Austrade media release

Monday, 27 August 2007

Canada is offering significant export opportunities for Australian businesses, especially in the resources and infrastructure sectors, according to Austrade, the Australian Government’s export development agency.

Austrade’s Toronto-based Senior Business Development Manager, Greg Coelho said Canada’s oil fields are second only to Saudi Arabia’s in size with large projects underway offering considerable export prospects for Australia.

“Oil Sands mining projects, located about 750 kilometres north of Calgary in Alberta contain 175 billion barrels of recoverable oil – behind only Saudi Arabia with its 259 billion barrels,” Mr Coelho said.

“Australian companies operating in the mining and resource sectors are making in-roads helped by Alberta’s Oil Sands mining projects in Canada.  Transfield Services’ joint venture Flint Transfield Services secured a $1.1 billion five-year contract from Suncor Energy in Calgary.

“WorleyParsons also increased its presence in Canada, after acquiring engineering group Colt Companies for more than $1 billion, adding to its two previous acquisitions of Canadian firms HG Engineering and Komex Environmental in November 2005 and making it their largest international office,” Mr Coelho said.
 
“Rio Tinto’s recent US$38.1 billion (A$44billion) takeover offer for Canada’s Alcan, beating America’s Alcoa’s bid for the aluminium producer, highlights that Canada is increasingly on the radar of the Australian business community,” he said.

Mr Coelho said apart from mining projects Canada is a growing market for Australian exporters with many leading Australian companies already established across various sectors.

“Foster’s, Flight Centre, Godfrey Hirst Carpets and Caroma are well established in Canada.

“A factor making Australian products and services attractive in Canada is the strong similarities between the two countries. Both rely on natural resources in agriculture and mining but as mature economies also have a sophisticated, advanced manufacturing and professional services sectors,” Mr Coelho said.

According to Austrade’s Chief Economist Tim Harcourt, Canada is the entry point for exporters looking to access the robust North American market.

“Australian exporters sell everything from wine to functional sculptures.  Franchising is also a good option for Australian businesses looking to break into the North American market,” Mr Harcourt said.

“Baker’s Delight, trading as Cobs Breads in Canada, is one example which set up in Vancouver and now is looking to move into the lucrative US market. 

“Canada and Australia share many similarities, both are members of the Commonwealth, Pacific nations and founding members of APEC and are growing trading partners.

“Canada was Australia’s 19th largest trading partner in 2006 with two–way trade in goods and services valued at more than $5 billion,” he said.

“Australia exported goods valued over $1.6 billion to Canada in 2006, dominated by wine ($241 million), medicaments, lamb, bovine meat and other foods, and over $680 million in services.

“On the other side of the ledger, Australia’s merchandise imports from Canada were worth more than $2.1 billion, comprising mainly of aircraft and parts ($350 million), telecommunications and agricultural equipment. In addition, Australia imported $614 million of services from Canada,” Mr Harcourt said.

Austrade’s Greg Coelho is in Australia for Austrade’s mining seminars underway Australia-wide and is available for media interviews. 

ENDS

Media contact

Sarkis Khoury, Senior Media Adviser
Tel: +61 2 9390 2118
Mob: +61 414 401 072
Email: sarkis.khoury@austrade.gov.au

For further news and information from the Australian Trade Commission (Austrade) visit www.austrade.gov.au/mediacentre.