International Trade Strategy

Table of Contents

• Overview
• Objectives
• Strategy
• Target Markets
• Partners / Support

Overview

The Canadian aerospace and defence industries have experienced tremendous growth in the last twenty-five years. This is demonstrated by the fact that sales have more than doubled since 1993. In 2000, sales of Canadian Aerospace and Defence products reached $23.2 billion and are projected to continue to grow. Canadian companies are recognized internationally for their outstanding capabilities in turboprop aircraft, civil helicopters, small gas turbine engines, flight simulators, landing gear, aftermarket (includes maintenance, repair, and overhaul activities) services, light armoured vehicles, and security products.

The aerospace and defence industries continue to be an important element of the Canadian economy. The industries are composed of approximately 700 firms employing almost 83,000 Canadians in quality, knowledge based jobs throughout various regions of the country. The industries also promote an environment favourable for innovative world-class research and development in Canadian post-secondary institutions.

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Objectives

The Canadian aerospace and defence industries are globally competitive. In 2001, 76% of Canada's $23.2 billion of aerospace and defence sales were exported, generating a trade surplus of $3.6 billion.

In order to continue promoting this growth, TTC-A&D; has the following objectives:

• Facilitate increased amounts of trade by improving market access policies, supporting partnering activities, and encouraging networking opportunities that result in increased sales and export capabilities for Canadian aerospace and defence companies.

• Position Canadian firms to be suppliers for programs managed by major systems integrators. Opportunities include, but are not limited to: the Airbus A380 and the A340‑500/600, the new Boeing Sonic cruiser and Unmanned Combat Aerial Vehicle and modifications to Boeing's existing fleet.

• Continue to position Canadian firms as qualified sub-contractors to major system integrators to Lockheed Martin and its partners for opportunities on the Joint Strike Fighter (JSF) program.

• Explore the possibility of new opportunities for Canadian firms in Asia, Europe and Latin America.

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Strategy

In order to achieve its objectives of increasing sales, improving market share, positioning Canadian firms, and exploring new opportunities, TTC-A&D; will use four different initiatives:

• International Marketing Initiatives, such as market intelligence programs, trade missions, trade shows, workshops and conferences, which actively support industry's ability to identify new markets or opportunities.

• Structural Initiatives that will provide Canadian firms with support for marketing activities. This includes capability directories and databases.

• Market Access, Policy, and Legislation Initiatives which will ensure a trade environment conducive to the international marketing efforts of Canadian firms. Such initiatives include resolving outstanding International Tariffs and Arms Regulations (ITARs) issues with the United States, complying with recent World Trade Organization (WTO) rulings, providing advice on government and export financing policies while effectively representing Canadian commercial interests, and developing risk sharing mechanisms that are consistent with international obligations.

• Supplier Development Initiatives aimed at developing clusters of capabilities, which can be marketed as establish centres of excellence, with the international credibility and financial strength needed to be positioned as first‑level suppliers on new programs.

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Target Markets 

The majority of TTC-A&D;'s resources will be directed towards the United States and Europe, which are the largest markets for aerospace and defence products. However, we will also be exploring the possibilities of opportunities for Canadian firms in non-traditional markets such as Asia for aerospace products and Latin America for security products.

Identification of these target markets is a result of intelligence gathered by TTC-A&D; through continual consultations with industry.

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Partners / Support

For international trade activities, the aerospace and defence sector has a comprehensive mechanism in place, primarily through TTC-A&D.; Industry Canada/AAB provide Secretariat services to the TTC-A&D.; Its members are drawn from both the public and the private sectors, including: aerospace and defence companies, industry associations (AAA, AFCEA, AIABC, AIAC, ADIANS, AQA, CDIA, MAA, OAC), provincial governments (Newfoundland and Labrador, Nova Scotia, Prince Edward Island, New Brunswick, Quebec, Ontario, Manitoba, Saskatchewan, Alberta, British Columbia), International Trade Canada, and other government departments and agencies such as the Canadian Commercial Corporation and Export Development Canada.

Through regular meetings and constant communication efforts, the Canadian government and industry seek to co-ordinate ongoing activities and new initiatives to attain commercial objectives in an effective and cost efficient manner

October 16, 2002