Why Trade Matters
Success Stories
Canadian Companies Well Positioned in Brazil, South America's Emerging Market
Brazil is on Canada's radar screen. As South America's economic and demographic giant and a gateway to MERCOSUR, the country has captured the attention of business competitors from around the world.
And Canada is taking action. International Trade Minister Jim Peterson is leading his first trade mission to Brazil from November 21 to 25. With more than 50 Canadian businesses in attendance, this mission is targeting the expansion of Canadian trade and investment and the strengthening of business contacts in São Paulo and Rio de Janeiro, launch hubs for commerce in the region.
Brazil offers significant opportunities in sectors where Canadian businesses excel, including energy, oil and gas, mining, information technologies, telecommunications, transportation, financial services, biotechnology, agriculture, environment, and pulp and paper. Canada's direct investments in Brazil increased by 280% over the past 10 years, reaching $7.6 billion in 2003.
Of several hundred Canadian companies that are active in Brazil, more than 100 have offices in the country, including such major corporations as Alcan, Apotex, Bank of Montreal, Brascan, CAE, Celestica, Encana, Golder and Associates, Molson, NEXEN, Nortel, Quebecor World, and Scotiabank, to name just a few. Canadian firms in Brazil employ an estimated 11,000 Brazilians, creating new jobs in this rapidly growing economy.
Canada is working with Brazil on strengthening cooperation in science and technology with a focus on innovation, aquaculture, space technology, biotechnology and sustainable energy. Canada is also pursuing work with Brazil regarding cooperation, under the Kyoto Protocol, on clean development mechanisms.
This issue of Success Stories features Canadian companies that are riding Brazil's new wave of prosperity.
Securing Mobility in Brazil
Diversinet Corp., Toronto, Ontario
In late 2003, Diversinet Corp. extended its reach in South America by signing on New York-based Consist Inc. as an exclusive agent-of-record to market Diversinet's secure mobile telecommunications solutions in Brazil and Argentina. In addition to engaging blue-chip banking, telecom and government sectors across South America's two largest economies, Diversinet and Consist will establish an application service provider (ASP) channel (a means of delivering powerful computer and communications systems over networks to less-powerful local computers), enabling smaller firms and local municipalities to access wireless security and identity-management solutions.
"Brazil is a huge market, ripe for offering new mobile telecommunications services, and the foundation for these services requires a secure infrastructure," says Nagy Moustafa, President and Chief Executive Officer of Diversinet. "Our strategy is to work with strong channel partners such as Consist to quickly establish a leadership presence in Brazil, Argentina and other growing markets for wireless security."
Another booming market for Diversinet is China, a country that is experiencing explosive growth in the mobile phone market. In August 2004, Diversinet formed a strategic alliance with CPCNet of Hong Kong to offer Diversinet's suite of Passport Trust Platform security solutions to government agencies, state-run lottery programs, suppliers of interactive on-line games and other potential end customers throughout China.
Headquartered in Toronto, Diversinet has offices in Boston, Massachusetts; Fremont, California; and Hong Kong, China.
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Industrial Solutions for the Worldwide Marketplace
GL&V;, Trois-Rivières, Quebec
Since its humble beginnings in the pulp and paper industry in 1975, GL&V;, (Groupe Laperrière & Verreault Inc.) has become a globally recognized provider of diverse industrial solutions for the pulp and paper sector as well mining, environment and other areas. With a roster of 1,400 employees worldwide, the Quebec company has manufacturing facilities across North America.
GL&V; has recently undertaken two large-scale projects in Brazil. In the summer of 2004, its process group, Dorr-Oliver Eimco, was awarded an $8 million contract to deliver equipment to a new iron ore mine in April 2005, as well as a contract valued at $11.4 million to provide a series of thickeners and filters for a major alumina refinery in the Amazon region. "The firming-up of prices for most base and precious metals has led to a sharp increase in capital investments by the mining industry all around the world, and we are well positioned to take advantage of this trend through our international network," says Richard Verreault, GL&V;'s Executive Vice President and Chief Operating Officer.
GL&V; has an office in Sao Paulo that oversees sales in Brazil and other Latin American countries and provides technical assistance and spare parts to pulp and paper manufacturing facilities throughout the region.
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Watching Brazil's Trucks From the Sky
SkyWave Mobile Communications,
Ottawa, Ontario
An up-and-coming Ottawa company is helping to make transport fleet operations in Brazil safer and more efficient. SkyWave Mobile Communications' satellite technology is being used to communicate with thousands of trucks in that country, determine their location and, if necessary, remotely immobilize them.
SkyWave manufactures the Inmarsat D+ satellite terminal and provides global asset tracking, monitoring and control services over land and at sea. Its Brazilian partner, Jabur Pneus Rastreamento de Veículos Ltda (JaburSat), a supplier of vehicle location systems and mapping services, relies on SkyWave's DMR200 D terminal and network to monitor a huge fleet of trucks on South American roadways. JaburSat's Web-based application includes advanced security features that can detect theft. "If a vehicle is stolen, the JaburSat mapping solution can immediately locate it," explains Brent Winsor, Skywave's Marketing Manager. "A command is then sent over the air via our satellite terminals to immobilize the truck and facilitate its recovery."
SkyWave's technology is used in the marine, land mobile, manufacturing automation,
government and defence sectors and is deployed in some of the world's most rugged environments. To date, the company of 28 people has sold more than 38,000 units through a global network of solution providers.
Canadian Audit Software for Brazilian Banks
ACL Services Ltd., Vancouver, British Columbia
Year after year, software developed by ACL Services Ltd. is rated the preferred audit-specific tool for data analysis and extraction, fraud detection, and continuous monitoring by The Institute of Internal Auditors (IIA)—a Florida-based advocate for the international internal audit profession.
ACL software is delivered in multiple languages in 135 countries to more than 170,000 licensed users. For the last eight years, ACL's solutions have been used to assist in the auditing of financial accounts in Brazilian federal, provincial and municipal government departments and agencies. Its Brazilian clients also include the country's largest financial institutions, such as Bradesco, Itau, Unibanco, Banco do Brasil and Banco Central do Brasil; automotive industry leaders Volkswagen, Ford and General Motors; as well as telecommunications giants Alcatel, Brasil Telecom, Telefonica and Vivo. In the retail sector, ACL has saved millions of dollars for companies such as Carrefour & Sonae Distribuição. "Thanks to our technology, the audit department was able to continuously monitor the occurrence of stalled inventory and effectively reduce it by half, thus improving merchandise turnover rates and reducing payment time to suppliers," explains Sabino Ramos, ACL's Manager for Latin America.
With a global network of offices and channel distribution partners, ACL's international customer base includes 90 of the Fortune 100 companies, over half of the Global 500, the Big Four public accounting firms, and hundreds of national, state, and local governments. The company has a European sales office in Belgium.
International Odour Busters
Ecolo Odor Control Systems Worldwide, Toronto, Ontario
Ecolo Odor Control Systems Worldwide—the world's largest exclusive manufacturer of odour-control equipment—is joining the upcoming Canada trade mission to Brazil. The Ontario Global Traders' Award winning company of 25 people exports more than half of its products to some 40 countries.
A veteran of three Team Canada trade missions, Ian Howard, Ecolo's Vice-President, recognizes the impact they have had on the company's exporting success. The way he sees it, the trips helped the company gain insights into international markets, while providing an excellent climate in which to reach agreements in Latin America and in South and Southeast Asia. "The presence of senior Canadian politicians created a sense of urgency to get down to business," Howard says. "It also opened many doors with local government officials that otherwise would have been very difficult for us to open on our own."
Besides seeking out new clients for its products, Ecolo will take advantage of the high-profile mission to explore opportunities for its existing distributor in Brazil to meet potential sub-distributors.
Broadband Wireless Networks for Brazil
Redline Communications, Markham, Ontario
An award-winning designer and manufacturer of standards-based, broadband wireless equipment, Redline Communications has more than 10,000 installations in 75 countries. The Markham-based firm is a principal member of the WiMAX Forum™, a group of industry leaders committed to the compatibility and interoperability of all products used for broadband wireless access.
Redline, which has a global distribution network of more than 80 partners, bolstered its presence in Brazil this year by teaming up with Brightstar Corporation (SIMM do Brazil), a provider of value-added distribution services to the wireless industry. The two partners are currently deploying 14 wireless links to connect the bank agencies of a major Brazilian financial institution and also plan to offer and support WiMAX Certified products once they become available. Other potential sectors for Redline's products in the region include oil and gas, government and Wireless Internet Service Providers (WISP). "Our main objective is to become the first wireless provider in the market for non license solutions," says Carlos A. Salas, Redline's Sales Director.
Redline's equipment played a critical role during the hurricanes that battered Florida and Alabama this summer. In several school districts deploying Redline's technology, broadband wireless was the first critical communications link to be restored. In many areas, this was well before traffic lights, telecommunications systems and cellular networks came back online. Most recently, Redline's products were selected for the installation of the United Kingdom's first WiMax network, in south-east England.
In recognition of its valuable contribution to the WISP industry, Redline took home the President's Choice Award, one of the highest honours conferred at the WISPCON VI conference in Las Vegas in October, 2004.
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