laiipematlew Seerlea DEPT. OF INDUSTRY & COMMERCE ROOM 137 - PHONE WH 6-7439 LEGISLATIVE BUILDING WINNIPEG 1, MANITOBA

Province of Manitoba

Dote

March 25,

1963.

MANITOBA EXPORTS TO EUROPE HOLD PROMISE Increaased Opportunities For Farm, Resource, Manufactured Products Europe's new trading patterns and rising prosperity have created increased opportunity for greater Manitoba sales in primary products, industrial raw materials, processed foods and manufactured goods. But this can be assured only there is a "realistic attitude" toward selling — in the European market, based on competitiTe prices, consistent quality of products, prompt delivery schedules anda familiarity with established distribution and sales methods in Great Britain and Europe. This was the nub of a 42-page report, tabled in the Legislature Monday by Hon. Gurney Evans, minister of industry and commerce, covering last fall's trade mission to Europe. The report gives a detailed product-by-product account of sales opportunities, together with an examination of business methods and procedures in each of the countries visited, the requirements for exporting, and a report on the joint role of business, labour and government in European countries in creating economic expansion: The report had this to say about sales opportunities: AGRICULTURAL PRODUCTS: Wheat will continue to bo an important export item, as the efficiency of European bakery operations require a proportion of hard wheat in the grist, but aggressive and imaginative sales campaigns must be undertaken because of increased competition from other producers. Oats and barley production is mainly utilized domestically, but there is increasing demand for feed-stuffs in Europe to support a growinglivestock industry. Rapeseed from Canada has a good reputation for quality and purity and can supply Europe's crushing industry; a higher oil content is desirable. Flaxseed sales may be increased because the proposed European Common Markct (ECM) policy on agricultural products provides for duty-free entry of seeds. Red clover and alsike seed is mainly supplied from Canada. This position will not be seriously threatened although substantial year-to-year variations may be expected. -more-

MANITOBA EXPORTS -2Timothy and meadow fescue seed has Great Britain as a major market. Future sales, if the 10-per-cent preferential tariff is lost, can be made if Manitoba producers meet European prices and supply the required varieties. Specialty crops such as canary grass seed, sunflower seed and peas can be exported if competitive prices are maintained and continuity of supply assured. MINERAL PRODUCTS: Copper and nickel exports, to support increasing European industrialization, will increase. There are no external tariffs applied to these products. Zinc and lead exports can be increased with active sales programs. Great Britain is negotiating for a duty-free import quota on zinc which would make Canadian exports fully competitive. _FOREST PRODUCTS: Wood pulp -- that is, dissolving pulp and bleached and unbleached sulphit and sulphate paper pulps -- can be sold if laid7dewn prices in Europe are competitive and if quality and delivery schedules can be guaranteed. Debarked pulpwoodl ready for processing, can find available markets in Italy, Belgium, Norway, Switzerland, Britain, France and The Netherlands if competitive with Finland and the U.S.S.R. Rough-sawn white spruce lumber has a good meaket in the British Isles could compete with Baltic suppliers in the German, Belgium and Netherlands/if the product is promoted by sampling and if price and quality is right. PROCESSED FOODS: Canned foods, such as carrots, beans and sweet corn, should find a ready market in Great Britain, while canned vegetables can be introduced to Italy and high-quality, specialty canned garden products to France. Canned meat, especially ham, might very well be sold in The Netherlands, Sweden, Belgium and Spain. Frozen food consumption is steadily rising. Quick-frozen food from Manitoba . could be marketed in Great Britain and frozen meats and peultry in Germany and other countries. Frozen fresh-water fish could find markets, particularly in France and Italy, if promotional campaigns are used to introduce this product to consumers whose main fish diet is based on salt-water varieties. Dehydrated foods can be sold in Great Britain while direct sales of dried vegetables, especially peas and potatoes could be made te large European dry soup mw)ufacturers. Clover honey in bulk has extremely fainurable prospects, with large quantities currently being sold in Great Britain. -m

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MANITOBA EXPORTS

Egg products -- frozen whites, yolks and melange and dried egg in all forms -- based on competitive pricing can find markets in Germany, Belgium and Great Britain. CLOTHING: Outer wear garments, using original fabrics and up-to-date North American styling, can find likely markets. Some retail outlets have been sup:died with sample orders and are familiar with them. Casual sportswear appears to have an unlimited market in Groat Britain, as North American styling has found good acceptance. Manitoba windbreaker jackets are currently being sold and there is an opportunity to promote "wash-nwear" coIton trousers. Work clothing i in demand, over 7 million pairs of blue jeans are sold in Great Britain annually, and large orders could be obtained by Manitoba garment manufacturers, based on competitive prices. Demand for blankot cloth and cottonlined lumber jackets may also be developed. Fur and leather garments sales have good possibilities, with suede outer wear providing the best opportunity in Great Britain. Leather-trimmed gloves and mittens could find acceptance in France, and leather headgear in Germany. Footwear has a likely market. Moccasin-type shoes from Manitoba are successfully being sold in London, and could find markets in Germany and Switzerland. Boots, particularly fur-lined, should be saleable nearly everywhere. IRON AND STEEL PRODUCTS: Home heating equipment has a large potential market, particularly for ducted warm air heating, as Great Britain, wl:ere only 3.1 per cent of homes have central heating of any kind, is becoming more receptive to it. Germany, Fran;e and other European countries are showing increasing interest in central hea- Ang. Promotional programs for architects, contractors and the public should be carried out. Oil burners and hot water heaters should have increasing s uccess as large oil companies are actively promoting oil as a fuel. Pre-fabricated chimneys and sashless windows show promising prospects, with increasing interest from architects and builders. Drilling bits for the construction industry also show promise. The report stated that the development of natural resources, increasing mechanization and rapid industrialization had created greater purchasing power and higher living standards in all European countries. This market, with a -more-

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population of 500 rnilli.n in an area a third the size ef the United States, provides excellent opportunities for expanded Manitoba sales of both consumer and industrial goods. The opportunities must be viewed against the European Economic CoLuounity's common external tariff, to be introduced gradually over a 714-year period, which may make sales more difficult in future 'years. But the devalued Canadian dollar and rise in European production costs will help improve Manitoba's competitive position. For Manitoba, recent international trade developments including the U.S. Trade Expansion Act, will affect three groups of exportable commodities: industrial raw materials food products, and manufactured goods. 1.Industrial raw materials will continue to be an important Manitoba export to the European Economic Community. These materials are already admitted duty free or at low :tariff rates. Nickel and copper exports will net likely be affected by United Kingdom admission to the E.E.C. as there is an overall shortage of these materials in Europe. Expansion of zinc exports would depend on whether Britain is able t, negotiate a duty free import quota for Canada. Great Britain's entrance into the Common Market would mean that a 7 per cent comm 'n external tariff would be in effect )n newsprint, compared with present duty-free entry into Britain. However, Britain is negotiating for a zero tariff for newsprint. As Canadian forest resources are plentiful and European demand will eventually exceed its supply, British membership in the 2.E. C. should not affect Canadian pulpwood exports. 2.Agricultural products could be more adversely affected by Great Britain's admission into the E.E.C. than the industrial raw material commodities. However, Britain. and the E.C.C. countries will continue t require agricultural imports of wheat, flour, barley and flaxseed, and therefore, Manitoba f)od processors should continuo to find markets for their products in these countries. 3.In May, 1962, Britain reached agreement with the E.E. C. negotiators whereby she would apply, by 1970, the E.E. C's external tariff to manufactured goods from the advanced Commonwealth countries, including Canada. Affected by this will be Manitoba-manufactured products such as footwear, fodstuffs, sports clothing, materials handling equipment, automotive accessories, scientific instruments, garden teols, agricultural equipment sp,cialtios and work clothing, presently being exported to Great Britain duty free. -M r-

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The Manitoba manufturer can compote in these markets, but he must be prepared to take an aggressive approach in selling his products. This would necessitate the developmmt of detailed information on the marketing policies, the appointment of good agents, md consistent supply of high quality products at competitive prices.

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