The Canadian market offers access to almost 1.5 billion consumers through 14 trade agreements.
Likewise, Canada is the tenth largest economy in the world and the attraction of foreign direct investment increased by 18.6% from 2018 to 2019.
The transportation infrastructure of the Canadian market has 24 international airports, 17 seaports and 117 border crossings to the United States.
In addition, according to the Export Guide to Canada, the country has various initiatives, incentives and programs aimed at foreign investors:
- Scientific Research and Experimental Development Program (Sr & Ed).
- Strategic Innovation Fund.
- Innovation Superclusters Initiative.
- Pan-Canadian Artificial Intelligence (AI) Strategy.
Canadian market
For companies in the agribusiness sector, establishing a warehouse/warehouse in Canada would represent a benefit in terms of distribution and inventory management, due to the territorial expansion of Canada.
For manufacturing companies, the Accelerated Investment Incentive Program includes an immediate 100% deduction for the costs of newly acquired manufacturing and processing equipment during the year the investment was made.
Canada offers a duty-free zone for industrial manufacturers, which allows advanced machinery and equipment from parent companies to be imported duty-free. For more information about this program, see the following this link.
USMCA
Canada, the United States and Mexico signed the Agreement between Mexico, the United States and Canada (USMCA) on November 30, 2018 and a protocol of amendment to the USMCA on December 10, 2019.
The new agreement entered into force in July 2020 and updates NAFTA provisions regarding investment protection rules and dispute settlement procedures to better reflect US priorities related to foreign investment.
All parties to the agreement have agreed to treat investors and investments of the other parties to the agreement to the highest international standards and in accordance with United States law and practice, while safeguarding the sovereignty of each. Part and national investment is promoted.
