HALIFAX, May 17, 2017 /CNW/ - Export Development Canada (EDC), Canada's trade finance agency, is reporting that modest export growth in 2017 will amount to a waiting game for Nova Scotia exporters.
According to EDC's Global Export Forecast, Nova Scotia is coming off a small decline in 2016 and export growth will only see a modest one per cent this year. It is expected to rebound in 2018 with a boost of 5 per cent, thanks in part to new opportunities created through the Canada-European Union (EU) Comprehensive Economic and Trade Agreement (CETA).
"Nova Scotia exporters are in for a second sluggish year," said Peter Hall, EDC Chief Economist and Vice President. "When CETA takes effect this summer, it will unlock new doors of opportunity, specifically for province's seafood and agri-foodindustries."
Record vehicle sales in the U.S. have been fuelling demand for automotive parts, including tires manufactured in the province. The U.S. auto market is running so hot that it's hard to generate further growth. Modest growth in the province's agri-food sector, its top exporter, is also cooling Nova Scotia international sales this year.
That could all change in 2018. While the U.S. and China remain the province's main export destinations, CETA will reduce almost 96 percent of EU tariff lines for fish and seafood when it kicks in later this year. Currently, certain industries like processed lobster and cooked and peeled shrimp face tariff rates of 20 per cent.
"The EU is the world's largest importer of fish and seafood, and elimination of tariffs will only boost Nova Scotia's export opportunities in the future," Hall added.
Despite the good news, Canadian exporters are facing a popular backlash against globalization that is threatening to dismantle the architecture of modern trade. Even so, EDC is convinced that the basic architecture will remain intact, and that trade business and foreign investments will continue to gain steam in the short term.
"Last year, a wave of trade policy paralysis washed over the Western world," said Mr. Hall. "Globalization is at risk, but it's not likely to unravel – the cost would be massive, with everyone paying more. Swing a wrecking ball in a densely-built neighborhood, and it takes out a lot more than just one building.
Mr. Hall is discussing export prospects for Nova Scotia in the context of the current global economy on May 17th at Pier 21. The event, in partnership with Halifax Chamber of Commerce, is part of a month-long, 13-location cross-country Let's Talk Exports tour. The initiative highlights export prospects for Canadian companies around the globe in addition to providing insights into the health of the global economy and how it will impact Canadian exporters. For more information, visit Global Export Forecast to learn more.
EDC helps Canadian companies go, grow, and succeed in their international business. As a financial Crown corporation, EDC provides financing, insurance, bonding, trade knowledge, and matchmaking connections to help Canadian companies sell and invest abroad. EDC can also provide financial solutions to foreign buyers to facilitate and grow purchases from Canadian companies.
For more information about how we can help your company, call us at 1-888-434-8508 or visit www.edc.ca.
SOURCE Export Development Canada
For further information: Shelley Maclean, Export Development Canada, (613) 291-3689, firstname.lastname@example.org