Why Trade Matters
Trade and the Canadian Economy
NAFTA Has Proven its Value
Stories of the Week - October 14, 2003:
The member countries of the North American Free Trade Agreement (NAFTA) form the world's largest trading bloc, with a gross domestic product (GDP) of US$11.4 trillion, or one third of the world's total GDP.
January 1, 2004, represents an important milestone in trade and economic relations between Canada, the United States and Mexico. This date marks the 10th anniversary of the launch of NAFTA.
Our three countries have enjoyed a burgeoning relationship stemming from their decision to open doors and break down barriers. Markets continue to open up to a freer flow of goods, services and investments, and our economies are becoming more integrated than ever.
Liberalized trade provides advantages for businesses and consumers. Manufacturers in the NAFTA region benefit from a greater supply of inputs at lower prices. The result has been a rise in productivity, strengthening the competitiveness of these manufacturers on global markets.
For consumers in all three countries, NAFTA has provided more choices at competitive prices. Lower tariffs mean that families pay less for the products they buy and have a greater selection of goods and services, which increases their standard of living.
This is a brief overview of the conclusions contained in the preliminary report entitled NAFTA @ 10, available here.
This week's edition of Stories of the Week focuses on Canadian companies that are thriving in the United States and Mexico thanks to NAFTA.
Stories of the Week - October 14, 2003
|
A Solid Footing in Mexico
Baultar Inc., Windsor, Quebec
Baultar Inc. has found a niche for its products in Mexico City's heavily used subway system, where there is a huge demand for resilient floor coverings. And since the implementation of NAFTA, the Quebec-based company of 45 people has been competing successfully for contracts there.
In order to strengthen its position, Baultar decided to transfer its manufacturing and installation expertise to a Mexican company. Thanks to this partnership, the company landed a major contract with the STC (Sistema de Transporte Colectivo) and expects to win another one shortly. Baultar's activities in Mexico are supported by Export Development Canada and Canada's Trade Commissioner Service. "Embassy staff have been particularly helpful," says Pierre Beaupré, Project Manager, "notably by organizing and participating in a high-level meeting where Baultar had the opportunity to present its proposal for the creation of the new Mexican entity."
Baultar has become known worldwide for its public transit and railway products, such as ergonomic seating equipped with safety mechanisms, as well as durable flooring systems that are up to the toughest fire, smoke, toxicity and skidding challenges. The company-which has covered all of Montreal's metro cars-has supplied flooring to transit systems in Vancouver, Toronto, Cleveland, Philadelphia, New York, Baltimore, Singapore, Johannesburg and, soon, Paris.
Web Sites with Sizzle
eggplant interactive,
Regina, Saskatchewan
When it comes to exporting digital services to the global village, there really are no borders to cross. For eggplant interactive, the digital division of the Phoenix Group-one of the largest full-service communications agencies in Saskatchewan-offering its services below the 49th parallel has increased its export sales to 15 percent of revenues. The company, which specializes in creating interactive Web sites and CD-ROMs, currently services clients across Canada and in Atlanta (Georgia), Scottsdale (Arizona) and Boston (Massachusetts). Eggplant interactive hopes to use these localized successes to broaden its client base to other markets in the United States.
Of course, word of mouth has an interesting way of uncovering business opportunities where you least expect them, and the company attributes most of its exporting success to just that. "With the help of our contacts at the Department of Foreign Affairs and International Trade, new networking opportunities have arisen, and they will be key to more business wins south of the border," says Pam Klein, Vice-President of eggplant interactive.
With the intense competitiveness of the interactive and Web services market, eggplant hopes to build upon its success in the U.S. at a manageable pace, while keeping strong domestic sales efforts in place.
Canadian-Designed, Staten Island Ferry Sets Sail
Genoa Design International Ltd., Conception Bay South, Newfoundland and Labrador
A small Newfoundland company has played an important role in the production of New York City's new Staten Island Ferry, the Guy V. Molinari, which was launched on September 20.
Genoa Design International Ltd. provided full design services, including a 3D model of the Molinari-the first of three new vessels which will carry 4,400 passengers and 30 vehicles each daily between Staten Island and Manhattan. A specialist in shipbuilding and offshore production design, Genoa is also a participant in the United States' National Shipbuilding Research Program. The company's diverse projects have included work on an oil tanker and fishing vessel in Florida, the Canadian Coast Guard Buoy-Tending Vessels, and even a replica of the Caravel that is believed to have been sailed to North America by explorer John Cabot in 1497.
By offering its services over the Internet, Genoa has broken down the geographic barriers that have traditionally limited the export of marine designs. This strategic use of the information highway, along with the implementation of NAFTA, has helped position the company as a serious contender for contracts in shipyards across North America. "NAFTA has made exporting to the U.S. market as easy as delivering our services within our own province, even providing additional personal support on-site for extended periods of time," says Leonard Pecore, President of Genoa. "From a sales perspective, this brings us on par with our competitors in the U.S."
Based in Conception Bay South, Genoa Design hires top graduates from Memorial University's Marine Institute-a neighbour and world leader in marine technology training.
Power Under the Hood
VMAC, Nanaimo, British Columbia
In the past five years, sales at VMAC have increased by 480 percent while the number of people on staff has shot up to 60-earning the Nanaimo-based company several accolades, including a 2002 B.C. Export Award. A manufacturer of under-hood air compressors for light to medium duty North American trucks, VMAC was recognized by Profit Magazine as one Canada's fastest growing companies, five years in a row.
VMAC's compressors are essentially portable generators for running air tools, such as jack hammers, rock drills and pavement pounders. "You don't have to tow anything behind you, bolt anything to the deck of your truck or install another engine; all that power lies under your hood, ready to be used," explains Tony Menard, company president.
Seventy percent of VMAC's compressors are sold in the United States. Recently, two of North America's largest fire truck manufacturers-Pierce Manufacturing and WS Darley-incorporated the VMAC VR70 pump into their extinguishing foam systems to mix water with fire-retardant liquid. Thanks to VMAC's technology, much less water is needed to put out the flames, thus reducing the number of vehicles required to respond to an emergency. "With our compressors, one fire truck can basically do the job of four," says Menard, who hopes the upgraded trucks will eventually be adopted by fire brigades across the United States.
VMAC (Vehicle Mounted Air Compressors) recently expanded into Australia and is now looking at export markets in Europe and Latin America.
Back to "Why Trade Matters"
|
