Talk to any Canadian about his country’s renewed interest in the UK market and chances are he’ll say “we never went away”. The most cursory glance at the statistics over the last 10 years, however, will show a dramatic decline in Canadian exports of timber and wood products to the UK. The Canadians may not have gone away completely, but phytosanitary regulations introduced to combat the infamous pine wood nematode epidemic and poor exchange rates made other export markets – particularly the US and Japan – more attractive.
Today it’s a slightly different story. The softwood lumber dispute rumbles endlessly on between Canada and the US, timber frame construction in the UK is enjoying a renaissance and exchange rates are less damaging.
Staying power spells success
Also, as John Park of Canada Wood UK said: “Although for Canada regaining market share levels of the late 80s is probably no longer an option, there is now a new industry competing in the various added value sectors keen to see advances in the UK alongside their more traditional industry partners.” He adds the caveat that any success must be preceded by desire and commitment and that continued success demands staying power.
Commitment is what the Canadian government and trade associations are now keen to demonstrate and, as the following pages reveal, many Canadian businesses are pledging to stick with the UK “for the long haul”.
In addition, promotion is back on the agenda – big time. “Canada has initiated a programme to bring it back into the UK market,” said Jason Kee, business development officer at the Canadian High Commission in London.
He is referring to the Canada Wood Export Program, a C$35m five-year programme based on an industry proposal and brought about by concerns over the country’s strong dependence on the US market.
The cost of the programme will be shared between federal government, industry partners and provinces and will be delivered through industry associations with a mandate for wood product export development.
Its objective is to increase export opportunities in existing and emerging offshore markets by building partnerships to brand Canada’s wood products in international markets; promoting opportunities to expand the use and applications for wood products in current and potential markets; and by addressing technical barriers that limit trade and market access – for example, codes and standards.
The promotional activity will be co-ordinated through a network of Canada Wood offices and will include a programme of information, technical advice and seminars, trade missions and events and literature.
The programme’s remit is comprehensive, embracing lumber, structural and non-structural wood based panel products, secondary wood products, engineered wood products and manufactured housing.
Team Canada
Anyone left in any doubt about the Canadian’s commitment to UK markets should visit London on March 31 and April 1 when Canadian prime minister Jean Chrétien is leading the first Team Canada trade and investment mission to Britain. He will be joined by Pierre Pettigrew, Canada’s minister for international trade, provincial premiers, territorial government leaders and hundreds of members of the business community in a series of seminars and networking events.
The mission will focus on promoting trade, investment and science and technology development in a number of areas including housing and building products. The UK remains of paramount importance to Canada’s export strategy: trade in goods and services between the two reached £10bn in 2001 while direct investment between the two totalled £25bn in the same year. Britain is Canada’s third largest export market and second biggest destination for direct investment abroad. Canada is the third largest foreign investor in the UK.
As John Park says: “Co-operation creates a combined force with a much greater influence than working in isolation. In a relatively small market this approach of pooling resources to limit the cost to each will effectively increase each contribution by the creation of a single focus for wood products from Canada.
“However, the creation of a lasting demand will only be successful if material is available and that will be dependent on the commitment of producers and recognition by the UK trade that Canada is actively pursuing the UK market. Increasing demand will require a willing trade and some have said to me that they are keen to get away from the lowest price mentality currently endemic throughout the UK market.”
