Shifts in world trade open up business opportunities for Canadian companies

Shifts in world trade open up business opportunities for Canadian companies 
**Trade forecasts to 2030 confirm Canada will achieve its goal of diversifying 
its export base away from North America
** Emerging markets' demand for high value-added goods will boost Canadian 
export growth of industrial machinery and transportation equipment 
VANCOUVER, March 11, 2013 /CNW/ - The latest HSBC Global Connections Trade 
Forecast details a shift towards the production of higher value-added goods 
around the world, presenting opportunities for forward thinking companies 
looking to expand. 
Rapid industrialisation and increasing wages, coupled with maturing consumer 
demand in many of the countries along the South-South corridor are driving 
different types of global trade growth. This report highlights how these 
trends are changing the types of goods imported, manufactured and subsequently 
The top three markets for Canadian exports are currently the US, China and the 
UK. However, the fastest growing corridors of Canada's export growth by 2030 
will be Asia and the Middle East, and exports to Vietnam, China and India are 
expected to increase by 12% annually from 2021 to 2030. 
Linda Seymour, Executive Vice President and Head of Commercial Banking, HSBC 
Bank Canada said: "A highly educated and productive Canadian workforce will 
continue to underpin growth of capital goods exports from Canada. In fact, 
outside of natural resources, we expect that as emerging markets mature and 
grow in size they will demand more value-added goods from Canada, in 
particular transportation equipment and industrial machinery." 
As countries shift towards value-added sectors there are significant 
opportunities for companies to evolve and grow. The reports for countries such 
as Vietnam and Bangladesh show a shift from basic commodities trading in 
sectors such as Cereals or Sugar, to become a refiner or producer of branded 
goods based on those raw materials. In many of the developed markets there is 
a shift towards increasingly specialised sectors such as Chemicals and 
Pharmaceutical products as companies seek opportunities for higher returns. 
This shift towards the production of higher value-added goods is particularly 
evident in Asia, with a clear pattern emerging as Chinese export growth in 
Information & Communications Technology and Industrial Machinery gathers 
pace. This balances a declining rate of growth in sectors such as Textiles, 
giving rise to opportunities for companies in the smaller, faster growing 
countries around the region to win contracts to produce these more basic goods. 
James Emmett, HSBC's Global Head of Trade and Receivables Finance, said: 
"Emerging markets are developing at a phenomenal pace and are set to reshape 
world trade patterns over the next 20 years. By expanding their operations 
in to new, higher value sectors, they are driving more developed nations to 
specialise and diversify to compete. Understanding which sectors are growing 
in which markets, delivers huge opportunities for businesses as they plan for 
the future and aim to capitalise on these trends." 
Emerging markets add ever increasing value to the supply chain
Countries making the move up the supply chain most notably are Malaysia and 
Argentina. Malaysia's top exportable goods will shift from lower-value sectors 
such as Animals and Vegetable Oils to higher-end industrial machinery, which 
will make the largest contribution to Malaysia's export growth by 2030. 
Argentina's top export sectors will change from Animal Products to Transport 
Equipment and Industrial Machinery. 
Industrial machinery opportunity
Industrial Machinery, ranging from large power generating machinery to small 
parts for domestic electrical items, will extend its dominance as the world's 
top export sector. It will encompass around 25% of goods exported among the 
top 25 trading nations by 2030, and contribute over a third of the growth in 
total merchandise exports from 2013 according to the Forecast. 
Intra-regional trade and reliance on hub cities continues to play a strong 
role in facilitating global trade flows, as companies look to capitalise on 
new opportunities while managing their exposure in rapidly developing markets. 
Notes to Editors: 
1. For a copy of the Global Connections Trade Forecast report and for 

     further information, log onto
     An info graphic which portrays key findings from the latest trade
     forecast is also available upon request.

  2. HSBC's Trade forecast encompasses trade data for the 25 countries
     key to world trade.

  3. About the HSBC Trade Forecast - Modelled by Oxford Economics
     Oxford Economics has tailored a unique service for HSBC which
     forecasts bilateral trade for total exports/imports of goods,
     based on HSBC's own analysis and forecasts of the world economy to
     generate a full bilateral set of trade flows for total imports and
     exports of goods, and balances between 180 pairs of countries.
     Oxford Economics produces a global report for HSBC, plus regional
     reports and country specific reports on the following 25
     countries: Hong Kong, China, Australia, Indonesia, Malaysia,
     India, Singapore, Vietnam, Bangladesh, Canada, USA, Brazil,
     Mexico, Argentina, UK, France, Turkey, Germany, Poland, Ireland,
     UAE, Saudi Arabia, Korea, Japan and Egypt.
     Oxford Economics employs a global modelling framework that ensures
     full consistency between all economies, in part driven by trade
     linkages. The forecasts take into account factors such as the rate
     of demand growth in the destination market and the exporter's
     competitiveness. Exports, imports and trade balances are
     identified, with both historical estimates and forecasts for the
     periods 2013-15, 2016-20 and 2021-30.
     Oxford Economics - formerly Oxford Economic Forecasting - was
     founded in 1981 to provide independent forecasting and analysis
     tailored to the needs of economists and planners in government and
     business.  It is now one of the world's leading providers of
     economic analysis, advice and models, with over 500 clients.
     Oxford Economics commands a high degree of professional and
     technical expertise, both in its own staff of over 70
     professionals based in Oxford, London, Belfast, Paris, the UAE,
     Singapore, Philadelphia and New York, and through its close links
     with Oxford University and a range of partner institutions in
     Europe and the US.

  4. HSBC
     HSBC Holdings plc, the parent company of the HSBC Group, is
     headquartered in London. The Group serves customers worldwide from
     around 6,600 offices in 81 countries and territories in Europe,
     the Asia-Pacific region, North and Latin America, and the Middle
     East and North Africa. HSBC Bank Canada, a subsidiary of HSBC
     Holdings plc, is the leading international bank in Canada.  With
     assets of US$2,693 bn at 31 December 2012, the HSBC Group is one
     of the world's largest banking and financial services

Media enquiries: Sharon Wilks Assistant Vice President, Public Affairs HSBC 
Bank Canada (416) 868-3878 

Aurora Bonin Senior Manager, Public Affairs HSBC Bank Canada (604) 641-1905

SOURCE: HSBC Bank Canada

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CO: HSBC Bank Canada
ST: British Columbia

-0- Mar/11/2013 11:15 GMT

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