Leal Consulting is pleased with the news that the Honourable Helena Guergis, Secretary of State for Foreign Affairs and International Trade, signed, on behalf of Canada, a Free Trade Agreement (FTA) between Canada and the Republic of Peru. This is Canada’s fourth FTA with countries of the Americas. On the mean time the Minister of Foreign Affairs and International Trade David Emerson announced the conclusion of free trade negotiations between Canada and Colombia. Once implemented, these two comprehensive free trade agreements (FTA) will improve market access for agricultural products, industrial goods and services trade between Canada and Colombia, and will provide a more secure environment for investment. The FTAs will also ensure that Canadian exporters are not put at a disadvantage vis-à-vis trading partners that have or are seeking preferential access to Peru’s and Colombia’s markets.

“The Canada-Colombia Agreement on the Environment is yet another example of how we are collaborating with our trade partners to protect the environment,” said the Honourable John Baird, Minister of the Environment. “We look forward to working with our Colombian partners to continuously improve our respective environmental laws and policies to ensure the highest levels of environmental protection.”

The Agreement on the Environment, also signed with Colombia, will commit both countries to pursue high levels of environmental protection. The agreement includes key obligations that will require Canada and Colombia to comply with and effectively enforce their domestic environmental laws and refrain from relaxing these laws to encourage trade or investment.

Colombia is a significant market for Canadian companies, with a population of over 44 million and a total GDP of $154 billion. In 2007, trade between Canada and Colombia was $1.14 billion. Canada’s direct investment stock in Colombia was above $700 million in 2007.

Peru is also a significant market for Canadian companies, with a population of 28 million and a total GDP of over $200 billion Peru stands out as a key market, especially for the environmental sector in Canada. Peru is an established and growing commercial partner for Canada. Canada’s trade in goods with Peru has expanded significantly in the past years, with the two-way trade reaching $2.4 billion in 2007. The value of Canadian merchandise exports to Peru was $330 million for 2007, while imports from Peru surpassed $2.1 billion for the same year.

Leal Consulting is poised to assist Canadian companies to maximize the opportunities provided by these FTAs in both countries. Leal Consulting’s focus regarding both Colombia and Peru is to attract innovative Canadian technologies that are environmentally sound. Canadian manufacturers of enviromentally sound technologies, specially in the water and wastewater industries, interested in tapping into these markets should contact Leal Consulting for a free consultation.

Leal Consulting will participate in trade mission to Mexico City organized by Export Assistance Canada of Montreal. During the trip Max Leal will be visiting with prospects distributors for of its clients and also follow up on the progress of current business activities already initiated in that country.

The focus of this Trade Mission is to showcase Canadian companies related to the environmental protection industry. Max Leal plans to hold meetings with representatives of the Canadian Trade Commission in Mexico City and Mexican authorities from the Federal, State and Municipal levels. Export Assistance Canada office says that, during that trade mission, participating Canadian companies will have the opportunity to personally meet the decision makers from the Ministry of the Environment and its related agencies and meet the Mexican companies and organization that are responsible for the implementation of many projects related to the protection of the environment. As the Canadian Government states in its recent report: “Mexico faces enormous environmental challenges and the market for environmental infrastructure and services is growing fast at 6% annually. The Mexican environmental market was worth US$2.2 billion in 2006. The Calderon Administration (2006-2012) has ambitious environmental programs and has specifically identified waste water treatment and solid waste management as priorities. In addition, the Mexican renewable energy and alternative fuels technologies could be worth $3 billion by 2015.”

The organizer of this mission is focusing in some key sectors like, water and wastewater treatment, air quality, wastewater and solid waste management, environmental controls and information systems, alternative sources of energy expertise and products. There is also a need for Canadian capabilities in environmental engineering consulting, including strategic environmental consulting, pollution prevention and eco-efficiency, environmental impact assessments, development of environmental management systems among other specialized fields.

Space for this mission is limited therefore businesses in these fields that would like to participate should contact the organizers or Leal Consulting for more details as soon as possible.

Max Leal at awards ceremony for Entrepreneurs by Embers- June/08

The Canadian dollar has breached 100 US cents for the first time in 30 years. It is believed that strong Canadian economy and very high oil prices will keep feeding the Canadian currency for the foreseeable future. On the other hand US Federal Reserves Agency has indicated that the interest rates in the US will remain low for the time being in order to curb inflationary pressures. This translates into even more pressure to push the Canadian currency higher.

The parity of the dollar is really causing the export business in Canada to take a beating, being that we export a large amount of goods to the United States, and our cost of production is also equivalent if not higher than that south of the border. There is just no cost benefit to US companies to import our products anymore.

The hardest hits are, of course, smaller manufacturers. Having to compete in the open market for the best available labour, and also having little or no economies of scale for their raw material and equipment, the small manufacturer is not benefiting from the stronger Canadian currency while it is being less and less competitive against American and Asian manufacturers in the US market.

Ironically the solution is quite simple: Canadian manufacturers must learn to look for markets beyond the United States. Most of the companies that export intensively to the United States are spending extra resources competing with each other, meanwhile, large and untapped markets awaits them. Leal Consulting wants to show Canadian manufacturers that there are other markets available. The company’s objective is to unlock commercial opportunities in Latin America for Canadian made products. By opening up their market scope to Latin America the manufacturers will minimize the impact on them of any further major fluctuation in the US economy.

Leal Consulting is to be recognized as the experts in Latin America for industrial input products, helping Canadian manufacturers of these products diversify their marketing strategies beyond the US market. While the company has a large client base of Latin American Companies looking for technologically advanced industrial inputs such as specialty chemicals, polymers, and custom systems, the company is still looking for more Canadian manufacturers to feel the required demand. According to Claudio Escobar, EDC’s Chief Representative and Regional Director in Brazil, “For many Canadian companies, the best way to enter the Brazilian market is not directly, but rather as a supplier”. “Size counts in Brazil,” says Escobar “which makes it harder for smaller entrants to break in. Larger companies command greater respect, and partnerships with Brazilian companies provide with better probability of success.” Leal Consulting can help bridge this gap by connecting the Canadian manufacturers to the proper partners either for licensing technologies or forming Joint Ventures. The company is also connected to the construction, oil and gas and water treatment industries in Latin America.

Leal Consulting can also work in technical translations, product development (making them adequate to the new markets), and competitive analysis. Depending on the product Leal Consulting also supports the Canadian manufacturers in market selection, sales and product brokerage.