Market update: Canada
Environmental exports
Green energy, having been a focus in Canada for some time, is becoming a booming export sector for Australia. The biggest environmental trade show in the world, Globe 2010, will have representation from 10 Australian green energy companies. Speakers will present on Australian green energy, environmentally friendly building techniques, water management policy, and water recycling. Trofimovs believes there is only room for expansion in this increasingly important industry.
Water management is an area where Australia is particularly well versed. “Surprisingly, given the terrain, Canada faces a water shortage problem,” says Trofimovs. “The prairies experience severe drought and water management is only now being looked at closely for increased regulation. Alberta, in particular, experiences water shortage issues because of the heavy usage of the oil sand systems of the mining sector. Australia has water expertise they can impart to Canada thanks to their extensive history of surviving drought and minimal rainfall in rural areas.”
Focus on finance
As ranked by the WTO, Canada is one of the world’s top 10 leading traders, so it’s no wonder that its ‘big five’ banks remain in the top 15 worldwide in market value, according to Trofimovs. Impressively, both Toronto-Dominion and Royal Bank of Canada are among only seven such institutions that still carry a Moody’s AAA rating, an index of the performance of the institution’s bonds. Macquarie Group, owner of Macquarie Bank Limited, has also extended its operations in Canada, making it one of the largest branches of the Australian-based financial services group. Growing exponentially from 300 to more than 1,000 employees, the blue-chip financial institution has become one of Australia’s primary exports to the country.
Eat, drink, and export
Local food and wine has also been a huge hit in the Australian-Canadian export market, Trofimovs reveals. “Austrade are diversifying their efforts in the marketing of export food, especially the traditional export market of wine. It’s the third-largest market in terms of straight volume, but it’s definitely the most valuable in terms of consumption per capita. The Australian Wine and Brandy Corporation program is focused on wine regionality and geographical branding, and also the new generation of younger drinkers and how best to market to them.”
He says that because Canadians habitually buy quality wines, “Australian price point-favourable wines will definitely find success in this consistently high-selling market” and notes that the French-speaking province of Quebec will be the next big push: “Wines aimed at this area of the market will find they have quite a lot of groundwork already covered.”
Of course, exporters to Canada must be aware of the opportunities available from it position as a gateway market into the USA and further afield, Mexico. Exporters setting up office or trade relations in the eastern cities of Quebec, Montreal or Ottawa have quick and easy travel to New York, while those in Toronto and the central prairies have direct access to Chicago and Detroit. Those in the western cities of Vancouver and Calgary have a west coast connection to California via Washington State and Oregon.
However, Trofimovs believes that, while Canada is “a learning market for the US”, it’s becoming more and more of a destination market in its own right, gaining steady ground in the international financial arena. Canada, it appears, is ready to step out on its own.
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