TORONTO, April 11, 2006 -- Export Development Canada (EDC) today launched a pilot loan program to help smaller exporters meet new U.S. customs security guidelines and gain greater access to the U.S. market.
The loan program was developed in response to increasing requests by the U.S. government and businesses to strengthen supply chain and border security through the U.S. Customs-Trade Partnership Against Terrorism (C-TPAT), developed in the aftermath of September 11, 2001.
"Compliance with C-TPAT can create a cash-flow crunch for many smaller Canadian exporters," said Benoit Daignault, EDC's Senior Vice-President, Business Development. "EDC's new Security Compliance Loan provides Canadian companies a tangible solution for meeting the U.S. customs guidelines and keeping their business finances on track." Mr. Daignault introduced the new loan program during a speech on Trading with Your Neighbour: the New Price of Trust to the I.E. Canada Conference in Toronto today.
For Canadian small businesses, the costs associated with C-TPAT compliance measures will be the principal challenge to their participation in the program. In response, EDC's Security Compliance Loan will be a direct, three-year, unsecured loan for 85 per cent of the costs identified in becoming C-TPAT compliant, up to $150,000.
The C-TPAT program calls for Canadian suppliers to ensure that the security practices at their facilities meet rigourous criteria. The C-TPAT is particularly relevant to those Canadian companies that oversee their own customs logistics for sales to the U.S., which is the case for more than 75 per cent of Canadian businesses exporting to the U.S. market. The new security guidelines require security investments, standards and actions, such as protective fencing around a company's premises, secure electronic access systems for personnel and other related measures.
Although the C-TPAT program is still voluntary, market intelligence indicates that non-compliance will lead to greater delays at border crossings, higher transportation and logistics costs, and a greater risk of being denied access to the U.S. during a terrorist alert or event.
Mr. Daignault's remarks can be viewed here.
EDC is Canada's export credit agency, offering innovative commercial solutions to help Canadian exporters and investors expand their international business. EDC's knowledge and partnerships are used by 7,000 Canadian companies and their global customers in up to 200 markets worldwide each year. EDC is financially self-sustaining and is a recognized leader in financial reporting, economic analysis and human resource management.
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Media contact: Phil TaylorPublic Affairs, Export Development Canada(613) 598-2904ptaylor@edc.ca
