Archive for the ‘Export’ Category

CanExport Funding Increased and Expanded

CanExport is a government funding program that provides funding to Canadian small and medium-sized enterprises (SMEs) to support new export market development.

As of August 22, 2019, the CanExport project funding limit for SMEs will be increased up to $75,000 to cover up to 75% of eligible expenses.

Previously, the CanExport program excluded the agriculture and food processing sectors, since companies in these industries were already eligible for export funding through the AgriMarketing program. However, as of August 22, 2019, the program will also be expanded to support companies from Canada’s agriculture, agri-food and agri-products industry, including fish and seafood.

Eligible activities need to exceed the company’s core activities and focus on promoting international business development. These may include business travel costs, exhibitions at trade shows, market research, adaptation of marketing materials for new markets, and legal fees associated with a distribution/representation agreement.

In order to be eligible for funding through the CanExport program companies must have 1-500 full-time employees and $100,000-$100,000,000 in annual revenue declared in Canada. The CanExport program is open to companies in all sectors. Eligible markets include countries (and in some cases, regions) where the applicant has achieved less than $100,000 or less than 10% of the company’s total sales in that market in their last completed tax year.

For more information on the CanExport program and other sources of funding, please contact us.

USMCA Trade Deal Reached After Year of Intense Negotiations

Details about the newly renegotiated United States-Mexico-Canada Agreement (USMCA) have been released.  This proposal, if ratified, will address disputes in the Canadian automotive and agricultural sectors, the cost of generic drugs in Canada, and online eCommerce.  It does not currently address national security tariffs, but preserves the dispute resolution process from the North American Free Trade Agreement (NAFTA).

News of the USMCA deal sent the Canadian dollar soaring on Monday.  The announcement of the USMCA deal may remove the uncertainty that was  preventing the Bank of Canada from hiking interest rates.  It is anticipated that the Bank of Canada will increase interest rates during the next policy announcement on October the 24th.  Details of the USMCA proposal will be summarized below.

Automotive sector- Trump has agreed that no hard limit will be placed on Canadian automotive exports to the United States.

Agricultural sector- American farmers will gain greater access (3.6 percent) of Canada’s current dairy market, and Canada will dismantle the “Class 7” dairy ingredient (lower) pricing strategy for protein concentrates, skim milk, and whole milk powder, that  discourages foreign competition in the Canadian market.  The Americans will gain more than twice the market access to the Canadian chicken industry than what was previously negotiated in the Trans-Pacific Partnership, as well as increased access into the Canadian egg and poultry markets.  However, no major concessions will be made on the import and export of beef, pork, and grain.

eCommerce- The threshold of American goods Canadians can purchase online or via mail order without paying duties increases from $20 to $150.  American online and mail-order businesses expect to gain increased market share in Canada.

Prescription drugs- Canada has agreed to extend patent protection for biological pharmaceutical drugs from 8 to 10 years, which means that it will take longer for generic versions of new biological drugs to become available to the Canadian public.  Canada’s diminished control over the price of biologics may potentially pose a fresh challenge for the creation of a national pharmacare plan.

National security tariffs- During the summer, Trump announced that Canada would be subject to tariffs on steel and aluminum.  No agreement has been reached on the removal of these tariffs yet.

Dispute resolution- Trudeau was unequivocal about its inclusion of Chapter 19  in any new pact, which was ultimately agreed upon by the Americans despite protest from US negotiator Robert Lighthizer.  Chapter 19 from the NAFTA agreement spells out the process for companies to request arbitration if they feel that their products have been unfairly impacted by anti-dumping or countervailing duties.  

Vancouver Agri-food EUREKA! Event About International R&D Collaboration

Join Dutch EUREKA! expert Arnold Meijer and learn about how Eureka! can help you collaborate with 40 countries worldwide.

EUREKA! - International collaboration in R&D and Product Development.

EUREKA! / Eurostars is a program that supports Canadian small & medium enterprises (SMEs) wanting to collaborate with partners in around 40 other countries, in Europe and worldwide, to conduct R&D and develop technologies for new products or processes.

Arnold Meijer, coordinator Eurostars and subject-matter expert from The Netherlands Enterprise Agency, will be in Vancouver next week, and has kindly agreed to join us at The Profile to clarify how EUREKA! / Eurostars can help Canadian businesses, and to answer any questions.

Arnold will also take this opportunity to specifically discuss the recently announced call for R&D Proposals in Agri-Food. The objective of this call by Canada, The Netherlands, France, Hungary, Spain and Israel is to support the competitiveness of the agri-food sector.

Where: The Profile, 535 Thurlow Street, Vancouver (Map)

When: Tuesday, May 15, 4 – 5 PM

Get your free tickets here

Organized by:

Jaap Siekman, Regional Manager at NorthBridge Consultants.

NorthBridge is an expert consultancy firm assisting businesses throughout Canada with Government Funding that supports R&D, Innovation and Growth, such as SR&ED, IRAP, Build in Canada Innovation Program (BCIP), Innovative Solutions Canada (ISC), Canada Agricultural Partnership (CAP), SDTC/ICE Fund and CanExport.

In cooperation with the Consulate General of the Netherlands in Vancouver.

This event is sponsored by and takes place at the fabulous event space of The Profile

LoungeDowntownApples

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Ontario Budget 2018 Highlights

The Ontario 2018 Budget, tabled on March 28, 2018, projects a growing deficit over the next three years and is predicted to resume a downward trend in 2022 with accumulated deficit expected to decline from 23.2% of gross domestic product (GDP) in 2017-18 to 22.1% by 2022.

The Ontario Budget proposes several measures and investments that impact businesses, including:

Innovation

  • An increase to the Ontario Research and Development Tax Credit (ORDTC) from 3.5% to 5.5% for eligible R&D expenditures over $1M (per taxation year) incurred on or after March 28, 2018.
  • Enhancements to the Ontario Innovation Tax Credit (OITC) for eligible R&D expenditures incurred on or after March 28, 2018 based on the ratio of R&D expenditures to gross revenues. Companies with a ratio of R&D expenditures to gross revenue of:
    • 10% or less will continue to claim the OITC at a rate of 8%;
    • 10-20% will be eligible for an enhanced OITC rate that will increase from 8% to 12% on a straight-line basis; and
    • 20% or more will be eligible to claim the OITC at a rate of 12%.
  • Expansions to the Ontario Interactive Digital Media Tax Credit (OIDMTC) eligibility criteria to include broadcaster purchased or licensed film/television websites that host film, television, or Internet production content not previously assessed (before Nov 1, 2017).
  • A review of various tax incentives implemented in other jurisdictions such as preferential corporate income tax rates (i.e., patent boxes), tax refunds, tax deductions, and exemptions with the intention of developing a provincial incentive to encourage Intellectual Property (IP).
  • An additional $50M over 10 years for the New Transformative Technology Partnerships Fund for businesses, SMEs, and scale‐ups as well as post-secondary and research institutions to collaborate on new dynamic products and services in artificial intelligence (AI), 5G wireless communications, autonomous vehicles, advanced computing, and quantum technologies.

Business Growth

  • In parallel with the 2018 Federal Budget proposal to phase-out or grind the $500,000 small-business limit, the Ontario Budget proposes to phase out the small-business limit on a straight-line basis for CCPCs (and associated corporations) earning between $50,000 and $150,000 of passive investment income in taxation years beginning after 2018.
  • Ending the electricity debt retirement charge (DRC) for mid-sized commercial and industrial non-ICI or non-RRP, Class B consumers as of April 1, 2018.
  • An additional $100M over 10 years for the Eastern Ontario Development Fund (EODF) and the Southwestern Ontario Development Fund (SWODF) to support regional economic development by creating jobs, attracting private sector investment and promoting innovation, and encouraging collaboration and cluster development.
  • An additional $500M over 10 years for the New Economy Fund for investing in priority sectors such as advanced manufacturing, information and communication technology (ICT), life sciences, and clean-tech.
  • An additional $85M over 3 years for the Northern Ontario Heritage Fund to stimulate economic development and diversification across the region.
  • An additional $100M over 10 years for a new Greater Toronto & Hamilton Area Fund to support SMEs in the GTA and Hamilton area.

Export Market

  • Work to implement a Global Trade Strategy to diversify and promote trade in Ontario. This will include the Accelerate to International Markets program, the Global Growth Fund, and the Magnet Export Business Portal.

Startup Support

  • An additional $85M over 10 years for a new Venture Technology Fund to support a select number of very high‐potential, fast‐growing firms in expanding to become globally competitive.
  • An additional $15M over the next 3 years to NextAI, a Toronto based accelerator for early stage startups that leverage AI technologies.

Workforce Development

  • An additional $170M over 3 years for the new Ontario Apprenticeship Strategy to support transition into apprenticeship from high school, make the system easier to navigate, and to improve access for apprentices to high‐quality jobs upon completion.
  • Transforming the Apprenticeship Training Tax Credit (ATTC) into the new Graduated Apprenticeship Grant for Employers (GAGE) to encourage employers to ensure that apprentices complete their training.

Victoria, BC Lunch & Learn- Government Funding for R&D, Innovation and International Growth

There are many Government Funding programs available to assist Canadian businesses with expenses related to R&D, new product development, manufacturing process improvements, tapping into international markets and workforce development.

Join this lunch & learn to learn about some of these programs, how they fit in the difference stages of your corporate development, and also about the limitations of government funding and the need for alternate sources of working capital.

Some of the funding programs covered include:

  • SR&ED (Scientific Research & Experimental Development)
  • IRAP (Industrial Research Assistance Program)
  • SIF (Strategic Innovation Fund)
  • SDTC (Sustainable Development Technology Canada)
  • Growing Forward / Agri-Innovation
  • BCIP (Build in Canada Innovation Program)
  • Engage, CRD, Mitacs (grants for working with universities)
  • CanExport
  • Hiring & Training Grants

About the presenter:

Jaap Siekman MSc, PEng, PMP
LinkedIn Profile
Jaap is the Regional Manager for NorthBridge Consultants. He educates start-ups and growing companies on Government Funding programs that support R&D and Innovation in Canada.

Jaap has ~28 years’ experience in Engineering, Manufacturing, Product Development and Management in a variety of industries.

NorthBridge is a national consultancy firm, with offices in BC, Ontario and Quebec.

 

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