Foreign Affairs and International Trade Canada Your Partner in Foreign Investment Attraction Presented to Nunavut Economic Development Association Annual Conference Cambridge Bay, February 22, 2009
Overview 1. Canadian Trade Commissioner Service 2. DFAIT Funding Programs 3. Invest Canada Community Initiatives (ICCI) 2
Canadian Trade Commissioner Service We are a worldwide network of professionals in international business development, with preferred access to business knowledge and contacts, committed to advancing Canada s interests abroad. We deliver services integral to helping Canadian clients make better business decisions in order to achieve their goals abroad. 3
Canadian Trade Commissioner Service A global network of international business professionals 150 offices abroad and 17 regional offices in Canada. More than 900 Trade Commissioners overseas, 100 across Canada. 4
Our Clients We help new or experienced, large or small Canadian companies that have researched and selected their target export markets We assist Canadian communities, provinces, and territories in developing and implementing their foreign direct investment strategies We work with Canadian research institutions and companies to source, license, and develop new technology with international partners. 5
Our Four Key Services Preparing for International Markets Assessing Market Potential Searching for Qualified Contacts Problem Solving See Overview of Our Services at www.tradecommissioner.gc.ca 6
DFAIT Funding Programs Communities - Invest Canada-Community Initiatives (ICCI) For Canadian communities aiming at attracting, retaining and expanding foreign direct investment. Provides matching funds of up to 50% of eligible project costs per year, for a total contribution not to exceed $300,000 per project per year. Researchers - Going Global-Innovation (GGI) Supports Canadian researchers (from private companies, universities and nongovernment research centres) in pursuing international collaborative R&D opportunities through the development of international partnerships. Provides assistance by contributing up to 75% of eligible expenses. Associations - Global Opportunities for Associations (GOA) For Canadian national associations to undertake new or expanded international business development activities, in strategic markets and sectors, for the benefit of an entire industry (member and non-member firms). Allows for annual non-repayable contributions ranging from a minimum of $20,000 to a maximum of $150,000 over a one-year period from April 1 to March 31. Provides matching funds of up to 50% of eligible expenses. 7
ICCI Overview Invest Canada Community Initiatives (ICCI): ICCI Background, principles and allocation Past Projects from the North Who can apply What activities are supported How to apply Adjudication process 8
ICCI Background Launched in 1998 (formerly known as CISP) Objective: to help Canadian communities in attracting, retaining and expanding foreign direct investment (FDI). ICCI annually provides matching funds of up to 50% of eligible project expenses Since 1998, ICCI funding has been credited by municipalities with having helped attract more than $840 million in FDI and created 7,500 new jobs Delivered across Canada by regional offices of Foreign Affairs and International Trade Canada 9
ICCI Basic Principles Costs sharing ICCI Attracting, retaining and expanding FDI in Canada Strong partnerships 10
City of Yellowknife Past Projects Used ICCI support to complete a SWOT analysis that outlined options for economic growth and potential investment targets. Conducted needs assessment and gap analysis of the city's existing cold weather testing and research opportunities, services, and facilities. Currently developing investor prospectus and web site to promote investment in cold weather research and testing. Nunavut Economic Developers Association Used ICCI funding in 2005/2006 and 2006/2007 to provide EDAC training to Nunavut EDO s in Yellowknife. Next step: Partnered with NWT for 2009/2010 to provide EDAC training to Nunavut EDO s in Inuvik. 11
Who Can Apply Smaller communities with limited economic development resources, primarily interested in obtaining assistance to offset costs associated with developing tools aimed at foreign investor servicing. Mid-sized regions and communities with some professional staff and existing economic development programs requesting assistance for specific marketingoriented activities. Larger regions and communities with active foreign investment programs interested in assistance to develop and implement multi-year attraction and retention strategies. 12
What Does ICCI Support? ICCI supports community initiatives that promote and sustain FDI, and the development of tools needed to attract and retain investment. Typically, a community begins by undertaking basic research to determine: strengths identify key sectors existing levels of FDI 13
Community Investment Attraction and Retention Readiness Continuum 14
Eligible ICCI Projects Capacity Building $3,000 - $50,000 Examples of Project Activities: Research e.g. SWOT analysis Economic Data e.g. Collect data and develop community investment profiles Investment Training e.g. EDAC and/or advanced CEDAP courses Strategy Development & Implementation $20,000 - $300,000 Examples of Project Activities: Strategy e.g. Creation of a targeted investment strategy Planning e.g. Development of business cases for targeted industries Implementation e.g. Translation of materials, web site development 15
ICCI Eligible Expenses Research and studies Economic data Strategic FDI planning Website development Translation of promotional material Promotional materials (print or electronic)- design and layout only Advertising related to investment - design and layout. Investment Training Travel costs to investment training Meeting room rental (in-canada). Software customization (but not the cost of software license) 16
Training Eligible for ICCI Certificate in Economic Development Economic Development Association of Canada, www.edac.ca Year 1 (5 days) Waterloo Campus Year 2 (5 days) Various locations in Canada Tuition is $950 for EDAC Members, $1250 Non-Members Community Economic Development Training Program Economic Developers of Alberta, www.edaalberta.ca 2-day foundation course and 1-day advanced courses Topics include Business Retention and Expansion, Investment Attraction, Opportunity Identification, Site Selection Process Eligible costs include tuition and travel to course. 17
Ineligible Expenses & Activities Those financially benefiting an applicant or its partner Attracting domestic investment from within Canada Activities not associated with investment attraction, retention or expansion. Development of training courses. Costs associated with hiring consultants for completing an ICCI application form Regular site maintenance and updating web content, site hosting, software licensing Corporate logo design, costs of printing, pressing CDs, or DVDs, and recording videocassettes. All give-aways: gifts, logo items, cups, mugs, pens, etc. Cost of ad placement in any media. Travel costs incurred by applicants, partners or consultants not related to training Taxes Hospitality Expenses related to tourism Trade Show participation Capital costs Overhead costs Salaries and benefits of personnel. 18
How to Apply Application form available on our website at: http://www.international.gc.ca/funding-financement/ Applications should reflect a multi-year strategy and demonstrate partnerships with the private sector and other regional partners Consultation with your DFAIT Regional Office is strongly recommended before submitting an application An online application and reporting system will be available later in 2009 19
Adjudication Process Usually one per year. Nunavut ICCI adjudication will take place in early March 2009 for the 2009 project year (April 1 to December 31 2009) Adjudication Committees are comprised of federal, provincial/territorial, and private sector members from the province/territory of the applicants. 20
Adjudication Criteria Applications are evaluated based on: Strategy Project Components Performance measures Capacity Work plan Proposed budget (includes all project costs) 21
Application Tips Contact me prior to submitting your application Present focused project ideas within a broader strategic plan Link projects to regional, territorial, and federal investment promotion priorities DFAIT FDI Promotion Priorities (from ICCI site). Project applications are judged on their individual strengths ICCI encourages joint submissions from regional partnerships (to advance regional investment potential) 22
Key Dates for ICCI Projects 2009 Projects (9 months) January 31, 2009 Application submission deadline February to March 2009 Adjudication period April 1, 2009 Effective date of approved projects September 30, 2009 Interim Report and First Claims due November 1, 2009 Disclosure of de-committed funds December 31, 2009 Projects end date January 31, 2010 Submit Final Report & Final Claims February 28, 2010 Terms of agreement expire 2010 Projects (12 Months) October 15, 2009 Application submission deadline Mid-October to November 2009 Adjudication period January 1, 2010 Effective date of approved projects September 30, 2010 Interim Report and First Claims due November 1, 2010 Disclosure of de-committed funds December 31, 2010 Projects end date January 31, 2011 Submit Final Report & Final Claims February 28, 2011 Terms of agreement expire 23
Questions? Michael Willmott Foreign Affairs and International Trade Canada 403-292-4577 michael.willmott@international.gc.ca ICCI information, updates, and application form: http://www.international.gc.ca/funding-financement Information and assistance on international business and investment: www.tradecommissioner.gc.ca 24