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*SOURCE: BC CHAMBER OF COMMERCE AND ABACUS DATA New and upcoming trade agreements are creating demand for B.C. exporters Hot Markets EUROPEAN UNION The EU is already B.C.'s fifth-largest export destination. Once the Comprehensive Eco- nomic and Trade Agreement (CETA) between Canada and the EU comes into effect (provisional application starts on September 21), tariffs on almost all of B.C.'s exports will be progressively eliminated. CETA also includes provisions that ease regulatory barriers, reinforce intellectual property rights and ensure more transparent rules for market access. Here are a few B.C. exports expected to flourish: • Forestry and wood products–tariffs as high as 10 per cent will be cut • Fish and seafood–tariffs as high as 25 per cent will be cut • Agriculture and agri-food–almost 94 per cent of EU Canadian product lines will be duty-free • Clean technology– CETA removes all tariffs on cleantech products. B.C. companies will also benefit from improved labour mobility provisions and expanded access to EU government procurement opportunities SOUTH KOREA The Canada-Korea Free Trade Agreement (CKFTA) took effect in early 2015. Eventually, tariffs will be eliminated for: • Halibut, prawns, sablefish and salmon– from a current rate of 20 per cent or more • Blueberries, cherries and cranberries– from a current rate of up to 45 per cent • Wine–from a current rate of 15 per cent OTHER PROVINCES The Canada Free Trade Agreement (CFTA), which went live on July 1, will reduce obstacles to the free movement of people, goods, services and investment between provinces • Dental hygienists, insurance adjusters, welders and plumbers–provisions allow occupational certifications to be recog- nized across the country ■ SOURCES: GOVERNMENT OF CANADA, EMBASSY OF THE REPUBLIC OF KOREA DO WE HAV E A T R ADE AGRE E ME N T W I T H T HAT COUN T RY? When choosing your foreign market, a trade deal should be one of your consider- ations. CKFTA and CETA are both progressive agree- ments, so things like tariffs may change over several years. For your product or service, note where the deal stands. IS MY PRODUC T C ANADIAN? Goods with imported components–for example, a table with legs made from foreign metal– might not rate as Canadian under trade rules. "If the answer is 'Yes, it's an amalgamation,' you can still export it, but you need to keep your eyes open," Boulton warns. F RE E T R ADE GOE S T WO WAYS B.C. companies benefit from trade agreements, but don't forget that products arrive as quickly as they go out. "That's another reason we need to stay on our game," Boulton says. "If we're not competitive on a world scale, we've still got our own little territory, and other people are coming in." THINKING OF TAKING YOUR business elsewhere? Understand how international trade deals t into the picture Canada is party to three major trade agreements: with the U.S. and Mexico (NAFTA), the EU (CETA, due to take effect this month) and South Korea (CKFTA). Each removes tariffs and other barriers on many goods and services. International trade adviser Allison Boulton outlines what you need to know SEPTEMBER 2017 BCBUSINESS 35 animals, raise crops, and sell eggs and milk, relying on puns and innuendo ("I just fertilized your garden"). Big Barn World is immensely popular—paying users across the globe spend an average of US$108 a month buying add-ons and play for 82 minutes a day—but for Saudi Arabia, the developers cre- ated a separate universe as a straightforward game with no širtation. The female host, originally a cartoon €gure holding watermelons and wearing overalls, was dressed in a head-to-toe hijab. Pigs were replaced by camels and ostriches. There were other cultural challenges. Soon after the €rst trade mission, Bhangu went to a recruiting company in the UAE to hire a salesper- son. The recruiter asked if he wanted a Sunni or a Shiite. "I said, 'I didn't think of that,'" Bhangu recalls, "and he said, 'You have to.'" The recast games caught on, and AirG signed deals in other Middle Eastern coun- tries, including Bahrain, Jordan, Iran, Kuwait, Oman and Yemen. This February the company opened an o•ce in Beirut. In the Middle East alone, AirG is on track to do $3 million in revenue for 2017. The company doesn't disclose €nancials, but Bhangu says total sales are above $70 million. Though AirG was will- ing to adapt its products, sometimes Bhangu needed to draw a line—and found that being Canadian o…ered a kind of neutrality. When the contract was presented to the Saudi company, the executives noticed the name of AirG's lawyer and asked if he was Jewish. "I said to my sales guy, 'You tell them he's Canadian,'" Bhangu recalls. "You have to have the same mentality as we do. We're just doing business." DEAL OR NO DEAL? BC CHAMBER OF COMMERCE MEMBERS DIFFER ON THE VALUE OF FREE TRADE WITH CHINA* Strongly disagree Disagree Agree Strongly agree WOULD BE GOOD FOR B.C. WOULD BE GOOD FOR MY BUSINESS 45% 13% 12% 30% 32% 6% 21% 41%

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