Canadian firms target emerging markets
OTTAWA: Export Development Canada’s (EDC) business volumes in emerging markets reached $10.8 billion in the first half of 2010, an increase of $2.4 billion over the same period last year.
“Emerging markets attracted Canadian exporters and investors looking for the best opportunities for growth during the first half, a positive trend for Canadian trade,” said Eric Siegel, President and CEO of EDC.
Top EDC volumes in emerging markets:
- China: $1.5 billion
- Brazil: $868 million
- India: $767 million
- Mexico $537 million
“While some of this increase is influenced by continued slow growth in the U.S., EDC is encouraged because the types of transactions we’re seeing demonstrates a longer-term interest in emerging-market business.”
He added that EDC’s total business volume for the first half ending June 30, 2010 was $37.5 billion compared to $38.2 billion for the same period last year, a positive trend as Canada emerges from the global recession.
In the first half, the infrastructure and environment sector led all sectors, commanding 36 per cent of the total emerging market business volume.
EDC facilitated $2.5 billion in Canadian direct investment abroad, where Canadian companies invest in foreign markets by setting up a local office, manufacturing facility or joint venture.
Canada’s Economic Action Plan granted EDC flexibility to increase access to credit for by participating in transactions with Canadian private sector financial and insurance institutions, along with Business Development Bank of Canada.
In the first half of 2010, EDC undertook $1.5 billion for 62 Canadian exporting companies to handle global business needs, which were transacted in partnership with Canadian private lenders.
Transactions undertaken in partnership with private sector institutions reached $11.4 billion, more than double that of the same period last year and already 68 per cent of forecast for the year.
Regionally, companies in Ontario accounted for $14.4 billion of EDC’s total business volume, followed by Western Canada at $11 billion, Quebec at $10.4 billion, and Atlantic Canada at $1.3 billion.