International Trade Strategy for Manitoba
Prepared by The Council on International Trade
Section II Current State
of Trade and Exports in Manitoba
5) Opportunities for Leverage
An effective international trade strategy
will build upon the existing capabilities,
previous successes and unique
characteristics of Manitoba. Although
not exhaustive of all Manitoba’s unique
capabilities and characteristics, the following
are several examples of how our existing
activities and characteristics can be
leveraged in an international trade strategy.
| a. |
Education 10
Manitoba has had an international
presence in education for many years.
The trade contacts and networks that
have developed through international
students over the years have – and will
continue to have – an important role in the
development of the province’s international
trade. International students contribute
to trade capability in several ways.
Not only do they assist in developing
an international perspective in their
educational programs, but they also
enhance Manitoba’s profile internationally
and help open doors for future trade and
investment. International students also can
support Manitoba’s immigration strategy
either through encouraging immigration
from their home country or by immigrating
themselves.
The number of international students in
Manitoba has more than doubled in the
last 10 years, from 2,694 in 2000 to 5,383
in 2010. China is the largest source of
international students with 33 per cent in
2010. China, Korea and India accounted
for 48 per cent of international students in
Manitoba in 2010. It is reported that the
total expenditures of international students
in Manitoba in 2008 was $115.8 million.11
Demand for international education in
Canada is projected to grow from 1.9
million students in 2008 to 7.2 million
by 2025.12 If Canada and Manitoba
maintained their current share of the world
market, the projected total expenditures in
Manitoba by international students in 2025
could be $500 million, up from the current
level of $115 million. The same data
projected over the next five years suggests
that international student expenditures in
Manitoba could be an additional $75 to
$100 million by 2016.
The potential to grow Manitoba’s
education exports is clear when viewed as
a percentage of all international students in
Canada. In 2008, Manitoba’s international
student population was only 2.7 per cent
of Canada’s total.13 |
| b. |
Immigration
Manitoba’s effective immigration policies
and practices have been instrumental
in not only increasing the province’s
population base, but also the strategic
nature of these policies has supported
foreign investment, increased the skilled
labour force, and significantly enhanced
economic development and language
diversity. One example is the Provincial
Nominee Program for Business (PNP-B),
through which Manitoba has been
attracting international entrepreneurs
and investors to the province. These
business immigrants are both building the
international nature of Manitoba’s economy
and contributing to the province’s
economic development.
As indicated in Table 4, Manitoba’s
net immigration increased by 340 per
cent from 1996 to 2010, one of the
highest rates of increase in Canada. The
effectiveness of Manitoba’s immigration
strategy can be attributed to the many
stakeholders who worked collaboratively
to integrate the newcomers into their new
culture. This "best practice" methodology
has clear implications for the Council as
it develops its collaborative approach to
international trade.
Further support for the proposition that immigration can be a stimulus to Manitoba
trade is the finding nationally that among
established exporters, immigrants who
have resided in Canada for less than five
years are disproportionately likely to be
the owners of exporting firms.14 Given that
these firms would also be SMEs, it follows
that targeted immigration policies could be a
factor in increasing the number of Manitoba
SMEs engaging in international trade.
|
| Table 4: Manitoba’s International Immigration and Migration 1996-2010 |
| |
IN |
OUT |
NET |
| 1996 |
3,928 |
1,556 |
2,372 |
1997
|
3,715 |
1,871 |
1,844 |
1998
|
3,004 |
1,757 |
1,247 |
1999
|
3,725 |
1,651 |
2,074 |
2000
|
4,647 |
1,648 |
2,999 |
2001
|
4,592 |
1,428 |
3,164 |
2002
|
4,615 |
1,329 |
3,286 |
2003
|
6,503 |
1,237 |
5,266 |
| 2004 |
7,426 |
1,527 |
5,899 |
| 2005 |
8,097 |
1,704 |
6,393 |
| 2006 |
10,047 |
1,839 |
8,208 |
| 2007 |
10,955 |
2,002 |
8,953 |
| 2008 |
11,219 |
1,989 |
9,230 |
| 2009 |
13,520 |
2,031 |
11,489 |
| 2010 |
15,805 |
2,045 |
13,760 |
| 2001-2010 |
11,158 |
397 |
10,761 |
| %change |
243.0% |
27.8% |
340.1% |
| Source: Manitoba Bureau of Statistics |

| c. |
Tourism
Like education, tourism in Manitoba already has a presence internationally. In
2009, Manitoba’s tourism export revenue
was $466.7 million.15 Revenue from
international tourism in 2009 was $187
million, with $47.3 million coming
from overseas visitors. Visitors from the
United States are the largest source of
international tourism with spending of
$140 million in 2009, or almost 75 per
cent of the total international tourism
expenditures.16
The majority of tourism
revenues from countries outside North
America in 2009 were divided between the
United Kingdom (16.6 per cent), Europe
(50.3 per cent), Australia (8.8 per cent) and
Asia (11.8 per cent).17 Manitoba’s international tourism is a
growing export as a stand-alone product.
The challenge for the Council is to
develop ways of leveraging this growing
international market to increase other
types of international trade. |
| d. |
Investment
Investment is an integral part of Manitoba’s
trade strategy. Increased foreign direct
investment by international companies
will make a tremendous impact
on job creation and income growth.
This strategy will leverage the increasing
focus on investment attraction through
co-ordinating activities to ensure all
opportunities are pursued. CentrePort Canada represents a unique
opportunity to attract investment interest
among global companies that can
benefit from the transportation advantage
CentrePort represents. Local companies
that import significant quantities from
specific international organizations
represent a potential investment
opportunity.
Our very successful Provincial
Nominee Program for Business (PNP-B) is one example
of how an effective immigration strategy
might be used to attract foreign capital
or venture capital pools. Manitoba has
attractive investment opportunities today
that will increase with an expanding
economy. Recent external investments in
real estate, retailing and manufacturing
are evidence of this trend. We have to
position ourselves to take advantage of
the foreign capital that is currently "on
the sidelines" looking for investment
opportunities. Through Yes! Winnipeg and
the integrated and collaborative strategies
of other Council member organizations,
the potential for increasing investment
in Manitoba will be greatly enhanced.
This trade strategy will be a platform for
developing methods for creating synergies
involving all these factors. |
10 Although the service is offered in Manitoba, education is considered an export
11Economic Impact of International Education in Canada, report to Foreign Affairs and
International Trade Canada, RKA, Inc., July 2009.
12RKA report
13 RKA report
14 SME Financing Data Initiative, Canadian SME Exporters, Government of Canada, January 2008, www.sme-fdi.gc.ca/eic/site/sme_fdi-prf_pme.nsf/eng/02116.html
15 Source: Travel Manitoba. The total includes spending by visitors from other Provinces.
16 Source: Travel Manitoba.
17 Statistics Canada – International Travel Survey, 2009.
