May 14, 2016 – Sydney, N.S.
Today, the Honourable Mark Eyking, Member of Parliament for Sydney-Victoria, on behalf of the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development and Minister responsible for the Atlantic Canada Opportunities Agency, announced that the Government of Canada has created a Foreign Trade Zone (FTZ) Point in the Cape Breton Regional Municipality (CBRM).
The creation of the CBRM FTZ Point will provide businesses with easy access to information on Canada’s tax and tariff trade-related policies and programs. Instead of having to search for information from numerous sources, potential investors can get this information through the FTZ Point, Business Cape Breton. Working effectively with these investors will help to spur innovation and open up international markets.
Canada’s federal programs that benefit companies through the FTZ Point are: the Duty Deferral Program, the Drawback Program, the Customs Bonded Warehouse Program, the Export Distribution Centre Program, and the Exporters of Processing Services Program. These programs serve to strengthen the region’s international trade capacity and enhance its ability to attract foreign and domestic investment.
• There are currently six FTZ Points in Canada: Edmonton (AB), Calgary (AB), Winnipeg (MB), Niagara (ON), Halifax (NS) and CBRM (NS).
• The CBRM FTZ Point encompasses the Port of Sydney, the JA Douglas McCurdy Airport, and the surrounding logistics and warehousing capabilities.
• The Port of Sydney is the first port-of-call on mainland North America for vessels transiting the Suez Canal and acts as a gateway to the Great Lakes. With sea, road and air transportation, the multimodal options allow for shipping and receiving flexibility.
• The duty-free treatment of manufacturing or processing equipment reduces costs and increases profitability of investors’ global operations. This is particularly important to small and medium-sized foreign investors who choose Canada as a place to invest and as a base from which to operate and export.
“Canada has taken important steps in providing new trade advantages for business. Creating a Foreign Trade Zone Point in the Cape Breton Regional Municipality reiterates the Government of Canada’s commitment to help businesses integrate into foreign markets and global value chains.”
– The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development and Minister responsible for the Atlantic Canada Opportunities Agency
“International trade and investment are vital to our continued economic growth and contribute to the overall strength of our region. The creation of a Foreign Trade Zone Point in CBRM positions us to attract international investment, including manufacturing and distribution.”
– The Honourable Mark Eyking, Member of Parliament for Sydney-Victoria
“The Foreign Trade Zone Point provides opportunities for foreign investment and growth for our domestic businesses in the export sector. The FTZ programs will allow for increased international competitiveness and new trade advantages for participating businesses.”
– Eileen Lannon Oldford, CEO, Business Cape Breton
The Foreign Trade Zone Point initiative in Canada was announced in 2013. Foreign Trade Zones enable companies involved in handling or moving goods internationally to reduce tariff and tax exemptions with respect to the purchase or importation of raw materials, components or finished goods.
Business Cape Breton (BCB), the Cape Breton Regional Municipality’s economic development agency, works to create prosperous growth for Cape Breton. Working with the Regional Enterprise Network (REN), BCB navigates economic development opportunities in the region, creating connectors among economic development partners, supporting business growth and retention, and providing regional leadership on economic priorities.(Source: Business Cape Breton)
Business Cape Breton is overseeing the development of the Foreign Trade Zone Point (FTZ) in CBRM. ACOA is coordinating the FTZ Point Task Force that will provide easy access to information on federal and provincial government programs and includes members such as Business Cape Breton, the Port of Sydney, and the Province of Nova Scotia. The Task Force will facilitate the flow of information on FTZ-related programs and policies.