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Trade News

Each day TFO Canada publishes a sample of trade news on the Canadian import market along with any new, updated or changed regulations and legislations regarding international trade; countries in which TFO Canada offers services and on the export sectors which it promotes.


Philippines: Trade with Canada, exporters urged

Wednesday, October 28, 2015 > 10:05:02

(Sun Star Cebu)

A TRADE official urged Filipino exporters to export to Canada, citing “very strong” trade potential between both countries.

In an interview with Canada’s Trade Facilitiation Office (TFO) director general Steven J. Tipman yesterday, he said there is a hard demand in Canada for food (fresh and processed), furniture and garments.

Data from TFO Canada presented during the “Exporting to Canada” seminar held at Golden Prince Hotel and Suites in Cebu City show that the market share of Philippine exports to Canada hovers between 0.1 percent and 4.1 percent in the top ten products identified, including electronics, machinery, and rubber.

In 2014, imports into Canada from the Philippines totaled CAD$1.2 billion (excluding minerals), and are growing at a rate of six percent compounded annually over the past five years, Tipman said.

“There are many reasons for you to consider Canada as a new export market for your product. Imports represent 31 percent of Canada’s gross domestic product and imports have been growing at five percent per year in the last five years,” Tipman told around 50 exporters who attended the seminar. This makes Canada the 11th largest import market in the world.

TFO, an office founded by the Canadian government, facilitates access to the Canadian marketplace and shares Canadian trade expertise for the small and medium enterprises (SMEs) in developing countries. It offers free services for exporters to present their export offers to Canadian buyers and other forms of assistance.

The United States is the top trading partner of Canada, covering 54 percent of Canada’s imports.

To give a preview of how the Canadian market behaves, TFO said Canadian consumers spend close to 50 percent of their income on two things--taxes and their home. The rest is spent on food, discretionary spending, and savings.

“(Shopping) for the average Canadian includes lots of spending on food and beverages, including fresh vegetables, junk food, restaurants, fish, alcohol and coffee and tea. Spending on home entertainment equipment, clothing, lottery tickets and pets are some of the other kinds of spending,” Tipman said.

In addition, he said Canadian consumers and retailers are increasingly looking for eco-friendly products that offer environmental benefits.

“It is important that you are prepared to demonstrate sound and environmentally-responsible business practices and provide information on your environmental management system,” TFO said.

For newcomers, the trade facilitation office of Canada advised future exporters to do research on the Canadian market to determine the potential of the local products to Canada and the state of competition. They are also advised to be aware of Canadian regulations that apply to certain products, including taxation, quality standards, and labeling.

Canada is the 14th biggest export market of the Philippines, covering 0.95 percent of the export market share. Top three trading partners include Japan, US, and China.

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