Canada`s “Asia Pacific Gateway” – Opportunities for

Canada’s “Asia Pacific Gateway” –
Opportunities for Indiana Businesses
Global Indy’s annual World Trade Day
April 25th 2014
Delon Chan
Consulate General of Canada - Detroit
Canada – US & Indiana Trade Statistics
V Easy Access to Markets
2013 Trade Stats
CAN –US Goods Trade: $632
IN Exports to Canada: $11.8
IN Imports from Canada: $7.8
Canada–IN Bilateral Trade: $19.6
35% of Indiana exports are to
The Canada – U.S. Transportation Relationship
Foundation for the world’s largest bilateral economic relationship
Interplay between security, trade, transportation, and communities is complex –
border is a key component
In December, 2011, President Obama and Prime Minister Harper agreed on
‘Beyond the Border’ - a Joint Action Plan for Perimeter Security and Economic
Four key areas of co-operation
Addressing threats early
Trade facilitation, economic growth and jobs
Integrated cross-border law enforcement
Critical infrastructure and cyber-security
This will build on Canada’s many investments at the border:
New infrastructure capacity (over $4.5 billion since 9/11)
Intelligent Transportation Systems (ITS): new solutions for congestion and efficiency
Freight technology investments
Beyond the Border Action Plan and the Regulatory Cooperation Council
Beyond the Border Action Plan
Beyond the Border - Concrete initiatives to increase border efficiency
programs that help trusted traders and travellers move more efficiently across the
new measures to facilitate cross-border trade while reducing administrative burden
for business
Infrastructure and technology investments at the border
Highlights of Key Accomplishments:
Enhanced NEXUS benefits, with a membership up by 50%.
PIP / C-TPAT mutual recognition
“Cleared once – accepted twice”
Expanded eligibility for expedited customs clearance by an estimated 1.5 million
shipments into Canada.
Reduced transaction costs for shippers & customers in US and CAN by tens of
millions of dollars through increasing & harmonizing the threshold for low value
Regulatory Cooperation Council (RCC)
 Initiative between the US and CDN governments to better align
US and CDN regulatory systems to increase trade, decrease
costs to businesses.
 29 bilateral initiatives underway
 4 main sectors: agriculture and food, transportation, health and
personal care products, and environment
 Strong stakeholder engagement with US and CDN industry
 Types of work:
Pilot projects, scientific and technical collaborations,
harmonized testing procedures, and joint standards.
RCC – Transportation Working Group ‘Work Plan’
Surface (Road & Rail): Increase joint standards development & alignment
Existing Motor Vehicle Safety Standards
New Motor Vehicle Safety Standards
Intelligent Transportation Systems
Rail Safety Standards
Marine: Increase alignment & reliance on each other’s systems
 Regulatory Oversight Regime on the Great Lakes & St. Lawrence Seaway
 Marine Transportation Security Regulations
 Construction/Safety Standards for Small Craft
Other Transportation Issue:
 Alignment of Dangerous Goods Means of Containment
 Unmanned Aircraft Systems
Asia Pacific Gateway & Corridor Initiative
Asia Pacific Gateway & Corridor Initiative
A reliable and efficient transportation system is key to effective
participation in global supply chains.
In October 2006, Canada launched the Asia-Pacific Gateway and Corridor
Initiative, an unprecedented alignment of public and private sector
investments to strengthen Canada’s position as a fast, efficient and
secure gateway between North America and Asia.
These investments have facilitated the flow of people, goods and services
across Canadian rail, roads, bridges and through our ports and airports.
Sailing times from Canada’s Atlantic and Pacific deep-water ports are up
to two days shorter than other North American ports.
Asia Pacific Gateway & Corridor Initiative (APGCI)
 Objective: to establish the Gateway and Corridor as the best
transportation network facilitating global supply chains between
North America and Asia.
 APGCI seeks to:
 boost Canada’s commerce with the Asia-Pacific region;
 increase share of North America-bound container imports
from Asia;
 improve the efficiency and reliability of the Gateway for
Canadian and North American exports.
 Air and marine corridor
 network of transportation infrastructure including British
Columbia’s Lower Mainland & Prince Rupert ports, road and rail
connections across western Canada and south to the U.S., key
border crossings and major Canadian airports.
 Policy changes & infrastructure investments
Asia Pacific Gateway – Policy Changes
 Customs Tariff Regulations: Canada amended the Customs Tariff
regulations to facilitate container movements within Canada and to
harmonize the treatment of imported containers with that of the U.S.
 increase the period of time a temporarily imported container can stay
in Canada duty-free from 30 to 365 days
 Amalgamation of British Columbia’s three Lower Mainland port
authorities into one - Port Metro Vancouver.
 Liberalizing the skies for passengers and cargo: “Canada’s Blue Sky
Policy” encourages competition and the development of new and
expanded international air services to benefit Canadian travelers,
shippers, and the tourism and business sectors.
 Canada Marine Act: Changes were made to ensure that Canada’s ports
remain competitive in the new global economy and have the flexibility to
respond to opportunities that support our trade objectives.
Policy Initiative: Canada as a Foreign Trade Zone
Enjoy the Benefits of Foreign Trade Zones…Anywhere in Canada!
Canada’s FTZ policies and programs are available nationally and provide benefits
to businesses that are comparable to those found in site-specific FTZs in other
Canada is a tariff-free zone for manufacturers
- Elimination of all tariffs and duties for manufacturing inputs by
5 tax and tariff export-related programs which waive or defer duties and taxes
payable on imported goods:
1.Customs Bonded Warehouse: relieves tariffs and sales taxes
2.Duties Relief: provides upfront tariff relief
3. Duty Drawback: reimburses tariffs paid on exported goods
4. Export Distribution Centre: relieves sales taxes, provided that export
revenues account for at least 90 per cent of a company’s revenues and that not
more than 20 per cent of value be added to the imported products.
5. Exporters of Processing Services: relieves sales taxes provided that the
imported goods are owned by a non-resident and sold to a foreign resident.
Key Advantages and Benefits of Canada’s FTZ-Type Programs
- No heavy paper burden
- No geographic restriction - accessible regardless of location
- Improved cash flow & Reduced operating expenses
- Increased international competitiveness
Asia Pacific Gateway Infrastructure Investments: > $1.4 Billion
List of Projects
1 - Prince Rupert Port Container Security
Program, $28 million
2 - Road, Rail and Utility Corridor, Prince
Rupert, $15 million
3 - Highway Improvements near Vanderhoof, $1
4 - Ashcroft Terminal, $5 million
5 - River Road, Prince George, $2.8 million
6 - Twinning of Simon Fraser Bridge, $16.1
7 - Highway 97 Upgrade near Prince George,
$6.9 million
8 - Grade Separations, British Columbia, $2.4
9 - Highway 2 and 41 Avenue Intermodal
Access, Edmonton, $75 million
10 - Freeway interchanges and South River
Crossing bridge, $95.8 million
11 -TransCanada Highway Upgrade, $7.2 million
12 - TransCanada Highway Upgrade, $267
13 - 52nd Street SE, CPR grade separation and
Western Headwaters, Calgary, $34.5 million
14 - Global Transportation Hub, $27 million
15 - Highway Interchange and Grade
Separation, Portage la Prairie, $21 million
16 - Centreport Way, Winnipeg, $33.3 million
17 - Regional Transportation Management
Centre, $5 million
18 - Pitt River Bridge and Mary Hill Interchange,
$90 million
19 - City of Richmond, $5.5 million
20 - Corporation of Delta, $1.8 million
21 - Roberts Bank Rail Corridor Road/Rail
Grade Separations, $75 million
22 - South Fraser Perimeter Road, $365 million
23 - Four Burrard Inlet’s North Shore Projects,
$75 million
24 - South Shore Trade Area, $49.7 million
Canadian Consulate services are FREE of charge
Introductions to Canadian suppliers
Assisting in conducting R&D in Canada or licensing
Canadian technology
Consulate General of Canada - Detroit
Genevieve Dionne
Consul and Sr. Trade Commissioner
Pathfinding key government contacts
Delon Chan
Facilitation of site visits
Consul and Trade Commissioner
Information and advice on how to set up a business
in Canada, taxation, regulations and incentives
Assistance in developing an investment business