INTELL-ECHO - The Export Sector in Atlantic Canada Economic Information Observatory - Campus de Shippagan

 
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INTELL-ECHO - The Export Sector in Atlantic Canada Economic Information Observatory - Campus de Shippagan
INTELL-ECHO
                               Vol. 6, no. 02, February 2019

   Economic Information Observatory
         for Atlantic Canada

The Export Sector in Atlantic Canada
INTELL-ECHO - The Export Sector in Atlantic Canada Economic Information Observatory - Campus de Shippagan
Economic Information Observatory                                       Atlantic Canada,
                                                                                   4 provinces:
                          Intell-Echo                                              Prince Edward Island (PEI),
                                                                                   New Brunswick (NB),
                                      Thematic Information Bulletin                Nova Scotia (NS),
                                        Vol. 6, no. 2, February 2019               Newfoundland and Labrador (NL)

      The Export Sector in Atlantic Canada
In this issue:                            In Atlantic Canada, 2017 saw 70 new exporters join the ranks of those already active in this sector in 2016. Within a
                                          period of a year (2016-2017), regional exports grew by 16%; in 2017, revenues from exporting totalled an estimated
Canadian SMEs and                         $30 billion. At the national level, Canada directly exported approximately $120 billion in services in 2018, while
Exporting                         2
                                          international subsidiaries of Canadian companies offering services generated $375 billion in revenues. Although the
Top Exports by                            United States is the main destination for Canadian exports, Canada has nonetheless shown diversification on the
Province                          3
                                          international stage in service export markets in comparison to goods export markets: 77% of Canadian
Promoting Exporting in                    merchandise exports currently go to the United States, while only 56% of Canadian service exports are destined for
Atlantic Canada                   4
                                          the United States. Service export markets are found in highly developed countries as well as emerging regions (China,
                                          Latin America, Europe). The range of available services varies widely and includes business development-related
In Canada:                                financial services as well as transportation, logistics, marketing and other services.
20% of all jobs are directly
dependent on international                Exports from Atlantic                   Canada’s           energy         Canadian exports of                  The European Union is
trade.                                    Canada to China                         sector                            services account for                 the s ec ond -l arges t
50% of production in                                                                                                1.6% of total global                 market for Canadian
Canada is destined for
                                          growing steadily since                  91.1% of                          volume, making Canada
                                          2014                                                                                                           exports after the United
export.                                                                           production                        the world’s 18th-largest             States.
                                          based on estimates, total                                                 exporter of business
After the Comprehensive                                                           exported to the U.S.
                                          exports in 2017 were up                                                                                        Canadian merchandise
and Progressive Agreement                                                                                           services.
                                          by more than 37% over                   Other destinations                                                     exports nearly doubled
for Trans-Pacific Partnership             2016.                                   of energy exports                 Services represented                 between 2002 and 2016.
(CPATPP) takes effect and                                                                                           12.7% of Canadian
                                          goods exports from
based on the terms of some                Atlantic Canada to China
                                                                                  (Japan, South Korea,              exports in 1990 and
                                                                                                                    17.0% of Canadian
                                                                                                                                                         $41.9 billion
14 trade agreements,                                                              China and India)                  exports in 2017.
                                                                                                                                                         Volume     of    merchandise
                                          in 2017                                                                                                        exports
Canada will enjoy preferred                                                       increased their coal
access to markets in                      $1.5 billion                            imports by 50% in                  Canada’s top merchandise exports
51 countries.                                                                     2017.                                                                Value         Growth       Share
                                          43% of these exports                                                                                          2017         2016-17      2017
                                                                                                                                                     ($ billions)      (%)         (%)
Canadian exports in 2017                  were seafood products.                  87.5% of Canadian                  All products                          546.3           5.6     100
(merchandise):                                                                    exports of business                Energy                                109.8          33.1     20.1
                                                                                  services go to the                 Automobile parts                       81.0          -4.9     14.8
$546.7 billion                            In 2017, 87.1% of
                                                                                  following countries (in
                                                                                  order, excluding the United
                                                                                                                     Mechanical equipment
                                                                                                                     Precious stones & metals
                                                                                                                                                            42.0
                                                                                                                                                            24.4
                                                                                                                                                                           5.7
                                                                                                                                                                          -3.0
                                                                                                                                                                                    7.7
                                                                                                                                                                                    4.5
(up 5.7%)                                 merchandise exports from                States): United Kingdom,           Wood and articles                      18.8           4.7      3.3
Exports from Canada also                  Canada went to the top 5                Bermuda, Switzerland,              Electrical equipment                   16.8           0.5      3.1
                                          destination countries: the              France, Germany, Ireland,          Plastics and articles                  16.3           1.7      3.0
grew in 2017 based on trade                                                       Japan,        Belgium/             Aluminium and articles                 12.7          19.0      2.3
with Japan, South Korea,                  United States, China,                   Luxembourg, Netherlands,           Aircraft, spacecraft & parts           12.6          -7.6      2.3
Germany, the United                       Mexico, the United                      Australia, Mexico, Sweden,         Oilseed crops                          10.2           7.2      1.9
                                          Kingdom and Japan.                      China, Hong Kong and               Top 10 products                       344.1           8.7     63.0
Kingdom and China.
                                                                                  Barbados.                          All other products                    202.2           0.8     37.0

Additional information: Global Affairs Canada (GAC), ; Atlantic Canada Opportunities Agency (ACOA), ; Business Development
Bank of Canada (BDC), ; Standards Council of Canada (SCC), ; Canadian Commercial Corporation (CCC), ; Canada Business,
; Farm Credit Canada (FCC), ; Innovation, Science and Economic Development Canada, ; Innovation PEI's
Global Trade Services division, ; Opportunities New Brunswick, ; Nova Scotia Business Inc.,
; Department of Tourism, Culture, Industry and Innovation (NL); ; Grow Export, ; LearnSphere, ; Statistics Canada, .
INTELL-ECHO - The Export Sector in Atlantic Canada Economic Information Observatory - Campus de Shippagan
Intell-Echo, 6, 02, 2019 – p. 2                            https://provis.umcs.ca                                  ATLANTIC CANADA

Canadian SMEs and Exporting
The 2017 Survey on Financing and Growth of Small and Medium Enterprises provides data on the exporting activities of SMEs. In 2017,
of the 12% of SMEs that exported, 41% exported goods, 47% exported services and 12% exported goods and services. Of the 88% of
SMEs that did not export, 94% reported that this was due to the local nature of their goods or services.

Total exports of all products from the Atlantic Provinces by destination, 2017
(Values in $ millions; shares in %)
                                          All countries              United States                  European Union                  Other
                                      Value            Share       Value         Share             Value      Share          Value        Share
PEI                                        1,383            100        1,018        73.6                123        8.8            242        17.6
NB                                        12,874            100       11,639        90.4                238        1.8            997          7.8
NS                                         5,459            100        3,515        64.4                471        8.6          1,473        27.0
NL                                        10,189            100        5,388        52.8              2,482       24.4          2,319        22.8
Atlantic Canada                           29,905            100       21,559        72.1              3,314       11.1          5,032        16.8
Canada                                  546,456             100     414,502         75.9             41,584        7.6        90,370         16.5

Provincial export forecasts in Atlantic Canada in 2019                                                SME export destinations
                                                                                                      United States                            87%
According to Export Development Canada’s (Canada’s export credit agency) Global Export                European Union                           26%
Forecast, published in fall 2018, provinces in the Atlantic Region should post good performance in      (except United Kingdom)
2019 in the export sector. Prince Edward Island can anticipate strong sales of frozen food and        United Kingdom                           17%
expects to enter new European markets for the export of agri-food and aquaculture products; New       Asia                                     12%
Brunswick is positioned to benefit from higher commodity prices and good conditions in the              (except China, India and Japan)
fisheries and pulp & paper sectors; in Nova Scotia, the opening of the Touquoy Gold Mine and          Mexico                                    9%
implementation of the Comprehensive Economic and Trade Agreement with the European Union              China                                     8%
should stimulate provincial exports; and Newfoundland and Labrador expects to expand oil              Latin America                             6%
                                                                                                        (except Mexico and Brazil)
production via the Hebron offshore platform and see an increase in activity at the Vale nickel
                                                                                                      Japan                                     6%
processing plant.
                                                                                                      India                                     5%

State of exporting of goods and services from the Atlantic Provinces to other countries and            Export-dependent employment,
provinces, 2017 estimates, in $ billions                                                               by province
Canada’s Atlantic Provinces                        PEI         NB          NS          NL              In 2017, 1,451,000 workers were employed
                                                                                                       in Canadian industries that depend on
                                                               2017 estimates
                                                                                                       exports, which corresponds to 8% of all jobs
EXPORTS OF GOODS AND SERVICES                      3.347      26.569       15.822     16.557           in Canada.
Exports to other countries                         1.602      14.039        7.325     11.174           Province                       Percentage
Exports of goods to other countries                1.099      12.739        5.451     10.299           British Columbia                           6%
Exports of services to other countries             0.503        1.300       1.874      0.875           Alberta                                    8%
Exports to other provinces                         1.745      12.530        8.497      5.383           Saskatchewan                              10%
Exports of goods to other provinces                0.930        7.050       3.919      3.515           Manitoba                                   9%
Exports of services to other provinces             0.815        5.480       4.578      1.868           Ontario                                    8%
                                                                                                       Quebec                                     9%
                                                                                                       New Brunswick                              6%
Target markets by number of company employees, in 2017
                                                                                                       Prince Edward Island                       6%
                           Within       Outside of                  Within rest   Outside of
                           municipality municipality or             of Canada     Canada               Nova Scotia                                5%
                           or local     local region but                          (export sales)                                                  5%
                           region       within province or
                                        territory                                                      In Atlantic Canada, the proportion of export-
All SMEs                       92.5%            45.4%                 19.8%       11.7%                dependent jobs in 2017 was 4% in the Cape
Number of        1-4           91.1%            40.8%                 17.0%        9.9%                Breton economic region and 3% in the Halifax
company          5-19          95.1%            50.3%                 20.8%       12.0%                economic region in Nova Scotia. In New
employees        20-99         93.1%            51.9%                 28.1%       17.0%                Brunswick, it was 3% in the Fredericton-
                 100-499       86.9%            58.2%                 39.5%       29.1%                Oromocto economic region.
Intell-Echo, 6, 02, 2019 – p. 3                           https://provis.umcs.ca                                ATLANTIC CANADA

Top Exports by Province
Top 5 global exports of Prince Edward Island, 2017                                                       Recent and upcoming
In 2017, the top 5 merchandise exports from Prince Edward Island to all countries combined
accounted for 50.2% of the province’s global exports.
                                                                                                         events and trade missions
Product                                                                                  (CAD $ 000s)
Potatoes - prepared/preserved without vinegar/acetic acid                                      313,366
                                                                                                         Atlantic Growth Strategy:
Turbo-propellers - power 6mm) - coniferous wood                                                    508,521
                                                                                                         Atlantic Canada and featuring trade fairs,
Lobsters - frozen                                                                            413,332
                                                                                                         business-to-business meetings and
Petroleum bitumen                                                                            395,856     networking receptions bringing together
Subtotal                                                                                   8,046,459     more than 70 companies and
Other                                                                                      4,827,609     organizations in Atlantic Canada.
Total (all products)                                                                      12,874,068
                                                                                                         Trade mission to
Top 5 global exports of Nova Scotia, 2017                                                                Mexico City and Monterrey
In 2017, the top 5 merchandise exports from Nova Scotia to all countries combined                        January 27 - February 1, 2019
accounted for 41.7% of the province’s global exports.                                                    Industry: Multi-sector
Product                                                                                (CAD $ 000s)      Market: Global
Lobsters, live, fresh or chilled                                                             711,249     Mission organized for New Brunswick
New rubber tires - for buses or trucks (lorries)                                             642,559     companies
New rubber tires - for motor cars (incl. station wagons and racing cars)                     381,611
Crabs - frozen                                                                               310,754     Think Export Workshop:
Chemical woodpulp - soda or sulphate -                                                       227,693     The Wine Edition
coniferous, bleached                                                                                     February 19, 2019 / Wolfville, NS
Subtotal                                                                                    2,273,866    Everything producers need to know to set
Other                                                                                       3,185,179    themselves up for success with their
                                                                                                         exporting activities.
Total (all products)                                                                        5,459,045
                                                                                                         National Conference and
Top 5 global exports of Newfoundland and Labrador, 2017                                                  Business Fair
In 2017, the top 5 exports from Newfoundland and Labrador to all countries combined                      June 25 - 27, 2019
accounted for 82.6% of the province’s global exports.
                                                                                                         Baltimore, Maryland, United States
Product                                                                                (CAD $ 000s)
                                                                                                         Largest event of its kind for women
Crude petroleum oils and oils obtained from bituminous materials                           3,859,407
                                                                                                         business owners in the U.S., with more
Iron ores and concentrates, other than roasted iron pyrites, agglomerated                  1,431,047     than 350 exhibitors and procurement
Petroleum oils and oils from bituminous materials - not crude - not light                  1,205,771     representatives from multiple countries.
Light oils and preparations                                                                1,167,537     Lectures, presentations from thought
Iron ores and concentrates, other than roasted iron pyrites, non-agglomerated                750,314     leaders, panel discussions, matchmaker
Subtotal                                                                                   8,414,076     sessions, networking receptions and a
Other                                                                                      1,774,834     business fair.
Total (all products)                                                                      10,188,910
Intell-Echo, 6, 02, 2019 – p. 4                                  https://provis.umcs.ca                                        ATLANTIC CANADA

Promoting Exporting in Atlantic Canada
 2018 Export Awards
 https://onbcanada.ca/press-releases/seven-companies-honoured-2018-export-awards/                                         Events and
                                                                                                                          trade missions (cont.)
 In June 2018, seven New Brunswick companies received awards in recognition of their contribution to the
 province’s prosperity.                                                                                                   Trade Mission: Diversity
 This was the 52nd year in which New Brunswick celebrated its export-oriented companies.                                  Procurement Fair and Breakfast with
 Category                                              Winner                                                             Brands in Toronto
 Foreign-Owned Exporter                                Bulletproof                                                        April 16 - 18, 2019
 Emerging Exporter of the Year                         Bouctouche Bay Industries                                          www.cvent.com/events/diversity-procurement-fair-
 Global Diversification Award                          Remsoft Inc.                                                       2019
 Innovative Exporter of the Year                       Thermtest Inc.                                                     Multi-Sector Trade Mission to Bogota,
 Exporter of the Year – Under $5 million               Masitek Instruments Inc.                                           Colombia
                                                                                                                          February 25 - March 1, 2019
 Exporter of the Year – Over $5 million                         InteliSys Aviation Systems
                                                                                                                          Organized by the Maritimes Energy
 Opportunities NB Impact Award                                  ExxonMobil Business Support Centre                        Association in partnership with ACOA
                                                                Canada ULC                                                www.maritimesenergy.com/events.asp
 Nova Scotia Export Achievement Awards 2018                                                                               Trade Mission to Oceanology
 https://www.novascotiabusiness.com/export/nova-scotia-export-achievement-awards                                          International Americas 2019
 Celebrated this past June in Halifax, the Nova Scotia Export Achievement Awards were presented by                        February 25 - 27, 2019
 Nova Scotia Business Inc.                                                                                                www.oceanologyinternationalamericas.com/
 Category                                                Winner                                                           Conference/
 Exporter of the Year – Over $5 million in Export        Tony’s Meats (Antigonish)
 Sales                                                                                                                    Trade Mission: Canadian
 Exporter of the Year – Under $5 million in Export       Spring Loaded Technology                                         Construction and Building              Products
 Sales                                                                                                                    Showcase in Barbados
 Business of Diversity Champion of the Year              Eleanor Beaton and Company Communications                        March 10 - 13, 2019
                                                         (Windsor)                                                        www.novascotiabusiness.com/events
 Canadian Market Champion of the Year                    Tony’s Meats (Antigonish)                                        Business Development Mission to Norway
 International Market Champion of the Year               BlueLight Analytics (Halifax)                                    March 11 - 15, 2019
 Innovation in Business Champion of the Year             InterTalk Critical Information Systems                           http://neia.org/business-development-mission-to-
                                                         (Dartmouth)                                                      norway-march-2019/
 New Exporter Champion of the Year                       Dormie Workshop (Halifax)
                                                                                                                          Atlantic Canada          Mission       to   MRO
 Guidelines for                                            Canadian Trade Commissioner Service                            Americas
 international trade                                       https://www.tradecommissioner.gc.ca/                           April 9 - 11, 2019
                                                                                                                          https://mroamericas.aviationweek.com
 ►In addition to the Export Development Act,               Operated by trade professionals, the Canadian Trade
 the export trade is governed by a strict                                                                                 Ocean Business
 regulatory framework.                                     Commissioner Service (TCS) provides expertise and
                                                                                                                          April 9 - 11, 2019
                                                           assistance to companies and organizations seeking to           www.oceanbusiness.com/
 Legislation; Agreements and rules; Processes
 and procedures; Tax rules; Specific cases                 position themselves in international markets. The TCS
                                                           is active in more than 160 cities worldwide, and trade         Offshore Technology Conference
 Specific cases:                                           commissioners are equipped to provide key insights             May 6 - 9, 2019
 ►Exporting agri-food products –                                                                                          http://2019.otcnet.org
 Canadian guidelines; records, certifications and
                                                           based on their field knowledge and extensive contact
 declarations; processing and grading;                     lists built over many years.                                   Atlantic Canada Mission to the UK
 labelling and packaging; shipping and storage; food                                                                      including the All - Energy 2019
 inspection; traceability                                  CanadExport is the Canadian Trade Commissioner                 Conference
 ►Exporting services – foreign credentials                 Service’s official magazine.                                   May 15 - 16, 2019
 recognition; posting of employees abroad;                 https://www.tradecommissioner.gc.ca/canadexport/               www.all-energy.co.uk/Conference
 registration and application for permits and licences;    index.aspx?lang=eng
 sector-specific restrictions; intellectual protection                                                                    4th Annual Workshop on Supply Chain &
 ►Foreign protectionist measures – dumping;                Lighting the path to export financing                          Logistics Management
 subsidies; anti -competitive practices;                                                                                  September 27, 2019
                                                           Providing a picture of the regulatory context and available
 local content requirements; case study: U.S. local                                                                       www.dal.ca/faculty/management/rsb/news-
                                                           assistance, the Spotlight series of the Canadian Trade
 content requirements                                                                                                     events/events/2019
 Integrity risks – corruption; money laundering;           Commissioner Service (TCS) explores the various
                                                           Canadian trade programs in addition to listing the financial   Dalhousie University (NS). Discussion of
 financing of terrorist activities
 ►Trade           dispute           settlement         –   products and services available to Canadian companies          supply chains, disruption, innovation and
 advantages of arbitration; arbitration organizations      seeking to take advantage of international markets.
INTELL-ECHO

         Starting January 2019, the ECONOMIC INFORMATION OBSERVATORY
            will provide information related only to the Atlantic Canada area.

Intell-Écho is a periodic bulletin               Launched in 2014, the Economic
published by the Economic                        Information Observatory was a
Information     Observatory,     a               regional       cooperation       project
regional cooperation project                     established        between      Atlantic
between Atlantic Canada and                      Canada and Saint -Pierre and
Saint-Pierre and Miquelon. The
publication of this bulletin is                  Miquelon. The publication of this
made possible through the                        information bulletin was made
sponsorship of the Atlantic                      possible through the sponsorship of
Canada Opportunities Agency in                   the Préfecture and the Conseil
support of research initiatives,                 Territorial     of    Saint-Pierre    et
linguistic minorities and business               Miquelon, and the support of the
development, and the Province                    Atlantic Canada Opportunities
of New Brunswick as well as the
Université      de       Moncton,                Agency’s programs for research
Shippagan Campus.                                initiatives, linguistic minorities and
                                                 business development, and the
Editorial Production: Project Lead,              Province of New Brunswick, as well
Dr. Monica Mallowan, PROVIS
Observatory, Université de                       as the University de Moncton,
Moncton, Shippagan Campus,                       Shippagan Campus.
Shippagan, NB, Canada.
observatoirePROVIS@umoncton.ca
© PROVIS Observatory 2019.

Information Policy: The aim of this
project is to provide useful
information to stakeholders from the
Atlantic Canada area. Information
supplied herein may be used on
the condition that the Intell-Écho
be cited as a source.                                   PROVIS—UNIV. DE MONCTON,
                                                          CAMPUS DE SHIPPAGAN
Responsibility: The project team is
not responsible for the information                          218, J.-D.-Gauthier
resources supplied in this bulletin
(content, links, changes, updates,                         Shippagan NB E8S 1P6
timeliness of statistical data) nor for                          Canada
decisions or actions undertaken                            https://provis.umcs.ca
based on information supplied
herein.

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