Posted by Woods LaFortune LLP on Mar 17, 2015

With the aim of increasing international business and investment between the two countries, China announced in November 2014 that Canada would be designated as an official Renminbi (RMB) currency trading hub. In simple terms, an RMB currency trading hub is a centre authorized to complete RMB transactions at stable and predictable exchange rates. The formal launch ceremony for Canada’s Toronto-based RMB clearing hub is scheduled for March 23, 2015. The process of internationalization of the RMB began in 2008 and rapidly accelerated in 2009 when China established its dim sum bond market and expanded its Cross-Border Trade RMB Settlement Pilot Project, to help promote the establishment of pools of offshore RMB liquidity. The internationalization process continued to move forward with the conclusion of China’s various currency swap agreements with countries such as Argentina, Brazil, the UK and recently Canada, to name a few. This is the first time in decades that a national currency makes an attempt at internationalization since the Japanese Yen in the late 1990’s, which generated lukewarm success. With the RMB having recently emerged as the second most prominent currency in trade finance after the U.S. dollar, countries around the globe have been aggressively competing and bidding against one another to establish their own RMB trading centers. China has become a key growth market for Canadian companies and the importance of China’s economy, now standing firm as the second largest economy in the world, cannot easily be overlooked. For instance, in 2013, Canada-China merchandise trade totalled $73.2 billion, and China was Canada’s second largest export destination worldwide. In terms of investment, Canadian FDI into China in 2013 totalled $4.9 billion in 2013, making it Canada’s 19th largest destination for FDI, and Chinese FDI into Canada totalled $16.7 billion, making in the 8th largest source of FDI in Canada. The RMB trading hub will bring with it important advantages for Canadians conducting business in, or investing in China including: First-Mover Advantage – The Toronto centre, set for launch on March 23rd, 2015, will be the first RMB trading hub in the Americas. This represents an opportunity for the Canadian financial sector, and specifically for Canadian financial institutions...

Posted by Woods LaFortune LLP on Mar 12, 2015

At Woods, LaFortune LLP, we are preparing with great anticipation for next week’s #CanadaBizGoGlobal Seminar Series presentation on “Doing Business in Turkey”, which will be held on March 20th, 2015 in Toronto.  We are honoured to be working with Allam Advisory Group on this event and are delighted that the highly regarded Aylin Şule Songül, of the Istanbul-based law firm Songül Unuvar, has agreed to join us as a co-presenter, addressing the legal aspects of doing business in Turkey.  [For details,see: http://canadabizgoglobal-seminar-series.evolero.com/doing-business-in-turkey] Strategic partners for this event include the Canadian Turkish Business Council, the Embassy of the Republic of Turkey in Ottawa, the Republic of Turkey Prime Ministry Investment Support and Promotion Agency (ISPAT), as well as Export Development Canada. Why should you attend?  If you are interested in expanding your business horizons via international markets, this event could be just the catalyst you need. We have previously witten about the opportunties that the Canada-Korea Free Trade Agreement (CKFTA) coud generate for Canadian business in the context of the “gateway” it creates to the Asia-Pacific.  In the context of Turkey itself, the country is one that is srong economically, and with a young  and entrepreneurial population, it is a very dynamic market.  In its Global Markets Action Plan, the Department of Foreign Affairs, Trade and Development (DFATD) identified Turkey as an emerging market of broad interests to Canada and a top priority for international education, and infrastructure. Michael Woods, Senior Partner at Woods, LaFortune LLP, had the opportunity to travel to Turkey over the course of his bourgeoning career as a diplomat. Napoleon had called it the centre of world.  Indeed, as the New York Times pointed out: Turkey is not just another country, after all, but the heir of empires, classical as well as Ottoman, and the first secular republic in the Islamic world. Both in his intellectual work, which argues for the extraordinary status Turkey enjoys by virtue of its history and geographical position … The country’s current leader, Prime Minister Ahmet Davutoğlu, explained the uniqueness of Turkey this way:  …  the geographical continuity … Turkey is right at the centre of Afro-Euro-Asia, having multidimensional characters of geopolitics....