Latest news with #ExportDevelopmentCanada
Calgary Herald
a day ago
- Business
- Calgary Herald
How a multibillion dollar defence bank could help Canada increase its military spending
Article content The Defence, Security and Resilience Bank would be similar to Export Development Canada, a Crown corporation that provides financial and risk management services to Canadian exporters and investors, 'but way bigger,' Reed said. Article content It would offer large banks such as RBC and BMO credit guarantees 'that would loosen up capital so they could offer lines of credit, trade finance, you name it, but we can grow the industrial base a lot faster,' Reed said. Article content That would, in turn, speed up military procurement, he said. Article content 'It takes nine years to get a jet or seven years to get a shoulder-fired rocket launcher,' Reed said. 'It's because the industrial base just isn't big enough. It's been constrained. So, this would push liquidity into the commercial banks.' Article content Sovereign countries could also 'enhance procurement' by borrowing from the Defence, Security and Resilience Bank on the promise that they 'have to execute within two years,' Reed said. 'We want to foster that rapid-fire procurement that we know has been a problem for all member nations.' Article content Article content Right now, it takes 16 years for startups to go from selling the Department of National Defence on their products to procurement, he said. Article content 'Companies just can't live in that — they call that the Valley of Death,' Reed said. Article content 'That is a problem. If you want to invent a new bullet … in your garage, you're going to wait a long time.' Article content Rob Murray, NATO's inaugural head of innovation and a former U.K. army officer, started writing the blueprint for the bank about five years ago. Article content But, at the time, interest rates were flat, Russia hadn't launched its full-scale war in Ukraine, and U.S. President Donald Trump was not in power. Article content When the Ukraine war began, interest rates started climbing and people started recognizing 'threat levels are changing around the world,' Reed said. Article content Then Trump came to power in his second term and started 'forcing the hand of many NATO nations' to increase their defence spending, Reed said. Article content Article content Murray published his blueprint last December. Article content 'On the back of that he was invited down to brief the president elect down at Mar-a-Lago,' Reed said, 'and Rob's world just started to expand rapidly with proposed member nations seeking him out, asking how would this work? How can we get involved?' Article content Murray asked Reed to step in as the bank's president in early February 'to help stitch together the coalition of governments' needed to bring the idea to fruition. Article content 'Every European nation has been briefed,' Reed said. Article content 'And we did the briefing for Canada right after the election' with senior people in Prime Minister Mark Carney's office, the Privy Council Office, and departments including National Defence, Finance, Global Affairs and Treasury Board. Article content Reed also briefed officials in Singapore last week and plans to do the same in Japan, South Korea, Australia and New Zealand this week. Article content 'We're trying to drive this around a consensus of a dozen anchor nations,' he said. Article content NATO figures from last June suggest Canada spent just 1.37 per cent of its GDP on defence in 2024. The Liberals have said they expect it to reach two per cent by 2030 'at the latest.' Article content But that's not fast enough for Trump, who has complained repeatedly about Canada piggybacking on the U.S. for military protection. Article content 'While I don't like what he's saying, I see this as an opportunity to get ourselves going,' Reed said. 'We have not done our job in a long time. We've not fulfilled our commitments, and this a kick in the pants to say who are we, and what do we stand for?' Article content Later this month, Reed expects NATO countries to accept a new spending minimum of 3.5 per cent of GDP for defence and 1.5 per cent for border security. Article content 'To go from our base today … it's another $100-110 billion a year to ramp up to that,' he said of Canada. 'And that's not in future dollars. That's in last year's dollars. So, any available mechanism that can help grow the industrial base and get them towards those NATO soon-to-be targets is going to be well received.' Article content Article content Founding members of the bank will start meeting in the fall to hammer out details. Reed anticipates standing up the bank next year. Article content 'I like the idea of another mechanism, and a very powerful and large one, and I think a very influential one, that can help us do more in the defence and security domain in Western democracies,' said retired general Rick Hillier, Canada's former top soldier, who has joined the Defence, Security and Resilience Bank's board of directors. Article content He predicts Canada is going to need 'a revolution in defence and security procurement' to solve the Canadian Forces' equipment woes. Article content More money could accelerate the acquisition of new aircraft, warships and submarines, he said. Article content 'The component I'm most worried about is the army,' Hillier said. 'The army is broken. We're down people. Our bases and our infrastructure are in very sad condition. And we lack every kind of capability that a force needs in the kind of areas where we would find ourselves fighting right now. If things go south in Eastern Europe and (Vladimir) Putin and Russia get into some kind of thing they can't extract themselves from and start heading into Lithuania and Latvia, where there are several thousand Canadians, our sons and daughters, we are ill-prepared to insure that they're ready to look after themselves.' Article content Article content The army lacks self-propelled artillery pieces, air defence systems, technology that can detect, track, and neutralize drones, and equipment to remove minefields, Hillier said. 'We need to focus a huge amount of that defence spend on the army.' Article content Canada has also been lagging in spending to defend our north, he said. 'We've got to know what's going on in the Arctic, to be able to see what's going on specifically, to be able to communicate what's going on and then to be able to respond to what's going, whether its air, land, or depending on the time of year, sea forces. Right now, we can only do a very small part of that.' Article content The country needs satellites and ultra-long endurance drones to cover the north, Hillier said. Bases should be built in Inuvik, Rankin Inlet, and Iqaluit, he said. 'Then you have to connect … those spots by upgrading the airfields across the north.'
Cision Canada
13-05-2025
- Business
- Cision Canada
SRTX FINALIZES US$40M NEW EQUITY FUNDRAISING TRANSACTION LED BY BDC, EDC, H&M Group, IQ
MONTREAL, May 13, 2025 /CNW/ - SRTX has announced that it has reached the first close of a US$40 million fundraising round investment led by its largest shareholders: BDC Capital, Export Development Canada, H&M Group and Investissement Québec. This funding will support SRTX' strategy to scale its Montreal-based manufacturing operation, doubling production capacity in 2025. In 2023, the company expanded its operations into a new 300,000-square-foot, state-of-the-art facility in Pointe Claire (Montreal) where it has established a highly automated, vertically integrated manufacturing plant with room to expand to meet its tremendous growth opportunities in North America and Europe. This facility is unique, where UHMWPE powder is converted into finished products under one roof, and enables SRTX to continuously drive its unit costs down as it scales the production of its market-leading tights product, Sheertex. As part of this financing round, Katherine Homuth, founder of SRTX, has transitioned out of her day-to-day responsibilities as CEO. The Board has launched a recruiting process to identify a new CEO and Timothy Leyne, who has been CFO of SRTX for the last 3 years, has been named interim CEO. "This new equity injection will reinforce SRTX' capital base as we pursue the plan to scale our production to capture a growing share of the tights market in the face of uncertain trading conditions," said Timothy Leyne, Interim CEO of SRTX. "The success of this financing round is a testament to the tremendous conviction of our shareholders to the pursuit of SRTX' strategy," he added. "Katherine's exceptional drive and vision built this innovation-based vertical manufacturing platform, and the Lead Investors, Board and management team are committed to realizing its full potential," concluded Timothy. "We're excited to support SRTX's journey as they enter this next stage of growth. We see strong potential in their vision and product, and believe the company is well-positioned to develop in a meaningful way. We'd like to thank Katherine Homuth for her dedication and the foundation she helped build at SRTX, and we wish her the best of luck in her next chapter." says lead investors BDC Capital, Export Development Canada, H&M Group and Investissement Québec. SRTX is the holding company of Sheertex Inc., the manufacturer and leading brand of rip-resist tights. Established in 2017, SRTX moved to its first facility in Montreal in 2019. SRTX has built an integrated technology platform that outcompetes traditional manufacturing by leveraging proprietary materials, intelligent automation, and a vertical manufacturing infrastructure.
Yahoo
29-03-2025
- Business
- Yahoo
Auto tariffs and the federal election: FP video looks at the trade war's latest
As the Canada's federal election heats up, FP Video sits down economists and an official from Export Development Canada to discuss the impact of U.S. President Donald Trump's tariffs on the country. Todd Winterhalt, senior vice president of international markets at Export Development Canada, discusses how the EDC is helping businesses deal with the blows of the trade war. Randall Bartlett, deputy chief economist at Desjardins, talks about the top economic issues for the 2025 election. Robert Embree, senior economist at Rosenberg Research, talks about the Canadian dollar, gold and what sector is most exposed to Trump's tariffs. Earl Davis, of BMO Global Asset Management, talks about how Canada stands to benefit in the long run by tearing down interprovincial trade barriers and seeking new trade partners. Interprovincial trade is silver lining in Donald Trump's trade war Tariffs put auto sector in 'dire straits' Election campaign all about rescuing the Canadian economy
CBC
16-02-2025
- Business
- CBC
Small GTA businesses still struggling to pay CEBA loans nearly 5 years later
Nearly five years after Ontario went into lockdown to reduce the spread of COVID-19, small businesses are still struggling to pay back their Canada Emergency Business Account (CEBA) loans. Cathy Reid, who's owned Endless Tails Pet Nutrition Centre in Mississauga for 20 years, says she fears she may have to close. "Everybody wants me to stay. But, unfortunately, between this loan, rent being so high and purchasing the food … It's been a little bit difficult," she told CBC Toronto. Reid says she will be "devastated" if she has to leave her regular clientele and declare bankruptcy. The CEBA program opened for applications on April 9, 2020, in the hopes of supporting businesses during the pandemic. Initially set at a $40,000 limit per company, it was later increased to $60,000 and provided more than $49 billion to nearly 900,000 businesses. The loan was available through a variety of financial institutions, all of which had different ways of granting it— from credit cards, to cheques and direct deposit. As of Dec. 31, 2024, there were still 161,000 small businesses owing money on their loans, Export Development Canada (EDC) told CBC Toronto in an emailed statement. That equates to a total of nearly $7.8 billion. Reid took out a $40,000 CEBA loan with the Royal Bank of Canada at the recommendation of her then-accountant. She still hasn't been able to pay it back and attributes this to more Canadians choosing to shop online and difficulties affording pets and animal care products. "I think online shopping has totally destroyed not just my business, but I think a lot of businesses," she said. There are a variety of reasons why businesses have not been able to bounce back post-pandemic, says Ryan Mallough, vice president of legislative affairs at the Canadian Federation of Independent Business (CFIB). "We had interest rates going up, cost of living, affordability challenges — people weren't spending the way that they were pre-pandemic," Mallough said. Paola Girotti, owner and founder of Sugarmoon Salon, took out a $60,000 CEBA loan with TD Bank, but it wasn't enough to keep her three Toronto locations running. "We were only ever able to get one grant because it was done per corporation, not by location," she said. During the pandemic, Girotti had to close down one of her Toronto parlours, leaving her with salons only on the Danforth and at Bloor West. But, unlike Reid, she's since been able to rebuild, taking over lower capital investments of salons that are going out of business or needing some extra support. "We do have a good model for success," she said. Despite this, she says paying back the CEBA loan is not her primary concern. "My first priority is to make sure that our staff are secure, that we're able to pay them," Girotti said. She says she wishes the government would forgive the loan. "They need to just allow businesses to wipe the slate clean," said Girotti. Reid agrees that it's unfair to make businesses pay back CEBA money. "There was a lot of fraud there that the government missed," she said. "I feel that they're coming after the people who work the hardest, the ones that are out there making a [mark] in the community." A spokesperson for the EDC told CBC Toronto in a statement that the centre understands the financial struggle, hence its application and repayment deadline extensions, eligibility criteria expansions and financial support increases. "As EDC works with Canadian exporters, many of whom are small-sized companies, we are sensitive to the situation some of them are facing as a result of the pandemic," the statement says. As the country approaches the next federal election, Mallough says small businesses and the CFIB will be looking for what support each party plans to implement for the sector. "I think that our focus for all parties is: what are you doing to make the business and climate in Canada better? What are you doing to help lower taxes, to help with labour mobility, to address skilled workers challenges?" he said. Regardless of the election's outcome, Reid recommends shopping locally. "In another 10 to 15 years, your children won't know what a small independent store is. They'll be nonexistent because it's becoming more and more difficult for us to survive," she said. Girotti, meanwhile, says her own children are likely "terrified" by the prospect of opening their own business.
Yahoo
09-02-2025
- Business
- Yahoo
Long-sought push to diversify trade partners gathers momentum under threat of tariffs
TORONTO — Finding a new partner is never easy, but the threat of U.S. tariffs has brought the need to diversify Canada's trade relationships into the spotlight like never before. Not that leaders haven't been pushing on this for years. From Pierre Trudeau to Justin Trudeau, from Tiff Macklem as an academic to his current role as Bank of Canada governor and from Mark Carney during his time as governor to now as Liberal leadership candidate, there have been calls for the country to find new trading partners to reduce Canada's stubborn one-market dependency. More than three-quarters of Canadian exports go to the U.S. in a trend that's persisted for decades. But President Donald Trump's threat of 25 per cent tariffs on Canadian goods with no clear justification has experts hoping businesses will make a bigger push in other markets. 'We've talked about diversification for a very long time,' said Todd Winterhalt, senior vice-president of international markets at Export Development Canada. 'But it feels like we have a moment here to really recognize the benefit to individual companies, and to the broader Canadian economy.' The federal government has already done significant groundwork since Trump's last tariff scare to help make it easier for businesses to branch out. Canada now has free trade agreements covering more than 50 countries, including one signed just last week with Ecuador, that together cover two-thirds of the global economy and about 1.5 billion consumers. It's still hard to pull away from the gravitational pull of the world's largest economy, though. After all, it's next door, with the same language as well as similar laws and ties that go back centuries. But it's not about abandoning Canada's largest trading partner, just building up more of a buffer, said Winterhalt. 'The diversification benefit is really in resilience.' It's also about increasing ties with faster-growing economies, especially in Asia where the middle class is expected to grow by some 1.5 billion people by 2030. Trade agreements are already showing some results. Canadian exports to members of the Trans-Pacific Partnership went up 38 per cent to $66 billion in its first five years, according to the Asia Pacific Foundation of Canada. 'We're actually on a pathway to improve diversification, and the numbers are there to show it, but we've got a long way to go,' said Glen Hodgson, an economist and C.D. Howe senior fellow. Canada's also working to add still more trade agreements, especially in the Indo-Pacific region with countries like Indonesia, the world's fourth most populous country. Relations with the biggest markets in the region — China and India — have become more tense in recent years, but Winterhalt said there's still lots of potential without trade agreements in place. 'Business finds a way,' he said. Canada's seafood exports to China, which have more than tripled in the past decade to $1.44 billion, offer a recent example of what's possible. Looking further back, Canada's lentil exports also show the results of focused efforts. It's a crop Canada hardly produced until researchers developed new strains in the 1970s that would grow well in the Prairies, and now Canada ships out more than $2.3 billion a year worth of the staple. However, Hodgson said more is needed to improve Canada's export infrastructure, something the government has woken up to as well with announcements like last week's $80 million in funding to complete the Churchill, Man. export terminal on Hudson Bay. Canada's hardly alone in trying to break into new markets, so the calls for innovation, better productivity, and spending on better tools are also needed for competition. Baffin Fisheries' new ship, the Inuksuk II, is just that kind of investment. Going out for its first test run last week, the 80-metre trawler is Canada's largest fishing vessel and is full of automated and computerized operations that process, freeze and pack up Greenland halibut and cold-water shrimp so they're ready to ship directly to restaurants. The vessel will mean fewer boats needed and fewer fishing runs out to sea, said chief executive Chris Flanagan. The company, co-owned by five Inuit hunters associations, already ships around 75 per cent of its product to Asia, but is looking to break further into Europe, he said. There were also plans to try and sell more into the U.S., but those are on hold, he said. 'With tariffs, or pending tariffs, why would we invest in a market that prices might shoot up 25 per cent overnight when we have no control over it, so all our work could be for nothing,' said Flanagan. 'You know, the big Boston seafood show is coming up. Are we going to have a big sales presence there? Well, we'll go there to meet our European buyers.' And while most people picture exports as haulers full of fish, coal or machine parts, Canada could also see growth on the service side, said Hodgson. Canada can export financial services and insurance products that, while it gets a little fuzzy on the counting at times, are already proving themselves with companies like Manulife Financial and Sun Life Financial focusing expansion on Asia. Service exports totalled $208.5 billion in 2023, including big chunks from education and travel, while about half of service exports were into the U.S. market, according to Statistics Canada. It's also important to fix internal trade barriers, said Hodgson, something else that is getting momentum from the tariff threats. But it's also up to companies to not just take the easiest route anymore, said Hodgson. 'We put free trade deals in place, we've done really aggressive trade promotion, but business now has to step up.' The days are counting down to when Canada will hear about what Trump next decides on tariffs, but the push is on to make the country less vulnerable to his whims. As Macklem warned in 2018 while a professor at the University of Toronto: 'Instead of waiting for a crisis, let's make trade diversification the priority it should have been for at least the last decade.' This report by The Canadian Press was first published Feb. 9, 2025. Ian Bickis, The Canadian Press
