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Frequently Asked Questions
- What export development programs and services are provided to small- and medium-sized enterprises by the Ontario and Federal governments?
- Do you provide financial assistance for export/international trade development?
- What kind of financial assistance is available to small- and medium-sized businesses?
- I cannot afford to give extensive terms of payment to my foreign clients? Can you insure foreign receivables?
- I am interested in doing business in Africa. Where do I start?
- How can I connect with Ontario companies already doing business in Africa?
- I want to export my products. Are there any specific requirements (technical standards, labelling)? What kind of duties will apply?
- I am presently exporting to the United States and I would like to introduce my products/services overseas. Where can I obtain a list of potential distributors in a given market/country?
- Where can I find information about international business opportunities for my products/services?
- Who in the Ontario government is responsible for export promotion?
- What should I consider when making the decision to begin exporting?
- How do I determine if my company is "export-ready"?
- How do I obtain market research for a specific country and/or product/service?
- How can I receive information on foreign regulations, standards or certification requirements for my product?
- How do I identify potential distributors in export markets?
- What should I expect from an Agent or Distributor?
- What does an Agent or Distributor expect from me?
- How can I find Ontario suppliers?
- Can the International Trade Branch help me to find international procurement opportunities?
- Are there other Canadian government export programs or services to assist exporters?
- My company is in the Agri-Food business. Which department can help me to export?
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| 1. |
What export development programs and services are provided to small- and medium-sized enterprises by the Ontario and Federal governments?
Ontario Export Programs and Services
- International Trade Branch, Ministry of Economic Development and Trade
If you are interested in exporting your products or services from Ontario, the Ontario Ministry of Economic Development and Trade's International Trade Branch team of knowledgeable export professionals can assist you to develop targeted export strategies for international markets. The Branch's International Marketing Consultants provide the following core programs and services:
- New Exporters to Border States (NEBS)
NEBS is a practical introduction to the basics of exporting to the United States. Organized in co-operation with the Canadian Consulates in Buffalo and Detroit, the two-day NEBS program combines briefings by experts with site visits to a U.S. border entry point. Participants learn about export pricing and financing; customs clearance procedures; selecting agents and distributors; warehousing and distribution; immigration considerations; banking, legal and insurance issues; and identifying new market opportunities. The Reverse NEBS seminar covers topics of interest to Ontario exporters to the U.S. in an intensive half-day format.
- IT Exports to the US (ITEXus)
ITEXus is a cost-effective export development program designed to introduce export-ready IT firms to key regional IT markets in the U.S. border states. ITEXus assists Ontario IT companies to identify and meet potential customers, research distribution channels, and obtain market information. If you are a new or experienced exporter not yet selling in the U.S. border states, ITEXus is your answer.
- Seminars and Workshops
Market specific seminars and exporter workshops provide Ontario exporters with forums to explore the opportunities in key markets worldwide, develop knowledge of export fundamentals, and learn about successful market access strategies.
- Community Export Development (CED)
CED programs assist economic development organizations in Ontario with their initiatives to encourage local companies to expand internationally. Workshops, First Steps to Exporting seminars and conferences introduce new and experienced exporters to government and other resources, and provide practical insights into the business of exporting.
- Virtual Trade Missions (VTMs)
Using videoconferencing, the International Trade Branch hosts VTMs between Ontario exporters and foreign business people and market experts. VTMs offer a cost-effective means to identify new export opportunities, showcase your company, and "meet" with potential partners abroad.
- Trade Missions and Exhibitions
The International Trade Branch introduces Ontario exporters to potential customers, distributors and decision-makers by organizing outbound missions and Ontario showcases at key international trade exhibitions. Through their participation in these programs, Ontario companies explore new market opportunities, and gain international exposure and access to key contacts in priority markets worldwide.
- Capital Projects
Suppliers of capital goods and services benefit from the assistance of the International Trade Branch in securing international capital project opportunities. We facilitate the development of consortia, introduce key contacts at international financial institutions, and provide commercial advocacy services.
- One-on-One Export and Market Consulting
Through one-on-one consulting, our team of international trade specialists assists small and medium-sized companies to evaluate their export readiness, identify the right markets and export opportunities for their product or services, and develop targeted market access and expansion strategies. Our trade specialists provide guidance on doing business in markets worldwide, and assist companies to qualify local representatives.
- In-Market Trade Development Consultants (ITDCs)
In Mexico, Brazil, Chile and the United Arab Emirates, the International Trade Branch has retained ITDCs to provide in-market assistance to Ontario exporters. The ITDCs provide market information, assist in identifying potential business partners and advise on the regulatory environment and import requirements.
- Ontario Ministry of Agriculture, Food, and Rural Affairs (OMAFRA)
OMAFRA's Ontario Food Exports (OFEX) unit assists Ontario Agri-Food companies to develop export sales in the United States and internationally, through trade promotion programs, export missions, incoming trade delegations and the provision of market information to Ontario producers and processors.
Federal Export Programs and Services
- Foreign Affairs and International Trade Canada (DFAIT)
The Department of Foreign Affairs and International Trade (DFAIT) manages Canada's political, economic, and cultural relations with other nations on a bilateral basis as well as through the international organizations to which Canada belongs. Its mandate includes the following:
- assisting Canadian companies to succeed internationally while promoting Canada as a dynamic place in which to do business
- negotiating and administering trade agreements
- promoting Canadian interests, projecting Canadian values and culture worldwide, and protecting Canada's security
- supplying business (trade and investment), passport and other services to Canadians travelling, working or doing business abroad
- supporting the international activities of federal, provincial and territorial partners at Canada's missions around the world
- Canadian Trade Commissioner Service
The federal Government, through Foreign Affairs and International Trade Canada (DFAIT), actively supports export activities by Canadian suppliers of goods and services through over 150 overseas offices.
Canadian Trade Commissioners can:
- promote your company to local customers
- advise on marketing channels
- recommend participation in trade shows and other business events
- identify suitable foreign firms to act as agents
- help you find credit and business information on potential foreign partners
- give advice regarding problems with duties, taxes, foreign exchange, work permits
- advise on a country's current trade, business and financial environment and practices
- advise and assist you with foreign joint ventures and licensing
- Canadian Commercial Corporation (CCC)
Canadian Commercial Corporation (CCC) is a federal Crown Corporation that brings together the requirements of foreign governments and international agencies with the supply capabilities of Canadian suppliers of goods and services. CCC acts as the prime contractor with the client country and subcontracts for the required goods and services with Canadian firms.
CCC provides Canadian suppliers with access to bidding opportunities, assumes responsibility for the administration of contracts and as required, arranges shipment, inspection and acceptance.
- Export Development Canada (EDC)
Export Development Canada (EDC) is Canada's export credit agency, offering innovative financing, insurance and risk management solutions to help Canadian exporters and investors expand their international business. EDC is a Crown corporation wholly owned by the Government of Canada. It is financially self-sustaining and operates on commercial principles. EDC provides insurance and financial services, bonding products, and small business solutions to Canadian exporters and investors. It also provides online credit risk management tools.
Related Federal government websites:
- Canada Business
Canada Business is a government information service for entrepreneurs and start-up businesses in Canada. It serves as the primary source of up-to-date and accurate business-related information and provides referrals on government programs, services and regulations - without charge - in all regions of Canada.
- Industry Canada
Industry Canada is Canada's largest business website, providing information on markets, trade and investment, industries, technology and innovation, trade, and business management.
- Government of Canada
This is a comprehensive listing of information pertaining to Canada, ranging from governance to services and programs to publications and reports.
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| 2. |
Do you provide financial assistance for export/international trade development?
The Ontario Chamber of Commerce's Export Market Access: A Global Expansion program (EMA) is a cost-sharing program funded by the Ontario Government that assists small and medium-sized enterprises (SMEs) in their efforts to access and expand their growth in new foreign markets beyond the United States.
If your company has been in business for a minimum of 2 years; has 5 or more employees; and records annual sales of $500,000 or more, you may qualify for a grant covering up to 50% of eligible costs incurred to develop export sales. Eligible activities include market research, marketing tools, direct contacts, and foreign bidding projects.
To find out if your company qualifies, please review the information on The Export Market Access website.
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| 3. |
What kind of financial assistance is available to small- and medium-sized businesses?
Financial services and assistance are available through a variety of specialized financial institutions. The list includes insurance companies, trust companies, credit unions, commercial credit and acceptance companies and factoring companies. Commercial credit and acceptance companies provide commercial loans. Factoring companies purchase the account receivables of manufacturers and wholesalers.
- Business Development Bank of Canada (BDC)
The Business Development Bank of Canada (BDC) offers financial services to small businesses. These services include term loans, subordinate financing and venture capital.
For more information, contact BDC as follows:
Tel.: 1-888-463-6232
Email: info@bdc.ca
Check the blue pages of your telephone book for the number of your nearest BDC office.
- Canada Small Business Financing (CSBF) Program
The Canada Small Business Financing (CSBF) program was created to help small businesses reach their potential, by making it easier to get term business loans to finance the purchase or improvement of capital assets for new or expanded operations.
As of April 2002, the CSBF program also helps small firms access financing to lease new or used equipment, through its five-year Capital Leasing Pilot Project.
Most small businesses starting up or operating in Canada are eligible for loans and leases, as long as their estimated gross revenues do not exceed $5 million during the fiscal year in which they apply. Not eligible are farming and charitable or religious enterprises. Small business can access a maximum of $250,000.
Administered under the Canada Small Business Financing Act, the program is a joint initiative of the Government of Canada, private sector lenders and participating leasing companies. To find out more about how your small business can expand with a CSBF loan or lease, contact your financial institution or a participating leasing company:
- Chartered Banks
Chartered banks provide a full range of personal and business services, including commercial and personal operating lines of credit, term loans, mortgages, letters of credit, as well as the provision of market and credit information.
Additionally, chartered banks offer personal and business deposits, investment banking (including private banking services) and foreign exchange services.
Trust companies and credit unions also provide many of these services.
- Federal Economic Development Initiative for Northern Ontario (FedNor)
The Federal Economic Development Initiative for Northern Ontario (FedNor) works in partnership with Northern Ontario businesses, entrepreneurs, economic development stakeholders and community organizations, to ensure that northern residents enjoy full access to the information and services they need to be successful. FedNor supports self-sustaining communities through its initiatives in innovation, investment, connectedness, trade and local partnerships.
These include support for:
- A network of Community Futures Development Corporations (CFDCs) in Northern Ontario, which provide a wide variety of programs and services in support of community economic development and small business growth.
- Telecommunication infrastructure and networks.
- Applied research and development.
- Expansion of exports and domestic markets.
- Work experience for northern youth.
- Northern co-operative tourism marketing initiatives.
For more information, contact:
Tel.: 1-877-333-6673
- Venture Companies
Venture capital is risk capital. Typically, a venture capital investment involves equity or quasi-equity participation in an enterprise and is expected to be a long-term investment requiring active involvement by the investors in the financed companies until they are sufficiently developed for disposition.
Because a minority position is usually taken, normally the venture capital company prefers firms that have management with proven ability, and where the lack of long-term financing appears to be the major factor inhibiting the establishment or growth of the enterprise.
The Canadian Venture Capital Association (CVCA) issues a list of member firms:
Tel: +1-416-487-0519
Fax: +1-416-487-5899
Email: cvca@cvca.ca
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| 4. |
I cannot afford to give extensive terms of payment to my foreign clients? Can you insure foreign receivables?
Export Development Canada (EDC) is Canada's export credit agency, offering innovative financing, insurance and risk management solutions to help Canadian exporters and investors expand their international business.
EDC is a Crown corporation wholly owned by the Government of Canada. It is financially self-sustaining and operates on commercial principles. EDC provides insurance and financial services, bonding products, and small business solutions to Canadian exporters and investors. It also provides online credit risk management tools.
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| 5. |
I am interested in doing business in Africa. Where do I start?
We offer resources and services you can use to start getting information about doing business in Africa.
- The International Trade Branch's International Marketing Consultant for Africa can advise on domestic and international sources of information to assist with your market research.
For more information please contact:
Email: trade.officer@ontario.ca
Tel: +1-416-314-8200
Fax: +1-416-325-2766
- Our Ontario Trade Fact Sheets provide trade and export information specific to the country in which you are interested.
- If you are interested in doing business in South Africa, review the list of Key Export Markets by Country and select South Africa from the list.
- The Canadian International Development Agency (CIDA) administers Canada's development aid programs. CIDA relies on the Canadian private sector to implement most of its programs. Firms wishing to supply goods or services to the Canadian government for use overseas should contact the following:
Canadian International Development Agency
External Business Relations (GME)
200 Promenade du Portage,
Gatineau, PQ K1A 0G4
Canada
Tel: +1-819-997-5006
Fax: +1-819-953-6088 or 1-800-230-6349
- International financial institutions (IFIs), such as the World Bank; the International Monetary Fund;
and the African Development Bank Group (AfDB) provide financial, analytical and advisory services to their member countries (Canada is a member).
- Foreign Affairs and International Trade Canada's IFINet provides information to help Canadian companies prosper in the multi-billion dollar development business market.
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| 6. |
How can I connect with Ontario companies already doing business in Africa?
We offer several resources you can use to find out which Ontario companies are already active in Africa:
- Refer to our list of Calendar of Events for seminars and other domestic events in which Ontario companies already doing business in Africa may be participating.
- Contact our International Marketing Consultant specializing in Africa:
Email: trade.officer@ontario.ca
Tel: +1-416-314-8200
Fax: +1-416-325-2766
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| 7. |
I want to export my products. Are there any specific requirements (technical standards, labelling)? What kinds of duties will apply?
In addition to resources that you may discover elsewhere, a range of resources are available to help you do business internationally.
- Trade Information Officer
Contact a Trade Information Officer:
Email: trade.officer@ontario.ca
Tel: +1-416-314-8200
Fax: +1-416-325-2766
- General Information
- Information on the European Union (EU)
- Chemicals and their Safe Use
- Information about REACH, the European Commission's Registration, Evaluation, Authorisation and Restriction of Chemical Substances
- The European Chemicals Agency
- The European Commission's guidelines on Waste Electric and Electronic Equipment (WEEE), includes links to information on the Restriction of the Use of Certain Hazardous Substances in Electric and Electronic Equipment (RoHS)
- Antitrust
- The European Commission's antitrust regulations, including requirements on vertical and horizontal agreements, and licensing agreements for the transfer of technology
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| 8. |
I am presently exporting to the United States and I would like to introduce my products/services overseas. Where can I obtain a list of potential distributors in a given market/country?
Our International Marketing Consultants can assist with knowledge and information on how to locate and evaluate potential agents and distributors in export markets.
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| 9. |
Where can I find information about international business opportunities for my products/services?
Our International Marketing Consultants can assist you to identify potential markets for your exportable products and services.
For sector-specific market research, the Virtual Trade Commissioner of the Canadian Trade Commissioner Service offers key information on foreign markets to Canadian businesses and organizations.
The Canadian Association of Importers/Exporters website is another source of information for companies wishing to gather information on international business opportunities.
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| 10. |
Who in the Ontario government is responsible for export promotion?
The International Trade Branch's team of knowledgeable export professionals assists Ontario suppliers of goods and services to develop their export strategies and access and expand into international markets. Core export programs and services include:
- New Exporters to Border States (NEBS)
NEBS is a practical introduction to the basics of exporting to the United States. Organized in co-operation with the Canadian Consulates in Buffalo and Detroit, the two-day NEBS program combines briefings by experts with site visits to a U.S. border entry point.
Participants learn about export pricing and financing; customs clearance procedures; selecting agents and distributors; warehousing and distribution; immigration considerations; banking, legal and insurance issues; and identifying new market opportunities.
The Reverse NEBS seminar covers topics of interest to Ontario exporters to the U.S. in an intensive half-day format.
- IT Exports to the US (ITEXus)
ITEXus is a cost-effective export development program designed to introduce export-ready IT firms to key regional IT markets in the U.S. border states. ITEXus assists Ontario IT companies to identify and meet potential customers, research distribution channels, and obtain market information.
If you are a new or experienced exporter not yet selling in the U.S. border states, ITEXus is your answer.
- Seminars and Workshops
Market specific seminars and exporter workshops provide Ontario exporters with forums to explore the opportunities in key markets worldwide, develop knowledge of export fundamentals, and learn about successful market access strategies.
- Community Export Development (CED)
CED programs assist economic development organizations in Ontario with their initiatives to encourage local companies to expand internationally. Workshops, First Steps to Exporting seminars and conferences introduce new and experienced exporters to government and other resources, and provide practical insights into the business of exporting.
- Virtual Trade Missions (VTMs)
Using videoconferencing, the International Trade Branch hosts VTMs between Ontario exporters and foreign business people and market experts. VTMs offer a cost-effective means to identify new export opportunities, showcase your company, and "meet" with potential partners abroad.
- Trade Missions and Exhibitions
The International Trade Branch introduces Ontario exporters to potential customers, distributors and decision-makers by organizing outbound missions and Ontario showcases at key international trade exhibitions. Through their participation in these programs, Ontario companies explore new market opportunities, and gain international exposure and access to key contacts in priority markets worldwide.
- Capital Projects
Suppliers of capital goods and services benefit from the assistance of the International Trade Branch in securing international capital project opportunities. We facilitate the development of consortia, introduce key contacts at international financial institutions, and provide commercial advocacy services.
- One-on-One Export and Market Consulting
Through one-on-one consulting, our team of international trade specialists assists small and medium-sized companies to evaluate their export readiness, identify the right markets and export opportunities for their product or services, and develop targeted market access and expansion strategies. Our trade specialists provide guidance on doing business in markets worldwide, and assist companies to qualify local representatives.
- In-Market Trade Development Consultants (ITDCs)
In Mexico, Brazil and Chile, the International Trade Branch has retained ITDCs to provide in-market assistance to Ontario exporters. The ITDCs provide market information, assist in identifying potential business partners and advise on the regulatory environment and import requirements.
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| 11. |
What should I consider when making the decision to begin exporting?
There is a range of options for becoming involved in exporting, from exporting directly yourself, selling to domestic buyers such as export trading companies who then export the product, or establishing channel partnerships with distributors, agents or manufacturers' representatives.
A detailed and thorough business and market strategy will enable you to determine the approach best suited to our company's product or service. Steps in developing such a strategy include:
- Evaluating your company's export readiness and your product's export potential
- Determining if your company is prepared to make the commitment to pursue international markets and ensuring that your firm has the financial and human resources in place over the longer term
- Identifying key foreign markets for your products and services through market research and analysis
- Evaluating and establishing marketing programs and international distribution networks as applicable
- Determining product certification requirements
- Determining export pricing and payment terms
- Familiarizing yourself with shipping options and export documentation procedures and requirements
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How do I determine if my company is "export-ready"?
Formulating a solid export strategy requires a critical examination of the capabilities and resources of one's company. Several key questions must also be considered, such as which countries to target and what strategy to use in addressing import barriers, what steps to take and when, what will be the time frame and the cost in both time and money.
A useful resource for new exporters is a publication called "Getting Ready to Export", a step-by-step guide to the exporting process from developing an export strategy and doing market research to identifying buyers and financing.
Call the number below or email us to receive a free copy.
Email: trade.officer@ontario.ca
Tel.: +1-416-314-8200
Fax: +1-416-325-2766
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| 13. |
How do I obtain market research for a specific country and/or product/service?
Our International Marketing Consultants can advise on information sources.
For more information please contact:
Email: trade.officer@ontario.ca
Tel.: +1-416-314-8200
Fax: +1-416-325-2766
The Government of Canada's on-line resource centre for export information is a useful tool for market research.
For sector-specific market research, The Virtual Trade Commissioner of the Canadian Trade Commissioner Service offers key information on foreign markets to Canadian businesses and organizations.
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How do I identify potential distributors in export markets?
Our International Marketing Consultants can assist with knowledge and information on how to locate and evaluate potential agents and distributors in export markets. Foreign representatives such as agents and distributors should be carefully screened and interviewed, just as they are also reviewing your company product line.
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What should I expect from an Agent or Distributor?
- Strong market knowledge, local, national, variations
- Import knowledge of your product type
- No competitive products
- Ability to cover territory
- Timely payment as per agreements
- Adequate warehousing of variable models or stock, as applicable
- Organization and unrestricted access to sales records
- Administration support
- Ability to prepare marketing plans and sales forecasts
- Market research and competitive analysis - SWOT
- Verification of pricing assumptions and calculations
- Preparation of advertising and promotional campaigns
- Clear understanding of termination clause in contract
- Visits to production facilities for product updates
- Ability to provide accurate verbal and written translations in agreed upon business language
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What does an Agent or Distributor expect from me?
- Exclusivity in writing (to be negotiated)
- Legal representation for patent and trademark protection
- Top quality, trouble free, warranted goods
- Commissions payable in writing
- Shipping services - packaging, labels, documents
- Prices: lowest possible
- Agreement on payment terms
- Advertising and promotional literature and posters
- Product upgrades and modifications to meet local market requirements
- Training materials: manuals, videos, slides
- Timely updates, announcements, newsletters
- Periodic visits from senior company executives
- Sales conference attendance
- Rewards and incentives
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| 18. |
How can I find Ontario suppliers?
Listed below are four easy ways to find the right Ontario suppliers to meet your purchasing requirements.
- International Marketing Consultants
Contact the International Trade Branch's International Marketing Consultant responsible for the market you are interested in and ask for advice and suggestions. Export consultants are familiar with Ontario firms that have been successful in exporting to your country.
- Database Searches
You may be able to find appropriate Ontario companies yourself by visiting a number of publicly accessible Internet databases.
The province of Ontario has a powerful "Made In Ontario" database of firms, products and services.
Environmental companies can be located using the Ontario Environment Business Directory.
You can also find companies by broad industry sectors or keywords using a number of on-line databases such as:
- Trade Information Officer
Or you may wish to e-mail our Trade Information Officer or call toll free 1-877-468-7233 to contact the International Trade Branch and ask for assistance. If our Trade Information Officer cannot answer your request personally, the officer will endeavour to link you to someone who can.
To locate Ontario companies that produce food products and services, contact the Ontario Ministry of Agriculture and Food and Rural Affairs.
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| 19. |
Can the International Trade Branch help me to find international procurement opportunities?
Yes. We can help identify qualified international procurement opportunities for Ontario firms. If you wish to access and review International Financial institutions or World Bank projects on the Internet, try these sites.
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Are there other Canadian government export programs or services to assist exporters?
Yes, several other government organizations help firms with their export related requirements:
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My company is in the Agri-Food business. Which department can help me to export?
Ontario Ministry of Agriculture, Food, and Rural Affairs (OMAFRA)
OMAFRA's Ontario Food Exports (OFEX) unit assists Ontario Agri-Food companies to develop export sales in the United States and internationally, through trade promotion programs, export missions, incoming trade delegations and the provision of market information to Ontario producers and processors.
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Ontario's Global Presence
