FITT International Trade Competency Framework
DRAFT
Keep the following in mind as you review the document.
Ask yourself, do you need this skill to conduct International Trade? If the answer is no, please tell us.
If it does apply, are the performance and knowledge statements: Accurate? Complete? Realistic? Meaningful? Logical in Structure?
Finally, does anything need to change, or is anything missing?
Please return the reviewed document to Calum MacDonald, cmacdonald@cthrc.ca.
This document is in a formative stage and intended for consultation purposes; it is not complete and may contain inaccuracies. The document is not intended for
general distribution.
REFERENCE NUMBER
1.4
CATEGORY
FEASIBILITY OF INTERNATIONAL TRADE
SKILL
Conduct Situational Analysis
SUBSKILL
4. Access programs and services
PURPOSE
Governments play a significant role in international trade relationships, requirements and support as do
non-governmental organizations (NGOs). Consultants also provide international trade services that
enterprises can access. By being aware of the supports available, enterprises can make smarter business
decisions and maximize their resources.
PERFORMANCE
Competent practitioners must:
P1.
P2.
P3.
P4.
P5.
P6.
Access resources about domestic and international government policies and programs:
 consult government and industry websites
 consult government and industry experts, e.g. trade commissioners, industry association
representatives
Identify historical and current nature of relationship between Canadian and target governments
Identify supports related to proposed trade activities, e.g. trade commissioners, local contacts
Identify services and programs offered by other organizations, e.g. non-governmental
organizations (NGOs), Chambers of Commerce, industry associations, consultants
Identify consultants’ services that could assist
Access programs and services related to potential trade activities
KNOWLEDGE
Competent practitioners must know:
K1.
Types of organizations that provide trade programs and services, including:
 intergovernmental organizations, e.g. World Trade Organization, Organization for Economic
Co-operation and Development, World Customs Organization
 state governments--both domestic and foreign--at national, provincial/territorial, and local
levels
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K2.
K3.
K4.
K5.
 NGOs, e.g. Greenpeace, Canadian Chamber of Commerce
 Consultants, e.g. customs brokers, freight forwarders, mentors, counsellors
Types of trade policies and programs that promote trade, including:
 relationship building
 negotiation of trade agreements
 economic diplomacy
 market information
 promotion of country brand
 technical assistance and advocacy with host governments
 vetted local contacts
 promotion of inward and outward foreign investment
 financing or insurance for exports and outward investments
 leadership and logistical support for trade delegations
Types of trade policy and programs that restrict trade, including:
 customs administration
 tariffs
 quotas
 sanctions
Types of domestic policies and programs (other than trade) that can encourage or discourage
trade, including:
 transportation infrastructure
 communication infrastructure
 banking system
 education system
 credential recognition
 workforce development
 environmental standards
 product standards
 government procurement
Government of Canada organizations related to international trade, including:
 Canada revenue agency
 Canadian border services agency (CBSA)
 foreign affairs and international trade Canada
 export development corporation (EDC)
 Industry Canada
 Statistics Canada
VARIABLES, RANGE OF CONTEXT
Competent practitioners may need to work with the following variables:
V1.
?
GLOSSARY
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Customs: Is an authority or agency in a country responsible for collecting customs duties and for
controlling the flow of goods including animals, transports, personal effects, and hazardous items, into
and out of a country.
Customs union: A trading block consisting of two or more countries which have eliminated trade
barriers among themselves and imposed a common tariff on all goods imported from all other countries.
Also known as a common market (see ASEAN, EC, Mercosur)
Customs valuation methods: Methods by which the value for duty (VFD) of imported goods is calculated
by Customs officials and importers for the purpose of determining the amount of duty payable. There
are two types of duties: ad valorem and specific, usually calculated as a percentage of the shipment’s
value. The GATT Customs Valuation Code obligates signatory governments to use the transaction value
(the price actually paid or payable) of imported goods as the principal basis for valuing the goods for
Customs purposes. Countries have the option of either including or excluding freight and insurance
charges. If a transaction valuation is impossible, VFD can be calculated by the deductive value method,
which is based on the first sale price to an arm’s-length buyer in Canada less certain deductions, charges
and expenses. Computed value is calculated by adding the costs of production or engineering of the
goods, general selling and administration expenses, and a profit figure for an arm’s-length sale for
export to Canada.
Dumping: A form of unfair trade that occurs when an exporter (manufacturer) sells goods to an
importer at a lower price than in the exporter’s domestic market. Where dumping would injure the
importer’s industry, the exporter is subject to an antidumping action and duties.
Embargo: A restraint or prohibition by a country on the arrival or departure of a foreign ship. Usually a
retaliatory measure against a country’s shipping when other measures like countervailing duties have
been ineffective. Also known as a hostile embargo.
Free trade: Commercial dealings between two or more countries unimpeded by duties, tariffs, import
quotas and other imposed trade barriers. The objective of trade liberalization, however, is to achieve
“freer trade” rather than “free trade,” as it is generally recognized among trade policy officials that
some restrictions on trade are likely to remain in effect for the foreseeable future.
Political environment: Refers to the type of government, government relationship with business and
political risk in a country
Protectionism: The use or encouragement of restrictions on imports to shelter domestic producers from
the full effects of international competition
Quota: The quantity of goods that may be imported without restriction, additional duties or taxes.
Import quotas are enforced by the receiving nation while the country of origin enforces export quotas.
Standards: Specifications on the quality of products
Subsidy: A financial or commercial benefit granted by a government to producers often to strengthen
their competitive position through the reduction of business operating costs. The subsidy may be direct
(e.g., a cash grant) or indirect (e.g., low interest export credits guaranteed by a government agency).
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Subsidies targeted toward specific industries are considered unfair trade practices that may result in
another country imposing countervailing duties.
Tariff: An import tax on the value, weight or volume of the goods imported
Trade agreements: unilateral, bilateral or multilateral agreements intended to reduce trade barriers
between countries, to make it easier to do business internationally, and to provide frameworks for the
rules that govern global trade
Trade sanctions: when a country publicly suspends a major portion of its trade with another country to
attain political objectives
Voluntary Export Restraint (VER): a limit to restrict the quality of goods and services that can be
exported out of a country during a specified period of time; the word “voluntary” is used because these
restraints are typically implemented at the insistence of importing nations
SOURCES
1. Canadian Chamber of Commerce. Turning it Around: How to Restore Canada’s Trade Success. May
2014. accessed at
http://www.google.ca/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CB4QFjAA&url=http%3A%2F%2F
www.chamber.ca%2Fdownload.aspx%3Ft%3D0%26pid%3Db06a4f25-bbd7-e311-93a5000c29c04ade&ei=gHvFU5iHLsn-oQTOgYHQCw&usg=AFQjCNEHHOX994sheinvc3iGEnN09swOg&sig2=E2WrYXB5LWhL0DBmvsMklQ
2. Esty, Daniel C. Non-governmental Organizations at the World Trade Organization: Cooperation,
Competition or Exclusion. Journal of International Economic Law 1 (1998), 123-147.
3. Export Development Canada @ http://www.edc.ca/EN/About-Exporting/TradeLinks/Pages/government.aspx
4. FITT. Certified International Trade Professional – Competency Booklet. (nd)
5. FITT. Going Global: An Introduction to International Trade. Participant Guide. Version 3, 2013.
6. FITT and Gilmore, eVantage. FITTskills: Global Business Environment. 6th Edition.
http://evantage.gilmoreglobal.com/books/FS-GBE-PG-EN-06-E/page/135
7. FITT and Mercer. Integrative Trade Competencies: Developing your talent in an evolving global
business environment. (nd)
8. Government of Canada. Global Markets Action Plan: The Blueprint for Creating Jobs and
Opportunities for Canadians Through Trade. 2013
9. International Business @ http://www.referenceforbusiness.com/management/Gr-Int/InternationalBusiness.html#b#ixzz36n2P6wEI
10.Investopedia online @ http://www.investopedia.com/terms/t/tariff.asp
11.Paul, James A. (editor). NGOs and Global Policy-Making. Global Policy Forum (GPF), June 2000.
https://www.globalpolicy.org/about-gpf-mm/introduction.html
12.Richardson, Tim G. Government Influence on Trade – The Effects and Influences of the Political
Environment @ http://www.witiger.com/internationalbusiness/governmentinfluenceontrade.htm
13.Wikpedia @ http://en.wikipedia.org/wiki/Commercial_policy, @
http://en.wikipedia.org/wiki/Protectionism, @ http://en.wikipedia.org/wiki/Free_trade, and @
http://en.wikipedia.org/wiki/Subsidy
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