Demand for Ontario’s high value-added goods and services is expanding around the world. Emerging markets such as China and India will continue to grow quickly, while advanced regions such as the United States and Europe will continue to provide steady demand for Ontario’s resources, high-technology exports, and professional and technical services.
One of the greatest sources of opportunity for Ontario’s small businesses lies in expanding and diversifying exports overseas, beyond the U.S. market. Over the past decade, many of Ontario’s small and medium-sized businesses have started to build on their export success to the United States by pursuing new export
Attracting Global Investment, Creating Jobs at Home
In recent months, Ontario’s trade offices around the world have facilitated a number of investments, including:
India-based Mahindra Satyam, which offers consulting and information technology (IT) services spanning various sectors, and its sister company Tech Mahindra are setting up a development centre and research and development facility in Toronto, planning to hire up to 130 IT engineers and financial experts, and investing approximately $10 million over the next five years.
U.S.-based XPO Logistics provides third-party logistics services using a network of relationships with ground, sea and air carriers in the United States, Mexico and Canada.
XPO Logistics opened a carrier procurement office in Ontario that will focus on the procurement of full truckload-focused companies that can move their clients’ goods throughout Canada. The project secured 200 jobs and is resulting in an approximate investment of $24 million.
Gizeh, a food packaging company from Germany, made a $4 million investment in the food processing/advanced manufacturing sector in Ontario. This investment will create 20 to 25 new jobs and, within three years, the company expects an additional investment of $25 million and 60 to 70 new jobs.
Newgen Software Technologies Limited from India has entered into a strategic partnership with HP Canada to offer solutions particularly with respect to the financial services market. Newgen Software is a leader in business process management, enterprise content management and customer communication management.
The company has also procured its first project from a municipal government in Ontario and a bank. The investment is $3 million and 10 jobs.
The Province continues to move forward with its Going Global Trade Strategy, which will expand the reach of Ontario’s exports, including to fast-growing emerging markets that are quickly increasing their share of the global economy.
It will help Ontario companies — especially SMEs — increase their success in exporting to global markets and creating jobs. The Ontario government continues to:
Promote Ontario companies’ quality goods and services, by opening
Ontario’s eleventh International Marketing Centre (IMC) in São Paulo earlier this year to help companies explore export opportunities and connect with international buyers and investors in Brazil.
Further expand representation to include South Korea, Chongqing in China, and Israel, adding to the existing IMCs in New York, San Francisco, Mexico City, London, Paris, Munich, Beijing, Shanghai, Tokyo and New Delhi (including a satellite office in Mumbai).
Expand the number of trade missions to increase the number of companies exporting and increase employment by connecting more businesses to more foreign buyers, while increasing Ontario’s global reputation as a source of innovative goods and services.
Help exporters find new markets. Last year alone, Ontario led over 70 outbound trade missions in priority sectors and emerging markets.
These outbound missions are helping almost 500 SMEs to export and have identified almost $450 million in potential exports. They are part of a plan to help triple exports to emerging economies and diversify exports over the next 10 years.
Expand the opportunities for foreign buyers to connect with potential Ontario exporters. Ontario has hosted over 80 foreign buyers and
international delegations. A Global Export Forum focused on opportunities in the Asia Pacific region was held in Ontario last fall. Another Global Export Forum, focused on Latin America, will be held in May 2014.
Connect Infrastructure Ontario with Ontario’s international trade offices to create export opportunities for Ontario firms that have participated in Alternative Financing and Procurement (AFP) projects. Infrastructure Ontario is showcasing the made-in-Ontario AFP model through its
2014 Ontario Budget
It is projected that, over the next 10 years, Canada will negotiate a diverse collection of comprehensive trade agreements with most of its major trading partners, including India and Japan. Ontario will continue to support trade agreements that benefit its economy while supporting strategic sectors.
Concluding new trade agreements will also help Ontario businesses become more productive and involved in global competition, supporting the international transfer of new ideas, innovation and competitive techniques.
Successful Missions
Ontario’s in-market trade representation in Mexico, Chile and Brazil has helped Ontario companies secure 25 contracts (April to October 2013). Ontario software, ICT, mining, tooling, construction and clean energy firms are among those that have achieved this new business.
Electrovaya, a clean technology company, has received a purchase order for approximately $1.0 million US from an original equipment manufacturer in the United Arab Emirates. The order is for a high-value application for strategic portable power systems and is the first order from the Middle East.Electrovaya exhibited in the Ontario pavilion at the World Future Energy Summit.
Highlights
Raising the minimum wage to $11.00, and tying it to inflation to provide fairness to low‐income workers and predictability to businesses.
Investing in affordable housing and homelessness prevention initiatives.
Increasing and proposing to index the Ontario Child Benefit.
Establishing a new health benefit program for low‐income children.
Continuing to reform the social assistance system through a rate increase and by streamlining employment benefits.
Expanding the Student Nutrition Program to serve more children in low‐income neighbourhoods and on First Nation reserves.
Enhancing supports for adults with developmental disabilities.
Creating a more accessible justice system where low‐income families and vulnerable groups have access to the legal supports they need.
Supporting greater opportunities for Aboriginal people through a variety of new initiatives.
Taking further action to reduce auto insurance rates.
Improving consumer protection through a modernized regulatory system.
Proposing to remove the Debt Retirement Charge cost from residential users’
electricity bills after December 31, 2015, to save a typical residential ratepayer about $70 per year.
2014 Ontario Budget