Toronto Export Development Initiative - All Wards

The Economic Development and Parks Committee recommends the adoption of the report (May 6, 1999) from the Commissioner of Economic Development, Culture and Tourism.

The Economic Development and Parks Committee reports having requested the Commissioner of Economic Development, Culture and Tourism, to report further on the City of Toronto's participation on the Greater Toronto Market Alliance.

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), through 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 and Parks Committee support, in principle, the Export Development Initiative as it relates to the City of Toronto; and

(2)the City 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 percent 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 businesses and business 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 $275,000.00 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 and 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. An 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.

Conclusion:

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 Names:

Ms. Maggie Weaver, TradeLink Coordinator, Economic Development, 263-3510, Mr.BruceGraham, Director, Business Development & Retention, Economic Development, 392-3381, Ms.Brenda Librecz, Managing Director, Economic Development, 392-4700.