Exporters must change strategy in trade with Canada

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.