EXPORTING TO CANADA: A GUIDE TO ENVIRONMENTAL REGULATIONS, STANDARDS, AND OPPORTUNITIES

The relationship between the environment and international trade is complex and multifaceted. The impacts of international trade on the environment have long been debated. Increased trade can cause environmental degradation if resources are unwisely exploited and pollution and waste are not well managed. However, international trade can also have positive environmental impacts, as green goods, technologies, and services may become more accessible and affordable.

Global competition may also encourage businesses to become more efficient and produce less pollution and waste. The other side of the coin—the influence of the environment on international trade—is less commonly discussed. This guide intends to contribute to this discussion by highlighting the environment–trade interface from the Canada-Ukraine Trade and Investment Support (CUTIS) project experiences promoting Ukrainian small and medium-sized enterprise (SME) exports to Canada.

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The first part of the guide will discuss Canadian federal environmental regulations and standards that affect trade. Several key voluntary environmental standards that influence some Canadian market segments will also be discussed. Note that this guide does not cover provincial regulations.

The second part of the guide discusses various environmental improvement measures and opportunities that can be pursued to increase enterprise competitiveness and/or improve market access. These include measures to use resources (such as raw materials, water, and energy) more efficiently, switch to energy-efficient equipment, obtain market-driven environmental certifications, and/or pursue green market opportunities. CUTIS’s SME case studies are highlighted.

TARGET COMMODITIES AND SERVICES FOR EXPORT PROMOTION TO CANADA WITHIN THE EXPORT STRATEGY OF UKRAINE – REPORT

The experts of the Ministry of Economic Development, Trade and Agriculture of Ukraine, the SE “Ukrainian Industry Expertise”, Export Promotion Office (EPO) in partnership with the Canada-Ukraine Trade and Investment Support Project (CUTIS) conducted a report “Target commodities and services for export promotion to Canada within the Export Strategy of Ukraine”.

The export strategy of Ukraine (“road map” of strategic trade development) for 2017-2021 years, approved in 2017, includes the following priority sectors of export development: information and communication technologies, creative industries, tourism, aircraft maintenance and repair, mechanical engineering, food industry. In addition, the strategy identifies 21 priority export markets, including the Canadian market.

The current report aimed to determine the priorities of Ukrainian exports to Canada within the Export Strategy of Ukraine, as well as to develop and test a methodology for determining the priorities of Ukrainian exports for other priority markets.

Download the report (in Ukrainian).

The study was divided into two parts. The first one is focused on the selection of most promising commodities and services of Ukrainian exports to Canada within the framework of Ukraine’s Export Strategy.

356 commodities (food and machinery industries) were analyzed, resulting in the selection of 18 target groups.

Besides, the following target services for export promotion from Ukraine to Canada were analyzed: ICT (Computer services) and Creative industries (R&D, Professional and management consulting services, Technical, trade-related, and other business services, Audiovisual and related services, Other personal, cultural, and recreational services).

In the second part, comparative analysis and rating of target commodities and services were carried out.

As a result of the study, the following priorities for export promotion were selected:

Food Industry:

  • Fruits and nuts, frozen;
  • Tomatoes prepared or preserved;
  • Sugar Confectionery;
  • Vegetables, fruit, nuts, prepared or preserved;
  • Chocolate.

Machinery:

  • Articles of Carbon or Graphite Used For Electrical Purposes;
  • Non-Electric Radiators, Air Heaters;
  • Electric Domestic Heating Apparatus;
  • Household or laundry-type washing machines.

Services:

  • Computer services;
  • Technical, trade-related, and other business services;
  • Professional and management consulting services.

As the next step, the Ministry of Economic Development, Trade and Agriculture of Ukraine plans to develop and approve the Strategic Plan of export promotion to Canada and apply this methodology to select export promotion priorities and develop strategic plans for other markets in focus.

EPO is ready to use research results for preparing trade missions to Canada and provide consultations to Ukrainian businesses interested in exporting to Canada.

STEP-BY-STEP GUIDE ON EXPORTING ICT SERVICES TO CANADA

The CUTIS project with the support of the Ministry of Economic Development, Trade and Agriculture and the Export Promotion Office has developed the  “I Can Export: How to export information and communication technology (ICT) services to Canada” export guide.

The main goal is to help Ukrainian small and medium footwear enterprises to enter the Canadian market.

Few interesting facts about the Canadian shoe market:

The Greater Toronto Area is considered to be one of the world’s main high-tech hubs rated next to the Silicon Valley of California, Boston, Seattle and Washington in the United States.

In 2017, Canada imported $ 4.8 billion in IT services.

There is a growing demand for IT professionals in the Canadian market. Approximately 216,000 new jobs will be created in the sector by the end of the year 2021. Due to immigration and the involvement of students from Canadian universities, the country will be able to meet only 30% of these needs.

Thus, the conclusion is obvious: Canadian companies will look for opportunities to attract foreign professionals and companies. And this is an excellent chance for Ukraine!

To FREE download the export guide (in Ukrainian) please follow the link.

GENDER-BASED ANALYSIS OF THE EXPORT CHALLENGES OF UKRAINIAN SMES – SECTORAL REPORTS

The Canada-Ukraine Trade & Investment Support (CUTIS) project presented the sectoral report ‘Visible and Invisible Barriers: a Gender-Based Analysis (GBA) of the Export Challenges of Ukrainian micro, small and medium enterprises (MSMEs)’

The main objective of the report was to provide useful policy recommendations to stakeholders on how to lower gender-based barriers to trade for women-owned and women-managed MSMEs in five target industries – apparel, footwear, furniture, confectionery, and IT services.

A gender-based analysis was used to examine the key issues facing men and women MSME owners and top managers as they engage in international trade.

The GBA was conducted by a team of academics at the Centre for Social Indicators associated with the Kyiv International Institute of Sociology (KIIS).

The sectoral GBA reports also include recommendations for public and private stakeholders to overcome gender-related barriers. It is our hope that these recommendations spark further discussion and action to bring about a more level playing field for men and women in international trade.

You can free download the following reports:

Visible and invisible barriers in the apparel industry: A gender-based analysis of the export challenges of Ukrainian MSMMEs

Visible and invisible barriers in the footwear industry: A gender-based analysis of the export challenges of Ukrainian MSMMEs

Visible and invisible barriers in the confectionery industry: A gender-based analysis of the export challenges of Ukrainian MSMMEs

Visible and invisible barriers in the furniture industry: A gender-based analysis of the export challenges of Ukrainian MSMMEs

Visible and invisible barriers in the IT industry: A gender-based analysis of the export challenges of Ukrainian MSMMEs

STEP-BY-STEP GUIDE ON EXPORTING FURNITURE TO CANADA I CAN EXPORT

The CUTIS project with the support of the Ministry of Economic Development, Trade and Agriculture of Ukraine and the Export Promotion Office of Ukraine has developed the “I CAN EXPORT. How to Export Furniture to Canada” export guide.

The main goal is to help Ukrainian small and medium furniture enterprises to enter the Canadian market.

Few interesting facts about the Canadian furniture market:

  1. The total volume of furniture sales in the Canadian market in 2018 amounted to CAD 38.3 billion, in particular, home furniture (CAD 31.3 billion), home textiles (CAD 1.4 billion) and outdoor furniture (CAD 1.1 billion).
  2. It is expected that by 2023 the total volume of furniture sales will reach CAD 46.6 billion.
  3. In 2018, Canadian consumers spent on furniture averaged CAD 1033 per person or CAD 2642 per household.
  4. It is expected that by 2023 Canadian consumers will spend on furniture CAD 1201 per person or CAD 3066 per household.
  5. In 2018, Canada’s total imports amounted to CAD 3.8 billion, and exports – to CAD 3.6 billion.

To FREE download the export guide please follow the link.

STEP-BY-STEP GUIDE ON EXPORTING FOOTWEAR TO CANADA I CAN EXPORT

The CUTIS project with the support of the Ministry of Economic Development, Trade and Agriculture and the Export Promotion Office has developed the “I CAN EXPORT. How to Export Footwear to Canada” export guide.

The main goal is to help Ukrainian small and medium footwear enterprises to enter the Canadian market.

Few interesting facts about the Canadian shoe market:

  1. Canadian consumers spent CAD 7.8 billion on shoes, in particular, CAD 3.7 billion on women’s shoes, CAD 3.1 billion on men’s and CAD 1 billion on children’s shoes. In 2018, shoe sales in the Canadian market have increased by 3.7% in value.
  2. Canada is one of the biggest footwear consumers per capita in the world. In 2018, footwear sales reached 178 million pairs.
  3. By 2023, total footwear sales will reach CAD 9.5 billion.
  4. Sales of man’s footwear will grow faster than other categories. The reason is the increase of men’s interest in fashion trends, especially among young people, as well as the liberalization of the office dress code.
  5. Canadian consumers spend on shoes on average CAD 212 per person or CAD 541 per household. It is expected that by 2023 Canadians will increase their spending on footwear to CAD 246 per person or CAD 541 per household.

To FREE download the export guide please follow the link.

STEP-BY-STEP GUIDE ON EXPORTING APPAREL TO CANADA I CAN EXPORT

The CUTIS project with the support of the Ministry of Economic Development, Trade and Agriculture and the Export Promotion Office has developed the I CAN EXPORT. How to Export Apparel to Canada” export guide.

The main goal is to help Ukrainian small and medium clothing enterprises to enter the Canadian market.

Few interesting facts about the Canadian apparel market:

  1. In 2018, Canadians spent CAD 36 billion on clothing. In particular, CAD 18 billion on women’s clothing and about CAD 11 billion on men’s clothing.
  2. In 2018, apparel sales volume in the Canadian market has increased by 3.2%.
  3. Sales of women’s designer clothes are much higher than men’s.
  4. By 2023, the total sales of clothing will reach CAD 43 billion, with an average annual growth rate of 3.4%. At the same time, sales of hosiery will increase faster than any other category.
  5. Sales of hosiery will grow faster than other apparel categories, an average of 4.2% per year as a result of premiumization of the clothing market.

To FREE download the export guide please follow the link 

STEP-BY-STEP GUIDE ON EXPORTING CONFECTIONERY TO CANADA I CAN EXPORT

In 2018, Ukrainian agricultural exports to Canada was valued at USD 9.9 million, while in 2016 it was only USD 4.9 million.

Ukrainian producers have substantially expanded the exports of agri-food products, in particular:

  • juices – $ 5.7 million (↑ 140%)
  • chocolate – $ 330 thousand (↑ 40%)
  • sugar confectionery – $ 160 thousand (↑ 32%)
  • water with sugar – $ 260 thousand (↑ 50%)

The increase of Ukrainian exports indicates that many businesses are already using the benefits of the Canada-Ukraine Free Trade Agreement which came into force on August 1, 2017.

The CUTIS project with the support of the Ministry of Economic Development, Trade and Agriculture and the Export Promotion Office has developed the “I CAN EXPORT. How to Export Confectionery to Canada” export guide.

The main goal is to help Ukrainian small and medium confectionery enterprises to enter the Canadian market.

Few interesting facts about the Canadian confectionery market:

  1. The total volume of confectionery sales in the Canadian market in 2018 amounted to CAD 4.5 billion.
  2. In 2018, the value of confectionery sales in Canada has increased by almost 2.5%.
  3. By 2023, the total value of confectionery sales is expected to reach CAD 5.4 billion, with an average annual growth rate of 3.5%.
  4. In 2018, Canadian consumers annual spent CAD 123 per person on confectionery or CAD 314 per household.
  5. The USA, Switzerland, Mexico, Germany, Belgium, France, Italy, the United Kingdom, Poland, and the Netherlands are the top 10 chocolate exporters to Canada.

To FREE download the export guide please follow the link 

PRIORITY GOODS TO SUPPORT OF UKRAINIAN EXPORT TO THE USA – REPORT

The team of analysts from the Ministry of Economy and the State Enterprise “Ukrpromzovneshekspertiza”, with the support of the CUTIS project, conducted a thorough analysis to identify priority goods to support Ukrainian exports to the United States.

The analysis took into account the growth potential of the world and US markets, access to the US market, Ukrainian production and export potential, and the impact on gender equality and the environment.

The final list of the most promising product groups for the American market includes:

  • carpentry;
  • ceramic tiles;
  • bakery products;
  • alcoholic beverages;
  • chocolate;
  • confectionary

To download the paper (in Ukrainian) please use the link

The Canada-Ukraine Trade and Investment Support (CUTIS) Project is a 5-year (2016-2021) Canadian development assistance initiative designed to lower poverty in Ukraine through increasing exports from Ukraine to Canada and investment from Canada to Ukraine. The project funded by the Canadian Government through the Global Affairs Canada and implemented by the Conference Board of Canada in partnership with the Canada-Ukraine Chamber of Commerce.

The CUTIS project implements U CAN EXPORT Support Program in five priority sectors: clothing, footwear, furniture, confectionery, and IT services.

MAIN TRADE CHALLENGES FACING WOMEN ENTREPRENEURS

The Canada–Ukraine Trade and Investment Support (CUTIS) project co-delivered 12 World Business Café workshops in collaboration with regional chambers of commerce and with the participation of Ukraine’s Export Promotion Office.

Nearly 300 businesswomen attended in total.

The workshops aimed to define the challenges and the needs of women entrepreneurs that relate to exporting. The idea was to collect baseline information that would be helpful for stakeholders seeking to enhance business support services for women entrepreneurs in the future.

Discussions held during World Business Café workshops point to a number of challenges faced by women entrepreneurs.

The challenges reported fall into two main categories: export-related and gender-related. Participants were also asked about the types of assistance they would like to receive to help them overcome those challenges.

The top export-related challenges mentioned by workshop participants were a lack of information about accessing foreign markets, including information on regulatory requirements and standards, and a lack of relevant skills that enable exporting, such as negotiation skills and foreign-language skills.

Other challenges reported by participants included a lack of trade-related tools, a lack of business support services to help small and medium-sized enterprises (SMEs) become export-ready; difficulty finding partners in foreign markets; difficulty accessing capital; and a lack of knowledge about business culture in other countries.

To address those challenges, participants would like to receive targeted training on topics such as how to access foreign markets and how to develop an export strategy. They also asked for more online resources to support exporting, including step-by-step guides and information on the regulations and standards of importing countries.

The top gender-related challenges limiting the success of women entrepreneurs noted by participants were gender stereotypes in Ukrainian society, both in general and in business culture specifically.

Another major challenge was the double burden: women’s typical dual responsibility for home and business.

To download a report please follow the link.

The Canada-Ukraine Trade and Investment Support (CUTIS) Project is a 5-year (2016-2021) Canadian development assistance initiative designed to lower poverty in Ukraine through increasing exports from Ukraine to Canada and investment from Canada to Ukraine. The project funded by the Canadian Government through the Global affairs Canada and implemented by the Conference Board of Canada in partnership with the Canada-Ukraine Chamber of Commerce.

The CUTIS project implements U CAN EXPORT Support Program in five priority sectors: clothing, footwear, furniture, confectionery, and IT services.