The relationship between the United States and Canada is the closest and most extensive in the world. It is reflected in the staggering volume of bilateral trade- -the equivalent of $1.5 billion a day in goods–as well as in people-to-people contact. About 300,000 people cross the shared border every day. Canada is not only the largest trading partner for the United States, but is also the largest trading partner for Virginia. The United States exported over $248 billion in goods to Canada in 2010 of which $2.87 billion was from Virginia.

 The best opportunities for U.S. companies in the Canadian market are clustered around five major trends:

 Aerospace: In addition to opportunities for U.S. aircraft manufacturers of aircraft both large and small, U.S. aerospace industry suppliers will find expanding opportunities as suppliers for Canadian aerospace manufacturers.

 Automotive supply chain: About one-fourth of existing U.S.-Canada trade involves the expanding Midwest-Ontario automotive supply chain that offers opportunities for U.S. auto parts suppliers as well as companies offering advanced manufacturing technology and services.

 Energy/natural resources sector: Major projects in this area offer rich opportunities for U.S. energy and renewable energy firms, construction/engineering firms, as well as companies active in environmental services, remediation and financial/management services.

 Tourism (Canadian) to the United States: A strong Canadian dollar will lead to greater Canadian tourism in the United States, offering opportunities for U.S. hotels and restaurants, tourist agencies, airlines, and real estate developers.

 Expanding Canadian federal and provincial procurements: which offer opportunities in defense, security systems, construction and engineering services, and information technology/telecommunications.

 The VEDP makes trade with our northern neighbor easy through annual market visits to Canada’s east and west coasts. VEDP – International Trade will be leading a market visit to Toronto and Montreal October 17 – 21, 2011. Participating companies will enjoy one-on-one meetings with targeted, pre-screened companies that match their unique company and market objectives. Participants will travel with VEDP’s Global Research Manager, Lindsey Bertozzi.  The VEDP will provide pre-arranged meeting rooms, in-country transportation, translation assistance (if needed), market briefings and networking functions. For more information, please contact Lindsey Bertozzi at lbertozzi@yesvirginia.org or (804) 545-5767.

Canada · economy · export · exports · group market visit · international business · international deals · international event · international sales strategy · travel · VEDP · Virginia

There in the lobby of a hotel in Saudi Arabia in December of 2010, Todd Furbee, the owner of Delta Pure Filtration, located in Ashland, Virginia, was negotiating the single largest order in his company’s history.  Todd was participating in a group market visit with Virginia Economic Development Partnership – International Trade.

Delta Pure Filtration began manufacturing filter cartridges in August, 1983. At the time Furbee purchased Delta Pure in the summer of 2007, the company had been doing a modest amount of international business.  There were random sales to Taiwan and some activity in Brazil, Ecuador, and Saudi Arabia, but there was not an intentional pursuit of international business.  That changed in 2008 when Delta Pure joined the AIM program and focused on entering the Canadian market.   Things were looking up, but then the global recession hit, which led to a decrease in activity in Canada.

Undaunted, Furbee continued to pursue international deals.  As a graduate of the AIM program, he was aware of the resources offered by VEDP – International Trade to help companies like his increase exports, and in July of 2010, Delta Pure entered the VALET program.  With international sales accounting for approximately 25% of total sales, it was Furbee’s hope to increase international sales by 15% with the help of the VALET program.  Knowing that there was interest for his company’s products in Saudi Arabia, the VEDP group market visit seemed like a natural fit. 

Furbee’s trip to Saudi Arabia proved auspicious, netting the company’s largest single order.  According to Furbee, “the market for water treatment and filtration products in Saudi Arabia is growing tremendously and represents great potential for Delta Pure.  The group market visit provided Delta Pure with contacts and market insights we would have not been able to obtain on our own.  We appreciate the efforts of the Virginia Economic Development Partnership and the confidence they have given us to pursue international sales.”  In addition, Furbee notes, Delta Pure is adding production equipment and personnel to increase their manufacturing capacity at their facility in Ashland.  It seems like Delta Pure, under Furbee’s direction, is well on its way to that 15% increase.  For more information about Delta Pure Filtration, visit http://www.deltapure.com/.

Canada · Delta Pure Filtration · exports · group market visit · international business · manufacturer · Saudi Arabia · VALET program · VEDP · Virginia

We’ve all heard the encouraging phrase “you’ll never know until you try.”  Well for small businesses deciding whether to invest in a visit to a potential new export market, it’s a phrase worth considering.  Consider the case of one VEDP International Trade client, Joanne Buto of Granny Roddy’s (http://www.grannyroddys.net/), a Virginia manufacturer of Irish soda bread mixes.  When Joanne first heard about the services of VEDP International Trade she had never considered exporting.  In fact, she had barely sold her product outside of Virginia.  But after hearing encouraging words from another Virginia food exporter she decided to get in touch with Jenee Andreev, her local VEDP International Trade Manager, and just see what she had to say and what services were available.  “I didn’t know what I was getting into,” Joanne said. 

Within a few weeks of meeting Jenee, Joanne received a VEDP research report, highlighting the five best export markets for her Irish soda bread mixes.  Canada was at the top of the list and VEDP had a group market visit to Eastern Canada scheduled for several months later.  It seemed like the perfect opportunity to take the plunge.  “I had heard such positive comments about VEDP’s group market visits.  Plus it was the right time for me and my business to explore this opportunity.”  After talking with VEDP’s consultant in Toronto, Joanne signed up for the visit and eagerly awaited her opportunity to travel to Canada and meet with distributors and representatives interested in her products.  She admits she was nervous throughout the process, but said that she gained reassurance from the initial research that VEDP provided.  “It was great information and very understandable.  I kept going back to that report and the evidence it showed that there was definitely a market for my bread mixes in Canada.” 

During the group market visit to Toronto and Montreal, the VEDP consultants in Canada filled Joanne’s itinerary with meetings with a wide range of companies and organizations – food brokers, distributors, representatives, industry associations, and labeling specialists.  Joanne learned a lot from those meetings and met with several companies that were interested in carrying her product line.  After the trip she pursued a relationship with one of those.  “The distributor I chose was enthusiastic from the beginning, but he was also willing to move slowly, and that was important to me,” Joanne said.  She sent him samples to share with Canadian retailers and, while it took several months to do so, he eventually contacted her with pre-sales for 300 bread mixes.  Joanne made her first shipment and sales to Canada this October, one year after participating in the group market visit.  “VEDP and other exporters told me it would take a year to see results, and they were right.”

Joanne has been back to Canada to exhibit at a trade show and is committed to making additional trips to show her dedication to the market and serve as the face of the Granny Roddy’s brand.  She relies on her Canadian distributor to continue making contacts with new retailers and to make her products visible, but she partners with him in contacting companies and looks for opportunities to diversify her customer base.  When asked if she would participate in another VEDP group market visit, Joanne says she absolutely would.  “I consider VEDP an important member of my business team now.”  Most recently, Joanne has called upon VEDP to get additional leads for contacts in the food service industry in Canada.  She hopes to export to other markets in the future, but for now is focused on developing her sales in Canada, with plans to look at opportunities in the Western part of the country eventually.  “I’m content to be the turtle when it comes to exporting – slow and steady progress!”

Questions or comments?  Email Stephanie Tignor, VEDP Global Network Manager, at STignor@YesVirginia.org.

Canada · exports · group market visit · international business · international event · manufacturer · trade show · travel · VEDP · Virginia

Traveling to Canada?  Then there are a few things you should be aware of even if you are a seasoned international traveler or travel regularly to Canada.  U.S. passport holders traveling to Canada for business, without a visa, are now being checked more frequently to verify that they possess letters from their U.S. company regarding the company’s or individual’s business while in Canada. 

Although the policies are not new, the enforcement has increased.  Information in the letters should include: length of stay, reason for travel and name, address and phone number of local contact.    

Documents you must have at the Canadian border include:

• A passport or travel document that is valid for your entire stay and guarantees re-entry to your country of origin;
• If applicable, a valid temporary resident visa;
• Letters of support from your parent company and a letter of invitation from the Canadian host company;
• Other documents relevant to the visit, such as warranty or service agreements, contracts, etc.;
• 24-hour contact details of your business host in Canada;
• Proof that you have enough money for both your stay in Canada and your return home.

The Canadians are also particular about letting anyone into their country who has a criminal record, even for minor criminal offenses. You may be turned away at the border.  You have to be officially allowed re-entry by the Canadian government which consists of filing the Application of Criminal Rehabilitation along with a Temporary Work visa. 

A possible work-around is the filing of a Temporary Resident Permit, also known as a TRP.  A Temporary Resident Permit is a Canadian immigration Permit issued by Citizenship and Immigration Canada.  It allows you to enter to Canada as a visitor, worker or student even if you are considered inadmissible to Canada due to a criminal record or certain medical conditions

If you plan to travel to Canada with the VEDP in March, the invitation letter will be supplied by our Canadian consultant.   If you need to travel to Canada and haven’t yet made plans to do so, consider joining up with VEDP on our trip to Vancouver March 7 – 11, 2011.  We’ll take care of the details for you!

For more information regarding the VEDP – International Trade group market visit to Vancouver, Canada, please contact Leslie Parpart at lparpart@yesvirginia.org or your local trade manager.

Canada · international business · passport · travel · VEDP · visa