Canada, Latin America and the Caribbean

Canada, Latin America and the Caribbean

2008 NSS Conference: June 2-4, 2008

St. John's, Newfoundland and Labrador

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Introduction Introduction

• Overview of Canada’s Investment in LAC

• Current Issues in LAC• Opportunities for Canadian

companies• Standards in a Global Economy

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2007 CDI Stock Abroad by Geographic Area (millions of C$)

2007 CDI Stock Abroad by Geographic Area (millions of C$)

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Canada’s Trade with Latin America

(minus Mexico)

Canada’s Trade with Latin America

(minus Mexico)

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Ex ports

Imports

Bilateral

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Rest of LAC

PeruChileCuba

Colombia

Venezuela

Brazil

Destination of Canadian Exports to LAC, Top 6 – (Excluding Mexico)

Destination of Canadian Exports to LAC, Top 6 – (Excluding Mexico)

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Canadian Companies Present in Latin America

Canadian Companies Present in Latin America

CompanyMarket Capital

Royal Bank $61.30EnCana $49.80Scotiabank $45.60Petro-Canada $29.60Barrick $29.60Thomson $29.20SunLife $28.50CIBC $28.10Talisman $24.90Alcan $22.10Nexen $18.00Brookfield Asset Mgt $17.50Teck Cominco $17.00Nortel $13.90

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Top 25 imports from LACTop 25 imports from LAC

24%

11%

9%

8%7%

6%

4%

3%

3%

3%

3%

3%

2%

2%

2%2%

1%1%1%1%1%1%1%1%1%

Gold in Unwrought form (non-monetary)

Crude Petroleum Oils

Unrefined Copper

Aluminum oxidesAirplanes and other aircrafts

Copper ores

Cane sugar - Raw

Other Minerals such as iron and copper, and food products such as bananas, coffee grapes and Orange Juice

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Current AgreementsCurrent Agreements

FIPA w/Argentina

FTA and FIPA w/Costa Rica

NAFTA

FTA w/Peru (pending ratification)

FTA and FIPA w/Chile

Exploring FTA w/Dominican Republic

FIPA w/Uruguay

FIPA w/Trinidad and Tobago, Venezuela and Barbados

FIPA w/Ecuador

Exploring FTA w/C4

Exploring FTA w/ CARICOM

FIPA w/Peru (pending ratification)

Negotiations ongoing with Colombia

FIPA and Exploring FTA w/Panama

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Figure 1. China’s total trade with top 5 LAC countries and Andean Community, 1990-2003 ($m)

Source: Funakushi and Loser 2005, p3

http://www.focal.ca/pdf/china_latam.pdf

China’s Total Trade with Top 5 LAC Countries, 1990-2003

US$mil

China’s Total Trade with Top 5 LAC Countries, 1990-2003

US$mil

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A decade of ChangeA decade of Change

• Growing Economies – Brazil– Peru – Colombia

• Stable Democracies• Stronger Institutions: rule of law and

good governance

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What is Missing?What is Missing?

1. More Sophisticated Understanding of the Market– False assumptions about the region

and missed opportunities. – Less extreme opportunities, e.g.,

Uruguay

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What is Missing?What is Missing?2. Corporate Social

Responsibility – CSR is not missing, rather

under-emphasized – Should be a Canadian

competitive advantage• Canadian firms 25% of CIDA

spending

– Government needs to support CSR activities• Falconbridge, PlaceDome,

Glamis

Canadian Government

Canadian Private Sector

Source: OECD and Phoenix Survey

Canadian Government ODA vs Private Sector External CSR Spending, Including Staff Time in Chile, Guatemala and Trinidad and Tobago, 2004

Canadian Private Sector and Government Spending on

Development/CSR – Guatemala, Chile, T&T, 2005

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Opportunities for Canadian companies in LAC

Opportunities for Canadian companies in LAC

• Sectors previously explored: – Extractive Industry– Financial Sector and Insurance– Manufacturing– Management of Companies and Enterprise

• Other Areas to consider: Infrastructure, Telecommunications, Information Technology

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Standards In Latin AmericaStandards In Latin America

• Looking out for WTO – SPS and TBT compliance

• Assisting partner countries to achieve international standards.

• Making products together: global supply chain.