May 6, 1999
To:Economic Development Committee
From:Joe Halstead, Commissioner of Economic Development, Culture and Tourism
Subject:Toronto Export Development Initiative - All Wards
Purpose:
This report outlines an initiative of Industry Canada and the Department of Foreign Affairs
and International Trade (DFAIT) to develop export capabilities in small and medium-sized
enterprises. The Economic Development Division (EDD), though TradeLink Toronto, is the
municipal partner in the Toronto implementation of this project.
Funding Sources, Financial Implications and Impact Statement:
No immediate financial implications. Activities will complement and enhance Economic
Development's 1999 business plan.
Recommendations:
It is recommended that:
1.the Economic Development Committee support in principle the Export Development
Initiative as it relates to the City of Toronto;
2.the City's Solicitor be instructed to advise on the legal issues relating to the use of the
TradeLink Community Development Corporation as the contracting agent to hire consultants
with funding provided by Human Resources Development Canada (HRDC).
Council Reference/Background/History:
Exports are important to Canada, amounting to $356.2 billion in 1998, or almost 41% of
GDP. An estimated 11,000 jobs are created for every $1 billion in exports. However, a
relatively small number of small and medium-sized enterprises (SMEs) are active exporters.
Therefore, substantial economic growth and employment could be achieved through a more
focused export preparation program.
The Federal Government is committing resources to this effort, through an initiative of the
International Trade Centre (Industry Canada/DFAIT). In the City of Toronto, four export
development consultants will be hired to work with local business and business s groups, with
the goals of increasing awareness of exporting opportunities, educating and training SMEs,
assisting in the development and implementation of exporting plans, preparing
export-readiness assessments, and acting as liaison between businesses and available
government support.
The project will be managed by an Advisory Board made up of local, provincial and federal
partners as well as representatives from the private sector. At the federal level, HRDC will
fund the hiring of export development officers to work with local businesses and business
groups, and also fund a chairman for the Advisory Board; the International Trade Centre will
provide leads. HRDC has an approved budget of $275,000 for the Toronto Export
Development Initiative to pay for salaries, marketing and limited overhead expenses.
At the provincial level, both Ontario Exports Inc. and the Ministry of Economic Development,
Trade & Tourism will provide leads; Ontario Exports Inc will also coordinate activities with
the New Exporters to Border States (NEBS) program. At the local level, the City of Toronto
through TradeLink Toronto will provide office space for the consultants, and training facilities
as required; both EDD and the Toronto Board of Trade will provide leads. TradeLink will also
be the contracting agent for the hiring of four export development consultants for one year,
with funding from HRDC.
Through TradeLink Toronto, EDD is engaged in a similar federal-local initiative for
increasing export expertise in local businesses. The International Trade Centres, TradeLink
and some private sector partners have formed a similar advisory board to explore the training
options for improving the application of letters of credit by exporters. A education/training
program, funded by HRDC, will be piloted in Toronto, and potentially extended across
Canada and to Canadian Trade Missions abroad.
Comments and/or Discussion and/or Justification:
The Export Development Initiative will add four externally-funded consultants to the staff
complement of TradeLink. The current complement is one EDD-funded export information
specialist, and one export consultant funded by Centennial College Centre for
Entrepreneurship,
EDD's partner in the TradeLink initiative.
The consultants will draw the attention of Toronto businesses and business groups to the
resources that the City has committed to export development through its TradeLink initiative.
This will be in addition to the exposure provided by the economic development officers in
EDD.
The concentration of additional expertise at the TradeLink facilities at the National Trade
Centre will further enhance the perception of the National Trade Centre as a focus of export
marketing in the City.
The externally-funded staff will leverage the information materials and space facilities
allocated in EDD's 1999 budget for export development.
Conclusions:
The Export Development Initiative described in this report will enhance EDD's efforts to
promote international trade in Toronto, and support potential exporters, particularly among
small and medium-sized enterprises.
Contact Name:
Maggie Weaver, TradeLink Coordinator
Economic Development
263-3510
Bruce Graham
Director, Business Development & Retention
Economic Development
392-3381
Brenda Librecz
Managing Director
Economic Development
392-4700
Joe Halstead
Commissioner Economic Development, Culture and Tourism