Exporting Your Goods
Shortlisting Possible Export Markets
Not all markets are good matches for your competitive strengths. The following four questions and answers can help you create a short list of markets to consider:
What economic characteristics should we look for in an export market?
What market characteristics might be problematic?
What information can we use to evaluate market opportunities in potential markets?
How can we find out about any trade agreements that Canada has with an export market?
What economic characteristics should we look for in an export market?
In general, you are looking for a market where you will have a good chance of success. That means that you are looking for:
- A government that is politically stable
- A stable currency, or one that fluctuates against the Canadian dollar
- A regulatory environment that is favourable to private enterprise
- A regulatory environment that welcomes foreign goods
- A legal environment that supports the operation of foreign businesses, rather than on joint ventures or dealing through a local agent or distributor
- A legal environment that is efficient, without undue red tape
- Efficient transportation infrastructure (ports, airports, railways or roads, and warehousing)
- A minimum of import controls or requirements for special permits, inspections, health certificates
- Low tariff rates to regulate trade
- No export permit required by the Canadian government
- A business language in which at least one staff member is fluent
What market characteristics might be problematic?
The following could create difficulty unless you already have excellent connections into the market:
- A government that is politically unstable
- High inflation rates and an unstable currency
- A regulatory environment that favours public over private enterprise
- A regulatory environment that favour national over foreign goods
- A legal environment that requires that foreign businesses operate only through joint ventures or a local agent or distributor
- A legal environment that is inefficient, with lots of red tape
- Inefficient and costly transportation infrastructure (ports, airports, railways or roads, and warehousing)
- Heavy import controls and requirements for special permits, inspections, health certificates
- High tariff rates to regulate trade
- An export permit required by the Canadian government
- A business language that is not understood by any of your staff
What information can we use to evaluate market opportunities in potential markets?
- The consistency of market growth year to year
- The consistency of import growth despite any economic recession
- Trends that might influence demand for your product
- Overall consumption of products like yours, and the percent imported
- What affects the marketing and use of products like yours, such as cultural differences, business practices, and channels of distribution
- The nature of the competition
- The nature of tariff and non-tariff barriers to importing a product like yours
- Government incentives to support the import of products like yours
How can we find out about any trade agreements that Canada has with an export market?
Foreign Affairs and International Trade Canada’s Trade Negotiations and Agreements (TNA) Division provides information by market and by type of trade agreement.