Exporting can offer B.C. businesses an excellent opportunity to grow, selling services and products around the world. With global markets more connected than ever, the potential for expansion has never been brighter. Before jumping into export, however, there are risks to international trade to consider: currency fluctuations, non-payment, political uncertainty and regulatory issues to start. With the right tools and resources, these potential challenges can be mitigated and hazards avoided to make the most of expansion into new markets. 

Here are seven risk management tools you can use to stay protected as you expand beyond B.C.’s borders. 

1. Trade credit insurance 

One of the biggest risks for exporters is not getting paid. Trade credit insurance is designed to protect your business against non-payment when selling goods and services on credit. If a customer doesn’t pay within the timeframe of your credit agreement, you can file a claim with your insurer for payment. 

Export Development Canada (EDC) offers trade credit insurance for Canadian businesses to help derisk taking on new customers in new markets. The coverage can also improve access to financing, as it helps protect your receivables. 

2. Letters of credit (LCs) 

A letter of credit is a secure payment method issued by the buyer’s bank that guarantees the seller will receive payment when the terms of the LC are met, minimizing risk when entering contracts with new customers. LCs can also be used as collateral for working capital loans.  

Most Canadian financial institutions offer LCs and trade finance services to help you handle new international agreements and higher risk markets with more security. 

3. Foreign exchange (FX) hedging  

When you invoice in foreign currencies, your profit margins can be impacted by exchange rate fluctuations. FX hedging tools, like forward contracts, can lock in exchange rates so you can better forecast your revenue.  

Like LCs, most Canadian financial institutions can help you assess your exposure and provide FX services that mitigate the risks that come with dealing in foreign currencies. 

4. Market intelligence and due diligence 

Before entering a new market or signing an agreement with a new overseas customer, you need to do your homework. That includes evaluating the market’s political, economic and regulatory risks and carefully vetting potential new partners. 

Canadian exporters have access to expert support through the Trade Commissioners Service (TCS) and Export Navigator. Both offer excellent tools, advice, reports and resources tailored to you.  

5. Intellectual property protection 

When expanding into new markets, protecting your intellectual property (IP) is critical. IP includes your brand, logo, product designs, trade secrets and innovations – valuable assets that may be at risk when operating internationally. 

Each country has its own IP laws, so registration in Canada does not automatically protect your IP abroad. Before entering a new market, assess the legal framework for trademarks, patents and copyrights in your target countries. This can help you avoid counterfeiting, infringement or brand dilution. 

The Canadian Intellectual Property Office (CIPO) offers tools and resources to help you get started, and Export Navigator can connect you with the support you need. 

6. Political risk insurance (PRI) 

PRI protects against losses from political events such as government interference, civil unrest, expropriation and more. This coverage is especially important for exporters entering emerging or unstable market.  

EDC provides PRI for Canadian companies to help derisk investments that can include high value physical assets, long-term contracts or joint ventures with international partners. 

7. Supply chain and logistics risk management 

The global supply chain comes with risks for your goods. Delays, damage or issues with customs can disrupt your products from arriving, which impacts getting paid.  

To minimize these risks: 

• Partner with trusted Canadian freight forwards and customs brokers.   

• Take advantage of insurance for goods in transit. 

• Learn about the Canadian Export Reporting System (CERS) system. 

• Diversify your supply chain to avoid dependence on one source.  

• Monitor changes to tariffs with our resources. 

• Stay current on geopolitical issues where you’re doing business. 

Your Export Advisor can support you with all the above. Plus, Export Navigator’s Technical Specialist Pilot Program can help. Free of charge, you can access expertise in many areas, including international logistics, freight, shipping, legal and financial services. 

Export with confidence 

A strong risk management plan is more than a safety net – it’s a launchpad. With tools like trade credit insurance, LCs, intellectual property protection and political risk coverage, you can focus on growth and success in global markets.  

Get started by evaluating your risk exposure and accessing expert support from your Export Advisor and Export Navigator. With the right strategy in place, you’re not just managing risk – you’re setting your business onto a smart, safe path to success.  

When you’re exporting products across borders, there are many factors to manage, including shipping, market entry, tariffs and compliance. One factor that can be overlooked but plays an important role in your export success is Country of Origin (COO).  

Let’s examine what COO means and why it matters. 

What is Country of Origin (COO)? 

Country of Origin refers to the country where a product is grown, produced or manufactured. According to the World Trade Organization, a product’s origin is generally defined as the place where it was wholly sourced, or the country where the last substantial transformation of the product occurred. Regulatory authorities and trade bodies determine COO through rules and regulations called Rules of Origin.  

While this seems straightforward, it can get more complex when your product includes ingredients or parts from multiple sources. For example, if you’re manufacturing a product for export, the origin of the ingredients or parts and where the final product is processed, can have an impact on your product’s COO. When determining the COO, there are factors to consider, such as how much of a product comes from a specific jurisdiction, what processes it has undergone and what components are included.  

This is also where trade agreements come into play, as they can offer preferential rules of origin to goods for export. These rules can offer Canadian businesses an advantage because your products could benefit from reduced tariffs or no tariffs at all when exported into markets with trade agreements in place.  

Why COO matters in exports 

If you’re looking to take advantage of trade agreements, you must declare the COO correctly to receive preferential rules of origin. Many international agreements – Canada-United States-Mexico Agreement (CUSMA), Canada-European Union Comprehensive Economic and Trade Agreement (CETA), and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) – allow for preferential access to Canadian goods, but only if they meet specific rules of origin. 

Preferential access can include lower or no tariffs applied on goods, simpler operational set up outside of Canada, reduced border delays and/or easier access to sell in other countries.

If you misidentify your product’s COO, you can miss out on tariff exemptions or run into issues such as penalties or loss of market access. 

Customs and documentation 

COO also plays a crucial role in documentation required by customs. You may have to submit a Certificate of Origin (the legal documents that declare the origin of a product) to prove your products qualify for duty-free or reduced rate entry under a trade agreement. Customs authorities use these certificates to determine what tariffs, if any, apply to your goods and what your customer may have to pay.  

Mistakes, such as mislabeling or failing to provide supporting documentation, can lead to shipping delays, fines or even rejection of products at the border.  

Consumer demand 

At the same time, COO can also be a valuable marketing tool. Many consumers associate certain countries with preferred quality standards.  

According to Agriculture and Agri-Food Canada, market research shows that Canada is seen as “a model country” and foreigners associate Canada with safe, high-quality products.  

Because of Canada’s excellent reputation as a preferred source for well-made, reliable goods, there is a significant opportunity to showcase your products as “Made in Canada” or “Product of Canada.”  

To maximize this, ensure you know target market’s perceptions about Canadian goods. Different countries value Canadian products for a variety of reasons. Learn the consumer preferences in your markets and customize messaging and branding accordingly. 

Learn more about branding with “Made in Canada” and “Product of Canada.” 

Things to note 

Managing COO can be complex, especially if your supply chain involves multiple countries. Here are a few things to do: 

• Track all component or ingredient origins in supply chains. 

• Label products correctly and verify all applicable rules.  

• Keep proper documentation that supports your COO claims. 

The Government of Canada provides excellent resources on Canada’s trade agreements, tariffs, rules and regulations. 

What you should do 

Understanding COO doesn’t have to be hard if you take the right steps.  

• Know the rules of origin for every market you export to and remember they vary by country and trade agreement.  
• Keep good records of your supply chain, sourcing and manufacturing processes.  
• Work with a trade expert, like your Export Advisor, who can guide you through the requirements and help ensure you’re fully compliant.  

Next steps 

Correctly identifying and managing COO can help you access new markets, reduce costs and build trust with international customers.  

Contact Export Navigator to talk to an Export Advisor about how Country of Origin affects your export plans and how to get it right from the start. 

Exporting is a great way for businesses in B.C. to grow with new customers. That said exchange rates can make selling internationally tricky. Exchange rates play a big role in international trade, impacting your pricing and profits. Since currency values can change, it can be difficult to know how to price your product in international markets. In this blog post, we’ll explain how exchange rates can affect your business and share tips on managing these risks as you grow.

How exchange rates affect your business

An exchange rate is the value of one country or region’s currency compared to another.  They can change because factors such as inflation, political conditions, interest rates and recession.

The price of your product or service can be affected as exchange rates change. When the Canadian dollar becomes stronger compared to another currency, your products might cost more for customers in that country.

For example, if you’re exporting clothing to the U.S., a stronger Canadian dollar means American customers need to spend more to buy your goods. Let’s say that in January, $1 CAD equals $0.85 USD. For products worth $100 CAD, your American customer will spend $85 USD. If the exchange rate changes later in the year so that $1 CAD is now equal to $0.90 USD, your American customer is now spending $90.00 USD for the same product. This is important, as relative price increases might reduce sales.

The opposite is also true. A weaker Canadian dollar can make your products less expensive for international buyers, which could increase demand. For example, if $1 CAD drops from $0.85 USD to $0.80 USD, American customers are now only spending $80 for the same item. This can attract more buyers.

Currency changes can affect your cash flow, too. For example, if you sell a product when $100 CAD is equal to $90 USD, yet you don’t get paid until three weeks later, when $100 CAD is only equal to $80 USD, you lose out on $10 USD per sale. This can make it harder to plan for expenses or investments.

How to protect your business

While you can’t control exchange rates, there are things you can do to reduce their impact. It’s important to understand these factors so you can develop a pricing strategy that works. A pricing strategy includes elements such as your market objectives, product costs, demand, competition and of course, exchange rates.

Below are a few tips to help you.

1. Fix your rates ahead of time. Forward contracts are designed to allow businesses to lock in the current exchange rate. This way, no matter what happens to the market, you’ll know exactly how much money you’ll receive. For example, if you sign a forward contract when $1 CAD is equal to $0.80 USD, your product will remain at this rate, even if the exchange rate changes. This lets you to predict costs and revenues better.
2. Spread out the risk. Selling in multiple markets can also help balance out risks. For example, if you do business in the U.S. and Europe, a stronger Euro can balance out any losses from a weaker U.S. dollar. This helps to ensure that your business has consistent income, despite exchange rate changes.
3. Price in Canadian dollars. Where possible, price your products in Canadian dollars. This moves the exchange rate risk to your buyer which gives you with more financial stability. This may not be easy in competitive markets where buyers want to do business in the local currency. If that’s the case, you can explore a flexible pricing model, designed to both protect your business and cater to your customers’ needs.

Resources you can use

There are plenty of resources to help guide your way. Export Development Canada provides tools and products to help you manage foreign exchange, like the Foreign Exchange Facility Guarantee. EDC’s services include solutions such as forward contracts and market insights to help you make good decisions. Many banks also offer business foreign exchange services to help you stay ahead of currency changes.

Exporting is a great way to grow your business, but you need to plan well. Your Export Advisor can connect you with the right resources at the right time so your business can thrive internationally.

Get help

Looking for one-on-one support to understand how exchange rates impact your business? Connect with an Export Advisor to learn more about how they can help you take your business global.

For B.C. businesses looking to expand their reach through export, the “Made in Canada” and “Product of Canada” labels are more than just a branding tool. They are well-known international marks that represents quality, trust and authenticity. 

Why certification matters

Global buyers, as well as those within Canada, actively seek Canadian-made products due to their reputation for high standards, sustainability and safety. To take advantage of this opportunity, you need to comply with labelling requirements to legally market your products as Canadian. 

Whether you’re exporting food, clothing or any number of products, proper certification ensures compliance with trade regulations. It also builds consumer confidence and strengthens your brand in global markets.  

Understanding labelling requirements

The Competition Bureau has specific guidelines for using “Made in Canada” and “Product of Canada” claims. While use of these claims is voluntary, you must follow guidelines to use them. 

The difference between the two comes from whether the product is processed in Canada, or its content originates in Canada. 

Made in Canada: At least 51 per cent of product costs (including materials, labour and overhead) must originate in Canada. As well, the last “substantial transformation” of the product must occur within the country. For foods, using “Made in Canada” also requires a qualifying statement “to indicate that the food product is made in Canada from imported ingredients or a combination of imported and domestic ingredients.” 

Product of Canada: Requires 98 per cent of the product’s materials and production be of Canadian origin. For foods, this means “that all the significant ingredients in a food product are Canadian in origin and that non-Canadian material is negligible.” With foods, using the word “Canadian” is considered the same as “Product of Canada” and the same guidelines apply. 

The Canadian Food Inspection Agency’s Industry Labelling Tool is an excellent resource for food labelling information, including origin claims. 

Each international market interprets these claims differently, so understanding international trade rules is crucial to ensuring your product is correctly positioned. 

How to certify your product

1. First, assess your product’s Canadian content. Determine the percentage of Canadian-sourced materials and components to choose the correct claim of “Made in Canada” or “Product of Canada.” 
2. Evaluate your manufacturing process to ensure it meets the “substantial transformation” rule.  
3. Confirm your compliance with both Canadian and international trade regulations. 

“Substantial transformation” means a significant change of form, appearance or nature where the product is new and/or different from its previous state. For food products, substantial transformation is “when a food undergoes processing which changes its nature and becomes a new product bearing a new name commonly understood by the consumer, (for example, salad, pot pie, sausage, pizza, beer), it is considered to have undergone substantial transformation.”

– Canada Food Inspection Agency

Position your Canadian product

Marketing your Canadian product will determine its success in export markets. There are many ways to increase this significant competitive advantage.  

Highlight your Canadian branding strategically. Many international buyers see Canadian products as safe, reliable and high quality. Capitalize on this with your packaging, advertising and online presence, while being careful with usage of official symbols—including the Canada Wordmark, the Canadian flag and the Maple Leaf.  

Know your target market’s perceptions. Different countries value Canadian products for different reasons. Research consumer preferences in your market and customize messaging and branding accordingly. 

Attend international trade shows to showcase your products with buyers and distributors who are interested in Canadian-made products. CanExport, funded through the Government of Canada, provides grants for travel and trade shows. funded through the Government of Canada, provides grants for travel and trade shows. 

Mitigate any risks

Misuse of “Made in Canada” and “Product of Canada” claims can lead to fines, legal issues and damage to your brand and company. Avoid these issues by ensuring you’re transparent in supply chain documentation. Buyers and regulators may request proof of origin and authenticity. Avoid misleading claims—this could result in product bans and penalties. Stay informed on trade regulations changes that may affect your eligibility for labelling. 

Helpful resources

There are many helpful resources available to support you when navigating Canadian labelling requirements. 

• Competition Bureau – Guidelines on “Made in Canada” claims 

• Canadian Food Inspection Agency (CFIA) – Food product labelling 

• Trade Commissioner Service (TCS) – Export assistance and market entry  

• The Trade Accelerator Program (TAP) – Learning platform for exporters 

• Export Development Canada (EDC) – Financial and risk management solutions 

Connect with Export Navigator

Properly labelling and branding your product as Canadian can help build consumer trust and increase your marketability around the world.  

Need help on what to do next? Find an Advisor to learn more about “Made in Canada” labelling and how it can help grow your global reach. 

When considering international export, choosing the right market is essential. The world is rich with opportunities, but diving into a new market without a plan can lead to more risk than reward. The road to exporting requires the careful consideration of many factors such as demand, competition, route to market, cultural context and geographic location. With the right approach, you can determine where your product or service will thrive.

Evaluate your business

Before you start, take a close look at your business’s export potential. Most entrepreneurs know their business inside and out. When it comes time to start exporting, however, it is important to reflect on where you are now, what you hope to achieve by exporting, and what makes your business unique. 

1. Define your goals. Understand why you want to enter a new market. Do you want to increase revenue? Diversify your customers or increase brand awareness in specific regions? Answering these questions will help you prioritize and make decisions about potential markets.
2. Analyze your offerings. What does your product or service offer the new market? Does it fill a unique need, or capture a new trend? Who are your possible competitors? What is your pricing strategy? Define your unique selling proposition for your prospective export market to understand how you can stand out among your competitors.  
3. Consider your prospective customers. Identifying your target audience is vital for choosing the right export destination. Who are they? How large is the market? Why would they want your product or service? Are you looking for a new customer demographic, or expanding into the same demographic in a new location?
4. Are you ready to export? Think about your capacity to handle an international expansion. Do you have the time and resources to dedicate to this change? When it comes to determining your export readiness, there are a range of considerations, such as funding, shipment logistics, language differences and more. 

Use the PESTEL method

Now that you’ve taken the opportunity to reflect on your business and goals, it’s time to assess target markets with the PESTEL method.  First developed by Harvard professor Francis Aguilar, the PESTEL method can help you think through the external impacts to your business. By looking at the political, economic, social, technological, environmental and legal (PESTEL) forces in your potential export destinations, you can better prepare for the opportunities and challenges in each. 

The Canadian Trade Commissioner Service (TCS) Step-by-Step Guide can guide your research into all of these areas. As well, TCS offers hundreds of market reports, export publications and guides through their MY TCS service.

1. Political. Evaluate the country’s political environment. Look at factors like government stability, trade barriers and international relations. Unstable governments or sudden policy changes may pose risks, while strong international relations can mean an easier market entry. Export Development Canada publishes the Country Risk Quarterly, which can help inform your research.
2. Economic. Review the economic landscape of the export destination, including exchange rates, inflation, income levels and growth rates. Consider the economic conditions over time – countries with robust growth can offer more long-term success. Resources like the Trade Commissioner Service’s Country and Sector Information can help you learn more. 
3. Social. Factors such as population demographics, language, cultural preferences and buying behaviour impact the success of your product or service. Understanding the culture of the market will help you create marketing strategies and branding that appeals to your target customers.
4. Technological. Technology capabilities and capacity vary greatly around the world. Examine the level of technology available in the market you’re interested in. This is especially important if you’re working in the tech space or need technology to support your product or reach your market.
5. Environmental. Consider environmental factors, including regulations and consumer opinions, as well as climate and natural resources. For example, does the region’s climate impact shipping at certain times of the year, or are consumers interested in sustainability? What environmental regulations may impact your exports, such as bans on invasive species?
6. Legal. Every country has unique legal considerations for foreign-owned enterprises. This can include intellectual property, labour regulations, consumer protection, taxation and tariffs. Understanding the regulatory environment is essential for handling compliance and protecting your business interests.

Make a plan

Once you have assessed your internal capacity and the country you want to enter, preparing a market entry strategy (MES) will help you plan how to deliver your product or service into your new international market. A well-planned MES can set your venture up for success and avoid common challenges.

Get help

Need help choosing a market? Connect with an Export Advisor to get tailored, one-on-one advice and learn more about which international markets might be right for you.

Raeanne Anderson has years of experience working in international exports. Whether chasing down freight ships, understanding customs policies or coordinating with multi-national companies, Raeanne has done it all. Now, she brings this expertise to her role as an Export Advisor, helping small business owners navigate the ups-and-downs of global trade. 

Export Navigator: Can you introduce yourself and what you do in your role as an Export Advisor? 

Raeanne: I’m Raeanne Anderson, one of the Export Advisors for the Okanagan. I’m based out of Kelowna, and while many of my clients are based in Kelowna too, I also work with businesses in Oliver, Osoyoos, and Penticton. 

Like other Export Advisors, my work changes day-by-day depending on the business I’m working with and their needs. I encourage businesses to broaden their horizons and diversify their portfolios – one of the ways of doing that is exploring other markets. I spend quite a lot of time helping clients solidify their business plans. Many entrepreneurs have a great idea or recipe that can form the basis for their business, but don’t have a plan and goals to put things into motion. 

We’re an import heavy country, so not many people realize what it takes to get our products off our shores. I help connect entrepreneurs to the resources and partners they need, such as Community Futures BC and WeBC so they can start to understand the commerce side of owning a business. There are many excellent resources that can help entrepreneurs along the way. 

Export Navigator: What kinds of businesses do you mainly work with?

Raeanne: Due to living and working in the Okanagan, many of the businesses I work with are focused on agri-foods. Some clients lean more towards consumer-packaged foods, depending on how they want to promote their company, but these businesses still often have strong ties to agri-food. 

I’ve noticed an uptick in business in the manufacturing space recently, and there are certainly businesses working in the tech realm – whether that’s clean tech, health tech, education tech, or something similar. 

Other businesses almost defy categorization. For example, there are a lot of creative businesses in this region that work in areas ranging from photography to handmade textiles, like hand-spun wool. 

Export Navigator: What is your professional background, and how did that prepare you to work as an Export Advisor?

Raeanne: I went to college in Alberta, where I got a Diploma in Agriculture Business, Rural Entrepreneurship and Small Business Management from Olds College and a Bachelor of Management degree from the University of Lethbridge. 

After completing my degree, I moved overseas to South America, where I lived and worked for about 13 years. My first job was as an export assistant for a dehydrated food company and within a couple of months, I was promoted to export manager.

This started me on my path working in exports, specifically with agrifood products. I learned how to deal with large multi-national organizations, and how to source and vet suppliers, growers, processers, packaging houses, and everything in between. 

By the time we moved back to Canada, I had been working in a role brokering food products internationally for over eight years. At that point, my role shifted slightly to have more of a focus on opening accounts in the Pacific Northwest and developing a supplier base in Mexico.

After a while, I needed to make some changes. I entered the organic certification space working as an organic certification reviewer, and then took another role as the export manager for a company exporting fresh fruit to Asia and Europe. I helped developed a line of B.C.-grown organic apples for large western Canadian retailers, and Costco took them on as their first B.C.-grown organic apples that they ever carried.

This direct export experience supported a very natural transition to my role as an Export Advisor. While my experience was in agri-food, the work of international contracts and logistics is the same no matter which sector you’re working in. 

Export Navigator: What do you look for in a business to determine if they are ready to grow beyond B.C.? 

Raeanne: All my work is very client driven. Many of my clients are not new to the business world, or even the exporting process. Some entrepreneurs come to Export Navigator because they have been successful domestically for five or ten years but are ready to explore international options. Sometimes these experienced exporters may have encountered a hiccup – lost a key staff member or faced issues with customs – and are seeking a solution. 

Other clients are coming straight from farmers’ markets and are starting to explore what it might look like to put their products into grocery stores. 

These businesses are in very different points in their exporting journey, but all are great candidates for working with Export Navigator. 

Export Navigator: How would you describe your advising style/approach to working with clients?

Raeanne: A lot of my work is making sure my clients feel heard. There are a range of unique challenges that small business owners face in B.C., including higher operational costs than their competitors in the U.S. These are real barriers, and it’s important to me that I recognize that in conversations with my clients. 

Many entrepreneurs try to do it all themselves. I encourage business owners to recognize what they bring to the table and find opportunities to bring in other skillsets where needed. It’s okay to ask for help!

I work with clients to make sure they have the most accurate and current information for their business or industry. Some business owners have been around for a while, but an Export Advisor can offer a new lens on a business problem or a new approach to their five-year plan. We explore a range of resources together – whether that’s additional funding, networking opportunities, or grants – to ensure the business has what it needs to scale. 

Export Navigator: Aside from being an Export Advisor, what else do you like to do in your free time? 

Raeanne: I like to get outside and enjoy where I live. I spend time hiking and biking, but also like to relax on the beach or enjoy a glass of Okanagan wine. 

When not outdoors, I love reading non-fiction or simply watching Netflix. 

Being in the Okanagan, we often host friends and family in our home. In this area, you’re pretty much obligated to host people, and that’s almost a hobby all to itself! 

Export Navigator: What’s your best advice for aspiring entrepreneurs? 

Raeanne: I first heard this advice from Shauna Harper at WeBC: “Ask for the money before you need it.” This has stuck with me, as it is very true. Many business owners are intimidated by the process of asking for capital. They’d prefer to pull up their bootstraps and avoid the debt, yet, at the same time, they want to grow. It’s a chicken and egg situation, but the last thing I want is for an entrepreneur to land their dream contract and then not have the funds or resourcing to put things into action. I try my best to guide business owners to the funds they need to support their goals. 

Learn more

Thinking of exporting? Find an Export Advisor in your region today and discover what opportunities are available to you.

Since 2015, the Canada-Korea Free Trade Agreement (CKFTA) has helped Canadian businesses access the South Korean market by streamlining export processes and reducing tariffs on a wide range of goods and services. 

As of January 1, 2024, 99% of Canadian exports benefit from duty-free access into Korea. By 2032, it is anticipated that 99.75% of tariffs will be eliminated on Canadian goods entering the Korean market. Free trade agreements (FTAs) are signed between two or more countries to simplify trade, minimize barriers and reduce costs associated with exporting internationally. While CKFTA was Canada’s first FTA with Asia, Canada participates in 15 different FTAs with countries around the world. 

Demand for ‘Brand Canada’

With CKFTA in place, Canadian exporters have preferential access to one of the most favourable markets in Asia.  Korean consumers view ‘Brand Canada’ very positively, associating Canadian exports with trust and cleanliness. Whether it’s outdoor wear, sports gear or fresh foods, Canadian products are in demand in the South Korean market.

For most Canadian exporters, CKFTA makes selling in Korea very similar to selling within Canada. Business owners won’t have to navigate complicated regulations or account for costly tariff rates. As well, Korea has been identified as a key market to help Canadian businesses grow in the wider Asia-Pacific region, making CKFTA a valuable stepping stone for businesses wanting to grow their customer base. 

To put it into perspective, a Canadian business exporting alcohol to South Korea in 2015 would have had to pay tariffs ranging from 19% – 30%. In 2024, that same Canadian exporter will not pay any tariffs at all. 

As another example, before CKFTA was signed, tariffs on Canadian processed foods averaged at 30% but peaked at 754%. Today, almost all tariffs associated with processed foods have been eliminated under CKFTA.  

Big Benefits for B.C. Businesses

CKFTA is particularly good news for businesses, as British Columbia, and South Korea are key trade partners, exchanging billions of dollars worth of goods and services each year. South Korea is B.C.’s fourth largest trade partner for exported goods, with over $2.1 billion in annual goods exported in 2020, especially in many of B.C.’s key sectors, like fish and seafood, and agri-foods like ice wine and berries. 

CKFTA offers major improvements for service providers too. In 2021, B.C. exported $450 million in service exports to South Korea, including professional services like IT clean energy and transportation and tourism. Usually, jobs in these areas are highly skilled and paid well, creating excellent business opportunities for B.C. service providers. 

CKFTA also makes it easier for Canadians to travel to Korea or relocate for business. CKFTA streamlines access to South Korea with temporary-entry provisions for service providers and their families so they can focus on business growth and development. 

Temporary-entry provisions — policies included in CKFTA help professionals travel or relocate internationally — streamline access to South Korea for service providers and their spouses, so they can focus on other areas of their business. As well, Canadian service providers no longer need to complete economic needs tests, which previously limited international businesses from participating in the Korean market if a domestic business was able to do the same job. 

How to Know if CKFTA is Right for your Business

While CKFTA has made trade simpler and less costly, there are still a few things to consider when determining whether South Korea is the right target market for your business: 

• Understanding Local Tastes: All markets have different interests, tastes and trends. It’s important to analyze whether your product or service aligns with the wants and needs of the Korean market. It can be helpful to engage a local partner to help answer regional or cultural questions. 
• Knowledge of the Korean Domestic Market: South Korea has a thriving domestic industry. While, under CKFTA, Canadian businesses are treated with practically the same privileges as domestic businesses, it’s important to assess whether your business offers something unique, and where it fits into the broader Korean business landscape. 
• Managing Logistics: Though CKFTA simplifies many elements of the exporting process, it’s still important to assess whether your business is prepared to work through the logistics of trade in Asia. This might include transportation and storage of goods, marketing, or creating a business network overseas. 

When planning your export to Korea, you can use tools like the Canada Tariff Finder to confirm which, if any, tariffs apply to your product or services. 

Begin your South Korea Export Journey

Ready to begin exporting to South Korea? Need guidance to understand exactly how CKFTA can make big impacts for your business? We’re here to help. 

Connect with an Export Advisor today to learn more about the resources available to help you grow your business in South Korea. 

Peter Wright spent ten years attracting new businesses to B.C. Now, as an Export Advisor for Export Navigator, he is exploring the other side to the conversation – helping B.C. businesses thrive in international markets.  

Export Navigator: Can you introduce yourself and what you do in your role as an Export Advisor? 

Peter:  My name is Peter Wright, and I’m an Export Advisor for the Lower Mainland.  

As an Export Advisor, my job is to help businesses grow so they can increase their earnings, grow their staff, and reach their goals. I connect business owners to the support they need, whether that’s government contacts, lawyers, accountants, or freight experts.

While my main focus is helping businesses start exporting, I also provide information on grants, tax credits and other resources that can help entrepreneurs overcome economic ups-and-downs, so they can focus on other areas of their business. 

Export Navigator: What kinds of businesses do you mainly work with?

Peter: I tend to see three types of businesses: software, services, and those that manufacture hard goods. In my region, I’d estimate that 85% of my clients are selling manufactured goods. For the most part, my clients have goals to export internationally, as many of them have already distributed across Canada. 

In the Sea to Sky corridor, I’ve noticed there are more and more businesses making products related to outdoor activities, which is an interesting geographic trend. 

Export Navigator: What is your professional background, and how did that prepare you to work as an Export Advisor?

Peter: My background is in policy analysis and investment attraction. Before working with Export Navigator, I spent a decade attracting businesses to B.C. In this role, I attended a range of conferences and trade shows across Canada and internationally. 

My role as an Export Advisor goes hand-in-hand with my experience in investment attraction. While I used to focus on bringing business into B.C., I now help B.C. businesses grow around the world. 

In my previous role, I developed a broad network of contacts who are experts in B.C. business and international markets. I continue to work with those contacts today for insights about export regulations and market trends. 

Export Navigator: What do you look for in a business to determine if they are ready to grow beyond B.C.? 

Peter: There are many things to consider when determining a business’s export readiness. I start by looking at their current earnings and business structure to understand how prepared they are to expand. In the case of manufacturing companies, it’s important to assess whether a business is truly able to increase production to meet the needs of the new market. 

As well as assessing export readiness, it’s essential to explore which target markets are a good fit for the business. I work closely with business owners to understand their export goals and suggest markets that can help drive their business forward. 

My job is to work with clients to look at the current landscape, their export goals, and to identify markets that meet their needs. The last thing I want is for a business owner to encounter strong headwinds in their first attempt at exporting and become discouraged from trying again in a new market that could have worked better for them. 

Export Navigator: How would you describe your advising style/approach to working with clients?

Peter: I take a one-on-one approach. Every business is different, and each business owner has their own story. I don’t want to learn about a business from their website. I’d rather hear directly from the client. I ask a lot of questions to prevent me from making assumptions. 

I tailor my support to what the business owner cares about most. At the end of the day, the client is the most important person, and I want to make sure I support them the best I can.  

Export Navigator: Aside from being an Export Advisor, what else do you like to do in your free time? 

Peter: I spend as much time outside as I can. I enjoy being in the mountains: hiking in the summer, skiing in the winter. I also like to go boating whenever I get the opportunity. 

Export Navigator: What’s your best advice for aspiring entrepreneurs? 

Peter: Don’t get discouraged by everything you read online about exporting. As good of a tool as the internet can be, sometimes it is not your friend. 

Export Navigator exists to demystify the export process and help you find resources that are valuable to you. Even if your business isn’t quite ready for exporting, we can connect you with our partners, like Community Futures BC, to get you the support you need. 

Export Navigator is a free resource – we’re here to help your business grow. 

Learn More

Thinking of exporting? Find an advisor in your region today and discover what opportunities are available to you.

Did you know that British Columbia is home to the second largest number of Indigenous entrepreneurs in Canada?

Recognizing the importance and influence of Indigenous-owned businesses in B.C., Export Navigator hosted Resilient Roots: Indigenous Export Growth in British Columbia, featuring the first-hand experience of entrepreneurs June Anthony-Reeves (Up the Hill at Loakin), Jordan Hocking (Sriracha Revolver) and Nancy and Anthony Wingham (Nuez Acres). The webinar focused on the Indigenous export landscape across the province, highlighting the ways Indigenous entrepreneurs contribute to economic prosperity and cultural preservation. 

On June 21, 2021, as part of the process of reconciliation, the UN Declaration for the Rights of Indigenous Peoples (UN Declaration) came into effect, providing Indigenous Peoples with equal access to economic opportunities and freedom to pursue international trade. In B.C., the UN Declaration led to funding opportunities, business planning support and tools to attract new customers and investments specifically for Indigenous-owned businesses. 

Today, Indigenous-owned businesses are exporting nearly twice as much as other Canadian businesses. While most exports are directed to the United States, more than half also trade with other international markets. 

Indigenous entrepreneurs are starting businesses at nine times the rate of the Canadian average. Shannan Roberts, Export Navigator’s Export Advisor for Indigenous-owned businesses, attests that agrifood, health and wellness, consumer foods, and tourism are the most active sectors amongst her clients, with technology on the rise. 

Indigenous-owned Businesses: Challenges and Opportunities

Whether it’s calculating shipping costs, converting currency or understanding international taxes, exporting always comes with a steep learning curve. Though Indigenous-owned businesses have seen remarkable growth in recent years, they face additional barriers. 

• Cultural Prejudice: Racial discrimination, negative stereotypes and other social challenges can prevent Indigenous entrepreneurs from advancing in the same way as their non-Indigenous counterparts. 
• Language Barriers: More than 70 Indigenous languages are spoken across Canada, and in 2016, almost 13% of respondents reported an Indigenous mother tongue. For Indigenous-owned businesses to participate in national or international markets, they often must operate in English or French, rather than their own language. 
• Remote Locations: According to the 2016 census, 50.3% of Indigenous Peoples in British Columbia live in rural communities or small communities. Remoteness not only makes it difficult to attract skilled employees, but without a reliable infrastructure it can be challenging to send and receive supplies and products.
• Limited Access to Capital: Institutional bias lowers loan approval rates for Indigenous Peoples by more than 30%. 

While Indigenous business owners face a range of social and cultural challenges, there are also many opportunities that make their businesses and products stand out. 

• Indigenous Culture as a Unique Selling Point: Often, Indigenous entrepreneurs ingrain their heritage, and social, environmental and cultural values in their businesses, providing an opportunity to develop a unique selling proposition and stand out in saturated markets.
• Dedicated Customer-Base: Many Indigenous-owned businesses see a high number of return customers. “People buy from an Indigenous business and want to come back and buy it again,” confirmed Jordan Hockin, owner of Sriracha Revolver. 
• E-commerce Opportunities: Virtual sales enable businesses in small communities to overcome geographical limitations and sell to customers all over the world. Over 80% of exporting Indigenous-owned SMEs have online sales. 

Resources for Indigenous-owned Businesses

There are a range of resources available to Indigenous entrepreneurs to start and develop their businesses: 

• The Jay Treaty: Signed in 1794, the Jay Treaty enables Indigenous Peoples born in Canada to freely enter the United States to work. 
• First Citizens Fund: Created in 1969, the First Citizens Fund financially supports Indigenous-owned businesses and Indigenous organizations in B.C.
• Indigenous Financial Institutions (IFI): An alternative to standard financial institutions, IFIs are Indigenous-controlled, community based financial organizations that can support Indigenous Peoples in gaining access to capital and loans. 
• Tale’awtxw Aboriginal Capital Corporation: With a range of support services and business financing options, Tale’awtxw Aboriginal Capital Corporation helps Indigenous-owned businesses in the Coast Salish Traditional Territories succeed. 
• CFDC of CFIN: Business development support for Indigenous People Living in Central B.C.

Indigenous business owners can also benefit from programs and resources that are available for free to all entrepreneurs: 

• Trade Accelerator Program: A comprehensive learning platform designed to support entrepreneurs in their exporting journey.  
• CanExport: Funding opportunities to support business and export growth. 
• Ministry of Jobs, Economic Development and Innovation: Offers a range of support and services for small business owners. 

Begin Exporting Today

Are you an Indigenous business owner hoping to jumpstart your business? Do you already operate an Indigenous-owned business, and feel ready to begin exporting? 

Connect with Export Advisors Shannan Roberts or Denan Kuni today to begin your journey. 

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a free trade agreement between Canada and 10 Asian-Pacific countries. Together, these countries represent 15.6% of global GDP and over 580 million consumers, offering countless ways for Canadians to grow their businesses in Asia. 

Free trade agreements lower trade barriers, making it simpler and less costly to export to participating countries. Free trade agreements are best known for reducing or removing tariffs, costs that are often applied when shipments cross borders.

The CPTPP came into effect in March 2018 between Canada, Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. In July 2023, the United Kingdom signed paperwork to join the CPTPP and will soon be able to participate in the agreement. 

CPTPP eliminates tariffs on 98% of Canadian exports, helping Canadian businesses compete in the Asia-Pacific region. 

CPTPP offers many non-tariff related benefits to small and medium businesses, such as:

• Simplified Rules: Rather than having to understand the trade requirements for multiple countries, CPTPP offers a single set of rules and makes trade information available online for business owners. 
• Minimized Barriers: CPTPP removes the hurdles faced by Canadian businesses, helping to lower the cost of exporting. For example, CPTPP streamlines customs clearance processes and addresses potential challenges with digital trade. 

Benefits for British Columbia

CPTPP is especially good news for businesses in B.C. Key findings of the 2019 CPTPP Tracker Report showed that B.C. was one of the top two provinces exporting to CPTPP markets during the first year of the agreement. Specifically, Mexico is a key trading partner, with B.C. exports to Mexico totaling $179 million in 2022. 

CPTPP helps open new markets for British Columbian businesses by removing tariffs on many of B.C.’s main exports, including: 

• Fish and seafood such as salmon and herring. 

• Agricultural and agri-food products including pork, wine and fruits. 

• Industrial goods like metals and plastics. 

• Forestry and lumber products such as newsprint and uncoated paper. 

Free trade agreements work both ways, so B.C. businesses that need to import products or materials to support their business can also enjoy more competitive pricing and reduced customs delays. 

Making CPTPP Work for Your Business

While CPTPP can help you grow your business in the Asia-Pacific region, reduced tariffs are not automatic. There are a few key steps you can take to make sure your business benefits from CPTPP: 

1. Find the right tariff code: Globally, the harmonized system is used to give products a tariff code. The tariff code helps to identify your product, making sure it is imported correctly. Use the Canada Tariff Finder to find the right code for your product.
2. Understand the tariff rate: The Canada Tariff Finder will explain the tariffs or duties associated with your product.
3. Make sure your product meets rules of origin: Many products are made using resources and materials from all over the world. The rules of origin determine how much of a product must originate in Canada for it to be considered eligible under CPTPP. 
4. Claim reduced tariffs: Make sure you include all relevant tariff information before your product is shipped, so that customs authorities know your product qualifies under CPTPP. 

Identify the Right Trade Agreement for You

Canada has 15 active free trade agreements with countries all over the world; some countries are included in multiple trade agreements with Canada. For example, Chile participates in both CPTPP and the Canada-Chile Free Trade Agreement.  

To get the best value for your business, you can compare tariff rates for your products using the Canada Tariff Finder. Depending on your business’s product or service, some free trade agreements may work better for your business than others. 

The Canada Tariff Finder helps you find the correct tariff code under the right FTA, so your products can enjoy the benefits that the agreement offers. 

Learn More About Exporting to the Asia Pacific Region

Not sure which free trade agreement is best for you? Eager to export but need guidance to begin? 

Export Navigator’s team of experienced advisors can help. Connect today to learn more about the resources available to help you grow your business in the Pacific.

Making the decision to begin exporting is an exciting milestone for any business. That said, a great deal of planning is required to ensure that your exporting journey goes smoothly. 

A Market Entry Strategy (MES) is your business’ plan for how best to deliver your goods or services in a new target market. A winning MES helps set your business up for success and can help avoid common pitfalls in the exporting journey. 

Below are five key tips to consider as you build your MES. 

Tip #1: Research, Research, Research 

Market research is essential to the success of your MES, as it helps you pinpoint your target audience, identify competitors, learn about market trends and understand how all these components impact your export journey.   

Many businesses  begin with secondary market research. Secondary market research involves gathering answers and insight from information collected by someone else. You might also hear this referred to as desk-based research, because you can do it all from the comfort of your computer, making it a low-cost and effective place to begin crafting your MES.

Secondary market research pulls from a range of resources, including websites, reports, surveys, summaries from focus groups or even social media. A market research checklist can help you plan your research, so you know you have the information you need.

Tip #2: Determine How to Get From A to B

A key element of your market entry strategy is just that – determining how to enter the market. 

Referred to as the mode or method of entry, there are a range of different ways to get your products and services to your new customers in your target market:

• With direct exports, you run the show. You are responsible for working directly with your customer base, organizing everything from contracts and marketing to shipping and invoicing. 
• Indirect exports enable you to work with a foreign distributor or representative to market your goods or services. 
• Partnerships offer the opportunity to work closely alongside a local business that aligns with your own. By partnering with another business in your target market, you can share ideas and resources and learn about the local economy.  
• Acquisitions enable you attain or invest in a business in your target market, helping you quickly gain access to a new customer base.  

Tip #3: Stand Out in a Crowded Market

To entice new customers in your target market, you need to know your business’ unique selling proposition (USP). In other words, what makes your goods or services different from all the other goods and services in the market? You can begin to pinpoint your USP by answering a few initial questions: 

1. Who is your target customer? What pricing, marketing, and packaging will resonate with this audience? 
2. Who are your competitors in this market, and how is your product or service unique? 

The answers to these questions will change based on your target market, as your business will have a different USP from one market to the next. 

Once you have a strong understanding of what you offer to your target market, you need to determine whether your business is ready for the ups and downs of exporting. There are many aspects that determine your export readiness, but a few key areas of consideration include: 

• Resourcing: Do you have the staff to support market research, international marketing, additional paperwork and increased production? 
• Funding: Do you have the finances necessary to cover the direct and indirect costs of exporting? It can take time to establish a reliable customer base in a new market, so it’s best to arrange sufficient funding in advance. 
• Product Readiness: Is your product or service ready for the international market, or will you need to adapt to suit the tastes of your new customers? 

Tip #4: Expect The Unexpected

While your business may be well-prepared to tackle the quirks of domestic markets, exporting offers a range of unique things to consider. 

• Environmental differences: If your target market has a different climate than your own, you may need to consider new ways of shipping and storing products to decrease the risk of your product getting damaged. For example, a bag of chips may burst in high altitudes, or a chocolate bar might melt in hot climates. 
• Cultural and geographic differences: Around the world, people have different tastes and preferences. If you export consumable products, you may need to adjust the flavour profile of your product to meet the expectations of your new customers.  

Language differences: Cultural preferences aren’t confined to taste. Before exporting your products, research your business name and logo to ensure there are no unwanted meanings in other languages or cultures. Don’t forget to translate any written content in your packaging or marketing into the preferred language of your target market. Consulting a local translator will help you capture all the cultural nuances. 

Tip #5: Build Your Network

While secondary research is an excellent place to start your MES, you might not be able to find answers to all your questions online. 

By visiting your target market in-person, you can get a clearer sense of what a typical retail space looks like, how products are displayed, how services are marketed, and what type of products are popular. You can also connect directly with your potential customers, getting a clearer sense for their tastes and preferences. 

International travel may not be possible for everyone, but there are still plenty of opportunities to get specialized insights closer to home. Consider attending webinars, networking events or seminars focused on export and international trade in your local community. These events let you hear first-hand where the unexpected challenges in exporting are, and what the benefits could be for your business. 

Start Planning Your Market Entry Today

Unsure which mode of entry is best for your business? Do you have questions about how to update your packaging? Can’t find networking events near you?

Export Navigator has an abundance of resources to help you get the answers and information you need. Reach out to an export advisor today to get started.

With a population of almost 450 million people, the European Union (EU) is a major trading partner for Canada—second only to the United States. The EU is also the world’s largest importer of services, and second largest importer of goods, creating countless business opportunities for Canadians.

To make trade easier, in 2017 Canada and the EU established the Canada-European Union Comprehensive Economic and Trade Agreement (CETA). CETA is a bilateral free trade agreement, meaning an agreement signed between two parties, which minimizes tariffs and other trade barriers. 

What does CETA mean for your business?  

CETA removes tariffs on 98% of Canadian exported goods, helping to make Canadian products more competitive in the EU market. Yet, in the modern world, it can be difficult to determine what is considered ‘Canadian goods’ as most products are created using materials or labour from other countries. 

For example, a watch might be made with Canadian leather, American titanium, and Japanese stainless steel. Rules of origin determine how much production, or how many materials, must occur within Canada for a product to be considered applicable under CETA’s terms, helping to maintain clear and fair business practices. 

Canadian businesses exporting goods that meet CETA’s rules of origin can experience a range of benefits when trading with the EU:  

Market Transparency: Canada and the EU work together under CETA to make trade more predictable, helping to protect small and medium sized enterprises (SMEs), in the international market. 

New Clients: Under CETA, Canadian businesses can bid on opportunities presented by EU governments (local, regional and state), gaining access to a $4.6 trillion market. 

Regulatory Cooperation: All countries have rules that dictate who, what, where, why and how products are made. When importing, shipments must pass regulatory conformity assessments to make sure they follow the importing nation’s rules. Under CETA, regulatory processes are simplified and streamlined. Canada and the EU collaborate to align standards, allowing qualifying shipments to avoid certain regulatory processes. If new regulation is introduced in the future, it will automatically be integrated into CETA, so trade remains open and predictable.  

Removing Non-Tariff Trade Barriers: Tariffs aren’t the only thing that can make international trade challenging. CETA works to streamline customs procedures and other activities at the border, ensuring that Canadian products get into the EU market without delays. 

While CETA presents a range of opportunities when it comes to exporting Canadian products, it also helps businesses in other ways. 

Canadian businesses that rely on imported goods can get the supplies they need from the EU quickly, predictably and without price increases that could be caused by tariffs. Nine out of thirteen provinces and territories have increased imports from the EU since CETA was established. 

CETA for service providers: More than export

Canadian businesses that offer services, rather than physical goods, are also supported under CETA. The agreement not only streamlines shipments of physical goods, but it also provides Canadian business owners with more opportunities to sell services to the EU. This makes it easier for skilled professionals to work in the EU, and with very few exceptions, Canadian services are treated the same as those from the EU. 

By taking the guesswork out of international trade and addressing key challenges that SMEs face when exporting, CETA makes it easier for businesses to seize new opportunities.  

Other opportunities 

If your business plan doesn’t involve export to the EU, rest assured that there are other agreements in place that will help you meet your export goals. 

1. Canada-United Kingdom Trade Continuity Agreement: While the United Kingdom left the European Union in 2016, they are still a significant trade partner for Canada, and this trade agreement keeps many of the main benefits of CETA in place.  
2. Additional Free Trade Agreements: Canada has free trade agreements in place with over 50 countries, offering preferred export opportunities for Canadians worldwide. 
3. Tools for Businesses: Whether you’re ready to export to the EU or have your sights set on other markets, there are tools in place to help set your business up for success. 

Get started today 

By simplifying trade with the EU, CETA helps Canadian businesses succeed in the global market. 

Do you want to take advantage of these opportunities, but aren’t sure where to start? Export Navigator not only offers resources and guides, but also has one-on-one support for your business.

Connect with our export advisors today to learn how to make CETA work with your goals and begin building your EU export strategy.