Opportunities NB Webinar Series

Doing Business in the UK

Host: Suzanne Turmel

Guest: Mark Richardson

Senior Trade Commissioner & Counsellor (Commercial) High Commission of Canada in

The United Kingdom

Client-focused, proactive, professional and accountable, Opportunities NB is the first point of contact for local and foreign businesses looking to grow, expand or locate. We are focused on performance, high growth opportunities and growing New Brunswick. Opportunities NB is poised to:

• Support business development inside New Brunswick, including business support services for small, medium-sized and large businesses;

• Proactively pursue high growth opportunities through exports and foreign investment; and

• Work with industry partners, economic development stakeholders and public sector partners to identify, build and support a portfolio of significant high growth opportunities both within and outside the province!

We will offer you the ideal operational expansion and labour solution tailored to your needs to grow in

New Brunswick. We will go above and beyond to ensure your success in the province.

New Brunswick is built for business. We look forward to working with you to grow your business.

Let us handle the introductions

Laissez-nous faire les présentations

Mark Richardson

Senior Trade Commissioner &

Counsellor (Commercial)

High Commission of Canada in

The United Kingdom

The Canadian Trade

Commissioner Service

The Canadian Trade Commissioner Service (TCS)

Located in:

• offices across Canada, and

• 174 cities worldwide.

Canada’s most comprehensive network of international trade professionals.

Delivering value to businesses

We can help your company succeed globally and lower your costs of doing business through four key services:

1. Preparation for international markets

2. Market-potential assessment

3. Qualified contacts

4. Problem solving

The United Kingdom:

Facts & Figures

Fifth-largest economy

in the world.

Second-largest

economy in the

European Union.

Major international

trading & financial

power.

with whom we share historic

ties…

2014 2015

Exports 15.22 15.95

Imports 9.21 9.16

and a strong commercial partnership.

Canada-UK Trade In billions of Canadian dollars

Top export sectors in 2015:

Metals & Minerals (Precious

stones) – 75%

Machinery Products – 8.9%

Oil/Gas – 4.2%

Top import sectors in 2015:

Metals & Minerals – 27%

Machinery Products – 26%

Transportation Equipment – 22%

Canadian Exports

0

2

4

6

8

10

12

14

16

18

Cd

n $

bill

ion

0

1

2

3

4

5

6

7

2008 2009 2010 2011 2012 2013 2014 2015

Total Natural Resources Total Manufactured Products Total AgriFood

UK Exports

Foreign Direct Investment (stocks) in

Canada 650 UK firms in Canada, eg:

• GSK

• Rolls-Royce

• HSBC

• Unilever

• Laing O’Rourke

• AMEC Foster Wheeler

• Rio Tinto

• Centrica

• Ultra

• Barclays

Americas 63%

Africa 0% Asia/Oceania

9%

Belgium 1%

France 1%

Germany 2%

Luxembourg 6%

Netherlands 9%

Switzerland 1%

UK 4%

Ireland 1%

Spain 1% Other

Europe 2%

Europe 28%

Canadian Direct Investment Abroad

(Stocks) 1100 Canadian firms in

UK, eg:

• Bombardier

• CAE

• Canada Life

• McCain Foods

• Thomson/Reuters

• CGI

• Norbord

• Magna

• OpenText

Americas 69%

Africa 0% Asia/Oceania

8%

France 1%

Germany 1% Hungary

1%

Ireland 1%

Luxembourg 5%

Netherlands 2%

Spain 0%

Russian Federation

0%

Switzerland 1% UK

9%

Europe 24% Other Europe

2%

The United Kingdom

Market: Challenges &

Opportunities

The United Kingdom Market

Market Opportunities

Global hub for firms across a range of sectors

including aerospace, financial services and ICT.

Demand for products and services that lower costs

and improve efficiencies.

Ambitious low-carbon targets; demand for renewable

energies.

Affluent with international tastes

Key Sectors • Telecom/IT – large deregulated

market, most liberal in Europe

• Energy – renewables, alternative

and nuclear, distribution & storage

• Aerospace and defence – UK has

the worlds 2nd largest aerospace

industry

• Food & drink – growing market for

premium, speciality and organic

products eg. gluten-free. Strong

interest in quality & traceability.

• Infrastructure and green building

– products and tech for low/zero

carbon homes and buildings, new

and retrofit

• Health care – significant

opportunities including e-health

• Environment – waste diversion/

reduction technologies to help UK

comply with EU directives

• Metals & minerals – gold and

diamonds leading Canadian

exports

• Education - 30,000+ UK students

pa pursue undergrad studies

abroad. Canada of increasing

interest.

• Consumer products – good

market for high-end fashion & novel

products.

• Creative industries – world

leading, strong growth. Renewed

focus from Canadian Government.

The Canada-EU Comprehensive

Economic and Trade Agreement

(CETA)

Top Benefits for New Brunswick

20

CETA

• New markets for fish and seafood

• Duty-free access for forestry and wood

products

• New markets for agricultural and agri-food

products

• Improved access for professional services

and to EU procurement opportunities

• Text available at :

www.international.gc.ca/ceta

Market Challenges

UK Industrial Strategy – focused on

strengthening UK supply base.

Competition from

international suppliers.

Cost of doing business.

Burdensome regulatory requirements.

BREXIT

June 23 52% of UK citizens voted to leave the EU

Government is expected to “trigger Article 50” in

March, as early as March 9th.

Two year exit negotiations

At same time UK needs to negotiate new EU

relationship

Key issues: Access for goods

Tariffs, customs procedures legal requirements

Access for services

Data protection/privacy

Access to talent/labour

Food and drink, fish and seafood

• The food and drink sector is largest manufacturing in UK.

• UK is Canada’s 2nd largest agri-food export destination in EU.

• Top exports from Canada are: wheat, dried legumes, crustaceans,

canned salmon and bread and pastry .

• UK is Canada's most important EU market for fish & seafood.

• Agri-food, fish & seafood sectors benefit greatly from CETA.

• Arguably agriculture/fishery sectors will be most impacted by

UK’s decision to leave EU.

• E.g. UK’s agricultural policy has been EU led for last 40 years.

Sectoral Considerations for

Companies

Sectoral Considerations for Companies

ICT

UK ICT market valued at $261 billion annually,

compared with approx. $160 billion in Canada.

UK demand for cloud computing services/data centres,

cyber security solutions and mobile applications.

Some 250 Canadian ICT companies with a subsidiary

office in the UK, using the UK as a springboard for

Europe/the Middle-East.

Infrastructure / Green Building

National Infrastructure Pipeline outlines projects valued

at over C$800 billion over next 10 years.

UK is HQ for many MNEs including Balfour Beatty,

Carillion, Laing O’Rourk, and Mott MacDonald, etc.

Emerging P3 markets

A number of Canadian firms are active in the UK

including SNC Lavalin, RWDI, WSP, Norr, Stantec,

Golder Associates, Hatch and IBI Group.

Sectoral Considerations for Companies

Energy - Clean Technology

In the UK, the sector accounts for 2.5% of the

GDP and employs 162,000 people

UK now one of world’s green leaders. 25% of

electricity generated by renewable sources

Good opportunities for Canada’s well-regarded

capabilities:

Power sector (energy storage, smart grids, power

plants)

Ocean energy & technologies

Renewables (wind, solar, waste to energy)

Transportation

Sectoral Considerations for

Companies

Aerospace & Defence/Security

2nd largest aerospace and defence sector and market

globally after the U.S..

UK is estimated to have 17% of global aerospace revenues.

Defence & security sectors estimated to be worth £24 billion.

Between 2010 and 2014 UK A&D sector exported 32% of its

market share.

GVC opportunities for Canadian suppliers with likes of BAE Systems,

Qinetiq, Rolls Royce, etc.

Significant interest from UK defence primes in current

Canadian defence procurements, e.g. NSPS.

One of the world’s largest defence and security trade shows,

DSEi in London, September 12-15

Large Canadian presence/pavilion..

Sectoral Considerations for Companies

Bio-sciences

UK boasts one of the world’s strongest and most productive

life sciences economies.

NHS protected budget over £100 million

UK demand for medical devices and health IT.

Canadian companies have faced significant market entry

challenges due to regulatory requirements.

With CETA implementation, this challenge could become

an opportunity as regulatory hurdles and

barriers are reduced.

Sectoral Considerations for Companies

Doing Business in the UK

Have a strong value proposition.

Be patient and persistent.

Take a long-term view.

Be prepared to adapt your export strategy.

The Canadian Trade Commissioner Service

Le Service des délégués commerciaux du Canada

Insert your own language

For more information contact us at

Pour plus d’informations contactez-nous à

Mark Richardson

Ldn-td@international.gc.ca

Q&A

Opportunities NB Webinar Series

Thank you for attending

Tel: 1.506.453.5471 Toll free: 1.855.746.4662

Email: info@onbcanada.ca