Study shows TCS clients are better exporters

Exporting to international markets can be challenging given the complexity of foreign markets, customs and regulatory environments. Canadian exporters often do not have the market intelligence and business connections necessary to support their operations in foreign countries. Export promotion programs consequently become a vital tool to help reduce your firm’s difficulty in dealing with these issues.

Benefits for Client on Average

Client exporters exported on average 20.5% more in value, 9.7% more in product varieties and to 20.9% more markets.

The Canadian government offers an export promotion program through the Canadian Trade Commissioner Service (TCS) with the aim to support exporters breaking into new markets, to assist those who encounter issues in foreign countries and to encourage more firms to participate in trade. TCS has offices in over 161 cities worldwide as well as across Canada that provides services to over 10,000 clients per year.

To ascertain the effectiveness of TCS, a recent study compared the performances of exporters who had received services from the TCS (client) to those who had not (non‑client) from 2000 to 2012 and concluded that the effect of the TCS is strongly positive. To minimize any bias and discrepancy, the study paired a client exporter with a non‑client exporter of similar characteristics for comparison. Its results show that client exporters exported on average 20.5% more in value, 9.7% more in product varieties and to 20.9% more markets.

The Upshot

Exporting can be a daunting prospect, but companies that use TCS tend to be more successful. The service is free and it works.

Visit the Office of the Chief Economist for more information.

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