Exporting to Canada

Read our helpful advice on exporting to Canada below

Canada is the UK’s second biggest trading partner and a great country to export to. As one of the largest countries in the world, the dynamic Canadian economy is considered to be the most stable, having emerged from the recession in a very strong financial position. It has been ranked by the Global Economic System as the top most stable country for 6 years now, so exporting to Canada definitely makes business sense.

On top of its enviable economic position, exporting to Canada has many other benefits. Its similarities to the UK mean that the business culture is not too different to our own with many familiar products and service providers available. Its geographical position is also favourable, making it a good gateway to the thriving US market. The Canadian workforce is hugely intelligent as over half of its residents have university degrees and it is a world leader in many tech sectors include ICT, life science and innovation.

It is the second largest country in the world after Russia but has a much smaller population of around 35 million people. Its amazing vast landscape means that it has endless natural resources, being home to more lakes than the rest of the world put together. This, when combined with its acres of forestry and famous mountains, means that there is a plentiful supply of gas, copper and crude oil reserves. Canada produces 2.6 million barrels of oil per day and is the world’s sixth largest oil provider and around 55% of the reserves are open to private sector investment. This provides a huge opportunity for UK businesses to become involved in this area.

As Canada has strong cultural similarities with the UK there are currently around 700 UK companies doing business there across a broad range of industries. The most popular exports to Canada from the UK include aerospace parts, pharmaceuticals, aircraft engines, gold and motor vehicles. Tractors, petroleum products and medical equipment are also very popular.  As Canada’s sixth largest goods import partner there are plenty of opportunities for UK businesses to make money but there is strong competition in Canada’s trading market. This is mainly due to its close relationship with the US and the huge number of American businesses currently doing business there, so getting started can sometimes be quite challenging.

Areas where there are particularly profitable opportunities for UK businesses to export include infrastructure and oil. The Canadian government has a plan to invest 70 million dollars in the public infrastructure over the next ten years to develop transport links, housing and healthcare. This will open up possibilities for UK business to provide building supplies, machinery and engineering and to become involved with a number of projects from bridge construction to housing and waste water projects.

Additionally, the Comprehensive Economic and Trade Agreement (CETA) is soon to come into effect and will significantly boost trading between the UK and Canada. The agreement was established to abolish 99% of tariffs for Canadian goods entering the EU market, helping to improve relationships and provide many opportunities for UK businesses, boosting exports by 29%. This when combined with the investment in infrastructure should create a really lucrative market for UK exports.

The only real difficulties you may encounter when trying to export to Canada are mainly legal complications. The country has a mix of federal and provincial laws so finding out what permits and licenses you need to acquire before doing business is a must. There is also a list of prohibited goods including vehicles and some foodstuffs which you will need to read up on before exporting to Canada.

As these complications are easy to get wrong it’s advisable to use a company like TNT for all your shipping and delivery needs to ensure all your goods arrive timely in the best possible condition. Our expert knowledge means that we have years of experience in dealing with international rules and regulations which will make exporting your business overseas so much easier and take away the worry that often comes with exporting internationally.

For more information on exporting to Canada call TNT on 0800 100 600.