You’re a mid-sized manufacturer of highly specialized equipment in Red Deer, Alberta. And one day, out of the blue, a huge order comes in from a country you have never even heard of. It could double your annual volume – if it’s legit. If not, it could bankrupt you. So how can you tell? Who you gonna call?

This is where EDC comes in. Export Development Canada is a “Crown corporation” (i.e. owned by the Government of Canada) with a broad mandate to support our exporters and investors wherever they go. Most advanced nations have entities with the same core function: underwriting exporters’ receivables with credit insurance as well as offering a wide range of innovative solutions including guarantees, financing and connections.

Simply put, this allows even small producers with zero international sophistication to say “yes” to orders from countries almost anywhere on the planet. For receivables insurance, EDC assesses the buyer’s credit-worthiness, charges a premium appropriate to the estimated risk and, if the buyer defaults, pays the exporter due to an array of events including bankruptcy or non-payment, issues with currency conversion or transfer, and more.

There is an added benefit to this kind of credit insurance. If you have it, banks are typically willing to lend against your foreign receivables.

EDC underwrites many transactions with its own capital, but for huge orders – like fleets of passenger jets – or where risks are significant, EDC may share the financing burden with banks or other players.

In this way, EDC has been supporting Canadian exporters since 1944. But in recent years EDC has broadened its reach to provide exporters with a wider range of support based on what has always been its key commodity: intelligence of the kind that allows it to decide if a deal is viable.

Tokyo: gateway to opportunity Asia-wide

So rather than just passively insuring export deals as they come in, EDC now actively seeks out export opportunities for Canadian businesses, working in league with Global Affairs’ Trade Commissioner Service, provincial trade reps and other key players. A key part of this effort is the opening of new EDC offices in the world’s business capitals, most recently in Tokyo. Located in the Canadian Embassy, EDC’s new Japan office opened in September.

Japan was a priority for several key reasons. It is already a huge market for Canadian exporters – number three after the U.S. and China. And thanks to increased market access under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Japan’s doors are now open wider than ever to Canadians. Japan is also Canada’s third-largest source of foreign direct investment.

What’s more, as those of us who do business in Japan know well, in this market you can’t just ‘phone it in.’ Japan’s business culture places very high value on relationships.

The new Tokyo office also has a mandate that extends beyond Japan. Since EDC’s activities in Asia are aligned with Canada’s Indo-Pacific strategy, the ASEAN nations are a priority, especially Vietnam, Indonesia and the Philippines – fast-growing economies that have high potential for Canadian exporters. Tokyo is a good place to pursue Southeast Asian opportunities because Japanese trading companies and manufacturers play such a prominent role in the region.

Closer to hand, EDC is targeting Japan opportunities in several key sectors, with agri-food topping a list that includes critical minerals for EV batteries, clean-tech, hydrogen and ammonia, IT, bioscience and the medical field.

EDC’s new Tokyo office complements a network that spans the Indo-Pacific region with offices in Delhi, Mumbai, Shanghai, Beijing, Sydney, Jakarta, Seoul, Singapore, Ho Chi Minh and Manila.

We are pleased to welcome EDC as a member of the CCCJ.