Canada’s “Asia Pacific Gateway” – Opportunities for Indiana Businesses

1. 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

2. Canada – US & Indiana Trade Statistics V Easy Access to Markets • 2013 Trade Stats • CAN –US Goods Trade: $632 Billion • IN Exports to Canada: $11.8 Billion • IN Imports from Canada: $7.8 Billion • Canada–IN Bilateral Trade: $19.6 Billion • 35% of Indiana exports are to Canada

3. 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 Competitiveness • 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

4. Beyond the Border Action Plan • http://www.dhs.gov/beyond-border-action-plan • Beyond the Border - Concrete initiatives to increase border efficiency • programs that help trusted traders and travellers move more efficiently across the border • 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 shipments

5. Regulatory Cooperation Council (RCC) • www.trade.gov/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.

6. 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

7. Asia Pacific Gateway & Corridor Initiative http://www.asiapacificgateway.gc.ca/videos/your-competitive-advantage.html

8. 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.

9. 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

10. 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.

11. 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 countries. • Canada is a tariff-free zone for manufacturers • - Elimination of all tariffs and duties for manufacturing inputs by 2015. • 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

12. 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 million 4 - Ashcroft Terminal, $5 million 5 - River Road, Prince George, $2.8 million 6 - Twinning of Simon Fraser Bridge, $16.1 million 7 - Highway 97 Upgrade near Prince George, $6.9 million 8 - Grade Separations, British Columbia, $2.4 million  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 million 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

13. Canadian Consulate services are FREE of charge SOURCING FROM CANADA • Introductions to Canadian suppliers INNOVATION and R&D WITH CANADA: • Assisting in conducting R&D in Canada or licensing Canadian technology INVESTING IN CANADA: • Pathfinding key government contacts • Facilitation of site visits • Information and advice on how to set up a business in Canada, taxation, regulations and incentives • Assistance in developing an investment business case CONTACT INFO: Consulate General of Canada - Detroit Genevieve Dionne Consul and Sr. Trade Commissioner genevieve.dionne@international.gc.ca Delon Chan Consul and Trade Commissioner delon.chan@international.gc.ca