May/June 2019 Advocate

M a y | J u n e 2019

NAFTA 2.0

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features

Awards 10 2019 Business Excellence Award Winners

Feature

Scott MacKenzie

Feature

Jaime Seidner

Art Sinclair editor:

Heather Hutchings

Cover Story 16 Canada’s State of Trade

Mark Agnew

editor-in-chief:

design and production

M&T Printing Group Photography: Adamski Photography, Snapd KW

23 CUSMA – A Canadian Auto Industry Perspective 25 USMCA–CUSMA: Considerations for Canadian SMEs

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Mark Agnew, Kate Borthwick, Scott MacKenzie, Ian McLean, Jaime Seidner, Art Sinclair contributors:

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departments

Message from the President

Networking

4 Major Trade Issues for Canada as Election Approaches

Ian McLean

12 Spring Networking

Advocacy

Hi-lighting Members

not appear on any Leader Debates in 2019 Art Sinclair

Events

Perspective on Health Care

7 Mulroney and Turner will

8 Physician Recruitment – A

Great Investment Kate Borthwick

postmaster address changes

New Members

14 February 1 to March 31, 2019 19 Health, Wellness & Recreation

20 Mark Your Calendar Member Notables

29 Chamber Members Achieving Success

c/o

Advocate - Publications Office 80 Queen Streete North, PO Box 2367 Kitchener, Ontario N2H 6L4 519.576.5000 The Advocate is a bi-monthly membership benefit publication of the Greater Kitchener Waterloo Chamber of Commerce.

Advertising content and the views expressed herein are those of the contributors and do not constitute endorsement by the Chamber. The Advocate follows the Canadian Code of Advertising Standards (1990), copies are available through the Publisher. The Chamber cannot be held responsible for any errors or omissions that may occur and has the right to edit material submitted. The Chamber will not accept advertising with competitor comparison claims and has the right to refuse advertising that is deemed to be false, misleading, or inappropriate.

advocate May | June 2019

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message from the president

Major Trade Issues for Canada as Election Approaches Trade is good for Canadian business. Our wealth of natural resources, productive agricultural lands, research institutions and post-secondary programs provide significant benefits for our trading partners throughout the global arena.

Over the last decade, the Canadian government under both Prime Ministers Trudeau and Harper has completed major agreements with the EU, Asia and US/Mexico. These deals indicate the high level confidence of our partners have in Canada’s ability to deliver goods and services and create prosperity.

In October of last year, Canadian Ambassador to the United States David MacNaughton spoke at a Greater Kitchener Waterloo Chamber event which occurred shortly after the new deal with the United States and Mexico was finalized.

Ambassador MacNaughton said the biggest win in the deal is a consultation period on National Security Clause 232, which enabled the United States to impose tariffs on industries without warning in the name of national security. Canada now has a 60 day period to make their case against one of these potential tariffs on the auto industry.

MacNaughton further added that with autos, there will be no imposition of 232 unless there is a 70 percent increase of auto production in Canada. Removing the threat of 232 tariffs being imposed will allow companies to make sensible adjustments. This is particularly good news for Waterloo Region, where significant growth in advanced manufacturing has recently occurred.

However, as the fall 2019 Canadian election approaches, a number of outstanding issues require resolution before ratification. As of late March, Foreign Affairs Minister Chrystia Freeland was informing the US that support for the new deal may hinge on them lifting tariffs for Canadian steel and aluminum. Many Canadian business owners have serious questions about ratifying the agreement as long as the tariffs remain in place.

Furthermore, Freeland has stated that Canadian business wants all retaliatory measures removed before the countries move forward with approval. The Canadian government has called the on-going tariffs illegal and absurd and makes less sense now that a new agreement has been signed by all three countries. It is generally assumed the Canadian House of Commons can pass the deal rather quickly after the tariffs are removed.

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Political considerations are a major component of any government mega-initiative and trade deals are no exception.

Republicans are at odds with some sections of the agreements while Democrats are in no hurry to provide a victory for President Trump. There are also major concerns around Washington that failure to ratify will lessen American credibility and their ability to complete deals with other major partners like China. American trade with Mexico and Canada has tripled since NAFTA became effective during the Clinton administration.

Of importance locally, the USMCA includes what NAFTA did not – a digital chapter with provisions around data flow and protection, e-commerce, and cyber security. The new provisions are a good start on an area of contention for Canadian companies across all sectors and provide certainty for firms in IT services.

Many sectors of the Canadian and local economies have benefitted from the trade deals negotiated over the past decade and as the federal election approaches in the fall, all businesses should remember these significant gains and not forget the fundamental issues . All levels of government need to be aware of the support for trade and be assured the business community is behind them in moving forward.

ABOUT THE AUTHOR

Ian McLean Ian is President and CEO of the Greater Kitchener Waterloo Chamber of Commerce

Fuelling Your Business with Talent The Greater KW Chamber, along with key corporate sponsors and community partners, host the annual Manufacturing Summit as a way to bring the manufacturing and supply chain communities together in Waterloo Region. This year’s event will have a focus on the recruiting and retaining of talent.

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advocacy

Mulroney and Turner will not appear on any Leader Debates in 2019 Single issue elections are generally an anomaly in Canada.

Since education and healthcare are publicly funded services, the fiscal demands on government during and in between election campaigns are massive. Established and emerging institutions compete, with many other stakeholders, to ensure their portfolios become the priority of the major parties.

In the 2007 Ontario election, the governing Liberals under Dalton McGuinty were highly successful in moving the focus of the campaign to the sole issue of PC Party Leader John Tory’s proposal for funding faith-based education. Without a lengthy discussion on the relative merits of Tory’s position the end result was a second consecutive majority Liberal government, suggesting Gerald Butts’ strategy worked.

As the fall 2019 federal vote approaches, the Conservative and New Democratic Parties are currently focused on SNC Lavalin or more broadly the principles of accountability and responsibility. Whether the voters of Canada, six months from now, want deferred prosecution agreements to emerge as the dominant or exclusive election issue remains questionable.

Gerald Butts will also be discussed regularly.

For voters old enough to remember John Turner and the post-Pierre Trudeau Liberal Party, the 1988 federal election was probably the most recent example of a single issue contest. Prime Minister Brian Mulroney had completed the Canada US- Trade Agreement (we called it free trade back then) when voters went to the polls in November. Ironically as the USMCA awaits ratification in the United States, President Reagan and the American Congress passed the USCanada deal in September before the Canadian election. Our approval followed the vote.

The Liberals opposed the deal. One of the more famous excerpts in Canadian federal leaders debates was Turner telling Mulroney that he sold Canada out. This of course followed Mulroney’s comments in 1984 that Turner had a choice with respect to canceling a series of Trudeau patronage appointments. Mulroney’s attack – you had an option sir – was the most devastating in Canadian history, particularly when he physically turned his back on Turner.

The Liberals lost the 1988 election so while Turner’s remarks were significant by current standards they were not lethal for Mulroney.

Media critics and voters often claim that current leadership debates are far too scripted and predictable. Unfortunately, in the current era of politicians being highly confined to “messaging,” the objective is to not lose by going off message.

Mulroney came from an era when political leaders were leaders and did not take direction from communications professionals. If he said anything controversial he defended it.

Will the 2019 federal election be one issue and will that issue be the trade agreement with the United States and Mexico? Of course the largest difference between 1988 and 2019 is that Justin Tudeau and Chrystia Freeland negotiated USMCA. It would be highly unlikely for the Conservatives under Andrew Scheer to reject the entire notion of trade like John Turner proposed in 1988. Identifying one contentious issue within USMCA and fighting an entire election on that matter is not probable. Voters are more likely to prefer debates on deferred prosecution agreements.

John Turner and opponents fought the 1988 election against the principles of international trade, which they generally viewed as a huge liability for Canada through loss of economic control and sovereignty. Ten years later, when Mike Harris was seeking a second term in office at Queen’s Park, the economy was relatively strong. The same opponents to free trade in 1988 argued that the position of the economy was largely related to conditions on the American side, which they had previously asserted would ruin Canada. Don’t expect to hear that argument this fall.

John Ibbitson wrote in The Globe and Mail last August that the upcoming federal vote could be the first one issue contest in over three decades. The issue however is not trade but rather climate change. The Liberal Party may also attempt to capitalize on Doug Ford’s restructuring of the healthcare system in vote- heavy Ontario and present the federal Liberals as the voice of reason, providing the further probability of a multiple issue election.

Around 1992-93 I was standing in a Dominion Grocery store in North York where I resided at that time. An elderly gentleman approached and informed me that he was still furious, five years later, that John Turner threw away the 1988 election to Mulroney. I remember his apprehension that Turner, a career Bay Streeter, sold out the Liberal Party and by extension the entire nation. Turner wavered and was not committed as he should have been.

The 1988 election was great theatre but expect no reruns for 2019. And Dan Quayle is no Jack Kennedy.

ABOUT THE AUTHOR

Art Sinclair Art is Vice President Policy and Advocacy for the Greater Kitchener Waterloo Chamber of Commerce.

advocate May | June 2019

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perspective on health care

Physician Recruitment – A Great Investment It’s cliché to say, but it really does take a community to recruit a physician. Before a family physician says “yes” there’s marketing, site visits and onboarding, and the community’s involvement is necessary and vital to it all. The great news is the leadership of Greater KW & Area Chamber of Commerce is actively using best practices for physician recruitment and the KW business community stands out as an excellent example of how to support physician recruitment efforts.

Considering the current job market for family physicians, it’s more important than ever for the Chamber to continue investing in a dedicated Physician Lead and for local businesses to continue supporting physician recruitment through sponsoring events such as the Annual Recruitment Weekend and identifying employment opportunities for a physician’s spouse.

Competitive Job Market Ontario is a very competitive recruitment environment for family physicians because there are so many attractive options for new doctors. It’s possible to start a new practice and build a patient roster in locations across Ontario because many individuals need a family doctor.

This competitive environment can lead to recruitment challenges and ultimately frustration for local residents (new and existing) who are trying to find a family doctor. If individuals move to Kitchener-Waterloo and can’t find a family physician, businesses are likely to have trouble recruiting and retaining talent. Today there are not enough doctors in the Kitchener-Waterloo area who are taking patients.

Physician Retirements Finally, anticipated physician retirements are another compelling reason why recruitment efforts are so critical. By one estimate between 10 to 16 percent of family physicians are expected to retire within the next one to five years in the Kitchener-Waterloo area. This has the potential to impact their patients – more than 10,000 KW residents – and individuals who could potentially consider moving to the area. Over the next 10 years, physician retirement could affect more than 40,000 KW residents.

The good news is retirements represent another type of opportunity for a family physician – taking over a practice. In this case, a new physician would be taking over an established practice with an existing roster of patients. The community benefits because patients still have care when their local doctor leaves.

It can take one to two years to find the right physician replacement. If a retiring doctor has a large roster of patients, two new doctors may be needed to provide care to them.

Ideally, local physicians disclose their retirement plans early to provide the community with ample time to recruit.

Dollars and Sense With the competitive job market for family physicians, the short-term coverage needed for local physicians, and the anticipated local physician retirements, support of physician recruitment continues to be an excellent investment.

Short-Term Coverage Needed Additionally, local family physicians in the area take time off for vacation or parental leave, which could potentially leave a gap in coverage for patients. However, this situation also presents an opportunity for a new doctor to provide locum (short-term) coverage for a local doctor.

This type of work is a great option for new doctors because they can sign a contract to work without start-up or overhead costs and assignments are flexible in terms of length of time.

Locum assignments can serve as a powerful recruitment tool.

While on assignment, the locum doctor becomes familiar with the family practice and community -- which can lead to a permanent commitment.

New locum jobs are always being posted on HFOJobs (www. hfojobs.ca), so new doctors can do ongoing locum work in this area and across the province.

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ABOUT THE AUTHOR

Kate Borthwick Kate has a Master of Health Administration degree from the University of Ottawa and over 15 years of experience working in the health care sector. As a Regional Advisor with HealthForceOntario she applies her skills and enthusiasm towards helping new physicians transition to practice and working with stakeholders to develop strategic HHR solutions.

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awards

2019 Business Excellence Award Winners

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1. Young Professional of the Year Award Shelby Behling, President of Clean & Tidy, accepts the award from Shan Gibson, District Vice President, Meridian Credit Union 2. Employee Engagement Award John Ferguson, Managing Director of GHD, accepts the award from Gary Hallam, Executive Dean of the School of Business/Hospitality, Media and Design, at Conestoga College Institute of Technology & Advanced Learning 3. Health & Wellness in the Workplace Award Katherine Loveys, Executive Director of Parents for Community Living, and team accepts the award from Ron Gagnon, President & CEO Grand River Hospital.

4. Non-Profit/Charitable Award David Marskell, CEO of THEMUSEUM, and Paige Phillips, Director, Development & Membership, accepts the award from Paul Eichinger, Vice President of MTE Consultants Inc. 5. Service Excellence in Hospitality & Tourism Award Jody Palubiski, CEO of the Charcoal Group of Restaurants, and team accepts the award from Minto Schneider, CEO, Waterloo Regional Tourism Marketing Corporation.

6. Environment & Sustainability Award Tim Rollins, Interim Office Managing Partner at EY, accepts the award from Murray Costello, Director Southeast Region Operations, Enbridge Gas Inc. Operating as Union Gas.

7. Innovation Award Steve Shepard, General Manager at McIntyre Group, and team accepts the award from Andrew Malton, Principal Security Automation Researcher, Blackberry Limited.

8. Volunteer of the Year Award Michael Hewitson, Royal LePage Wolle Realty, accepts the award from Lisa Keeping, Vice Dean and Professor, Organizational Behaviour/Human Resource Management at the Lazaridis School of Business and Economics.

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9. New Business of the Year Award Kate Peister, Owner of Cellar52, accepts the award from Lena Demarco, Regional Director, Community Affairs at Bell Canada.

10. Small Business of the Year Award Carolina Soares, President of The Event Firm, and Kyle Priestley, CEO, accepts the award from John Deans, Senior Vice-President of S.G. Cunningham Limited 11. Business of the Year (11-50 Employees) Award Stephanie Soulis, President & CEO of Little Mushroom Catering, accepts the award from Helen Friedman, Partner, Miller Thomson LLP

12. Business of the Year (50+ Employees) Award George Croft, President & CEO of Waterloo Brewing/Brick Brewing Co., and team accepts the award from Norah McRae, Associate Provost, Cooperative and Experiential Education at the University of Waterloo.

13. Michael R. Follett Community Leader Award Chief Bryan Larkin, Chief of Police for the Waterloo Regional Police Service, accepts the award from Neil Morrison, Regional Vice President, Group Sales, Eastern Canada, Equitable Life of Canada.

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awards

2019 Business Excellence Awards Guests

advocate May | June 2019

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networking

Spring Networking

Some posing happening with Chuck and Flip at the Rangersfest event!

Our wonderful Womens Leadership Committee

Some of the students posed with our speakers at the International Womens Day Breakfast

Great networking happening at the Business After 5 Event!

photo by snapdKW Bonnie Frank showing some team spirit with Tex at our 2nd Annual Rangersfest event!

Jeff Sheppard and Jordan Snider from the BA5 Committee, select a winner for the surprise draw! photo by snapdKW

Cheering on the Rangers at Rangersfest!

A great shot of the BA5 Committee!

Photos by Adamski Photography

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Healthy Heart Day was our most successful event to date.

A lot of participants found out by reading The Record in print and online. Without your support this event would not be possible.

Michelle Pandey, Cambridge Cardiac Care

networking

Networking in the Wright Auto Sales Lounge during Rangersfest

Brian Banks, Joel Winkler and Simon Dowrick enjoying the atmosphere at Westmount Golf & Country Club at a Business photo by snapdKW After 5 Event

Shirley Hilton, Lilika Beck and Lauren Lake spoke at the International Womens Day Breakfast

One of the lucky winners of a signed Rangers jersey at Rangersfest

Karen Redman, Ian McLean, Catherine Fife, and Margaret Johnston stopping for a picture at the International Womens Day Breakfast

Mohsan Abdullah capturing some great shots at Westmount photo by snapdKW Golf & Country Club BA5 Event

Karen Redman presenting Hannah Velle the Leaders of Tomorrow Award

Ruth Semeniuk, Marina Garabetian from Raffi Jewellers Inc, and Karen Redman at the International Womens Day Breakfast

Photos by Adamski Photography

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new members

February 1 to March 31, 2019 Aero Cleaning Services Ltd. Cleaning Service-Residential/ Commercial/Industrial Roxana Di Caro, Director 15 Paulstown Cr Guelph, ON N1G 5H7 info@aerocleaning.ca aerocleaning.ca Phone: (519) 831-5726 Amy Fee, MPP Kitchener South Hespeler Government Amy Fee, MPP 4281 King St E, Unit 4 Kitchener, ON N2P 2E9 amy.fee@pc.ola.org amyfee.ca Phone: (519) 650-9413 Better Bedtime, Sleep Solutions & Corporate Workshops Health & Wellness Bridget Jensen, Sleep Consultant bridget@betterbedtime.ca betterbedtime.ca Phone: (519) 221-7338 C&H Fire Suppression Systems Inc Fire Alarm Systems Josh Heller, Vice President 274 Shirley Ave, Unit 103 Kitchener, ON N2B 2E1 chfire@chfireinc.com chfireinc.com Phone: (519) 742-6030 Fax: (519) 742-0266

Ecosystem Recovery Inc. Engineers - Consulting Jeff Prince, CEO 80 Courtland Ave E, Unit 2 Kitchener, ON N2G 2T8 jeff.prince@ecosystemrecovery.ca ecosystemrecovery.ca Phone: (519) 621-1500

Greenway Landscaping Landscape Contractors & Designers Ryan Dean, President/Owner 455 Dutton Dr, Unit 4 Waterloo, ON N2L 4C7 info@greenwaylandscaping.ca greenwaylandscaping.ca Phone: (519) 888-7787

Erin Aquin (Revitalize Your Relationship) Coaching Erin Aquin, Life Coach, Owner erin@revitalizeyourrelationship.com revitalizeyourrelationship.com Phone: (808) 498-6868

HiWay Flowers Florists MaryBeth Kennedy, Owner 1601 River Rd E, Unit 18 Kitchener, ON N2A 3Y4 mbkennedy@hiwayflowers.ca hiwayflowers.ca Phone: (519) 893-1890 Fax: (519) 893-0778

EXP Services Inc. Engineers - Consulting Andrew Holford, Discipline Manager 405 Maple Grove Rd, Unit 6 Cambridge, ON N3E 1B6 andrew.holford@exp.com exp.com Phone: (519) 650-4918 Fax: (519) 650-4603 GN Business Consulting Consultants Glenn Norkett, Principal 184 Townsend Dr Breslau, ON N0B 1M0 glenn@gnbusinessconsulting.com gnbusinessconsulting.com Phone: (226) 752-7081

Discover the simplicity of completing your personalized plans for funeral, reception, cemetery and cremation all at one beautiful location.

At your time of need or planning ahead, call:

519-904-0400 memory cemetery.ca

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Ives Roth Nowak Insurance Brokers, A division of Ives Insurance Brokers Insurance Agents & Brokers Andrew Nowak, Commercial Account Executive 119 University Ave E Waterloo, ON N2J 2W1 service@rothnowak.com rothnowak.com Phone: (519) 746-1151 Fax: (519) 746-3607 Kitchener Senior Panthers Baseball Inc. Sports Associations & Organizations Bill Pegg, Chair office@panthersbaseball.ca panthersbaseball.ca Phone: (519) 240-2604 Fax: (519) 749-0002

new members

February 1 to March 31, 2019 Laura Hartnell Career Transition Services Career Services Laura Hartnell, Career Transition Specialist/Resume Writer laura@laurahartnell.ca laurahartnell.ca Phone: (519) 420-8447 LG Law Group Professional Corporation Lawyers Katie Ling, Co-Founder/Lawyer 16 Barrel Yards Blvd, Suite 110 Waterloo, ON N2L 0C4 info@lglg.ca lglg.ca Phone: (519) 500-8338 Lumiera Solutions Bookkeeping Services & Office Support Christy Racho, Owner, Virtual Assistant 30 Jantzi Place New Hamburg, ON N3A 1Y6 christy@lumierasolutions.com lumierasolutions.com Phone: (519) 489-3035 Mandioca Food Industry Alvaro Barretto, CEO/Co-Founder alvarobarretto@hotmail.com Phone: (519) 500-1658 Mennonite Coalition for Refugee Support Charitable & Community Organizations Shelley Campagnola, Executive Director 675 Queen St S, Unit 230 Kitchener, ON N2M 1A1 office@mcrs.ca mcrs.ca Phone: (519) 571-1912

Monica Place Charitable & Community Organizations Jennifer Breaton, Executive Director 231 Herbert St Waterloo, ON N2J 1V1 reception@monicaplace.ca monicaplace.ca Phone: (519) 743-0291 MVP Meals Caterers Amanda Case, Owner info@mvpmeals.com mvpmeals.com Phone: (226) 444-1716 N.G.H. Con-Form Concrete Contractor Nick Hammer, Owner/Operator conformcons@gmail.com nghconform.com Phone: (519) 591-4295 North Inc. Technology Jacob Glick, General Counsel 27 Gaukel St Kitchener, ON N2G 1Y6 jennifer.brown@bynorth.com bynorth.com Phone: (888) 777-2546 Oudman Services Inc. Property Maintenance Harry Oudman, President 13 Roseview Cr Ayr, ON N0B 1E0 harry@oudmanservicesinc.com Phone: (519) 465 2611

Positive Choices Nutrition Coaching Health & Fitness Program Consultants Heather Cook, Owner, Nutrition Coach 197 Springfield Cr Waterloo, ON N2T 2M6 heather@theheathercook.com procoach.app/heather-cook Phone: (519) 744-2679 Rooms in Bloom Home Staging & Design Inc Home Staging Heather Cook, Owner/Director of Business Operations 565 Trillium Dr, Unit 5 Kitchener, ON N2R 1J4 info@roomsinbloom.org homestagingdesign.ca Phone: (519) 804-7824 Fax: (519) 804-1200 Stills Motion Content Video Production Chris Fertnig, Chief Creative Officer 1881 Carmel Koch Rd St Agatha, ON N0B 2L0 chris@stillsmotioncontent.com stillsmotioncontent.com Phone: (226) 821-2071 The Valko Team Mortgage Brokers Tracy Valko, Mortgage Broker/Owner 1187 Fischer Hallman Rd, Suite 623 Kitchener, ON N2E 4H9 tracy@tracyvalko.ca tracyvalko.ca Phone: (519) 745-8019 Fax: (519) 745-9437

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cover story

Canada’s State of Trade International trade issues remain a priority for the Canadian Chamber of Commerce.

equipment and it is completely bogus to claim Canadian exports pose a national security risk to the U.S.

When you read the headlines, it is easy to see why. The renegotiation of the North America Free Trade Agreement, trade issues with China and Saudi Arabia, the entry into force of the Comprehensive and Progressive Agreement for TransPacific Partnership, Brexit, and the one-year anniversary of our trade agreement with the European Union is all a lot to digest.

A recent study looked at the exemptions being granted to companies seeking relief from these national security tariffs.

This study found that Chinese exports of steel and aluminium to U.S. were more successful than Canadian businesses at securing exemptions from national security tariffs. This is the clearest evidence yet that completely debunks the supposed security threat posed by Canadian exports.

The next twelve months will be no less eventful for those with a stake in international trade. This includes businesses within Waterloo Region, whether you are a manufacturer, service provider, or in the hi-tech sector.

The Canadian Chamber will continue to work with our federal government and the Greater Kitchener-Waterloo Chamber of Commerce to make the case for why Canada should be fully, and permanently, exempt from these tariffs.

Foremost on our minds is the ratification of the new trade agreement with the United States and Mexico. Regardless of whether you call the new deal the United States-MexicoCanada Agreement (USMCA), the Canada-United StatesMexico Agreement (CUSMA), or simply NAFTA 2.0, expect the ratification of the deal to be as eventful as the negotiation process.

Looking outside North America, diversifying Canadian exports will be a priority for the Canadian Chamber. There will continue to be talks in various forums with a range of partners such as the Mercosur and Pacific Alliance blocs in Latin America, as well as preliminary discussions with the countries of the Association of South East Asian Nations.

The Democrats now control the House of Representatives in the U.S. Congress, and it does not appear that they will make the ratification process easy. They have raised concerns with the agreement’s provisions regarding labour and environment standards, as well as the length of patent protection for certain types of pharmaceutical products.

Given the deal will have to be approved by the Democratcontrolled House of Representatives, we could see additional negotiations occur. One way this could unfold is the three countries signing additional so-called “side letters” which expand on the content of the originally signed agreement without having to re-open it.

We could see the new deal approved later this year, but with the added complication of the Canadian federal election occurring in October, there are no guarantees on the timing.

Setting aside what the Democrats do in the U.S. Congress, there is still unfinished business for Canada to solve on the American’s steel and aluminium tariffs. These tariffs, being done on national security grounds, remain as unjustified as the day they came into being. Canadian steel and aluminium is used in the production of the U.S. military’s defence

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While we welcome leaving no stone unturned in the pursuit of new markets, Canada now has trade agreements in effect with countries that compromise the destination for over 85% of our exports. Therefore, we need to focus more so on helping companies make the most of these trade agreements.

A key part of helping Canadian businesses use these agreements is ensuring they understand in practical terms what it means for them. This was an issue raised by the Chamber network in last year’s policy resolutions, and it continues to be a subject we press with the federal government and Trade Commissioner Service.

These trade agreements are literally thousands of pages long, and we know that business owners simply do not have the time to wade through these agreements to pinpoint the one provision that means something for their company.

Another area of work to help Kitchener-Waterloo companies use trade agreements is ensuring that government red tape in foreign markets does not block Canadian exports.

Trade agreements usually do a pretty good job at reducing the customs tariffs that companies pay at the border. However, sometimes the tariff reduction benefits in a trade agreement become a moot point if there are non-tariff barriers – for

cover story

example a discriminatory domestic regulation – that keeps a product out of the market. For instance, the Canadian Chamber is advocating on issues pertaining to crop exports to the EU. Take for example the EU process for approving biotech products. In this case, the politicization of the process means that decisions are not based on sound science, and as a result these rules unjustifiably block Canadian products from entering Europe.

Looking towards Asia, the Japanese market is another area of focus for the Canadian Chamber given the entry into force of the Comprehensive and Progressive Agreement for TransPacific Partnership. Japan is the world’s third-largest economy, and it is the biggest prize for Canada out of the other ten countries which are part of that pact.

To help Canadian companies tap into the Japanese market, the Canadian Chamber will continue to use its Japan-Canada Chambers Council initiative. Formed in 2014, this is the Canadian Chamber’s only bilateral chamber initiative with an international counterpart. The Japanese side is led by the Japan Chamber of Commerce and Industry.

The Canadian Chamber will continue to advocate for policies that ensure companies are allowed to move data across borders, and that storing it locally is not a condition of doing business abroad. These sorts of rules will ensure Canadian companies remain competitive and that data is held in the most secure locations possible.

The World Trade Organization is starting negotiations on this and broader e-commerce issues this year, and the Canadian Chamber will advocate for outcomes that benefit Canadian businesses.

As you can see, it’s a broad agenda of issues on the international front, and equally important for the Canadian Chamber to remain engaged on behalf of our members in all sectors.

We welcome continued feedback from the Chamber network and their members about the international issues which matter most to them, and what we can do to ensure your business is able to access export and investment opportunities abroad.

The next meeting of the Japan-Canada Chambers Council will occur in the Kitchener-Waterloo area in early 2020 given it will focus primarily on the agriculture and hi-tech sectors. The Council meeting will provide an opportunity for businesses to engage with others in their sector, as well as Canadian and Japanese government representatives. We look forward to being able to share more details about this in the near future.

Speaking of hi-tech, digital trade will be an issue of importance to Kitchener-Waterloo’s technology companies looking ahead. As the world increasingly shifts towards a digitalized economy, the rules around the handling of data will grow in their importance. Data is one of the important assets a company has nowadays. Data not only drives business decisions, but it can also contain deeply personal and private information.

ABOUT THE AUTHOR

Mark Agnew Mark is Senior Director, International Policy, with the Canadian Chamber of Commerce. He frequently appears on national media outlets to provide analysis for major trade developments impacting Canadian business.

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RBC Dominion Securities Inc.

RBC Dominion Securities Waterloo is hiring new Investment Advisors RBC Dominion Securities in Waterloo is seeking motivated individuals for a fulfilling career in the wealth management industry.

If you’re looking for the support you need to build a successful career, RBC Dominion Securities offers several advantages:

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Strength and stability Independence with support Powerful tools and technology Top-calibre training

With an independent focus that encourages and rewards initiative, industry-leading investment and

wealth management support, and the backing of Canada’s largest financial institution, RBC Dominion Securities is the premier choice for investment professionals who want to build a successful wealth management practice.

For more details, please contact Vice-President and Branch Manager Mark Hodson at 519-747-7790 or mark.hodson@rbc.com.

We value diversity in the workplace, are committed to Employment Equity and will provide reasonable workplace accommodation to applicants with disabilities. RBC Dominion Securities Inc.* and Royal Bank of Canada are separate corporate entities which are affiliated. *Member-Canadian Investor Protection Fund. RBC Dominion Securities Inc. is a member company of RBC Wealth Management, a business segment of Royal Bank of Canada. ®Registered trademarks of Royal Bank of Canada. Used under licence. ©2017 RBC Dominion Securities Inc. All rights reserved. 17_90561_001

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+1.519.650.4918 Cambridge office

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and Country Club 5700 Highway 86, RR1Ariss (519) 824-1551 proshop@arissvalley.com www.arissvalley.cp,

Clique Organic Salons

417 King St W, Unit 6 Kitchener (519) 342-1767 info@cliqueorganicsalons.com www.cliqueorganicsalons.com

Ariss Valley Golf and Country Club Ariss Valley is a unique and impressive Golf and Special Event Facility. Our courses are a pleasure for golfers of all skill levels. The combination of island greens; spectacular water features and wooded landscapes make even you worst game enjoyable!

Clique Organic Salons Clique Organic Salons is a beauty salon, ammonia free facility with professional products powered by nature. At Clique Organic Salons we believe in making people feel special in the healthiest, most sustainable ways possible.

DEPTH Training Inc

DEPTH Training Inc

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2-483 Conestogo Rd. Waterloo (226) 748.9494 info@depthtraining.ca www.depthtraining.ca

550 Parkside Dr, Unit B3 Waterloo (519) 577-2022 mark@goflowt.com www.goflowt.com

St. John Ambulance

Break through to a whole new level of wellness. Discover a mindbody experience unique to sensory deprivation tanks. Learn firsthand the multiple benefits from resetting both your brain and body. Book your float on our website or Facebook page.

St. John Ambulance

St. John Ambulance, Canada’s leading authority in First Aid, train thousands annually in first aid, health and safety courses. As a charitable organization proceeds from our training support programs such as Medical First Response, Therapy Dog and Home Caregiver Support.

The Westhill

The Westhill Retirement Residence

Velofix KW

Velofix KW

50 Ottawa Street S. Unit 1906 Kitchener (519) 781-8356 tim@velofix.com www.velofix.com

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DEPTH Training Inc. is a local business established to change the lives of the members of the Waterloo Region. Our services include athletic development, SHREDCity (KW’s best fitness and nutrition program), Personal Training, Physiotherapy, Chiropractic Care and Massage therapy.

250 Gage Avenue, Kitchener (519) 579-6285 Maggie.Sieber@on.sja.ca www.sja.ca

Retirement Residence 25 Westhill Drive, Waterloo (519) 725-0525 info@westhill.sifton.com westhill.sifton.com

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The Westhill is a Retirement Residence located in the heart of Waterloo. From simple pleasures like enjoying a variety of menu choices, to living well, with a recreational events calendar designed to enhance your mind, body and spirit; we have a passion for healthy aging and wellness.

Locally owned and operated we offer a convenient premium Mobile Bike Shop experience at your home or office. Through our Corporate Services Velofix will come to your office(s) and service your employees’ bikes promoting alternate transportation and a healthy workplace.

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events

Mark Your Calendar May 7th, 2019

May 10th, 2019

May 21st , 2019

Provincial Leaders’ Speakers Series“Budget 2019: Protecting What Matters Most”

Leadercast

Heffner Women’s Leadership Luncheon “From Incubation to Acceleration”

Presented in Partnership by the Cambridge Chamber and the Greater Kitchener Waterloo Chamber of Commerce 11:30am-1:30pm Location: St. George Banquet Hall Member Ticket $50 • Future Member Ticket $60 Member Table of 8 $400 Join us for the 3rd and final event in the Provincial Leaders’ Speakers Series, as we hear from Ontario’s Minister of Finance, The Hon. Vic Fedeli, who will deliver remarks following the 2019 Ontario Budget.

Presenting Sponsors:

Gold Sponsor: Silver Sponsors:

Bronze Sponsors:

Event Sponsor: Community Partners:

8:00am-4:00pm Location: CIGI Tickets $125 Leadercast is an annual one-day leadership event broadcast live from Atlanta. This full-day event features world renowned speakers. This year’s theme is centered around “Leading Healthy Teams”. Learn what it takes to ensure your team functions at its highest and healthiest. Don’t miss out on this stimulating event!

11:30am – 1:30pm Lazaridis Hall Atrium (Wilfrid Laurier University’s Lazaridis School of Business) Members $45 • Future Members $55 Table of 8 $350 Join us as we hear about inspiring stories from women who are excelling as entrepreneurs in Waterloo Region’s business community.

Title Sponsor:

Coffee Break Sponsors:

Gold Sponsor: Small Business Sponsor:

Event Sponsor:

May 16th, 2019

Marketing Design Sponsor:

MNP Networking Breakfast Series presents Speed Networking 2.0

Media Partner:

7:15-9:00am Location: Inn of Waterloo Member Ticket $35 ∙ Future Member Ticket $45 Back by popular demand! Meet other business professionals in a quick (yet efficient) method of networking. Plus, it’s great for newcomers! Don’t miss your chance to make local connections and contacts at this popular event.

Title Sponsor: Media Sponsor:

Visit us online at www.LMICanada.com and www.erb-erb.com

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events

Mark Your Calendar May 23rd, 2019

June 5th, 2019

June 13th, 2019

Manufacturing Summit

Municipal Leaders Speakers Series – “Municipalities as Engines of Economic Growth”

Jay Fencing presents Business After 5

10:00am-2:00pm Location: Bingemans Ticket $85 ∙ Table of 8 $650 Every year, leaders in Ontario’s manufacturing sector are working to retool, reinvent and rethink their business approach to adapt to the challenges and changes of the industry. And now more than ever, it’s important to focus on the recruiting and retaining of talent. Join us for a keynote presentation, panel discussions, and exhibitor displays, as we welcome the most influential and powerful organizations in the manufacturing and supply chain community.

Gold Sponsors:

Presented in Partnership by the Cambridge Chamber and the Greater Kitchener Waterloo Chamber of Commerce 11:30am – 1:30pm Whistle Bear Golf Club Member Ticket $50 ∙ Future Member Ticket $60 ∙ Member Table of 8 $400 Join us as we hear from Phil Verster, President and Chief Executive Officer at Metrolinx, on Regional Transit Planning and how Metrolinx is moving customers through the Innovation Corridor.

Platinum Sponsors:

5:00-7:00pm Location/Host Venue TBC Member Tickets Complimentary ∙ Future Member Tickets $10 ∙ Exhibitor Booth $60 Looking for a great platform to promote both you and your business while helping others along the way? Stop by our next Business After 5 presented

by Jay Fencing and connect with other business professionals. Besides outstanding networking, these events also have a trade show element, offering a space for exhibitors to promote their business.

Title Sponsor: Gold Sponsor: Media Sponsors:

&

G

Print Sponsor: I

N

Silver Sponsors:

PRINT

June 19th, 2019 Libro Chamber Young Professionals Summer Social

Bronze Sponsors: Bronze Sponsors:

5:30-7:30pm Location: Chicopee Tube Park Member Ticket $10 ∙ Future Member Ticket $15 Summer is almost here. To celebrate, why not enjoy the outdoors while meeting new people!

The Libro Chamber Young Professionals Series will be hosting a Summer Social on the patio at Chicopee Tube Park, for some great conversation with an incredible view.

Title Sponsor: Event Sponsor:

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Canada's Innovation Corridor Business Council Over 2 years ago, the new President of the Toronto Region Board of Trade (TRBOT) met with Ian to discuss ways to work closer together.

This was the seed of which Canada's Innovation Corridor working group was formed. This group includes the CEO's of the Chambers and Boards of Trade from: Toronto, Mississauga, Brampton, Guelph, Cambridge, Halton Hills, Milton, Hamilton and Greater Kitchener Waterloo.

We were fortunate to have this group active March 2017 when the Federal Government announced the Super Cluster Innovation fund. Our Innovation Corridor group was able to spring into action to convene business, academic and community partners from Toronto right through the Region of Waterloo.

Our Innovation Corridor working group continues our other work on Policy and Infrastructure advocacy that is so critical for our Toronto-Waterloo Corridor to thrive and grow.

We have work in the field or completed on issues ranging from Immigration, Movement of Goods and Services, Transit, Transportation, and All Day 2 Way Go Service.

The work plan is heavy and important but this Innovation Corridor Working Group is strong and up to the task. Learn more online at: thecorridor.ca Thanks to the Greater KW Chamber partners that sponsor our efforts on this important initiative.

feature

CUSMA – A Canadian Auto Industry Perspective The recently agreed to Canada United States Mexico Agreement – or CUSMA – is welcome news to automotive companies operating across North America. The uncertainty created by the prolonged renegotiation of NAFTA caused stress and concern for the industry, and the successful conclusion of the negotiations allows companies to refocus and move forward.

Within the new agreement, there are three key areas to focus on to better understand its ultimate impact on automotive companies operating in Canada.

Certainty – Perhaps most importantly, CUSMA will provide Canadian automotive manufacturers with certainty. Certainty of the rules and obligations before them as they conduct their business, and certainty that – once ratified by all three countries – Canadian manufacturers will be able to compete for mandates knowing that the rules established to govern trade in the region will be there for at least six years (and hopefully much longer). In the manufacturing landscape, certainty facilitates long-term investments that would be impossible to attract if that landscape were unclear.

Equity – The second benefit CUSMA provides the automotive industry is equity. While CUSMA’s Labour Value Content (LVC) rules requiring OEMs to source at least 40% of their manufacturing inputs from facilities that pay their workers $16 USD per hour or more will be challenging for Mexicanbased companies to meet, it will be less challenging for Canadian-based OEMs. In fact, there is no clear disadvantage for Canadian-based companies – at least where meeting Rules of Origin are concerned – when compared to companies based in the U.S. or Mexico. It’s a relatively level playing field for us, meaning that, if we are competitive, there is no structural disadvantage in place as a result of CUSMA to prevent us from competing for business.

Opportunity – The third benefit CUSMA brings for the Canadian automotive industry is opportunity. CUSMA was designed with the intent of increasing the use of local content. There are four overall requirements an OEM needs to meet to be compliant under CUSMA: Overall Regional Value Content (RVC), Core Parts RVC, Steel and Aluminum RVC, and the aforementioned Labour Value Content (LVC).

The rules for all four requirements are designed to increase the use of local content in vehicles produced in the region.

What this means is that OEMs will increasingly look to augment the local content in their vehicles, inevitably increasing opportunities for local companies to win sourcing mandates. This is good news for our Canadian suppliers!

Having said all of this, our companies will need to stay competitive. While there will be increased opportunities and a more level playing field – at least structurally – Canadian companies will need to be competitive in the areas of manufacturing cost and quality. Some of that will depend on the companies themselves investing in technologies and processes which allow them to be efficient and effective.

There will also be a need for effective public policy. In order to truly compete, Canadian companies need to be on a level playing field with companies operating in the United States and Mexico with respect to our input costs (utilities, labour), taxes, and investment attraction programs. We need alignment at all levels of government to ensure Canadian companies are positioned to put their best foot forward.

Once CUSMA is ratified by all three countries – hopefully before the end of this year – we can all focus our energies on winning business and creating a platform for Canadian companies to succeed in the long term.

ABOUT THE AUTHOR

Scott MacKenzie Scott MacKenzie is the Senior National Manager of External Affairs over Toyota’s Sales and Manufacturing operations in Canada. Scott was a trusted advisor to the Canadian Government during the renegotiation of NAFTA.

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feature

USMCA–CUSMA: Considerations for Canadian SMEs On September 30, 2018, Canada, the United States and Mexico agreed to a new and modern trade agreement: the United States-Mexico-Canada Agreement (USMCA), also known in Canada as the Canada-United States-Mexico Agreement (CUSMA). The CUSMA revises and updates the terms of the existing North American Free Trade Agreement (NAFTA) between the three countries and will replace the NAFTA once it enters into force. The CUSMA will maintain the predominantly tariff-free market access that is currently available under NAFTA for originating goods. The agreement will only enter into force after the ratification process to implement the agreement is completed by all three countries.

At the time of writing, the status of ratification is still pending, with the date of ratification yet to be determined.

The NAFTA has eliminated virtually all tariffs between Canada, the US and Mexico, with some exceptions for NAFTA originating goods. The CUSMA maintains most of these benefits for originating goods and ensures that the vast majority of CUSMA trade will continue to be duty-free.

In addition, customs agencies in all three countries intend to standardize and modernize procedures throughout North America, which is intended to facilitate the free-flow of goods between the three countries. The alignment in customs procedures across North America may lead to some synergies and thus ensure greater compliance by businesses and the potential for them to save money and resources in their supply chain.

As one example, the CUSMA expands the pool of applicants that can apply for a written advance ruling on certain decisions to be rendered by customs officials. Under the CUSMA, the application for a written advance ruling can be made by a representative, as well as any other person with a justifiable cause. This is not currently the case in Canada. The expansion of the ruling applicant pool allows others with an interest in the transaction to gain clarity and certainty by requesting an advance ruling, and potentially having the ability to manage the risks associated with possible unwanted tariff assessments and penalties. In addition, under the CUSMA, clerical or minor errors will not be treated as a breach of customs law. This error distinction does

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not currently exist in Canada from a customs perspective, therefore this new provision may provide for greater fairness when SMEs deal with the Canada Border Services Agency for certain types of minor clerical errors.

There will be significant changes under the CUSMA in the automotive sector, which businesses in this sector should review in detail to determine how these changes will impact their supply chain.

As the CUSMA moves closer to ratification and possibly ultimately implementation, traders should undertake the following, in an effort to prepare for CUSMA readiness: 1. Ensure that the goods they are currently importing and/ or exporting, that originate for NAFTA purposes, will continue to originate under certain of the CUSMA rules of origin for tariff benefits.

2. Review products that previously didn’t originate for NAFTA, because they may now potentially qualify under the CUSMA rules where applicable.

3. Consider benefiting under the new rulings provisions, for Canada, where uncertainty may have existed in the past.

4. Review compliance considerations where they have imported and claimed CUSMA or exported and claimed that the goods originate for CUSMA. The CUSMA parties will continue to be vigilant in their review of goods imported/exported that do not qualify. Remember, like NAFTA, it is not because a good was obtained/purchased in the CUSMA territory that it will qualify for the CUSMA tariff benefits, it must instead have originated in the CUSMA territory.

ABOUT THE AUTHOR

Jaime Seidner Jaime is a tax partner with PwC specializing in customs, trade, import and export matters. Jaime is both a licensed US and Canadian Customs Broker and a Certified Customs Specialist and former Canada Customs & Excise officer.

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Helping Us Make Our Vision Possible A special Thank You to each of these Chamber Sponsors.

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Member Notables

Roth Nowak Insurance Brokers joins Ives Insurance Brokers Roth Nowak Insurance Brokers has been a trusted source for local insurance needs since 1983 and are pleased to announce they have joined Ives Insurance Brokers to lead their expansion into Waterloo Region.

Ives Insurance has been a family-run operation serving southwestern Ontario since 1967.

President Jeff Ives says “having Roth Nowak join Ives is fantastic. Our principles of business align and we believe we will be able to bring additional insurance products and resources to the professional staff at Roth Nowak.”

Andrew Nowak and Natalie Hutchinson, alongside the personal lines team, are thrilled to now represent Ives Roth Nowak Insurance Brokers.

Strassburger Windows and Doors – 70 Years of Service Strassburger Windows and Doors would like to announce their 70th anniversary of business in Waterloo Region.

In 1949 Morgan Strassburger Sr. started the business with a pickup truck and a simple idea – customers expect quality workmanship and integrity at a fair price. It has been over 70 years since Morgan Sr. set the standards for the family business which has earned Strassburger Windows and Doors a sterling reputation with customers, suppliers and staff.

The experience gained in that time along with a sustained investment in state-of-the-art manufacturing systems and technology has established a solid foundation for the company as manufacturers of vinyl windows and patio/entry door systems for the replacement, renovation and new-construction markets.

WaterSmart Systems & Plumbing – 25 Years of Service Paul Bernardo founded WaterSmart Systems 25 years ago in Waterloo. Starting the business with a focus on water and water softeners, the company has continued to evolve.

WaterSmart Systems branched out to include full plumbing services, back flow testing, residential drain cleaning, and camera inspections while continuing to serve their bottled water and water softener/reverse osmosis customers.

To mark the occasion, the company will be featuring a new 25th anniversary softener with special 12 equal payments and zero percent interest financing.

WaterSmart Systems & Plumbing would like to thank their existing customers for 25 years of support and look forward to serving Waterloo Region for many years in the future.

advocate May | June 2019

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