Building on the momentum of last year’s trade mission to Asia, Minister of International Trade Teresa Wat’s recent trade mission to China, South Korea and Japan has strengthened B.C.’s long-standing relationships with key Asian markets, while opening the doors for a new market in China and advancing the economic benefits of the Canada Korea Free Trade Agreement.

Significantly, a memorandum of understanding (MOU) on economic partnership was signed between B.C. and Qingdao, Shandong Province in China. Qingdao is the leading commercial city in a province of more than 96 million people. The MOU formalizes B.C’s partnership with the Chinese city and paves the way for increased trade and investment ties in key sectors, including ocean technology, agriculture, international education and clean technology.

This MOU is part of B.C.’s strategy to support companies so they can break into emerging second-tier cities across China, and this agreement in particular provides B.C.’s trade and investment representatives in China the ability to engage Qingdao-based companies on investment attraction and export development. This is Qingdao’s first economic partnership with a Canadian jurisdiction.

While in Qingdao, Wat also supported 18 B.C.-based seafood companies participating in the China Fisheries and Seafood Exhibition, China’s largest annual seafood trade show. China is B.C.’s second-largest market for fish and seafood products. B.C. exported $163 million worth of fish and seafood products to China in 2013, up 35% from 2012.

Wat also engaged with senior Chinese officials in Qingdao to advance efforts to connect B.C.'s ocean technology industry to the commercial opportunity associated with China's “Blue Economy” initiative, which is focused on growing China’s ocean-related industries. As a leading centre for ocean related technology and expertise, B.C. companies are positioned to benefit greatly from China’s investment in this area.

In South Korea, Wat focused on identifying new export opportunities for B.C. under the Canada-Korea Free Trade Agreement (CKFTA), which is expected to go into effect in 2015. Wat is the first Canadian provincial trade minister to visit Korea since the signing of the CKFTA, and used this visit as an opportunity to underscore the importance of the South Korean market for B.C. exports. South Korea is B.C.’s fourth largest export market, and Canadian exports to South Korea are expected to grow by 32% under the CKFTA.

The visit to Japan focused on promoting B.C. as a stable partner and resource market for Japan’s future energy needs, including liquefied natural gas (LNG). Japan’s investment will play a critical role in the development of B.C.’s LNG industry.

Wat led a delegation of leading business and service providers and held discussions with key Japanese companies to invest in B.C. and locate their North American presence in the province. She also engaged with new investors in sectors like digital media and aerospace, and discussed two potential partnership agreements between B.C. post-secondary institutions and Kyoto University.

This trade mission is part of a commitment made in the BC Jobs Plan to strengthen existing relationships between B.C. and Asia by opening doors for new relationships and setting the stage for future opportunities.

Quotes:

Minister of International Trade Teresa Wat -

“This mission accomplished three major objectives: it established B.C.’s entrance into an emerging market, it allowed us to leverage the opportunities being created by the Canada-Korea Free-Trade Agreement, and it provided opportunities for B.C. business and organizations to make valuable connections.

“Export markets are fiercely competitive, and what often sets you apart is the strength of your relationships. This trade mission gave us an upper hand by bringing us face-to-face with key stakeholders, so we can continue to nurture our existing connections and develop new ones.”

Quick Facts:

• As of Nov. 6, 2014, goods exports to China, South Korea and Japan were up 2% to $9.3 billion compared to the same period in 2013.
• Top commodity exports from B.C. to China, Korea and Japan in 2013 were wood products, coal and copper.
• British Columbia has expanded its trade and investment network in China, Hong Kong, Korea and Japan with trade and investment representatives located in Beijing, Shanghai, Guangzhou, Hong Kong, Seoul and Tokyo.

Learn More:

For more information about B.C. trade and investment opportunities visit: http://www.britishcolumbia.ca/

For photos from the trade mission, visit: https://www.flickr.com/photos/bcgovphotos/sets/72157634051576760

Learn more about the BC Jobs Plan at: www.bcjobsplan.ca

A backgrounder follows.

Media Contacts:

Media Relations
Ministry of International Trade
250 356-5613

BACKGROUNDER

Highlights from each country: China, South Korea and Japan

China, Nov. 6-7, 2014:

• Numerous purchase agreements for B.C. seafood products were facilitated by B.C. Trade and Investment Representatives at the China Fisheries and Seafood Expo and are in the process of being finalized. Eighteen B.C. seafood companies attended the expo to showcase their products and make progress in the Chinese market.
• Wat met with senior officials from the Shandong Marine and Fisheries department to encourage co-operation on ocean related industries. This meeting was preceded by two MIT-led ocean technology sector trade missions to China and the signing of a MOU between the University of Victoria and the National Ocean Technology Centre of China during Premier Clark's 2013 Trade Mission to China.
• The Ocean University of China, China’s leading marine research institution, is committing to visit B.C. in 2015 to meet with B.C.’s marine research institutions. While meeting with the university in Qingdao, Wat focused on developing deeper co-operation on marine issues.
• Wat met with senior executives from the Bank of China Shandong Branch and encouraged them to consider B.C. when advising their clients on outward investment opportunities.

South Korea, Nov 8-11, 2014:

• In Busan, Wat visited Daewoo Shipping and Marine Engineering (DSME) to encourage the company to enter into the supply chain of B.C.'s liquefied natural gas (LNG) industry and to establish a corporate presence in B.C. DSME is also looking at potential contracts with KOGAS associated with its stake in the LNG Canada project in Kitimat.
• B.C. and the South Korean Ministry of Trade, Industry and Energy (MOTIE) are working to identify new opportunities for B.C. and South Korean companies under the CKFTA. Wat and MOTIE officials recognize there are a number of areas for closer government-to-government co-operation.
• Wat engaged with B.C. companies attending the first B.C. seafood promotion event in Seoul, which promoted the diversity and sustainability of B.C. seafood and the province’s increased seafood export competitiveness as a result of the CKFTA. B.C.’s Golden Eagle Aquaculture, Fanny Bay Oysters and Flying Fresh Air Freight toured a wholesale fish market and a large supermarket to learn more about South Korea’s seafood marketplace, pricing, retail packaging and display, and more. The delegates then participated in more than 20 targeted business-to-business meetings with South Korean seafood importers, distributors and retailers.
• While in Seoul, Wat met with KOGAS, the largest buyer of LNG in the world. The company is a partner in LNG Canada, along with Shell Canada, Mitsubishi and PetroChina. The B.C. government will continue to provide details to KOGAS on the province’s labour strategies, taxation and coastal maritime mapping information.
• Wat met with Korean construction company Daewoo Engineering and Construction to encourage them to continue to explore business opportunities for engineering and construction projects associated with B.C.’s LNG industry. Daewoo E&C is pleased with B.C.’s recently-announced LNG tax framework and is looking forward to seeing the Pacific Northwest LNG project move to a final investment decision.
• In a bilateral meeting with Gyeonggi Province Vice-Governor Kim Hee-Kyeum, Wat discussed the opportunities that will arise for both provinces once the CKFTA is ratified and the potential for a tripartite relationship with their shared sister province in China, Guangdong. Wat also invited Gyeonggi to consider opening a trade office in B.C.

Japan, Nov. 12-14, 2014:

• Two possible agreements between B.C. institutions and Kyoto University are advancing after Wat met with Kyoto University while in Japan. The first pending agreement with the University of British Columbia is focused on research collaboration; the second with the Centre for Drug Research and Development is focused on an affiliation agreement to advance promising technologies from Kyoto University into commercial development, licensing or company creation. The Minister expressed her hope that the two agreements would be concluded soon and invited Kyoto University to visit Vancouver to sign these agreements.
• gumi, a Japanese game developer, plans to hire 50 staff in one year for their newly announced Vancouver operation, all of which will be local hires. The company wants to access more talent from B.C. education institutions and broaden its recruitment efforts, so the B.C. government will connect gumi with the Centre for Digital Media and its partner institutions, Vancouver Film School, and others.
• Wat attended the Japan Home Show, the most famous international building products show in Japan, where she assured the Japanese wood products industry that B.C. continues to prioritize wood exports to Japan. Ten B.C. companies attended the industry-only show, promoting their products to major Japanese trading companies, lumber and building products distributors, home builders and architects. Early estimates indicate that at least $3 million in sales transactions were completed between B.C. and Japanese companies. BC Wood has been organizing the Canadian pavilion since the early 1990s and it has become the main sales and marketing event for many B.C. wood products producers.
• The B.C. government continues to engage with Japanese trading houses, many of which are long-term investors in B.C. A number of trading houses provided Wat with an update on Japan’s economic outlook and how it will impact foreign investment by Japanese corporations in B.C. Among the companies present was Itochu, which has a 20-person office in Vancouver and Mitsubishi, whose Canadian headquarters is also in Vancouver.
• Wat attended a B.C.-Japan business networking reception, where Japanese-based Selco Homes announced its plans to move its Canadian office to B.C. from Ontario.
• B.C. is reaffirming its strong economic ties with Japan on a range of sectors and inviting Japan’s Ministry of Economy, Trade and Industry (METI) to visit B.C. for further dialogue. Wat met with the parliamentary vice-minister of METI in Tokyo and provided an update on B.C.’s LNG strategy. She also discussed the progress made between METI and the Government of B.C. under an MOU signed between the two parties last year. Since that time, three high-level dialogues on LNG have been held between the two governments.
• Tohto Suisan, a fisheries and seafood wholesaler, hopes to send two senior managers to B.C. to expand operations of its Vancouver-based subsidiary, Aero Trading Company (ATC). ATC was established in 1978 and has annual sales of $60 million. In her meeting with Tohto Suisan, Wat highlighted the importance of B.C.’s seafood industry and the value of our longstanding relationship with Japan.
• Wat met with the president of the Japan Oil, Gas and Metals National Corporation (JOGMEC) to provide an update on LNG in B.C. and the significant role of Japanese energy companies in bringing this to reality.

Media Contacts:

Media Relations
Ministry of International Trade
250 356-5613