Getting your product into market
Methods for market entry to Canada vary greatly between sectors.
Most industries sell through established distribution chains and it is common to have relationships with an importer or customs broker, a distributor and an agent.
There are complex quotas and licensing issues and some sectors have strict quotas, particularly for agricultural products.
Tariffs and duties vary considerably. A special New Zealand tariff rate applies in some areas.
Consumer products sold in Canada must have labels in English and French.
Some products (especially food) may have to be packaged to standard sizes. These vary greatly. Canadians also often demand that packaging is recyclable, or comes from recycled materials.
Exporters need to watch out for regional variations in regulations.
Tax
As well as a national goods and services tax (GST), there are provincial taxes such as sales taxes.
Canada has a double taxation agreement with New Zealand.
Logistics
Air New Zealand flies non-stop Auckland-Vancouver and through a code-share with Air Canada offers a daily airfreight service to Vancouver.
Numerous large and small shipping lines serve Canada.
Canada has a 24-hour advance notification rule for marine cargo.
Opportunities
- Sales of imported specialty food and beverage products have been growing in recent years. Canadians experiment with different foods and are always willing to try new specialty food and beverage products. New Zealand is seen as both familiar and exotic.
- There’s a strong trend towards organic food and natural product consumption. An increasing emphasis on preventative health and environmental awareness has helped develop the organic and natural product industries across Canada. Organic products have exploded in popularity and most large supermarket chains now have extensive selections of organic foods. There is also potential for nutraceuticals and cosmetics with a focus on natural body care products.
- New Zealand is well known in Canada as a wine producer. Market entry for wine and other alcohol products will vary between the provincial jurisdictions because of different regulations.
- There are signs of strong emerging interest in merino products and active wear items, including equipment for outdoor pursuits. In the apparel sector, there is a trend towards breathable, lightweight fabrics and stretch and athletic cut clothing.
- In health information technology, there are opportunities for services that reduce inefficiencies and excessive administrative overheads.
- Canada is a significant market of interest for New Zealand agritech exporters. Successful products include fencing products, bailing twine and greenhouse equipment.
Cultural and business tips
- Canada has a visitor visa waiver programme with New Zealand allowing entry to Canada by New Zealand passport holders for conferences, meetings and business-related travel for up to six months. Business people must declare that they are on a business trip.
- Canadian business practices are virtually identical to those in New Zealand. Canadians are also similar to New Zealanders in values, history and sensibilities and have an overwhelmingly positive attitude towards New Zealand.
- English is the language of business, except in the province of Quebec where French prevails. Business people should be prepared to deal with some language and translation issues in Quebec.
