Clearit.ca's Blog on Customs Brokerage and News Updates
The heydays of a high Canadian dollar seem so far way; just a few years back, our Loonie was able to creep up to par with its American counterpart. But those days are gone. With yet another week with a golden loon soaring not so high at 75 cents U.S.D., it may not be optimal for buying within Canada but exporters are taking advantage of a lower Canadian dollar. Low exchange rates equals to lower prices and interesting opportunities for U.S. companies buying from Canada.
Being the friendly neighbours to the North of the U.S. is advantageous for Canadian companies looking to sell their products down south. Being stuck to one another makes for lower shipping costs and even same-day options when it comes to logistical options. Although both markets are distinct and each have their own cultures and regulatory bodies, Canadian businesses dealing in the U.S. will quickly realize that, although different, both nations work well together.
NAFTA Can be Highly Beneficial
Let’s not forget about NAFTA – the North American Free Trade Agreement, which can be highly beneficial for companies that want to deal in either nation. For example, in order to open up doors and lower costs, you may want to provide a NAFTA certificate for your shipments as some goods qualifying under the Agreement end up being duty free.
Although it is difficult to predict how the Canadian dollar will act out in the future, decisions can be based on its past trends and thus, while you could look back and worry about your local sales, seeing today and tomorrow as a window of opportunity is a great way to start working on your business’ growth. After all, lower costs and higher profits sounds like a good idea doesn’t it?
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