Ottawa, October 20, 2014 – Over the past decade, China has become Canada’s second largest and fastest growing commercial partner. With exports reaching $20 billion in 2013 and imports having tripled to $52 billion, the potential for future growth is enormous. In a report issued today, the Canadian Chamber of Commerce argues that establishing a renminbi (RMB) hub in Canada is a crucial step in taking our relationship with China to the next level.
“Chinese companies prefer transacting in their own currency,” said Perrin Beatty, President and CEO of the Canadian Chamber of Commerce. “We strongly believe that Canadian companies could sell more to China and potentially offer lower prices to Canadian consumers if they were able to do business in RMB.”
The report highlights four key advantages to the Canadian economy that could come from the establishment of an RMB trading hub:
- Bilateral trade would likely expand because the use of RMB would enable lower transaction costs, more favourable credit terms, discounts on imports from Chinese suppliers and rising exports.
- Canadian capital markets could expand and diversify so that businesses could raise funds in RMB and access one of the largest pools of savings in the world. Investors could also purchase Chinese securities, seeking the gains from such a dynamic and fast-growing economy.
- Canada’s financial sector would gain a competitive advantage by being able to offer a full suite of RMB products to customers thereby generating more business and making Canada a first-mover in the Americas, connecting trade and investment flows to Asia.
- Canada’s commercial and diplomatic relations would be reinforced with the country that will one day become the world’s largest economy while supporting the liberalization and opening up of China to the world.
“In a competitive global environment, every advantage counts,” concluded Beatty. “Now is the time for Canada to take this important step in positioning ourselves, and our companies, with the world’s fastest growing economy.”
The Canadian Chamber of Commerce is the vital connection between business and the federal government. It helps shape public policy and decision-making to the benefit of businesses, communities and families across Canada with a network of over 450 chambers of commerce and boards of trade, representing some 200, 000 businesses of all sizes in all sectors of the economy and in all regions. Follow us on Twitter @CdnChamberofCom.
Émilie S. Potvin
Vice President, Public Relations & Stakeholder Engagement
Office: 613.238.4000 (231)