Ventures Dialogue

For the first time since 1975, Canada posted an annual trade deficit in 2009 as imports grew at a greater rate than exports.  Commentary on the implications of this news are mixed. 

CBC’s Michael Hlinka said in his broadcast this morning that it is a sign of a whole different environment for doing business.  In the past, Canadian exports were protected by a weaker Canadian dollar, giving our companies a competitive edge.  Hlinka argues that Canadian companies need to adapt to a new world where our dollar is almost at par with the American dollar.  They’ll have to find other ways to be competitive.

In the Montreal Gazette, an article argues that the growing trade deficit is a good thing since it shows that the right policy decisions were made to cushion Canada from a global recession.

And in the Toronto Star today, some promising facts that show our exports grew in December when compared to November, and that automotive products supplied much of that growth.

At the same time, the Ontario Chamber of Commerce has been trying to help small and medium sized companies in Ontario seize global opportunities for exports.  Through our Export Market Access program, we provide cost-sharing grants that cut a company’s costs of reaching new markets by half!  Support from the federal and provincial governments has enabled us to support over 220 companies since the launch of the program and we are eager to assist many more.

One thing is certain, as the global economy recovers, Ontario companies must be ready to seize opportunities overseas.  For too long we have been reliant on the United States market – an important market to be sure, but not the only one.  Canadians and our products are well regarded around the world.  Countries like China and India are growing at much greater rates, fueled in part by the growing middle class in these countries.  Ontario companies have excellent products and quality services that could be better marketed to the world.  It’s time we more aggressively pursued these opportunities.