Doing cross-border business from Windsor and Essex County is about to get easier with the announcement Monday that the area has been designated a foreign trade zone.
“The future does look bright here, especially with our U.S. partners,” said Navdeep Bains, Canada’s minister of innovation, science and economic development.
“This region is part of the richest consumer markets in the world. More than half of the North American population is within an eight-hour drive.”
Warden Tom Bain, Hon. Navdeep Bains, Mayor Drew Dilkens, and WEEDC’s Rakesh Naidu (left to right) take part in a press conference at Farrow Logistics in Windsor on July 31, 2017.
The designation will make it easier for local businesses — especially small business — to export goods and expand, the minister said.
Creating a foreign trade zone in this area is a natural fit given how the Windsor-Detroit border handles 25 per cent of trade between Canada and U.S. valued at $882 billion in 2016, he said.
Windsor-Essex is the eighth location in Canada and second in Ontario to receive the foreign trade zone designation. The Niagara Region is the other designated location in Ontario.
Securing the designation is something that has been pursued for two years by the WindsorEssex Economic Development Corporation.
It covers a variety of programs that can provide a financial advantage to local companies which export goods to other countries. These can include duty relief, a custom bonded warehouse program, an export distribution centre program and processing services.
The Hon. Navdeep Bains, Minister of Innovation, Science and Economic Development and Rakesh Naidu, Chief Operations Officer of WEECD during a press conference at Farrow in Windsor, Ontario on July 31, 2017.
“This is really great news,” said Windsor Mayor Drew Dilkens. “This helps give us a leg up. Having programs like this makes us more competitive.”
County Warden Tom Bain, who is chairman of the economic development corporation, said the designation will be a huge selling point to attract more business to Windsor and Essex County and make existing businesses more competitive.
“This is a great announcement for us,” he said. “We see the value in how this helps give us a competitive edge.”
The economic development corporation will stage several sessions locally for business owners to teach them how to take advantage of the foreign trade zone designation, said chief operating officer Rakesh Naidu.
“This will help alleviate export duties and taxes,” he said. “We will sit down with them so they can understand what this offers. We will help them prepare a marketing plan.”
