When it’s time to start thinking about an international destination, many companies in the United States consider Canada. In a survey of business owners, UPS found that 23% of small and medium sized businesses indicate Canada as a key market and 21% said that they intend to increase or begin exporting to Canada within two years. What makes Canada so appealing?
- Free Trade Agreement: In general, Free Trade Agreements (FTAs) make it easier to do business abroad. FTAs reduce tariffs, lowering the cost of selling into FTA markets – savings that can be passed on to customers and make your company more competitive. FTAs also reduce quotas, open services markets, and ensure transparency in legal systems to protect your intellectual property. Canada is part of the North America Free Trade Agreement (NAFTA), a special FTA between the U.S., Canada, and Mexico, which makes it easier for U.S. companies to sell goods to its neighbors.
- Feels close to home: Business owners think of Canada as an extension of their U.S. business. Although an international border separates the U.S. and Canada, the close proximity and similar culture makes Canada feel close to home. English is one of the official languages and is spoken throughout the country, customers pay similar prices for goods and services, and similar products are in demand.
- Easy logistics: Like the U.S., Canada can be reached by air or ground service, delivering your products at the right time and cost. Savvy exporters know that shipping to another country requires an Importer of Record at your destination. Not set up in Canada? No problem! The Non-resident Importer Program is unique to Canada and allows your company to serve as the importer from the United States.
UPS offers a variety of solutions to help you leverage opportunity that waits just north of the border. To learn more tips, tricks, and market stats about doing business in Canada, consult the UPS Snapshot for Small Business: Doing Business in Canada. You can also contact your UPS account representative to discuss the best logistics plan for your entry or expansion into Canada.
Already exporting to Canada? Tell us your story and we might feature your company in a future publication.
|Category:||Business Insights, Global Impact, Logistics|
|Tags:||Canada, Free Trade Agreement, global, international, logistics, NAFTA|