion Bank Michael Mueller, SVP 31 W. 52nd St. New York, NY 100 19 Country/Area Code: 212 Phone: 468-0300 Fax: 262-1923 Foreign Banks in the US Harris Bank Int’l Corp. 430 Park Ave. New York, NY 10022-3505 Gerry Daly, VP; Barry Catherwood, AVP Country/Area Code: 212 Phone: 715-2674 Fax: 758-9847 World Trade Centers World Trade Center Edmonton Suite #502, Metropolitan Place 10303 Jasper Avenue Edmonton Alberta, Canada T5J 3N6 Country/Area Code: 403 Phone: 420-1155 Fax: 424-3091 Email: WTCED World Trade Centers Atlantic-Canada World Trade Center Halifax 1800 Argyle Street, Suite 511 Halifax, Nova Scotia, Canada B3J2V9 Country/Area Code: 902 Phone: 428-7233 Fax: 420-8308 Email: WTCHA World Trade Centers World Trade Center Montreal (R) 380 St. Antoine St., West Suite 2100 Montreal, Quebec, Canada H2Y 3X7 Phone: 849-1999 Fax: 847-8343 World Trade Centers World Trade Center Ottawa 130 Slater Avenue, Suite 750 Ottawa, Ontario KIP 6E2 Canada Country/Area Code: 613 Phone: 598-4666 Fax: 594-8705 World Trade Centers World Trade Center Quebec-Canada 10 Rue del Hotel-de-Ville P.O.

Box 5187 Beauport, Quebec Country/Area Code: 418 Phone: 666-6136 Fax: 667-8936 Email: WTCQB World Trade Centers World Trade Center Toronto The Board of Trade of Metro Toronto P.O. Box 375 One First Canadian Place Toronto, Ontario, Canada M5X I E2 Country/Area Code: 416 Phone: 366-6811 Fax: 366-2444 Email: WTCTR World Trade Centers World Trade Center Vancouver 999 Canada Place, Suite 400 Vancouver, B.C. Canada V6C 3C1 Country/Area Code: 604 Phone: 681-2111 Fax: 681 0437 Email: WTCVN World Trade Centers World Trade Center Damascus Canadian Develop. & Market. Corp.

Suite 4900, Scotia Plaza 40 King Street West Toronto, Ontario M511 4A2 Canada Country/Area Code: 416 Phone: 777-6701 Fax: 777-6707 Ocean Carriers Bolt Canada Line Morlines Maritime Agency Ltd. 485 McGill, Fifth Fl. Montreal, PQ H2Y 2H4 Canada Country/Area Code: 514 Phone:285-1571 Fax: 285-1707 Ocean Carriers C. S.A. V.

(Chilean Line) Robert Reford 221 St. Sacrament Montreal, PQ H2Y 1X2 Canada Country/Area Code: 514 Phone: 845-5201 Fax: 845-6490 Railroads, US Ontario Northland Transportation Commission 555 Oak St. E. North Bay, ON P 1B 8L3 Canada Country/Area Code: 705 Phone: 472-4500 Fax: 472-4267 Railroads, US Quebec North Shore & Labrador Rlwy 100 Retty St. Sept-Iles, PQ G4R 3EI Canada Country/Area Code: 418 Phone: 968-7804 Fax: 968-7183 Railroads, US CN Rail 935 de la Gauchetiere W. P.O.

Box 8100 Montreal, PQ 113C 3N4 Canada Country/Area Code: 514 Phone: 399-4783 Fax: 399-8459 Railroads, US CP Rail System 1290 Central Pkwy. W. Sixth Fl. Mississauga, ON L5C 4R3, Canada Country/Area Code: 905 Phone: 803-3210 Fax: 803-3300 Last Update: 08/05/98 Time: 20:21:59 Copyright 01998 by International Trade Data Network – ALL RIGHTS RESERVED COMPANY SPECIFIC Introduction Massasoit Machine, Inc. specializes in automatic screw machining (single spindle) and CNC precision machining of metal and plastic components for a wide variety of industrial, commercial and military customers located throughout eastern U.S. The Standard Industrial Classification (SIC) code for Massasoit Machine is SIC-3451 (Screw Machine Products). A detailed report on trade trends over the period from 1992 to 1996 for the Machine Shop Industry of the US and Canada is attached as Appendix F.

This report has been prepared by the Canadian Industry Statistics Development Team. SIC-3081 is the Canadian classification of this industry Appendix G contains a partial list of (SIC-3 08 1) — Major Players in Machine Shop Industry establishments in Canada. These industrial establishments could be potential customers/competitors for Massasoit Machine Inc. MARKET CHANNEL Use of Agents and Distributors: Distribution channels in Canada vary greatly according to the products and commodities involved. For example, industrial equipment of considerable size and value is usually purchased directly by end-users. Smaller equipment and industrial supplies, on the other hand, are frequently imported by wholesalers, acting in some cases as exclusive distributors, or by U.S. manufacturers’ sales subsidiaries. U.S.

firms have historically preferred to appoint manufacturers’ agents who regularly call on potential customers. Many major distributors expect to work on a two-tier commission basis. For contract shipments, agents are offered a low (but realistic) commission, but they receive a higher rate when purchases are made from a local agent’s own stocks. Consumer goods are purchased by importing wholesalers, department stores, mail-order houses, chain stores, wholesalers’ and retailers’ purchasing cooperatives, and many large, single-line retailers. Manufacturers’ agents also play an important role in the importation and distribution of consumer goods. In addition, the importance of department stores, mail-order houses and cooperative purchasing organizations as direct importers has increased substantially.

Many of these groups have their own purchasing agents in the United States. MANUFACTURERS’ REPRESENTATIVE Listed below are a few of the manufacturers’ representatives which could be a potential contact in Canada for the high precision one machining industry of US such as Massaoit Inc. This channel of exporting could be one of the most effective ways of market entry into Canada by a US manufacturing organization. These manufacturer’s representatives are from the MANA (Manufacturers’ Agents National Association)-Canada Directory. J. & Fraser & Associates Ltd.

John R. Fraser 3010 Longfellow Ave Windsor, ON N9E 2L5 Canada Phone: (519) 969-1842 Fax: (519) 969-1625 Products Sold: Springs, wire-formed parts/assemblies, small stampings from coil-four slide parts, screw machine parts. Territory: Canada: S. ON; Montreal area, QU. Nuclear Fittings, Ltd.

Jack C. Wiggelaar 151 Bentley St., Unit 4 Markham, ON L3R 3X9 Canada Phone: (905) 475-1785 Fax: (905) 475-2358 Products Sold: Cold headed products: screws, bolts, nuts, conduit products, springs, stampings, weld nuts & weld studs, powdered metal products, washers, clevis pins, rivets, clik, lynch, bridge, weld, groove, hitch pins, elastomeric parts, screw machine products. Territory: ON, QU, AB, NS, MT OEM SALES Dereck Shenstone 55-C Beverly Hills Dr. Toronto, ON M3L I A2 Canada Phone: (416) 614-8844 Fax: (416) 614-8292 Products Sold : Castings, forgings, screw machine components, plastic/rubber parts, gas cylinders, linear actuators, OEM components, ultra precision/sub-miniature machining, miniature control cables. Territory : ON, QU, Eastern Canada. The decision to enter the Canadian market can only be made by the owner’s of Massasoit Machine, Inc.

It is hoped that the contents of this research study will assist in the making of an objective and rationale decision. If a positive decision is made to enter the Canadian market, the report suggests the use of manufacturer’s representatives as one of the most effective way of the market entry. It lists several potential contacts. Additionally the report list a number of manufacturer’s in the machine shop industry. This list includes both potential customers and possible competitors. Massasoit Machine, Inc.

may decide to contact the potential customers directly before appointing their own representative. Success in the Canadian market will not appear immediately. Further it is important to learn from the mistakes of others in addressing export markets. The U.S, Department of Commerce has listed a number of the most common mistakes made by the new exporters. These include: ? Lack of an export marketing plan. ? Insufficient long term commitment by top management.

? Failures to allocate adequate company resources in terms of finance and personnel. Appendix A COUNTRYDATA Population: 28,846,761 (January 1, 1997, based on actual census count in 1996) Population Growth Rate: 1.3% (estimate) Primary Religions: Catholic 42%; Protestant 40% (estimate) Government System: Confederation with Parliamentary Democracy Prime Minister: Mr. Jean Chretien (Liberal Party) Official Languages: English and French Work Week: Monday to Friday, 9: 00 a. m. to 5: 00 p.

m. Source: Statistics Canada Appendix B (This appendix was prepared by the Economic Section of the U.S.Embassy in Ottawa using Department of State resources.) CANADIAN DOMESTIC ECONOMY (In billions of Canadian dollars, unless otherwise indicated) (Please note: Forex fluctuations cause distortions in actual levels and growth rates when converting C$ data into US$.) ECONOMIC INDICATOR 1996 1997 1998 Real GDP 617.8 635.2 651.5 (Based on 1986 C$) GDP Growth Rate (%) 1.5 2.8 2.6 Real GDP Per Capita 20,593 20,827 21,015 (C$ 000s) Public Sector Deficit -3.5 -3.1 -1.7 (as a percentage of GDP) Inflation (%) 1.6 2.1 2.3 Unemployment 9.7 9.6 9.2 Foreign Exchange Reserves 20.6 N.A. N.A. (Reported in Billions of US$) Average Exchange Rate 73.34 73.60 68.00 (C$1 = US cents) Net Public Debt 598.0 615.0 624.0 Federal Debt Service Charges 29.4 30.3 31.0 (% of Total Spending) Source: U.S. Embassy Economic Section and Statistics Canada Appendix C (This appendix was prepared by the Economic Section of the U.S. Embassy in Ottawa using Department of State resources. ) CANADIAN TRADE STATISTICS (Balance of Payments Basis) (In billions of Canadian dollars unless otherwise indicated, because foreign exchange conversion distorts actual trends and growth rates.) 1996 1997 1998 Exchange Rate 73.34 73.60 68.00 (C$1 = US cents) Total Canadian Exports 329.6 351.7 377.7 (merchandise and non-merchandise).

Total Canadian Imports 331.2 354.1 377.5 (merchandise and non-merchandise) Canadian Exports to the U.S. 249.6 267.3 287.1 (merchandise and non-merchandise) U.S. Imports into Canada 232.5 251.4 268.0 (merchandise and non-merchandise) U.S. Share of Total Canadian Imports 71.0 71.0 71.0 (merchandise and non-merchandise) Total Trade With the World 60.8 705.8 671.7 (merchandise and non-merchandise) Total Trade With the U.S. 482.1 514.4 550.4 (merchandise and non-merchandise) U.S.

Share of Manufactured Imports (%) 72 74 74 Canadian Merchandise Trade Balance With Three Leading Trade Partners in 1996 (Balance of Payments Basis) United States: + C$40.7 Billion Japan: + C$ 3.4 Billion United Kingdom: – C$ 1.4 Billion Principal Canadian Exports to the United States in 1996 (Billions of Canadian Dollars) Motor vehicles and parts 61.5 Machinery and Equipment 42.7 Industrial Goods 35.7 Forestry Products 25.2 Energy Products 24.8 Principal Canadian Imports from U.S. in 1996 (Billions of Canadian Dollars) Machinery and Equipment 50.3 Automotive Products 43.1 Industrial Goods 33.1 Consumer Goods 14.5 Agriculture/Fishing Products 8.1 Source: Statistics Canada Appendix D Canada – New England Tr …


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