Trade in Services
Virtual Consultations with Services Exporters
GATS - Virtual Consultations Survey Results
Mini-Survey #1 (June 29,2000)
Thank you for responding to the first GATS mini-survey. A summary of the responses received from service providers across Canada is provided below. In some instances, companies provided specific comments on challenges faced while obtaining visas or work permits. This information will be forwarded to the Canadian trade officials responsible for these specific GATS issues.
First, regarding entry visas: 21% of firms reported that, once they had a contract in a foreign country, staff did have difficulties getting entry visas to enter the export market. Those having difficulties were primarily professional staff (28%), followed by executives (19%), technical support staff (19%), and then specialized personnel (19%). This is interesting to us because many assume that it is the matter of lack of credentials that creates a problem. Two-thirds of the problems reported were with the U.S. Of those who did experience difficulty, half were not sure why there were difficulties, while one-quarter indicated that their documentation was inadequate and another quarter indicated that there were local restrictions on entry due to occupation.
Second, regarding work permits: Again 21% of firms reported that, once they had a contract in a foreign country, staff then had difficulties getting work permits for that export market. Again the group having the most trouble were professionals (29%), followed by specialized personnel 22%)and technical support staff (22%), and then executives (15%) and managers(12%).
Note: If your firm is experiencing difficulties in getting entry visas or work permits for the U.S., please refer to the DFAIT website on Cross-Border Movement of Business Persons and the NAFTA: http://www.dfait-maeci.gc.ca/nafta-alena/cross-e.asp
If you firm is experiencing difficulties getting entry visas or work permits for countries other than the U.S., please refer to theTrade Commissioner in that country. The Directory of the Canadian Trade Commissioner Service can be accessed at:
http://www.infoexport.gc.ca/menu-e.asp.
Mini-Survey #2 (July 18, 2000)
Thank you for responding to the second GATS mini-survey. A summary of the responses received from service providers across Canada is provided below.
Generally, firms indicated that they usually send between 1-5 persons abroad each year. This number was fairly constant, notwithstanding the size of the firm. In other words, large firms generally send between 1-5 employees abroad, as do small and medium size firms. As well, the figures indicated that only a small percentage of firms sent more than 25 persons abroad per year.
Figures indicated that small firms make fewer trips abroad than larger firms (the majority indicated 1-7 a year), although a small percentage of these firms did make more than 36 trips abroad. Generally though, medium/larger companies travelled more often.
The main reasons for temporary business travel by services exporters were as follows: meeting with potential clients or partners(26%), speaking or attending a conference or seminar (22%), delivering a service to clients (19%), reporting to clients on contractual work (13%), performing after-sales service (12%), or setting up a local office (4%). The balance of businesses indicated that they travelled abroad for other reasons (4%) or did not travel abroad at all (2%). This would seen to indicate that face-to-face contact with clients, partners, and prospective clients, etc. is an important aspect of successfully exporting services. The short-term entry of services exporters into foreign markets is apparently key to promoting business activities abroad.
Over half of the firms that responded to survey #2 have been exporting their services for over 5 years, a third for less than 5 years, while 8% have not yet exported their services.
60% of the firms that responded indicated that they directly or indirectly exported services to 5 markets or less, while 12 % exported to between 11-25 markets and only 6% to 26-50+ markets. These figures seem to indicate that most firms export their services to a small number of foreign markets. We will do some further analysis to relate the size of firm to the number of foreign markets.
If you are new to exporting, you may find useful material at http://exportsource.gc.ca.
If you are a woman business owner, there are also additional resources at the Businesswomen in Trade website
Mini-Survey #3 (August 3, 2000)
Thank you for responding to the third GATS mini-survey. A summary of the responses received from service providers across Canada is provided below.
Nearly 49% of firms report that it is not very easy to learn about relevant domestic regulations in an export market and 6% say it is almost impossible. Those that had difficulties mainly use the following sources: local colleagues, partners, or customers (22%), followed by trial and error (12%), Canadian Trade Officer in the market (11%), articles or seminars about regulations in the export market (10%), industry associations in the export market (10%), word of mouth (10%), DFAIT website information on the export market (9%), the national website of the export market (9%) and other (5%).
If your firm is having difficulty learning about relevant domestic regulations, your best sources of information would be http://www.infoexport.gc.ca/menu-e.asp , the Market Support Division and the Trade Commissioner in the particular market (see http://www.infoexport.gc.ca/menu-e.asp for the Directory of the Trade Commissioner Service).
74% of firms report that they encounter some "buy-local" requirements when they do business abroad or bid on foreign contracts. Of those firms 50% say that they face such requirements all the time or frequently. They usually handle such requirements by working with a local partner in the export market (44%), hiring local staff in the export market (16%) and not bidding on contracts with "buy-local" requirements (15%).
If your firm is facing "buy-local"requirements, you may want to consider working with a local partner or requesting assistance from the Trade Commissioner in that market see (http://www.infoexport.gc.ca/menu-e.asp, for the Directory of the Trade Commissioner Service).
Firms also report encountering other types of regulatory constraints such as long delays in getting required authorizations (19%), followed by government authorization required in order to deliver specific services (18%), other (18%), requirements to have some local ownership (15%), licensing requirements or fees that are more stringent for foreign firms than for local firms (10%), technical standards that are unnecessarily stringent or complicated (9%) and arbitrary rulings without recourse to review procedures (8%).
Again your Trade Commissioner is your best source of assistance with market-specific issues (see http://www.infoexport.gc.ca/menu-e.asp, for the Directory of the Trade Commissioner Service). You can also report trade and investment barriers at the following website: doorsworld/form-en.asp
|
