The Atlantic Provinces Economic Council (APEC) today released a major report on export trends in Atlantic Canada. It provides analysis of all of Atlantic Canada's major export industries and markets. The report highlights the region's export growth sectors, industries that are facing significant challenges, developments in service exports and potential new markets. It also identifies the key policy issues that need to be considered to help Atlantic Canada maintain and improve its competitive position. While the value of Atlantic Canada's international energy exports have soared since 1999, the region's non-energy merchandise exports have stagnated since 2000 at about $12 billion. Atlantic exports of services, which includes revenues from tourism and commercial services, have also stalled: last year's revenues of $2.6 billion were the same as in 2002.
Atlantic exporters have struggled to cope with a number of headwinds including increasing competition from low-cost producers, higher energy and transportation costs, weak demand for some products and a 40% appreciation of the Canadian dollar since 2003. Heightened security concerns are also having an impact with increased compliance costs and delays at the U.S. border.
Atlantic businesses must continue to respond to these competitive challenges by re-defining their competitive edge. These strategies include improving production efficiency and product quality, developing new or improved goods and services in order to shift to higher value or specialized products, forging international partnerships in order to become key suppliers in global supply chains, and diversifying their markets.
For policy makers, the evolving global economy requires a new way of thinking about supporting international trade performance. Improving the efficiency and reliability of the region's transportation system remains paramount, but significant attention also needs to be placed on ensuring that Atlantic firms can meet increased border and security requirements.
While traditional mechanisms such as intelligence and trade contacts provided through foreign consulates or trade missions may still have a role, programs to help small businesses develop international partnerships and joint ventures so that they can effectively participate in global supply chains need to be considered. Similarly, established programs for investment and training might need to be refocused to target firms that are striving to become more competitive in international markets.
The full report is available at:
http://www.apec-econ.ca/pictures/File/ACOA%20Trade%20final%20May2.pdf
The accompanying news release is available at:
http://www.apec-econ.ca/news2.asp?ID=53
The Atlantic Provinces Economic Council is an independent think-tank dedicated to economic progress in Atlantic Canada. APEC is a trusted source of analysis and advice on current and emerging trends in the region's economy.