Canada's Global Markets Action Plan

Stephen Harper speaking at the World Economic Forum in Davos in 2012.

Global Markets Action Plan(GMAP) is a Prime Minister Stephen Harper's government strategy to generate employment opportunities for Canadians by expanding Canadian businesses and investment in other countries in a highly competitive global environment.^[1][2][3]

Introduction

Harper instructed Ed Fast after latter's appointment as the Minister of International Trade in 2011 for a blueprint priotising trade in Canada's foreign policy.^[2]

On November 27, 2013, Ed Fast come out with a comprehensive report on Global Markets Action Plan.^[4]

History

A Booster Juice located in Ancaster, Ontario; Booster Juice has grown to have 285 traditional and 20 non-traditional locations in Canada, 1 in India, 2 in the United States and 3 in Mexico and further global expansion is planned.

BDC Building, Stelco Tower, Hamilton, Ontario; the bank's mandate is to help create and develop Canadian businesses through financing, growth and transition capital, venture capital and consulting services, with a focus on small and medium-sized enterprises.

Harper's government was highly concerned to maintain Canada's competitive position in international trade which is equivalent to more than 60 percent of Canada's annual gross domestic product; one out of five jobs was created by the global market presence.^[1][2][3]

In 2007, the government launched its Global Commerce Strategy for expanding Canada’s trade network, strengthening its competitive position in its traditional markets, and extending its reach to new emerging markets. The strategy was successful and led Canada to finalize seven different free trade pacts. It also activated for an Economic Action Plan 2012 with the wider participation of Canada’s business community to identify new markets, strengths and opportunities.^[1][2][3]

Finally they all have come out with the new Global Markets Action Plan on November 27, 2013 to achieve these objectives.^[1][2][3]

Target markets

The plan targets distinctive three different markets;^[4]

• emerging markets with broad Canadian interests;
• emerging markets with specific opportunities for Canadian businesses; and
• established markets with broad Canadian interests.

A drive thru only Tim Hortons location in Moncton, New Brunswick; Tim Hortons is Canada's largest quick service restaurant chain; as of September 2014, it has 3,665 restaurants in Canada, 869 in the United States, and 56 in the Persian Gulf region.

Key elements

The plan includes the following key elements:^[4]

• a new trade promotion plan utilizing state resources and services to optimize the commercial interests of Canada in key markets abroad successfully;

• ensuring that Canada’s trade policy tools are prioritized toward initiatives that will yield the maximum economic benefits to Canadian workers and businesses;

• constantly promoting Canada's position to access the world’s two largest markets—the European Union and the United States with total customers-base of more than 800 million, and well over half of the entire global marketplace; and

• renewed stakeholder linkages to ensure that government priorities are in sync with the needs of businesses, and that the plan adapts to changes in the global economy.

Advisory council

Ed Fast installed a nine member advisory council consists of Canada's leading corporate leaders.^[5]

Small and Medium-Sized Enterprises

In March 2015, Harper permitted a $50 million financial assistance over a period of five years to facilitate the Canadian small and medium-sized enterprises (SMEs) on market research and participating trade missions; the funding will help approximately 500 to 1000 entrepreneurs in Canada yearly to reach their full export capacity.^[6]

Harper extended another $42 million over five years to enhance the Canadian Trade Commissioner Service, with $9.2 million per year thereafter.

The funding will facilitate the expanded trade services: Canada opened four new trade offices in China, bringing the total number of offices there to 15, with more than 100 trade commissioners; and it strengthened its support network in India, where there are eight offices and nearly 50 trade commissioners.^[6]

There are now more than 25 trade commissioners embedded in business associations across Canada in order to gain better insight into the needs of export-oriented industries.^[6]

Since 2006, the government has taken significant steps to improve support for SMEs, including:^[6]

• reducing the small-business tax rate to 11 percent;
• increasing the income limit for the small-business tax rate from $300,000 to $500,000;
• implementing the “one-for-one rule” to cut unnecessary red tape, saving Canadian businesses more than $22 million in administrative burden as of June 2014, as well as 290,000 hours in time spent dealing with red tape;
• improving access to capital for innovative entrepreneurs by launching the Venture Capital Action Plan;
• supporting the hiring of apprentices with the Apprenticeship Job Creation Tax Credit, a non-refundable tax credit equal to 10 percent of the eligible salaries and wages payable to eligible apprentices; and
• increasing the lifetime capital gains exemption (LCGE) for small business owners from $500,000 to $800,000, and indexing this new limit to inflation. On account of indexation, the LCGE limit increased to $813,600 for 2015.

See also

• Free trade agreements of Canada
• Economy of Canada

References

External links

• Global Markets Action Plan
• Global Markets Action Plan(Original Document-PDF)