exports in 2014-16 are expected to be Mexico, Korea, and
China. However, by 2017-20, it is forecast that China will
overtake Mexico as the fastest-growing market and will
be followed by India, Brazil, and Indonesia.
At the industry level, petroleum products are forecast
to be the main driver of exports in 2014-20. Transport
equipment and industrial machinery will also be
important contributors to the growth in Canada’s
exports. By 2021-30, current projections indicate
that transport equipment may well overtake
petroleum products.
When should a business consider
expanding into international markets?
An export-ready business is one that has the capacity,
resources, and management to deliver a marketable
product or service on a global scale at a competitive
price. The trick is to determine whether this is true of your
company – and if it isn’t, how to make it happen.
To succeed in international markets, you don’t have to be
a big firm. Tens of thousands of small and medium-sized
Canadian companies – with foreign sales between $30,000
and $5 million – are already successfully exporting their
goods and services.
What do you see as key trends in
global trade that BC businesses should
be paying attention to?
The internationalization of the Chinese currency – the
renminbi (RMB) – is one of the most significant financial
events of the 21st century.
China is Canada’s second-largest trading partner, behind
the US, and trade between the two countries is growing
at a remarkable pace – increasing 57% between 2007
and 2012. Canadian businesses looking to do business
with China should be actively considering the potential
benefits of using the RMB. Interestingly, HSBC survey
data shows that Canadian companies are not taking full
advantage of the benefits of doing transactions in RMB.
You say that companies aren’t
taking advantage of the benefits
of using the renminbi – why not?
Survey research from earlier this year shows that Canadian
companies are the least likely of all markets to use the
RMB for settlement and that the full benefits of using the
RMB are not widely known. In fact, only 5% of Canadian
companies surveyed are currently using the RMB for trade
settlement compared to 22% of companies globally and
17% of US companies.
What are the advantages of settling
trade transactions in RMB?
The continuous opening up of the RMB currency by the
Chinese government has allowed for a variety of RMB
products and services to become available to Canadian
companies. Some of the benefits of settling trade in RMB
can include:
• broadening your customer base;
• reducing costs and risks of exchange rate fluctuations;
access to the local RMB clearing and
• gaining system, CNAPS, which can accelerate funds
payment
availability; and
able to rely on a single
• beingbanking requirements. point of contact for all
your
Any final tips or advice you would like
to offer?
Online business tools offer a flexible range of options from
basic connectivity to robust integration. When it comes
to banking, you should consider using a sophisticated,
globalized Internet banking platform to link trade
receivables, streamline cash management and treasury
operations, ease document flow, and minimize risk and
reduce costs.
Finally, successful companies know the importance of
presence, relationships, and commitment. They build
smart partnerships, and above all, share a commitment
to innovation.
FALL 2014
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