Low Canadian Dollar = Opportunity for Canadian Exporters
Monday, March 7, 2016, Canadian dollar = 75 cents U.S.D.
Yet another week kicking off with a low Canadian dollar. Although buying might have slowed down within Canada, buying from Canada has picked up! With a lower Canadian dollar, the U.S is looking to capitalize. Lower prices and lower exchange rates makes buying from Canada a dream for U.S companies.
The Canadian dollar is just one reason why selling into the U.S. makes a lot of sense for Canadian companies. Canadians' geographic proximity to the U.S. market makes for lower shipping costs and same-day logistics options, and while there are some differences in business culture and the business regulatory environment, you'll find no two nations that work together better.
In addition, the North American Free Trade Agreement (NAFTA) offers significant benefits to companies engaged in CanAm trade. Providing a NAFTA certificate with your shipments from Canada expands your market while lowering your costs, as the duty on goods qualifying for NAFTA is zero.
We cannot control where the Canadian dollar is right now or will be in the future, but we can make forward-thinking business decisions based on what we know about its trends. While many companies are worrying about sales, it is in reality a time for opportunity and growth. All businesses are consistently looking for alternatives and solutions at a lower cost. Be the solution.
But while entering a foreign market, no matter how familiar, is a great opportunity, it's also nothing to take lightly - and it's important to build relationships with those who have done it. Welke Customs Brokers, which serves both Canadian and U.S. importers and exporters, counsels companies like yours every day on international trade, maintains relationships in key areas of import/export and understands the ever-changing regulations.
Whether you're looking at U.S. market entry today, tomorrow or three years from now, call a partner who's been providing expert advice on cross-border trade for more than 30 years. Let us help.