Exporters must change strategy in trade with Canada

Sari P. Setiogi, The Jakarta Post, Jakarta

Indonesian companies exporting goods to Canada could boost their earnings if they shipped the goods directly instead of going through the U.S.

"Exporting directly to Canada means Indonesian exporters could sell their commodities a lot cheaper, compared to sending them to the U.S. where they are liable to U.S. customs duties and are also marked-up by third parties," said Peter J. Dawes, a visiting Canadian international trade expert from Warrington International, on Thursday.

He said that exports to Canada, which reached C$798.84 million (about US$532.56 million) in the January to October period last year, could potentially be doubled if exports were sent directly.

"Most Indonesian exporters are unaware of the opportunities for exporting directly to Canada instead of going through the United States," Dawes said.

According to the Canadian Embassy, January-October 2002 exports were down 1.97 percent from C$814.87 million in the same period in 2001.

Meanwhile, Indonesian imports from Canada were valued at C$400.71 million during the January to October 2002 period, a slight increase from C$394.47 million during the same period the previous year.

"It is actually also very easy to establish networks with Canadians importers," Dawes said.

Talking about the prospects for the Canadian market, Dawes said: "Canada is actually a growing, potential market. Indonesian food exports have actually a great potential in Canada, such as fish products, biscuits, candies and other prepared foods."

On the other hand, Dawes also explained that there were some constraints that could hamper foreign exporters entering the Canadian market.

"The Canadian market is not the same market as the U.S. or the European Union. Some additional requirements should be noted. Canadians tastes are very conservative. We are not like people in New York or other parts of the U.S.," he said.

He also explained that new brands in Canada would need major advertising to crack the market. "Canadians expect the highest possible quality with the lowest possible prices. We are not like the Americans who get very excited about new things coming onto the market."

"But in conclusion, I would say that Canadians are actually loyal to their suppliers," he said.