CEOs must blaze trading trail

Corporate leaders who get involved will seize the day, export chief says

It’s been just over a year since Benoit Daignault took the reins at Export Development Canada, the federal agency charged with helping companies fund and expand into new markets.

While much has changed in that time — a domestic economy now struggling to kick- start growth in the midst of an oil- price collapse — the impetus to expand into new markets, not just the United States, must still come from corporate leaders themselves.

“CEOs that actually get involved directly and don’t delegate, that are hands- on, are successful in going overseas and capturing opportunities,” said Daignault.

“We feel trade is extremely important for the country. Only four per cent of ( Canadian) companies export. We’re a small market and people need to be aware of the opportunities,” he said. “It’s kind of a call to action here.” Daignault, who took over from Stephen Poloz — now the Bank of Canada governor — was speaking ahead of the release of EDC’s annual report on Wednesday.

Those results show Canadian exports rose 5.7 per cent in 2014 over 2013, with 7,400 companies and investors tying into the EDC’s services, such as financing and insurance programs. The agency’s customer base increased 3.7 per cent over the same period.

Daignault joined the EDC in 2004 as senior vice- president for business development. Before that, he held senior positions for more than 10 years at General Electric Capital. He was named CEO of EDC in February 2014.

When he replaced Poloz, “the oil and gas aspect was not there, as a potential negative,” Daignault said. “Essentially, the conditions were very good for exports.”

Now, he said, “we have a few unknowns.”

“Even if the United States is going well, it’s time to look at other opportunities because it takes time. And because you have to start small. You have to get to understand how things work in a given market,” he said.

For Daignault, the trade prospects remain good in Asia, as well as Latin America and Africa.

“We are bullish on the U. S. Even in 2015, there is going to be a lot of growth. But the question is, how much will Canadian companies actually have the will to invest, to capture that growth,” he said.”

We feel trade is extremely important for the country. We’re a small market and people need to be aware of the opportunities.

CHRIS ROUSSAKIS/ NATIONAL POST Benoit Daignault, president of Export Development Canada, says corporate leadership will determine the success of Canadian companies in making the most of foreign trade opportunities.