Canada: Selling and Buying

Reaching the Consumers

Marketing Opportunities

Consumer Behavior

Today, the Canadian consumer is more and more aware of the problems of the environment and overconsumption. He looks more closely at the quality of a product, its origin, its composition and its price. However, he remains excessively subjected to advertising and is inclined to buy trendy products.

Consumer Profile and Purchasing Power

The Canadians' standard of living is one of the highest in the world.
At the present time, purchasing behavior is changing especially among young adult Canadians. Their objective, for most of them, is to finish their studies, buy a property and have children. Middle-aged adults and baby-boomers (the 1946-1966 generation) treat themselves to many leisure activities. Canadians care about their food and do not hesitate to buy natural, organic healthfoods. Everything concerning comfort and well-being is very important.

Consumers Associations

The Consumer Association of Canada
OPC , Consumer Protection Office
Alberta Consumers' Association

Main Advertising Agencies

Cossette Group Blitz Direct
Alpha Vision

Distributing a Product

Evolution of the Sector

The size of the country, some 10 million km2, complicates distribution on a national scale. Big companies have set up nerve centers for warehousing and redistribution of goods all over Canada. Most of these redistribution centers are located in Halifax, Montreal, Toronto and Vancouver.
The difficulty involved in getting to the various regions, the distinctive features of each of them, make marketing a product complex. The Office of Consumer Affairs is the national authority for monitoring and regulating consumption in Canada.

Market Shares

In the 1990s, the Canadian distribution market underwent changes after the arrival of American distributors like Costco (cash & carry reserved for professionals), Wal-Mart (hypermarkets) and Home-Dépot (DIY-hardware-decoration).
The food trade sector is very concentrated and dominated by a few big groups especially the national names Sobey and Loblaw with the American Wal-mart.

Organizations in the Retail Sector

AMDEQ (Association of shopkeepers, convenience storekeepers and grocers of Quebec)
Canadian Federation of Independent Grocers

Market Access Procedures

International Conventions

Member of World Trade Organisation
Member of OECD
Party to the Washington Convention on International Trade in Endangered Species of Wild Fauna and Flora
Party to the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal
Party to the Montreal Protocol on Substances That Deplete the Ozone Layer
Wassenaar arrangement on export controls for conventional arms and dual-use goods and technologies

Main International Economic Cooperation

Member of the NAFTA (North American Free Trade Agreement)
Member of the NACC (North American Competitiveness Council)
Full member of the OAS (Organization of American States)
Member of the Commonwealth
Participates in the forums of the APEC (Asia Pacific Economic Cooperation)
Free Trade Agreement with Jordan

Non Tariff Barriers

The Canada Customs Act which regulates the Canadian import system, corresponds to a free trade model in which most imports do not need any authorization. There are however what are known as tariff quotas, especially for wheat, barley, beef and cheese. To be granted this quota you must request a General Import Permit, for which you must produce a pro forma invoice at the Export and Import Controls Bureau of the Ministry of Foreign Trade.
Some goods are prohibited, especially importing second hand motorized vehicles, except for vehicles coming from the USA (the rules are becoming more flexible for Mexico)
The rules of origin allowing reduction of duties, especially for textiles, have been draconian since the agreements within the NAFTA (annexe 401 on the original rules, incorporated afterwards in national legislation). These rules are considerably favorable to products which have proof of their origin in the USA.
Moreover, Canada is one of the big users of anti-dumping measures, with more than 85 products concerned (SIMA, Special Import Measures Act). These measures affect 35 countries or Customs areas (including the EU, for example). More than 50% of the products concerned are metallurgical.
For further information about import regulations and procedures in Canada, please consult the article Importing Goods into Canada produced by the Canada Border Services Agency.

Customs Duties and Taxes on Imports

The average rate is about 4.8%.

To know the 2008 Customs tariff in Canada, please consult the article Customs Tariff produced by the Canada Border Services Agency.

Customs Classification

Yes

Import Procedures

To know what to do to import a product into Canada, consult the Guide to Importing of the Canada Border Services Agency.
For imported goods to clear Customs the following documents are needed: release with full accounting and payment (paper option); release on minimum documentation (RMD) (paper or EDI option); G7 Import One Step Release on Full Documentation (RFD) (EDI option).
For further information, consult the Canada Border Services Agency website.

Importing Samples

For import, export and re-export of commercial samples the ATA carnet is generally used. It must be written on the product that it is a free sample and that it may not be sold. A maximum quantity or value may however be applied.
For further information, consult the Canada Business website.

For Further Information

Canada Border Services Agency
Foreign Affairs and International Trade Canada

 

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Organizing Goods Transport

Main Useful Means of Transport

Road transport of goods accounts for 50% of commercial freight.
Vancouver is Canada's biggest port and is constantly classified among the first five North American ports in terms of tonnage of imports and exports. It is the biggest bulk goods port on the west coast of North America with a tonnage of more than 80 million tonnes.
All the ports of eastern Canada amount to 68.9 MT.

Ports

Port of Montreal
Port of Quebec
Port of Halifax
Port of Toronto
Port of Vancouver
Alliance of the Ports of Canada, the Caribbean, Latin America and the United States

Airports

Montreal Airport
Vancouver International Airport
Calgary Airport
Ottawa Airport
Toronto Airport

Sea Transport Organizations

Transport Canada

Air Transport Organizations

Canadian Air Transport Security Authority

Road Transport Organizations

Transport Canada: Road
Canada Border Services Agency

Rail Transport Organizations

Canadian Transportation Agency

Identifying a Supplier

Type of Production

The type of production differs according to the province. The following list shows the industry responsible for GDP growth by province and by territory:

Alberta: Petrochemicals and oil sands
British Columbia: Natural Gas
Manitoba: Canola (colza) and Wheat
Saskatchewan: Mining and cereal growing
Newfoundland and Labrador: Nickel and oil fields
New Brunswick: Wood pulp
Prince Edward Island: Agriculture
Nova Scotia: Services sector
Quebec: Hydro-electric energy, Aerospace, Metal processing and pharmaceuticals
Ontario: Construction
Nunavut: Diamond mines
North West Territories: Mineral and oil exploration
Yukon: Mineral extraction and exploration

Source : Canada's Performance Report, Treasury Board of Canada Secretariat

Manufacturers Associations of the Main Industries

83 professional associations listed for Canada.
Choose your sector AgricultureAutomotiveChemicals, pharmaceutical productsCommerce, retail, wholesaleComputers and telecommunicationsConstruction, real estate, subtradesEdition, graphic art, printingEnergyEnvironment, EcologyFood industryFurniture, household equipment and artsGames, toys, giftsHealth, medicineHorticulture, forestry, wood, paperJustice, lawMachine tools, machinery, roboticsManufacture, metals, mining & quarryingMechanical and precision engineeringPacking, packagingServices BtoC/BtoB & other servicesTextile, ready-to-wear, accessoriesTourism, sports, leisure, restaurant & hotelsTransport, logistics, handling

Trade Agencies and Their Representations Abroad

The Canadian Chamber of Commerce
Association of Local Development Centers in Quebec
Business Development Bank of Canada

Enterprises Federation

Canada Business
Businessman Information

 

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