"WE ARE MAPLE" - Reflections from MAPLE Co-Founder Stephen Armstrong

It was a little over 10 years ago that I joined Robert Kelle to take an exit ramp from my planned career journey onto "MAPLE Avenue" as we co-founded a brand new Canada-U.S. business council promoting bilateral trade, investment and entrepreneurship opportunities between our countries based in Southern California. 

And now as I look ahead to a new path forward in my retirement, let's call it the on ramp to "Armstrong Avenue", I would like to take a moment to share my appreciation to everyone I've had the pleasure to meet, welcome as a member or partner, or to help connect with fellow leaders across so many sectors across Canada and the U.S., through our work at MAPLE® Business Council (MAPLE). 

My first thank you is to Robert Kelle who took the initiative to boldly launch our organization at the encouragement from the Consulate General of Canada in Los Angeles. Rob is not only a proud and dedicated Canadian but an accomplished executive and a "MacGyver" of a co-founder with the skills and tenacity to tackle any challenge or need in scaling an organization. Thank you, Rob for your partnership and friendship.  

The greatest pleasure of growing and leading MAPLE for me has been the incredible people I've had the pleasure of meeting along our journey on "MAPLE Avenue". A special thank you goes out to all who have joined our team as a Board Member, Advisor, Chapter Executive Director, unofficial ambassador/advocate, partner, and vital resource contributor. Often  it was only for the pride of celebrating our 'home and native land' and our adopted homes in the U.S., together with the opportunity to reach across geographic and sector borders to connect businesses with opportunities, that so many have given so much of their time in service to our cross-border mission. Thank you all. 

To our members, past and present,  thank you for investing your time and energy into our community. For being responsive to fellow members. For sharing your insights and expertise through articles, interviews, presentations, videos, and delegations. For making our mission possible to sustain and grow over a decade. MAPLE is a community of doers, visionaries, and enablers from Canada, from the United States, and for anyone with an interest in pursuing opportunities in our two great nations. 

To our partners, it has been an honour to come together officially and unofficially in service of each other's missions. Economic development takes a village built on mutual capability, respect and trust. 

A couple of partnership moments that stand out for me are signing our MOU agreement at the LA Clean Tech Incubator with Stephen Cheung, CEO of World Trade Center LA at the time, and signing our partnership agreement with the City of Long Beach as part of a special day when we toured the Port of Long Beach. We later had the privilege of bringing a Long Beach delegation to Vancouver which included a very special evening at the home of then U.S. Consul General Katherine Dhanani. There was such energy in the room that night! 

Covid tested our community and our grassroots executive model of bringing people together which was to host three back-to-back events in Los Angeles, Orange County, and San Diego over two days each quarter. I still can't believe we executed this for many years and that we survived all the schlepping of meeting materials event after event! 

But not only did we make it through the pandemic but we grew as a community as we pivoted to online programs and even launched chapters in New York and British Columbia.

Life has also tested us.

In 2018, we lost Richard Dozier our friend at Riverside County Economic Development Office who had joined us for one of our quarterly pan-Southern California event series and in 2023, we said goodbye to our dear friend and board member, Anna Innis of Air Canada. 

I would like to thank our government partners/members for their support and collaborations over the years from cities including Los Angeles, San Diego, Irvine, Santa Clarita Valley, Winnipeg, Toronto, Montréal, Ville St. Laurent, Ottawa, Kitchener, Waterloo, and Cambridge; the Counties of Riverside, San Bernardino, Orange, and Los Angeles, the Provinces of Alberta, British Columbia, New Brunswick, Ontario, and Québec and the great states of California, Colorado, and New York. 

At a federal level, thank you to the teams at the U.S. Commercial Service and Small Business Administration, the U.S. Consulate General offices in Vancouver, Calgary and Toronto and the Global Affairs and Consular teams at the Canadian Consulate General missions in New York, Denver, San Diego and especially, Los Angeles under the leadership of Consul General Zaib Shaikh. The dedication and expertise that the men and women of these organizations give to businesses seeking to grow across borders and in their communities is phenomenal. It has been an honour to stand beside you.

MAPLE is now poised for an amazing second decade.

Thank you to Kim Walker for signing on to lead our community forward as our new President. It is very special for Rob and me to welcome you having first met when you and your husband James Villeneuve opened the doors of Canada's Official Residence in Los Angeles during his term as Consul General to warmly welcome MAPLE. Your support of our community then was key and now we've come full circle together. You will be a great MAPLE President. 

Our Canada - United States friendship, partnership and allyship is precious and needs to be nurtured, leveraged, and celebrated. It will always be tested too and what's important is how we respond to the challenges that our nations face together.

I believe passionately in the power of fellowship through networking and storytelling which are the pillars of our community.  I am proud to have launched our second website, www.maplecouncilinsights.org, which is an online library of market and sector insights curated from our special  content platforms over the years. It now offers over 200 articles, interviews, and videos as reference material for tomorrow's businesses to leverage. 

Early on in MAPLE, I wrote a blog entitled, "The Arc of a Border" that described my relationship to Canada as a marketing executive who left Canada to work in the United States. Canada was in my rear view mirror for part of my life as I pursued my career goals and then like a boomerang it came back into focus as I connected with fellow Canadian expats living in Southern California.

MAPLE began as a passion project and then grew into a full-time commitment - one that I could never have foreseen earlier in my life. And it is equally a celebration of two countries, two homes and the partnership and love that binds our countries together. Integrated supply chains make be part of the business case underlying our ties, but the relationship is much stronger and goes much much deeper. The power of a handshake across our border is part of the glue that binds us together. 

With so many incredible memories and special relationships collected from the last decade with MAPLE, I just want to say thank you for the privilege to be part of this community. 

Wishing everyone a very happy holiday season and much success and happiness in 2025 and beyond! 

Together "We are MAPLE".

Stephen Armstrong 
Co-Founder/President 
2014-2024.

10 years ago, opportunity led me to “MAPLE Avenue”!

And now turning the corner onto the next chapter!

An Interview with MAPLE Young Professional Member Christine Perrin - Director of Foreign Direct Investment at Economic Development Winnipeg

Q&A: Economic Development Winnipeg’s Christine Perrin shares insights on the transformative impact of foreign direct investment

For Christine Perrin, what began as a childhood passion for travel and cultural exploration has blossomed into a career dedicated to fostering global connections and economic development.

After earning a Bachelor of Business Administration with a double major in international business and marketing from the University of Winnipeg, Perrin began working at Manitoba Hydro International. Over five years, she contributed to business development and project management in various regions around the world, including Sub-Saharan Africa.

Now, as Director of Foreign Direct Investment (FDI) at Economic Development Winnipeg (EDW), Christine reflects on her role in positioning her hometown, Winnipeg—Manitoba’s capital and Canada’s geographic centre—as a partner of choice for international businesses and the pride it brings her.

Can you share a bit about your background and how you got started in economic development?

From a young age, I was always curious about countries beyond Canada. Traveling with my family and growing up bilingual only added to this curiosity and opened my eyes to international opportunities early on.

After completing my degree, I joined Manitoba Hydro International and started my career. My work there exposed me to international business operations and project management in diverse regions, which prepared me for my current role. Now at EDW, I lead efforts to showcase what I like to call “the Winnipeg advantage” making Winnipeg a place where global and local perspectives converge.

What drew you to the field of FDI, and why does it resonate with you?

FDI resonates with me because it’s about more than business—it’s about shaping a community’s future and in this case my hometown. It allows me to help create tangible, positive change for Winnipeg, from job creation to boosting our local economy. The relationships we build through FDI initiatives are incredibly rewarding. These connections have the power to transform not just businesses but entire communities.

How would you explain FDI and its role in shaping a city or region’s economy?

At its core, FDI involves companies committing resources to establish or expand operations in another country. It’s a catalyst for growth, bringing in new expertise, capital, and opportunities. When businesses invest in a city, they don’t just create jobs—they stimulate the entire ecosystem, from local supply chains to infrastructure development. The effects ripple across industries, driving progress and benefiting residents and the broader economy alike.

How do you define success when working on FDI initiatives?

Success is about creating lasting benefits, not just short-term wins. For us, that means attracting businesses that align with Winnipeg’s values and goals, and contributing to a more diverse, vibrant economy. Our work goes beyond numbers—we prioritize creating sustainable jobs, building knowledge-sharing opportunities and channeling investment into areas that strengthen Winnipeg for the long term. Of course, none of this is possible without collaboration, so we work closely with our partners to leverage opportunities and make strategic decisions.

What excites you most about working in FDI?

I see FDI as a puzzle where the pieces represent opportunities, strengths, and potential partnerships. Each project is like finding the right pieces and fitting them together to connect Winnipeg’s unique capabilities with companies poised to thrive here.

What excites me most is seeing the completed picture come to life—when our efforts result in tangible outcomes that drive growth and innovation. Collaborating with a passionate team and partners across all levels of government and the private sector makes the process even more rewarding.

In your opinion, what makes Winnipeg a unique or intriguing destination for FDI?

I believe Winnipeg is a city that truly punches above its weight. Geographically, Winnipeg’s central location in North America offers strong market access. Over 99 percent of our energy comes from renewable sources and we’re proud of our strong, skilled, and affordable labour force.

We also offer low business costs, supported by a range of attractive incentives. We work in collaboration with government and foreign clients to ensure they maximize these benefits for their business.

How would you describe Winnipeg to someone who’s never been here before?

Winnipeg has a quiet strength that surprises first-time visitors. It’s a city that balances its rich cultural heritage with an eye toward the future.

Known as Canada’s cultural cradle, our city offers a thriving arts scene and a culinary culture that reflects its diversity. It’s a place where you can enjoy festivals that celebrate everything from innovation to indigenous heritage.

Winnipeg’s business environment is equally strong, offering affordable commercial space, low operational costs, and a highly skilled workforce. It's an ideal place to invest and live, with excellent access to both Canadian and U.S. markets, making it a prime location for investment.

In fact, in 2021 Time Magazine named Winnipeg as one of the greatest places to live, and in 2023, the Globe and Mail ranked Winnipeg as the number one city in Canada to raise kids and the third most liveable city.

What trends or opportunities in FDI are you most excited about right now?

It’s interesting to note that while global greenfield capital expenditure FDI declined in 2023 in key markets globally, Canada has seen a notable growth of 57.3 percent. This shows a strong trend of investors choosing Canada as their destination of choice.

The rise of sustainable and green investment amid a global focus on climate change is also particularly exciting, especially for a city like Winnipeg. We’re also seeing an increase in mega projects—those valued at $1 billion USD or more—with Canada ranking 8th globally in this space. Sectors such as critical minerals, battery supply chain and electric vehicles are all areas of opportunity for our city and province.

What’s next for you and your work in this space?

My team and I are focused on building momentum with exciting opportunities already in our pipeline, while fostering new partnerships and staying ahead of emerging trends.  Geopolitical shifts are creating an ever-evolving landscape, requiring cities like Winnipeg to remain agile and responsive. Success in this work relies on meaningful conversations and fostering relationships, which remain at the heart of everything we do.

Winnipeg’s bright future in FDI

Christine’s insights highlight the dynamic role FDI plays in shaping Winnipeg’s economy and the city's potential to thrive on the global stage. Her passion for wanting to see Winnipeg succeed fuels her drive in promoting it as a prime destination for investment.

With its cultural vibrancy, renewable energy leadership, market access and skilled workforce, this city is uniquely positioned to thrive in today’s evolving FDI landscape. From mega projects to sustainable investments, the city continues to attract global attention while staying true to its values of diversity and inclusive prosperity.  

SoCal Ecosystem Strategy & Benchmarking

Author: Eric Eide, Managing Director, Alliance for SoCal Innovation

Southern California’s innovation ecosystem continues to evolve and thrive, and it’s inspiring to see this transformation up close every day at the Alliance for SoCal Innovation. Through our programs and events, we’re privileged to connect key players across the ecosystem and help advance the region’s vast innovation potential.

Thanks to our strategic partner, Boston Consulting Group (BCG), and their latest analysis, we’ve had the opportunity to step back, evaluate our progress, celebrate achievements, and identify areas that need more attention. This renewed partnership is part of our 5-year strategic roadmap and builds on BCG’s groundbreaking 2018 report, Stars Aligning: How Southern California Could Be the Next Great Tech Ecosystem. That report outlined six essential ingredients for a thriving innovation ecosystem, and the updated metrics show just how far we’ve come.

The fresh insights reveal exciting trends in SoCal's startup and VC landscape, the growth of our world-class academic institutions, and how we compare to other major tech hubs.

Here’s a sneak peek at some highlights from the updated data:

• Ecosystem Health: From 2017 to 2023, SoCal’s ecosystem health has improved slightly overall, with financial capital seeing the strongest growth, while infrastructure has faced the biggest challenges.

• Venture Funding: Despite a COVID-era investment bubble, venture funding has nearly doubled since 2017, settling back to sustainable levels after a period of historic highs.

• Startups: The number of startups in the region has grown slightly, with a peak during the pandemic.

• Talent: Graduates from top research universities have increased by an impressive 20% since 2017, outpacing other leading U.S. tech hubs.

• Challenges: Headwinds remain in the corporate environment, as SoCal has fewer top corporations compared to other tech hubs. Liveability metrics, infrastructure, and cost of living have also declined.

The data underscores the remarkable progress SoCal has made and highlights areas for collective action as we continue to build a globally competitive innovation ecosystem.

Want to dive deeper into what makes Southern California a unique hub for innovation—or explore how you can get involved? Check out the data slides that follow, or feel free to reach out to me directly at Eric@AllianceSoCal.org. Let’s shape the future of innovation together!

Eric Eide, Managing Director, Alliance for Southern California Innovation

Key Challenges and Potential Solutions for SMBs in Securing their Operations and Supply Chain when Adopting Generative AI

Photo Credit: Jopwell

Author: Sem Ponnambalam, co-founder xahive

Generative AI has transformative potential for small and medium-sized businesses (SMBs), from automating workflows to enhancing customer experiences. However, it also presents notable cybersecurity risks that require proactive management, especially for resource-constrained organizations. Here’s an overview of key challenges and potential solutions for SMBs in securing their operations and supply chain when adopting generative AI.

Challenges

1. Data Privacy and Protection
   Generative AI models often require large amounts of data to function effectively, potentially exposing sensitive information if not managed properly.

2. Intellectual Property (IP) Risks
   AI-generated content can raise IP issues if models use unlicensed data, or if confidential company information is inadvertently used as input for generative AI, leading to unauthorized data leakage.

3. Model Vulnerabilities and Cybersecurity Gaps
   Generative AI models can have vulnerabilities, such as adversarial attacks or data poisoning, where attackers subtly alter input data to corrupt the model’s output or integrity.

4. Bias and Compliance
   AI models can inadvertently learn and perpetuate biases present in their training data, which could result in legal and reputational risks, especially for businesses in regulated industries.

5. Dependence on Third-Party AI Providers
   Relying on third-party AI services may expose SMBs to risks if those providers lack adequate security protocols or if their services are breached.

6. Resource Constraints
   Unlike larger corporations, SMBs often have limited budgets and staff to implement comprehensive cybersecurity programs, making it challenging to address the risks associated with generative AI.

Solutions

1. Implement Strong Data Governance Policies
   SMBs should establish clear data governance rules, including data classification and encryption practices, to ensure sensitive information is protected. Limiting the input of sensitive data into AI models is critical, particularly for cloud-based generative AI platforms.

2. Adopt IP and Data Rights Management
   Define IP usage and ownership rights explicitly when using generative AI models, especially for creative outputs. This may include enforcing data anonymization techniques to prevent the exposure of proprietary data during AI model training or interaction.

3. Secure AI Infrastructure
   Invest in AI-specific security solutions that protect against adversarial machine learning attacks and other vulnerabilities. Threat modeling for AI use cases can help SMBs anticipate and address possible attack vectors.

4. Regular AI Audits and Bias Checks
   Periodic audits of generative AI models can identify potential biases and ensure compliance with regulatory standards. Leveraging open-source bias detection tools can help SMBs better understand the model's decision-making and reduce discriminatory outcomes.

5. Collaborate with Trusted AI Providers
   Choose reputable generative AI providers with established security measures, such as encryption, audit logging, and incident response. Review service level agreements (SLAs) for security guarantees and inquire about certifications, like SOC 2 or ISO 27001, to ensure a baseline of data protection.

6. Employee Training and Awareness Programs
   SMBs should train employees on secure AI practices, emphasizing data input restrictions and IP considerations. This should also include guidance on securely using public generative AI platforms, avoiding sensitive data uploads, and recognizing potential phishing attempts.

7. Integrate AI with Broader Cybersecurity Strategies
   For SMBs, integrating AI tools into an overarching cybersecurity framework, even if simplified, can improve resilience. This might include using AI-powered cybersecurity tools, such as automated threat detection systems, which can be tailored to an SMB's specific environment and budget.

Lessons Learned

1. Data Minimization is Key
   Many data breaches and privacy risks can be mitigated by following the principle of data minimization—providing generative AI systems with only the data necessary for them to function, and nothing more.

2. Vendor Security is Non-Negotiable
   As third-party providers become essential for AI adoption, SMBs have learned that vendor security needs thorough vetting. Verifying that vendors align with cybersecurity best practices can save SMBs from costly breaches.

3. Bias Mitigation Requires Proactivity
   Even if unintended, biases can expose SMBs to compliance and reputational risks. Monitoring and updating AI models is essential to ensure fairness, especially in customer-facing applications.

4. Awareness Programs Amplify Security
   Many SMBs have discovered that employee awareness is one of the most effective defenses. Proper training on how to securely use AI can prevent avoidable risks, including data leaks and social engineering attacks.

5. Cybersecurity by Design
   Security cannot be an afterthought; incorporating cybersecurity practices from the onset of AI adoption ensures more robust defenses and helps avoid costly reengineering efforts down the line.

Useful Resources

• National Institute of Standards and Technology (NIST): NIST offers AI risk management frameworks, such as the NIST AI Risk Management Framework, which provide practical guidelines tailored to SMBs.

• Cybersecurity and Infrastructure Security Agency (CISA): CISA’s resources for SMBs include comprehensive cybersecurity guidelines that can be applied to AI tools as well.

• AI Fairness 360 Toolkit by IBM: This toolkit provides bias detection and mitigation algorithms that SMBs can use to analyze and improve the fairness of their generative AI models.

• OpenAI's Security Best Practices: OpenAI provides recommendations for secure use of its tools, emphasizing data privacy and safe integration into business environments.

• MITRE ATLAS: MITRE’s Adversarial Threat Landscape for Artificial-Intelligence Systems (ATLAS) offers insights into AI-specific threats, helping SMBs understand potential attack vectors against AI systems.

Sem Ponnambalam, Co-Founder and President xahive, Ottawa, Canada

Our Interview with Kim Walker - Incoming President of MAPLE® Business Council

Kim Walker, Incoming President, MAPLE Business Council

We have the pleasure of interviewing Kim Walker, the incoming President of MAPLE Business Council who will be leading our organization effective January 1, 2025. 
 
Thank you very much Kim for your time today and for the opportunity to get better acquainted for the benefit of our members and readers. 
 
Can you tell us a little bit about where you grew up and studied in Canada?
 
I was born in Kingston, Ontario, which is where my mother was raised and, at the time, was attending nursing school. When I was two years old, my parents bought a house in Pickering that backs onto a small bay off Lake Ontario, so my siblings and I grew up sailing, windsurfing, canoeing and kayaking in the summer and playing endless games of pick-up hockey with the neighbourhood kids in the winter.
 
I earned an undergraduate degree in Economics, in Toronto, at York University’s Glendon College, which is a bilingual campus. I spent my third year abroad at the University Louis Pasteur in Strasbourg, France, where I became proficient in French and made lifelong friends. Upon graduating, I was granted both my Diploma and a Certificate of Bilingual Competence.
 
A few years later, I was admitted to the Master of Business Administration program at the University of British Columbia, another wonderful, life-changing experience with the added bonus of a bunch of wonderful friends, who are still into all things outdoors, especially cycling and skiing. I loved Vancouver so much that I ended up living there for another four years, during which time I worked as an Economist at the Central Credit Union of BC and then at an environmental consulting firm that had me happily travelling frequently to the Northwest Territories on a special project for nearly two years.

While in Vancouver, I started competing in Triathlons, where we did open-water practices in English Bay (the ocean!) and in the saltwater pool at Kitsilano. I also picked up long-distance running and was proud to complete multiple half-marathons in Vancouver and Toronto, as well as a full one in Chicago.
 
At what point did you leave Canada and what led you to live and work in other countries?
 
I met my husband in Vancouver and when his job at Labatt took us to Toronto, we packed up and built a wonderful life in the Beaches, raising our two kids and enjoying a regular BBQ rotation every weekend with various friends in our neighbourhood.

I was lucky to find an incredible job with Ipsos (then Angus Reid Group), where I worked my way up from a Research Associate to Vice President of the Financial Services Research division. My husband’s job took us on additional adventures: a three-year run in Brussels, Belgium and then five years in St. Louis, Missouri; each time, we packed up, saying sad goodbyes to our friends and neighbours but rebuilding with new lifelong circles of friends in each new city.
 
When did you move to Southern California and what brought you here?
 
The same is true of our eventual move to Los Angeles, where we still live. Following his retirement after 29 years at Labatt (ABInBev), my husband, James Villeneuve, accepted the honour of being appointed by the Prime Minister of Canada to serve as our country’s Consul General in Los Angeles, a post he held for five years from the beginning of 2014 until the end of 2018.

We lived in the Official Residence of Canada, where the main floor is used for meetings and Canadian events. In addition to some of the more “glamorous” events, we were proud to make the Residence a place where business deals are done; one of our most successful pairings was matching a local VC investor with a Canadian inventor whose business continues to soar.
 
 Are there any special moments from your time representing Canada in Los Angeles together with your husband James Villeneuve, who was Consul General of Canada from 2014-2018, that you’d like to share that speak to the closeness of Canada and the United States?
 
It's hard to pick any one single event as being THE moment that I remember above, all others – there is just such a rich collection of memories! The one thing I will say is that we (that is, James, me and … yes, the kids too!) rose to this incredible call to duty and were delighted to be of service to our country. Unless there was too much homework, our two children would often come downstairs and “work the room”, as they say, at our events for the sole, altruistic purpose of trying to help us speak to everyone in attendance and make the guests feel welcome. I was so proud of how readily they slipped into this role with us.

In terms of events, I will say that the honour of hosting the Prime Minister on an official visit was one of the top ones, although there was some typical LA traffic issues that night, which meant that I was alone hosting 300 people at the Residence because James and the PM were really late (traffic!) returning after a day of official business, so I had to keep announcing, “They’re almost here.” to the impatient crowd in both official languages!
 
Another amazing event involved our Governor General, the Right Honourable David Johnston, who could not have been more delightful when visiting. He was an important role model for me early on in terms of his selflessness, dignity and gracious behaviour; he literally remembered every single person’s name and some small fact about them or someone in their family. Our ambassador and all officials who visited the Residence demonstrated the same selflessness and unquestioning duty to country, which was truly inspiring.

Do you have any special memories connecting with distinguished Canadians in the arts?
 
Here’s a good one: one of the people who worked at the Canadian Consulate knew Leonard Cohen very well, which is how we ended up hosting his last two album releases at the Official Residence of Canada. He was very, very proud of his Canadian roots. Journalists came from all over the world to hear him do a Q&A and talk about the album and then listen to it while reading the lyrics.

Note that I had read my first Cohen poem 30+ years earlier and was a HUGE fan, so I was really excited about meeting him. When he showed up at the door a little earlier than expected and well before any of the official event team, I was the only person home, so I was the one who opened the front door for him. He put his hands together, bowed slightly, and said, “Hello. I’m Leonard Cohen.” (*faint*) He was – remains – one of the most humble and gracious people I have ever met. Quaking slightly (hands, knees … you get it, right?) I showed him to the room we had prepared for him, where we had herbal teas and snacks for him. When James got home from the Consulate, Leonard Cohen asked that we come to his room, where we ended up kicking up our feet with him and having a lovely and funny, long conversation about growing up and people we knew in common (sooooo Canadian!!).

Later, after the audience had listened to the album, I opened the doors to the backyard so our guests could spill outside. There, at a little table, was my daughter playing Yahtzee with Leonard Cohen and his grandson! When I asked her about it later, she said the poor child was restless, so she ran upstairs and grabbed one of our family games; she had NO idea she was playing a game with THE great Leonard Cohen!
 
Finally, I would be remiss if I didn’t mention hosting Canada’s Special Olympics team and entourage at the house in July 2015. I personally attended several of the competitions, faithfully following our athletes around golf links, the track, and at various other venues, proudly waving my Canadian flag. We hosted an official welcoming BBQ in the yard with 350+ attendees, including the athletes (who had not seen their families for several days), the families, trainers, and supporters. The pure joy experienced and expressed by the athletes lives on in my heart – they were truly inspiring and memorable!!
 
You have been on a mission to help Canadians locate the cemeteries of Canada’s fallen soldiers from World Wars I and II in Europe through the launch of the Canada Remembers Guide. What led you to pursue this work and what resources have you created to help Canadians honour the contributions of our veterans?
 
Lately, in addition to my newfound love for the game of tennis, I have been keeping busy with a couple of personal “pet” projects. One that is currently quite consuming, as it’s the 80th anniversary of the D-Day landings and eventual European liberation, is a website I created called, “Canada Remembers Guide”   which offers free, downloadable, self-guided itineraries for Canadians to find our remembrance sites in Europe from Paris, Brussels, Antwerp, Amsterdam (and, eventually: (coming soon!) Rome).

Remembering our war dead is extremely important to me and I have been fortunate to have lived in France and Belgium where I became familiar with these important First and Second World War cemeteries and memorials. My goal is to share what I know – I simply want to make Canadians aware of these places and for them to see how accessible the sites are from major cities in Europe (#LestWeForget).
 
Would you tell us a bit about the work you are planning in support of coaching women to be successful on boards?
 
The other non-profit I am working on is launching Board Hatch, which is dedicated to teaching women how to serve on Boards. The primary target is young women, who are about to launch their careers and mature women who are ready to be of service in the non-profit world, but might lack the confidence to jump into these important roles. I have been serving on and chairing non-profit boards for nearly 20 years and I have firsthand experience with the initial insecurities (usually unwarranted!) that we sometimes experience, so I want to coach women so that they get over this hurdle and actively seek leadership roles where they can contribute in a significant way.
 
What is it about MAPLE Business Council that attracted you to want to lead our community?
 
MAPLE is a great organization. It unites Canadian businesses operating in Southern California – and Californian-based business operating in (or interested in operating in) Canada. This is a perfect dovetail of my interests and experience: I love connecting people and I love Canada being successful! In addition, the five years we served the country at the Consulate gave me the experience with binational businesses that will be critical for running MAPLE and ensuring that connections with our most important trading partners and beloved neighbours are secure and fruitful.
 
What are you most looking forward to most as President of MAPLE Business Council?
 
I am looking forward to continuing the work that Stephen Armstrong and Rob Kelle started nine years ago, when the concept of MAPLE as a binational business council was born. I would like to work with all members of MAPLE to make sure that we are helping in any way we can, and I look forward to reconnecting with the Consulate’s trade team as a strong partner in this endeavour. (#MAPLEBusinessCouncil)
 
Thank you for your time today, Kim and congratulations on your appointment. We look forward to your contributions!
 
Stephen Armstrong

Carpe Diem Canada! - Seizing the Moment for Canadian Companies to Invest in Los Angeles

CARPE DIEM CANADA! - SEIZING THE MOMENT FOR CANADIAN COMPANIES TO INVEST IN LOS ANGELES 

Author: Terri Batch, CEO, Global LA, Los Angeles

There are a lot of exciting events coming to Los Angeles, and with those events, comes the opportunity to build a lasting presence in the Los Angeles region.  Los Angeles has a lot of great things going for itself and now is the time to jump in and get involved in an economic wave that comes only once in a generation. Carpe Diem Canada!, meaning seize the moment, Canada, to establish a strong presence in Los Angeles, especially ahead of the 2026 World Cup and 2028 Summer Olympic and Paralympic Games.  

I’ve had the privilege of visiting Canada twice in the past decade.  Once to Toronto for a reunion of the St. Kitts & Nevis diaspora community with my mother-in-law and once to Vancouver, British Columbia for a business conference focused on the built environment.  Both times, I was struck by the similarities between the U.S. and Canada. We share many things in common with Canada, such as a diverse population and democratic governance. Many times, in my previous role at the U.S. Department of Commerce, I would ask companies if they were involved in exporting, they would tell me no.  But then when I asked where they sell their products or services, they would include locations in Canada.  And I would remind them that a sale to Canada is considered an export!  With Canada being our northern neighbor and ally, the businesses exchanges seem natural and even inevitable.

While I was in Toronto for the Nevisian community gathering, I enjoyed spending time as a tourist.  The city boasts the same diversity of cultures and interesting destinations as Los Angeles.  I spent time going to the top of the CN Tower, exploring the harbor by boat, visiting the Bata Shoe Museum, admiring the Casa Loma castle, and grabbing delicious Chinese food in Chinatown after taking a convenient streetcar through the city.  It was a wonderful experience and reminded me of Los Angeles.  No wonder Los Angeles is a top destination for Canadian tourists!         

Tourism is not the only thing that brings Canadians to the Los Angeles area.  Los Angeles and Canada enjoy a robust business relationship.  Canada plays a significant role in foreign direct investment (FDI) in Los Angeles and the broader Southern California region.  According to the LA Economic Development Corporation and California Governor’s Office of Business, Canada ranks as one of the top five foreign investors in California. Canadian firms in Southern California contribute significantly to the local economy, supporting approximately 50,000 jobs. 

Canadian foreign investment in Los Angeles spans various industries and showcases a strong economic relationship between our two regions. Some notable examples of Canadian investment in Los Angeles include:

1. Entertainment and Media - Canadian companies are highly active in Los Angeles' entertainment sector, with investments in film and television production. For instance, Lionsgate, a major entertainment company, has significant Canadian roots and operates heavily in Los Angeles, where its U.S. operations are headquartered. This represents a prime example of cross-border collaboration in one of LA’s key industries.
    

2. Technology and Software - Companies like Shopify, a Canadian e-commerce giant, have established a presence in Los Angeles to access the tech and startup ecosystem. This allows them to tap into the innovation and talent within the region's growing tech industry.  
    

3. Real Estate - Canadian pension funds and real estate firms have made significant investments in the Los Angeles property market. For example, Brookfield Asset Management, a Toronto-based investment firm, has invested in large commercial and residential real estate projects in downtown Los Angeles, including skyscrapers and mixed-use developments. 
    

4. Transportation and Infrastructure - Canadian transportation companies, such as Bombardier, which is known for its aerospace and transportation solutions, have been involved in projects within Los Angeles, particularly in relation to public transportation and rail systems.

These investments illustrate how Canadian companies play a vital role across a wide range of sectors in Los Angeles, contributing to job creation, economic growth, and cultural exchange.

The renegotiated North American Free Trade Agreement (NAFTA) now known as the US-Mexico-Canada Agreement (USMCA) provides opportunities for Canadian investors looking to maximize expanded trade and investment options in the U.S. Here's how Canadian investors can leverage this agreement:

1.Investment Protections
The USMCA includes specific provisions that protect investors from Canada when investing in the U.S. These protections ensure fair treatment under U.S. law and provide mechanisms for resolving disputes related to investment, such as expropriation without compensation, fair market treatment, and protection against discrimination.

• National Treatment & Most-Favored-Nation (MFN): Canadian investors are entitled to the same treatment as U.S. investors or investors from third countries, allowing them to operate on a level playing field.
   

• Investor-State Dispute Settlement (ISDS): While ISDS provisions were scaled back in the USMCA, certain sectors, including energy and infrastructure, still have access to ISDS between Canada and the U.S. through legacy claims and transitional arrangements.

 
2.  Access to U.S. Markets
USMCA enhances market access across various sectors, allowing Canadian investors to participate more freely in U.S. industries such as manufacturing, technology, financial services, and more:

• Reduced Trade Barriers: Tariff elimination and streamlined customs procedures under the USMCA facilitate cross-border trade, making it easier for Canadian investors to import or export goods between the U.S. and Canada. This supports businesses seeking to expand their supply chain or establish operations in the U.S.
   

• Access to Public Procurement: USMCA maintains opportunities for Canadian businesses to bid on U.S. government procurement contracts, which is valuable for investors seeking opportunities in public infrastructure projects.

 
3. Digital Trade and E-commerce
The USMCA includes strong provisions on digital trade, benefiting Canadian investors in technology and e-commerce sectors:

• Free Data Flow: The agreement promotes cross-border data flows, essential for businesses operating digitally. Canadian tech firms or investors in e-commerce benefit from reduced restrictions on digital trade between the U.S. and Canada.

• Protection of Intellectual Property (IP): USMCA strengthens IP rights, ensuring that Canadian companies' innovations, trademarks, and copyrights are protected in the U.S. market, which is vital for those investing in technology, media, and other IP-intensive industries.

4. Labor Mobility
Although USMCA does not significantly expand labor mobility provisions beyond what existed in NAFTA, the agreement still facilitates some movement of professionals between Canada and the U.S., which can be beneficial for investors and business managers:

• Temporary Entry for Business People: Certain categories of professionals, including investors and intra-company transferees, can temporarily enter the U.S. for business purposes. This allows Canadian investors to oversee operations or manage investments in the U.S. with reduced bureaucratic barriers.

 
5. Sectoral Opportunities
USMCA specifically addresses key sectors with enhanced provisions that may be of interest to Canadian investors:

• Energy: Investors in the energy sector benefit from strong protections, particularly for investments in oil, gas, and renewable energy. The U.S. remains a critical energy trading partner, and USMCA facilitates smoother transactions in energy infrastructure projects.
   

• Automotive: The automotive industry has specific content rules under the USMCA, providing opportunities for Canadian investors involved in the production of parts or vehicles. The new rules incentivize investment in North American production, benefiting Canadian firms investing in U.S.-based automotive ventures.

 
6. SMEs and Investment Support
The USMCA encourages small and medium-sized enterprises (SMEs) to participate in cross-border trade and investment, offering resources and support for Canadian SMEs looking to invest or expand in the U.S. market:

• SME Chapter: The agreement includes a dedicated chapter to support SMEs by providing information on trade and investment opportunities and reducing administrative barriers, helping Canadian SMEs navigate U.S. market entry.

 
Some Considerations for Investors:

• Regulatory Compliance: Despite the USMCA, Canadian investors must still comply with U.S. federal, state, and local laws, which may vary by industry. Investors should ensure they understand the specific regulatory landscape of the sector they plan to invest in.
    

• Currency Risk: Fluctuations in exchange rates between the Canadian dollar (CAD) and U.S. dollar (USD) can impact returns on investment. Canadian investors should consider hedging currency risks when making long-term investments in the U.S.
   

• Tax Implications: The U.S. and Canada have a tax treaty that helps avoid double taxation. However, investors should seek professional tax advice to structure their investments efficiently and minimize tax liabilities.

By leveraging the provisions of the USMCA, Canadian investors can capitalize on the protections, market access, and streamlined regulations to expand their operations or invest profitably in the U.S.

Global LA welcomes continued investment into the City of Los Angeles and the region from Canada.  We work collaboratively with economic development organizations in the region to support foreign companies that are not only considering the city of Los Angeles, but anywhere in Southern California.  A list of some of the local organizations are provided below as well as other resources that will help you to plan and develop a strategy for investing in Los Angeles.   We also look forward to continued engagement with MAPLE Business Council and the Canadian Consulate General in Los Angeles.  

If you are interested in contacting Global LA, visit our website to learn more at www.global.la or send an email to info@global.la.  You can also sign up for our newsletter to stay informed of local events in Los Angeles.   We look forward to welcoming increased engagement with Canada ahead of the upcoming 2026 World Cup and 2028 Summer Olympic and Paralympic Games.
 
To stay informed of opportunities related to the upcoming 2026 World Cup and 2028 Summer Olympic and Paralympic Games:

• Los Angeles Sports & Entertainment Commission (lasec.net)

• LA 2028 (la28.org)

• Regional Alliance Marketplace for Procurement (rampla.org)

Local Organizations Focused on Foreign Direct Investment into the LA region in addition to Global LA:

• World Trade Center Los Angeles (WTCLA),

• World Trade Center Long Beach (WTCLB)

• Long Beach Economic Partnership

• Santa Clarita Valley Economic Development Corporation 

Additional Information about the U.S. Mexico and Canada Agreement:        

• Fact Sheets | United States Trade Representative (ustr.gov)

Additional Reports About Canadian Investment into Los Angeles and California:

• Foreign Direct Investment in California 2024

• FDI Factsheets 2024 (ca.gov)

Why Must LGBTQ+ Leadership Be Represented in Advisory Services?

WHY MUST LGBTQ+ LEADERSHIP BE REPRESENTED IN ADVISORY SERVICES?

Author: Bernardine Perreira, CFP® TEP, CIM®, Wealth Advisor, Perreira Wealth Advisory of Raymond James Ltd, Toronto

The importance of LGBTQ+ leadership in advisory services cannot be understated. It goes beyond mere representation -it fundamentally shapes the organizational culture, fosters inclusion, and drives meaningful change. LGTBQ+ leaders provide unique perspectives, enhance diversity of thought, and ensure that the needs of marginalized groups are recognized and respected. Moreover, they can spearhead efforts to create safe spaces within institutions, cultivating a sense of belonging for employees and clients. 

As someone who has journeyed through different career stages—from studying fine arts at York University to working in a startup and eventually landing in financial advisory services—I've witnessed firsthand the transformative power of representation. My trajectory, marked by a pivot from theatre to the business world, was deeply influenced by personal experiences, particularly meeting my first girlfriend. That relationship sparked a new career path and a deep love for business. Over time, I found my niche in advisory services, where I now have the privilege of running my own practice and working closely with the LGBTQ+ community.

Advisory services often deal with sensitive, personal matters, and having LGBTQ+ leadership ensures that clients from the community feel seen, understood, and respected. When queer leaders are at the forefront of such services, they help create an environment where LGBTQ+ clients can trust that their unique financial concerns—ranging from estate planning to legal challenges—are treated with empathy and expertise.

Impact on Organizational Culture
In advisory firms and other institutions, the presence of LGBTQ+ leaders significantly impacts organizational culture, particularly in Diversity, Equity, and Inclusion (DEI). My personal experience in corporate Canada illustrates this vividly. At Raymond James, for example, DEI was virtually nonexistent when I joined the company. However, I became one of the founding members of our DEI committee, where my focus was primarily on LGBTQ+ issues. This initiative paved the way for the organization's first Pride event at our Toronto corporate headquarters, complete with a powerful guest speaker from PFLAG (Parents and Friends of Lesbians and Gays).

The power of storytelling, such as the PFLAG speaker sharing her child’s transitional journey, demonstrated how deeply personal narratives can resonate within organizations, fostering empathy and building community. These moments underscore the importance of LGBTQ+ leadership in ensuring that marginalized groups' experiences are acknowledged and actively incorporated into the company's cultural framework.

The broader impact of LGBTQ+ leadership on organizational culture can be seen in the push for inclusivity at all levels. Traditionally seen as a conservative field, advisory services are now being reshaped to be more inclusive and welcoming. The presence of queer leaders opens up conversations around gender, sexuality, and identity, which were often previously ignored or sidelined.

Supporting LGBTQ+ Leaders
To cultivate and support LGBTQ+ leaders in advisory services, organizations must consciously create safe and inclusive environments. A vital aspect of this is providing mentorship opportunities for young LGBTQ+ professionals, helping them navigate the challenges of a predominantly heteronormative industry. Employee Resource Groups (ERGs) can play a pivotal role in this process, offering support, education, and networking opportunities that empower LGBTQ+ employees to grow into leadership roles.

For example, at Raymond James Financial, the Pride Financial Advisor Committee, I served on launching quarterly educational webinars and hosted an annual Business of Pride conference. These events educated the broader organization and highlighted the importance of LGBTQ+ representation in business and how to serve our increasingly diverse client base better. Such initiatives are crucial for fostering an environment where LGBTQ+ professionals feel safe, valued, and heard.

Mentorship, ERGs, and inclusive leadership practices benefit LGBTQ+ employees and the organization. Diverse leadership has led to more innovative thinking, problem-solving, and overall employee satisfaction. When organizations invest in diversity, they are investing in their long-term success.

Intersectionality and the Challenges of Leadership
One of the often overlooked aspects of LGBTQ+ leadership is the role that intersectionality plays. As a queer woman, my experience navigating a male-dominated field like advisory services has been shaped by both my gender and my sexual orientation. Intersectionality—the understanding that we each hold multiple, intersecting identities—means that my experience cannot be fully understood through the lens of gender or sexual orientation alone. These identities shape how I move through the world, particularly in spaces where both women and LGBTQ+ individuals have historically been underrepresented.

In my practice, I've used my identity as a queer woman as a differentiator, one that allows me to build deep, authentic relationships with my clients. However, I've also faced challenges, from subtle biases to decisions about whether to work with specific clients whose views conflict with my values. These experiences highlight the ongoing nature of the "coming out" journey, which often involves continuously asserting one’s identity in personal and professional spaces.

The Role of Allies
The role of allies cannot be overstated in creating more inclusive and equitable workplaces. Allies, particularly those in positions of power, can help amplify the voices of LGBTQ+ leaders and push for systemic changes that benefit all employees. At Raymond James, I was fortunate to have strong allies, including our executive sponsor and the head of HR, who supported our DEI initiatives and actively worked to implement diversity training across the company.

Allies also play a crucial role in dispelling harmful stereotypes and tropes about the LGBTQ+ community. By getting closer to the community and learning about the real experiences of LGBTQ+ individuals, allies can help challenge biases that often hinder inclusivity efforts.

Dispelling Myths and Promoting Authenticity
One of the most effective ways to promote LGBTQ+ inclusion is through storytelling and sharing personal experiences. By being open about my journey, I have connected with colleagues and clients on a deeper level. For instance, after sharing my story at a Raymond James conference, a colleague confided in me about her bisexuality—something she had kept hidden because of her marriage to a man.

Such moments remind us of the importance of visibility and authenticity in leadership. When LGBTQ+ leaders share their stories, they help create a culture where others feel empowered to be their authentic selves, which is essential for fostering inclusion and reducing the stigma around non-heteronormative identities.

Conclusion
LGBTQ+ leadership in advisory services is not just about representation—it is about creating a culture of inclusion, authenticity, and respect. When LGBTQ+ leaders are visible and supported, they enrich the organizational culture and inspire others to embrace their true selves. Through mentorship, education, and allyship, organizations can ensure that the voices of LGBTQ+ leaders are heard and that their contributions are valued. Ultimately, this leads to a more innovative, compassionate, and successful organization.

Bernardine Perreira specializes in Canada/U.S. cross-border wealth management for executives, professionals and their families. In addition to a full suite of Canadian and US investment service, she can assist Canadian residents with IRA and inherited IRA accounts in the United States. Her many professional accomplishments include the Certified Financial Planner (CFP) designation, the Trust and Estate Practitioner (TEP) designation and the Chartered Investment Management (CIM) designation. She holds an Ontario Insurance Agent license and Canadian and US Securities licenses. 

In the community, Bernardine served as Executive Director of MAPLE Business Council, Ontario Chapter from 2022-2024, Past President of the Executive Committee of the Estate Planning Council of Toronto and served as a founding council member on the Raymond James Diversity and Inclusion Council and served on the Raymond James Pride Financial Advisor Network Council.  Bernardine has served the LGBTQ+ community as the Past President of the Pride and Remembrance Run Board and the Pride and Remembrance Foundation.

Raymond James (USA) Ltd. (RJLU) advisors may only conduct business with residents of the states and/or jurisdictions for which they are properly registered. Raymond James (USA) Ltd. is a member of FINRA / SIPC.

Colorado and Canada - Growing Together

Caitlyn Roth, Market Engagement Manager, Colorado Office of Economic Development and International Trade, Global Business Development 

Author: Caitlyn Roth, Market Engagement Manager, Colorado Office of Economic Development and International Trade, Global Business Development 

In the vast expanse of North America, Canada and Colorado represent two distinct yet interconnected regions with a thriving economic relationship. Though separated by thousands of miles, the economic ties between the Canadian provinces and Colorado have strengthened over recent years, reflecting a robust partnership that spans various industries from natural resources to technology. This article delves into the intricate economic relationship between Canada and Colorado, highlighting key sectors of interaction, diplomatic ties, and the future outlook for this transnational partnership. 

Historical Context and Economic Ties 
The economic relationship between Canada and Colorado has evolved over time, reflecting broader trends in North American trade. Historically, the United States and Canada have been each other’s largest trading partners, a relationship solidified by agreements such as the Canada-United States Free Trade Agreement (FTA) in 1988 and its successor, the North American Free Trade Agreement (NAFTA) in 1994. Today Canada -U.S. trade is governed by the USMCA Trade Agreement. These agreements significantly reduced trade barriers and tariffs, fostering greater economic integration between the two nations. Trade with Canada supports 146,800 employees in Colorado in addition to the 21,100 employees at Canadian-owned businesses across the state. 

"Trade with Canada supports 146,800 employees in Colorado in addition to the 21,100 employees at Canadian-owned businesses across the state." 

Colorado, with its central location in the United States and an advanced and diversified economy, naturally became a key player in this relationship. The state's proximity to Canada and its well-developed transportation infrastructure facilitated the flow of goods, services, and people between the two regions. Over the years, Canadian businesses have increasingly recognized Colorado's strategic importance, leading to a deepening of economic ties. In 2023, Colorado exported $1.8 billion to Canada, making the country Colorado’s largest export partner, accounting for 18% of Colorado’s export trade. Colorado exports to Canada grew by 8.7% from 2022-2023 and at an average annual rate of 5.8% over the last five years. Colorado’s top exports to Canada are meat; industrial machinery, including computers; and optical, medical, and surgical equipment. 

"Colorado exports to Canada grew by 8.7% from 2022-2023 and at an average annual rate of 5.8% over the last five years. Colorado’s top exports to Canada are meat; industrial machinery, including computers; and optical, medical, and surgical equipment." 

Conversely, in 2023, Colorado imported $5.5 billion from Canada. Canada is the largest import partner for the state, accounting for 31% of Colorado’s import trade. Colorado imports from Canada fell by -10% from 2022-2023 but have grown at an average annual rate of 11% over the last five years. Notably, imports from Canada falling by 10% in 2023 can be attributed to a $517 million decrease in the import of crude oil. Colorado’s top imports from Canada are mineral fuel and oil; wood and articles of wood; and industrial machinery including computers. 

Investment 
Investment flows between Canada and Colorado are another critical component of their economic relationship. Canadian companies investing in Colorado come from the Aerospace and Information & Technology industries among others. Over the last five years, OEDIT’s data sources report Canadian companies completing 11 FDI projects in Colorado for a total of $180 million in capital expenditure and creating an estimated 512 jobs. For example,  FulcrumAir Inc., an Alberta-based commercial drone and aerial robotic technologies manufacturer, selected Wellington, Colorado as its U.S. headquarters in August 2021. Further, Canadian-headquartered Nutrien is a major employer in Colorado with its U.S. headquarters in Loveland. Nutrien partnered with Colorado State University to build a state-of-the-art research, learning and innovation space, establishing the Nutrien Agricultural Sciences Building on campus.  

"For example,  FulcrumAir Inc., an Alberta-based commercial drone and aerial robotic technologies manufacturer, selected Wellington, Colorado as its US headquarters in August 2021. Further, Canadian-headquartered Nutrien is a major employer in Colorado with its U.S. headquarters in Loveland. Nutrien partnered with Colorado State University to build a state-of-the-art research, learning and innovation space..."

Conversely, Colorado-based companies have also invested in Canada, particularly in the energy and technology sectors. Over the last five years our data sources report Colorado  companies completing 21 FDI projects in Canada for a total of $2.8 billion in capital expenditure and creating an estimated 1,489 jobs. For example, Optiv Security Inc., a Denver, Colorado-based cyber security software developer, opened a security operations center in Mississauga, Ontario. 

The shared business culture and similar regulatory environments between Canada and Colorado make cross-border investments relatively straightforward, further strengthening economic ties. 
 
Diplomatic and Cultural Ties 
Colorado celebrates strong diplomatic relations with Canada. At a national level, American and Canadian military forces cooperate on continental defense at the North American Aerospace Defense Command (NORAD), the world’s only binational military command, located in Colorado Springs. Canada maintains a Consulate General in Denver, which conducts constituent services as well as political and trade affairs for the Canadian government in a region that includes Colorado, Utah, Wyoming, Montana, and Kansas. 

"At a subnational level, Colorado and the province of Alberta established a formalized partnership this year by signing a Memorandum of Understanding to advance the export development, investment attraction, solution oriented research, and commercialization of advanced energy and carbon management, such as carbon sequestration, clean hydrogen, and geothermal energy." 

At a subnational level, Colorado and the province of Alberta established a formalized partnership this year by signing a Memorandum of Understanding to advance the export development, investment attraction, solution oriented research, and commercialization of advanced energy and carbon management, such as carbon sequestration, clean hydrogen, and geothermal energy. 

Tourism is a vital part of the strong ties between Canada and Colorado.  Canadians are among the top international visitors to Colorado, drawn by the state’s world-class ski resorts, national parks, and vibrant cities. Canadian tourists contribute significantly to Colorado’s economy, spending millions of dollars annually on accommodations, dining, and recreational activities. The flow of tourists is not one-sided. Colorado residents also travel to Canada, particularly to destinations such as Vancouver, Toronto, and the Canadian Rockies. This exchange of tourists fosters cultural ties and generates economic benefits for both regions. With six direct flights from DEN to Vancouver, Toronto, Montreal, Calgary, Edmonton and Winnipeg, Canadians and Coloradans have no shortage of convenient travel options. 

Looking Ahead 

"The future holds significant opportunities for enhancing this economic partnership. Having the Canadian Consulate General in Denver and organizations dedicated to strengthening the economic and business ties between Canada and Colorado like MAPLE® Business Council, Colorado and Canada are closer than ever."

The future holds significant opportunities for enhancing this economic partnership. Having the Canadian Consulate General in Denver and organizations dedicated to strengthening the economic and business ties between Canada and Colorado like MAPLE® Business Council, Colorado and Canada are closer than ever. The growing focus on renewable energy presents a chance for Canada and Colorado to collaborate more closely on clean energy projects. As global supply chains evolve in response to geopolitical shifts, there is potential for Canada and Colorado to deepen their integration, particularly in high-tech industries and advanced manufacturing. Respective strengths in agriculture technology and forestry are other areas of partnership to continue exploring. 

By building on their shared economic interests and addressing challenges collaboratively, Canada and Colorado can continue to strengthen their economic partnership for the mutual benefit of their businesses, workers, and communities. 

 
For more information or to get connected to relevant units in OEDIT please contact Caitlyn Roth, Market Engagement Manager, OEDIT Global Business Development, caitlyn.roth@state.co.us 
 
About the Global Business Development Division: The Global Business Development (GBD) division supports Colorado businesses and communities by using a data-driven approach to recruit, support, and retain businesses that contribute to a robust and diversified economy. We regularly host foreign delegations and participate in trade and investment missions around the world to strengthen global awareness of Colorado. Our services include: export services and promotions; foreign direct investments; business recruitment, retention, and expansion; data analytics; advanced industries accelerator grants. 

Is Your Manufacturing Company Missing Out on R&D Tax Credits?

Photo: Pixabay

IS YOUR MANUFACTURING COMPANY MISSING OUT ON R&D TAX CREDITS?

Author: Michael Silvio CPA, Tax Partner, Macias, Gini & O'Connell LLP.

Key Takeaways:

• R&D tax credits reduce tax liability and provide a financial boost for manufacturing companies investing in innovation.

• Qualifying for R&D tax credits involves creating new or improved products or processes and requires thorough documentation.

• Misconceptions about R&D tax credits limit potential benefits. Both large and small companies can qualify for incremental improvements.

In the ever-evolving landscape of manufacturing, innovation is still the cornerstone of success. Yet, amidst the constant drive for advancement, many manufacturing companies overlook a valuable opportunity to enhance their financial health: research and development (R&D) tax credits.

These incentives are designed to reward your company for research and development efforts, providing a significant financial boost. Understanding and using these credits can make a substantial difference to your company's bottom line.

Understanding R&D Tax Credits
R&D tax credits are federal incentives aimed at encouraging companies to invest in innovation. These credits are available to businesses that engage in activities related to developing new products, processes, or technologies. The scope of qualifying activities is broad — encompassing everything from developing new software systems to refining manufacturing processes.

For manufacturing companies, this means a wide range of projects could potentially qualify for these credits. Whether you are creating a new product line, improving existing products, developing more efficient production methods, or designing, there is a good chance your efforts could be eligible for R&D tax.

"Whether you are creating a new product line, improving existing products, developing more efficient production methods, or designing, there is a good chance your efforts could be eligible for R&D tax."

The Financial Impact
The financial benefits of R&D tax credits are considerable. These credits directly reduce your tax liability on a dollar-for-dollar basis. Essentially, for every dollar invested in qualifying R&D activities, a part of this cost can be recouped through these credits.

This reduction in tax liability can significantly enhance your company's financial statements — freeing up capital for reinvestment in further innovation and growth. Additionally, for certain taxpayers under qualifying criteria, R&D tax credits also can be used to offset payroll tax liabilities.

R&D tax credits are not limited to federal taxes either. Many states offer other incentives, creating an even greater opportunity for financial savings. By taking advantage of both federal and state R&D tax credits, your manufacturing company can maximize its benefits.

Qualifying for R&D Tax Credits
To qualify for R&D tax credits, your company must engage in activities that align with the Internal Revenue Service (IRS) definition of research and development. The IRS uses a four-part test to decide eligibility:

• Permitted purpose: The activity must aim to create a new or improved product or manufacturing process. This could involve designing a new part, developing a more efficient assembly line, or creating a product with enhanced functionality.

• Elimination of uncertainty: The activity must look to analyze and eliminate technical uncertainty about the development or improvement. For example, this might involve deciding the best materials to use in a new product or figuring out how to streamline a production process to reduce waste.

• Process of experimentation: The activity must involve a process of experimentation, such as systematic trial and error. In a manufacturing context, this could mean testing different prototypes, experimenting with various production techniques, or conducting pilot runs to evaluate the feasibility of new methods.

• Technological in nature: The activity must be based on principles from physical or biological sciences, engineering, or computer science. For manufacturers, this often includes using advanced engineering principles, integrating new software systems into production lines, or applying scientific research to improve product quality.

Documentation is critical in this process. Detailed records of your R&D activities — including project descriptions, expenses, and outcomes — will support your claim and confirm compliance with IRS requirements. From the first hypothesis to final testing, keep thorough documentation of every step to substantiate your eligibility for R&D tax credits.

"From the first hypothesis to final testing, keep thorough documentation of every step to substantiate your eligibility for R&D tax credits."

Common Misconceptions
Many manufacturing companies believe R&D tax credits are only for large corporations with dedicated research labs. This is far from the truth. Businesses of all sizes can qualify for R&D credits, and the types of activities that qualify are often broader than many realize.

Other common misconceptions:

• R&D tax credits only apply to groundbreaking innovations.

• The process to identify and capture these credits is too cumbersome.

In reality, both these beliefs are unfounded. It’s not just groundbreaking innovations — incremental improvements to products or processes can also qualify. If your company is making strides in efficiency, quality, or performance, these efforts may be eligible for R&D tax credits. And capturing these credits doesn’t have to be cumbersome. Engaging the services of a trusted professional will help you efficiently and effectively work through the process.
 

"R&D tax credits are not just a way to reduce your current tax liability; they are also a significant tax-planning tool. These credits can reduce estimated tax payments and income taxes, thereby increasing cash flow and influencing future financial planning as your company grows."

Maximizing Your R&D Tax Credits
R&D tax credits are not just a way to reduce your current tax liability; they are also a significant tax-planning tool. These credits can reduce estimated tax payments and income taxes, thereby increasing cash flow and influencing future financial planning as your company grows.

To maximize the benefits of R&D tax credits, you need to implement a strategic approach. Consider these key steps:

• Find qualifying activities: Conduct a thorough review of your operations to find all potential R&D activities. Look beyond obvious projects to uncover less clear qualifying activities.

• Maintain detailed documentation: Keep comprehensive records of your R&D projects — including goals, methodologies, and expenses. Proper documentation is essential for substantiating your claims.

• Consult with tax professionals: Work with tax advisors who specialize in R&D tax credits. They can help you navigate the complexities of the application process and improve your claim.

• Review and update annually: Regularly review your R&D activities and expenses to confirm you are capturing all eligible credits. As your company evolves, so will your R&D activities.

Unlock Your Potential with R&D Tax Credits
R&D tax credits are a powerful tool for manufacturing companies striving for innovation and growth. By understanding the eligibility criteria and keeping diligent documentation, your company can unlock significant financial benefits.

Do not let misconceptions prevent you from exploring this valuable opportunity. Engage with knowledgeable tax professionals to navigate the process and maximize your benefits.

How MGO Can Help
Our dedicated Tax Credits and Incentives team can help your manufacturing company leverage R&D tax credits to support your innovation. Reach out to our team today to learn more.

Michael Silvio CPA, Tax Partner, Macias, Gini & O’Connell LLP

The Ability to See What Needs to Be Seen

Linda DiMario, Economic Development Specialist, Southern California

“ Not everything
that is faced
can be changed,
but nothing
can be changed
until it is faced.”

— James Baldwin

Author: Linda DiMario, Economic Development Specialist, Southern California

Whether driven by nature or innovation, change is a driving force. Some thrive on it, some survive it, some resist it, some promote it, some manage and mitigate it. But change, at its core, is first, the ability to see what needs to be seen. 

At the heart of economic development work is the ability to see what needs to be seen. It is more than the big deals, manufacturing plants, tech hubs, incentives or even job creation. It is the simple act of seeing what must be done to build a sustainable ecosystem, organization or business. And then, it must be followed by the will to change what you see and take the actions required to affect change. Sometimes, the seemingly small actions generate the greatest benefit. Sometimes helping people re-calibrate, re-imagine and re-set is the most effective way forward.
 

"Sometimes, the seemingly small actions generate the greatest benefit. Sometimes helping people re-calibrate, re-imagine and re-set is the most effective way forward."

In my long and unusual career in economic development, I have experienced the triumph of helping to get big projects across the goal line like the Dallas Cowboys Stadium in Arlington, Texas, and working with the City of Long Beach to re-invent the waterfront, downtown and The Pike following the closure of the Naval Shipyard. These marquee events and deals were exhilarating. Each project has had a profound and generational influence on these communities. 

And, I have worked with very talented staff and volunteers to help other entities “see what needs to be seen” so they can confidently re-calibrate to seize new opportunities, re-invent themselves in the wake of a catastrophic event or explore expansion and growth. Just as the founders of MAPLE® Business Council saw the value of making more concrete the connections and opportunities between the US and Canada, my career as a consultant and economic development professional has been predicated on making a difference. And that can only happen if you help others see what needs to be seen.  

As a board member with the International Economic Development Council, I was often dispatched to communities post- disaster to help them stabilize and recover - New Orleans after the BP oil spill, the east coast of Texas after Hurricane Ike and south New Jersey after Hurricane Sandy among them. In each case, these communities were already struggling with the everyday challenges of re-inventing their live/work economy and experience. And now, they were reeling from the trauma of loss of life and property, business and workforce disruptions, supply chain interruptions, infrastructure failures, financial losses and environmental damage. 

Going into these communities, we worked with local governments, agencies, communities and neighborhoods to help them focus on the “now and tomorrow.”  To ask questions, listen and learn so their greatest strengths, and weaknesses could be revealed. To identify short-term and long-term solutions and options to recovery. To leverage what we learned to help them decide how best to build their future. 

Some governments, agencies, communities and people were quick to look at their assets through a fresh lens and ready to embrace the new opportunities. Others yearned for things to be just as they had been pre-event. This dynamic played out across all these landscapes. In some cases, it encumbered forward progress, delayed re-building or the start of projects that could have changed the face of the community forever. In other cases, a new perspective kicked open a door of opportunity. It ushered in what may have appeared to be small wins, but were in fact, significant steps - new job skilling projects to help shrimpers stay afloat, developing new eco-tourism recovery experiences and repairing and upgrading infrastructure projects that attracted and retained new business. 
 

"In other cases, a new perspective kicked open a door of opportunity. It ushered in what may have appeared to be small wins, but were in fact, significant steps..."

One town in Nebraska needed to “see” its Main Street through a new lens and embrace its private college with enthusiasm if they wished to re-invent their economy. One town in West Virginia came to understand the need to pivot from coal mining but faced great resistance and fear from residents. Additional education and job reskilling was a frightening prospect for them and their families.  

In both cases, thoughtful and conscientious economic developers including government, destination marketing organizations, chambers of commerce and nonprofits stepped forward. Just by seeing their communities, assets and resources through a more dynamic lens and taking the time to understand the complexity of human emotions and practical economic issues, progress can be made. By generating ground level engagement, they rallied people, assets and resources to a common purpose – and the changes necessary to build a more sustainable economy and live/work experience were advanced. 

So it is that the vitality of an economic and innovation ecosystem is at the heart of attracting new business and foreign direct investment, as well as, growing business. While incentives get the headlines, it is the ‘roll-up-your sleeves’, practical trust-building, complemented by abundant assets, resources and talent aligned with what they need, that ultimately wins the day. An ecosystem that helps them access new markets, investment and talent. An ecosystem that fuels workforce re-skilling and training projects and builds and maintains the infrastructure necessary for the industry to succeed. 
 

"When working with economic and innovation ecosystems, conducting an independent environmental scan reveals assets, resources, and strengths as well as gaps, weaknesses and threats. The scan gives purpose and direction to the debate that must, and will, be had."

When working with economic and innovation ecosystems, conducting an independent environmental scan reveals assets, resources, and strengths as well as gaps, weaknesses and threats. The scan gives purpose and direction to the debate that must, and will, be had. It will ask the tough questions: What does your community want, need and value? What industries are attracted to your area and why? What resources do they need to thrive and grow and can you deliver those resources?  Leadership can then make better-informed decisions. They can more confidently make the decisions to amplify the strengths and assets, manage and mitigate the weaknesses and optimize the opportunities. Public and private sector companies, agencies and organizations can be strategically engaged and tasked to deliver on what they do best. Once again, it requires commitment and the ability to rally the people, assets and resources to a common purpose. 

So, what do I take away from a career that has offered me the extraordinary opportunities to experience the heady 30,000 foot stratosphere to the roll-up-your-sleeves ground game? 

"it is essential to cultivate the ability to see what needs to be seen."

Whether it is an economic downturn, the aftermath of a natural disaster, a re-invention of an economy, a new business, a growing business or a strategic pivot, it is essential to cultivate the ability to see what needs to be seen. Ask questions, listen, learn, identify solutions and options, and most important, rally the people, assets and resources to a common purpose. 

Because that is the only way progress is achieved. 

To share your comments or questions, please contact Linda at lindadimario@outlook.com 

California Dreamin: Turn it Into Reality

Author: Cyntha Coulter, Managing Principal, Aleksandra Corp.

California is a huge market with great potential for new businesses. It can be daunting, but not if you take the time to understand the market dynamics and the resources available to be your guide.

I am born a proud Canadian. I am an equally proud Californian. I have lived in California for over 35 years and have been a business “spirit guide” to companies around the globe looking to enter this vibrant and energized market. 

As a local journalist put it and I share the view: “California isn’t the love of my life. It is why I love life.”

Let’s flash back to my arrival in California. I will never forget the night my Air Canada flight from Toronto was about to make landing at LAX. While I had been doing business in California for almost a year on a regular basis, this was it—the moving truck was on its way and this was to be my new home. As the plane started to descend, the pilot came over the intercom to say we would be landing in 45 minutes and for what seemed an eternity, all I could see were lights and more lights below. The panic really set in at that point and I thought to myself, how on earth am I ever going to fit in and “make it” down there!

As the years have passed, I have been thriving in my business and have become a respected executive and consultant, guiding companies from around the world to enter this market.

"Yes, I am passionate about California because it is more than a pretty face—it’s a strong force within the global economy." 

Yes, I am passionate about California because it is more than a pretty face—it’s a strong force within the global economy. 

So, suppose your business is doing well and you're looking for ways to expand your customer base, OR you are a start-up looking to launch. What if you could shift your focus to be part of the 5th largest economy in the world? No, it's not in Europe or Asia. It's California. Just in case you don't know, let me share some fundamentals about the California economy. We are a large and diverse market with a population of about 40 million people (about the same as the entire country of Canada) where more than 200 languages/dialects are spoken. Los Angeles County, alone, has a total of 88 Cities and 120 unincorporated areas. You have heard of the world as your oyster—that oyster is here.

Yes, we have natural beauty, a fantastic climate, beautiful sunsets, diverse communities and one of the most fertile, productive agricultural regions in the world. From a business and lifestyle perspective, let me give you more information to help drive your desire to maybe, just maybe, think about how you too can be part of this dynamic community. 

Follow with me as I take you through why you would contemplate doing business here: 

1.  Access to capital: California companies receive more venture capital investment than any other area in the U.S. 

2. Venture Capital: Over 45% of all U.S. venture capital raised in 2022 went to companies in California. In comparison, no other State received more that 13%

3. Leading businesses: Besides Tech, we also lead in huge agricultural, entertainment, and finance businesses 

4. Skilled workforce: We have extensive community colleges throughout the State with one of the most prominent State-run advanced learning educational systems in the U.S.

5. Diverse workforce: Many cultures speaking many languages support businesses locating here from anywhere globally

6. Supportive eco system: Professional organizations for incubators, accelerators and networking are open to supporting new business

7. Global influence: Los Angeles is the second largest consular community in the world next to New York—represented by 105 countries

8. Environmental sustainability: California leads the world in ensuring that the environment is protected through legislation that works with business and communities

9.  Infrastructure: California is the access to ports, airports, highways and support systems for logistics and distribution to enable global market reach

10. Port of Los Angeles: it the busiest seaport in the western hemisphere and the number one container port globally for 24 years

11. Innovative hubs: Rich in tech, research institutions, access to venture capital and investors leading to the support of entrepreneurship

12. Agriculture: Is one of the prominent elements of the State’s economy by leading the U.S. in production of fruits, vegetables, wines and nuts. 

13. Gastronomy: Follows a fabulous agricultural region so it isn’t a surprise that there are 87 Michelin star restaurants in the State—the most in the country.

"MAPLE® Business Council has been an important organization for Canadian companies to join and to be a part of the exploration and advancement of the California dream."

MAPLE® Business Council has been an important organization for Canadian companies to join and to be a part of the exploration and advancement of the California dream. As a result, Canada has been actively involved in the market to the extent that: 

• Canada is California’s #2 commercial partner with over $53 billion worth of 2-way trade annually.

• Canada has maintained its spot as the 4th largest source of Foreign Direct Investment (FDI) in Southern California through Foreign Owned Enterprises (FOE). 

• Canadian FOE’s comprise 900 Canadian companies providing close to 74,000 jobs. 

As it turns out Like anything else, achieving success and sustainablility requires careful planning, realistic expectations, risk management, a solid infrastructure, government approvals, and boundless energy. The good news is that success in this market is an expansion that may exceed your expectations. While your move into the California market is unique to your business, there are lessons learned from others successes and failures. 

"Personally, I have supported companies from Canada, China, Korea, Poland, UK, France, Italy and Argentina to either enter the U.S. market via California or supported them in their quest to enter the market." 

Personally, I have supported companies from Canada, China, Korea, Poland, UK, France, Italy and Argentina to either enter the U.S. market via California or supported them in their quest to enter the market. 

To cite a most recent example of a successful market entry, it is about a Korean company focused on the recycling of high-grade plastics. Less than 3 years ago, I began the feasibility study with the company to enter the market. After completing the business plan, the company decided to headquarter U.S. operations in California. Within 2 years and during Covid, all regulatory and business permits were secured to allow the company to move forward, equipment was installed, electrical upgrades were completed, hiring commenced and operations began. Today, the company is up and running and recycling plastics that would normally have gone to landfill. It has become a favored corporation by California businesses and government and is being rewarded with tax incentives, environmental grant programs and strategic partnerships in the waste management industry. Knowing how to navigate the political, regulatory and business environment gave the company the advantage to move to market very quickly by taking sound, experienced in-market advice.

Other companies that I have worked with to either enter or work in the California market include finance, technology, energy, aerospace, healthcare, food and beverage, and automotive to name a few.  Not all are success stories and not all were ready for market entry. Obviously, there are a number of reasons why companies bow out, but challenges do include high costs of living, strict regulatory rules, taxation and business costs that are higher than other States and the highly competitive consumer market. What is often overlooked, however, is the availability and access to capital and the State incentive programs that often can truly support entrepreneurialism, along with a business community that welcomes new players in the market.

California traditionally, and remains, a land of opportunity and an excellent destination for the creation of business. Everything is here! 
 

To share your comments or questions, please contact Cynthia at cynthiaacoulter@aleksandracorp.com. 

Cynthia Coulter, Managing Principal, Aleksandra Corporation

From Office Distress to Opportunity

Gene Garcia, Principal, Tax Compliance and Consulting Services, RSM US LLP

Author: Gene Garcia

Capital and debt markets and adaptive reuse
 
The continued struggle in the capital markets to resolve middle market commercial real estate (CRE) debt has necessitated new ideas for investment strategies, capital sources and debt stack solutions. The higher interest rate environment and inflationary pressures have led to increased demand for creative financing to help bridge the funding gap. Meanwhile, unprecedented discounts in the office market have opened the door to urban adaptive reuse strategies never before considered (or even thought possible), which may hold the key to revitalizing the CRE sector.
 
Urban adaptive reuse strategies take hold
 
While office values continue to plunge, urban adaptive reuse strategies to remake obsolete office space have taken hold as deals begin to make financial sense. Public subsidies to support affordable housing developers are spurring creativity around transforming vacant office space across the United States and Canada.
 
CBRE research for Q1 2024 showed nearly 70 million square feet of office space was undergoing conversion to other uses, with multifamily conversions accounting for nearly 63% and life sciences conversions 12%. Canada saw 870,000 square feet of competitive inventory leave the office market and enter conversion.
 
Urban cores with older office buildings have been hurt the most by the post-pandemic market shift around office demand, and we are now only starting to see the true impact on CRE values. The RCA commercial property price indexes, as reported by CBRE, measured a year-over-year decline of 16.6% for office space. While this is the national average, some markets flooded with supply and poor occupancy have seen discounts as high as 50% on commercial property values. A high-profile example is the Aon Center in downtown Los Angeles, which recently sold for 45% less than its last purchase price.
 
These discounts underscore the challenges facing the CRE market. The need for (and move toward) urban adaptive reuse can no longer be ignored, and innovation will be critical for commercial property owners and developers in pursuit of risk-adjusted returns that meet investor and tenant needs.
 
Office conversions by construction status and estimated year of completion
 

An evolving debt market

 
The regional bank stress resulting from plunging property values and held-to-maturity unrealized losses wreaked havoc on balance sheets and tightened lending for all commercial real estate. However, pending maturity wall concerns have waned somewhat as banks deploy the “extend and pretend” practice of modifying loans to avoid recognizing a loss. Mortgage REIT Q1 2024 earnings calls revealed how lenders are providing relief to borrowers, and included Arbor Realty Trust’s announcement that it successfully modified 40 loans totaling $1.9 billion with fresh capital.
 
In response to the CRE financing gap, new entrants to the private credit market have taken the industry by storm with historic amounts of capital sourced through private equity, family offices and life insurance companies. These private credit lenders understand the market and have capitalized on opportunities to lend to high-profile properties affected by the floating-rate debt service—e.g., by offering higher-rate but shorter-term loans in preferred positions with protections. For real estate borrowers, calculating one’s true cost of capital in this extended high-rate operating environment will make the difference between surviving versus thriving in this new real economy.
 

Dislocated-market opportunities

 
The market correction many have been waiting for has yet to materialize, as the market fundamentals for the sector remain strong. Property sales in this dislocated market have been a struggle due to pricing disparities resulting from historically low sales volumes and value uncertainty, which have slowed activity in the debt and capital markets.
 
Recent data from the RCA commercial property price indexes provides a good snapshot of the state of the CRE sector, including year-over-year changes and market peaks from 2022 and 2007. The data illustrates how the multifamily and industrial sectors have thrived in the last few years, powered by market dynamics, including the housing market shift from buying to renting and an increase in online shopping. 

U.S. commercial property price changes: How bad is it, really?*

Many commercial property owners continue to operate in a net cash flow position and have chosen to hold on to their assets rather than sell them at a 20% discount. The market opportunities around distressed debt have not materialized as expected, but we have seen deals happen off-market, with lenders and sponsors engaging in strategic acquisitions in the last 12 months.
 
Deal sourcing has primarily resulted from long-term relationships within the real estate network and has focused on cash-flowing assets that minimize downside risk. The players tend to be those that acquired properties in the last three years with floating rate debt and then were hit by inflating operating costs and the inability to capture higher rents. Time will tell if deal flow increases following Blackstone’s acquisition of Apartment Income REIT Corp., which could signal the bottom of the cycle as more big players see value in CRE’s long-term returns. 
 

The takeaway

 
While CRE owners and funds face multiple headwinds, from high interest rates to rising insurance costs, many industry players see an opportunity in the second half of 2024 to make investments. A historic level of dry powder remains on reserve as investors wait for creative strategies to provide risk-adjusted returns; understanding capital optimization through diversification will be key to success for the sector.
 
Gene Garcia is a principal, tax compliance and consulting services, to RSM US LLP’s real estate and construction clients. He was selected for the firm’s Industry Eminence Program in 2022 as a senior analyst covering the real estate and construction industries, working alongside the firm’s economists and other program participants to analyze industry trends shaping the landscape for middle market businesses. Gene is based in RSM’s Houston office. For more information, please visit https://rsmcanada.com/people/gene-garcia.html

Navigating Employment Law North of the 49th Parallel

Ted Flett, Principal Lawyer,  Zubas | Flett Law, Barristers + Solicitors, Toronto, Canada 

Author: Ted Flett

Later this month, I will join a couple dozen entrepreneurs on a California junket to secure and expand the lucrative American market. Admittedly, it’s a bit of a motley crew. Among us are a green battery manufacturer, an HR recruiter, a liquidator, marketing agencies and more. Divergent as our widgets and services are, what is common among us is that we are queer and Canadian.

Pounding the Pink Pavement
The trade mission is organized by the CGLCC, Canada’s 2SLGBTQ1+ Chamber of Commerce and meant to showcase some of Canada’s queer businesses ready to crack or expand into the USA. The CGLCC is a coalition of queer business owners and allies championing a more inclusive economy. 

"A 2021 national landscape study conducted by the Chamber with Deloitte estimates that Canada is home to over 100,000 queer-owned businesses which, in turn, employ over 400,000 Canadians and generate over $22 billion in economic activity."

Darrell Schuurman, CGLCC’s founder and CEO, created the Chamber to address the needs of Canada’s queer economy. “2SLGBTQI+ means big business,” says Schuurman. “However, our members still face barriers so we strategize and advocate towards a fairer playing ground.”

Schuurman relies on the numbers to make his case. A 2021 national landscape study conducted by the Chamber with Deloitte estimates that Canada is home to over 100,000 queer-owned businesses which, in turn, employ over 400,000 Canadians and generate over $22 billion in economic activity. Schuurman says that nearly half of his members have hidden their sexual orientation or gender identity to avoid losing opportunities, and more than a third say they have lost opportunities due to being LGBTQ+.

Loud and proud, the delegation will be pounding the pink pavement in Los Angeles and Palm Springs to identify prospects, gain market intelligence and, most especially, win business. Supported by three key federal government agencies, CanExport, the Trade Commissioner Services and Economic Development Canada, the Chamber fastidiously vets and prepares trade mission participants for a “best foot forward” approach. The primary event of the mission will be the NGLCC (USA’s National LGBT Chamber of Commerce) annual conference and trade show in Palm Springs.


Why Buy Canadian?
My “Why buy Canadian” pitch is directed to American corporations and organizations with boots on the ground – whether employees or independent contractors – in Ontario, Canada. Those employers require competent and cost-effective employment counsel to navigate the countless employment laws north of the forty-ninth parallel. The investment helps to avoid workplace disputes and foster a respectful, productive workplace that complies with the distinct laws of our jurisdiction.

Canada regards the relationship between employee and employer as highly significant; thus, heavily regulated. The importance was underscored by the Supreme Court of Canada, Canada’s highest Court. In a decision from 1987, then-Chief Justice Dickson, writing for the majority, wrote:

Work is one of the most fundamental aspects in a person's life, providing the individual with a means of financial support and, as importantly, a contributory role in society.  A person's employment is an essential component of his or her sense of identity, self-worth and emotional well-being.

"All too often, however, given the many cultural similarities between Canada and USA, I see employers south of the border make decisions from their American headquarters without consulting local counsel."

Opening an office or engaging workers in Canada can bring growth and opportunity for business. All too often, however, given the many cultural similarities between Canada and USA, I see employers south of the border make decisions from their American headquarters without consulting local counsel. My colleagues and I frequently advise and represent American companies focused on cross-border operations when a legal issue arises and they require local counsel. Examples of such client issues include (i) receiving an employee harassment complaint which triggers a statutory obligation to investigate, (ii) being served with a lawsuit for insufficient pay at termination of employment and (iii) being accused of discrimination on the basis of a protected ground from the Human Rights Code. The surprise often comes from applying an American sensibility to solve a Canadian legal problem and is often preventable. Square peg, round hole. Regrettably, we are often retained after the dispute has arisen where the lawyer’s focus becomes reducing the liability and containing the damages (ie money) rather than avoiding them entirely. 

Given the intricacies and ever-constant evolutions in Canadian employment law, prudent American employers ought to exercise caution and care in making workplace decisions relating to their Canadian operations. In my practice, I would much prefer the client who asks “What should I do?” in advance of a critical decision rather than “What the heck did I do?” once it’s too late.

It dismays me when an instructing client from the USA, deep in a thorny and sometimes expensive settlement negotiation to resolve an unexpected workplace dispute in Ontario, expresses regret for entering the Canadian market. The USA and Americans have a special place in my heart. The origins of the relationship run deep. With cousins in California with whom I forged memories when my family attended the 1984 Summer Olympics in Los Angeles and frequent trips to Orlando, Florida to visit Disney World, the USA became a special spot. And, of course, growing up in Hamilton, Ontario, barely an hour from the New York border, back-to-school shopping runs to Niagara and Buffalo were tradition. 

As a result, seeing the US-Canadian trade relationship crack, even at a micro level with my clients, stings. 

"...some American employers are fearful of Canada’s comparably more employee-friendly laws and protections. They have angst that, if Canadian operations are unsuccessful and need to cease or simply that an employee or worker is not the right fit, the employer cannot terminate the employment relationship without bags of cash."

At the opposite end of the spectrum, some American employers are fearful of Canada’s comparably more employee-friendly laws and protections. They have angst that, if Canadian operations are unsuccessful and need to cease or simply that an employee or worker is not the right fit, the employer cannot terminate the employment relationship without bags of cash.
 
However, contracts can be drafted and strategies can be implemented to reduce an employer’s liability while still respecting the employee or worker. 
 
The Devil is in the Details and the Proof is in the Caselaw
 
The benefits of local Canadian legal counsel to advise and advocate is evident in the caselaw. Recent decisions by Courts and tribunals are frankly helping to sell Canadian counsel. Pardon this author for briefly ‘geeking out’ on the jurisprudence that helps to underscore this premise.
 
In a 2018 trial decision out of the Province of Ontario called Raposo v CA Canada, a 39-year-old employee named Hugo Raposo commenced a wrongful dismissal claim against his employer, a subsidiary of a global IT management software provider corporation headquartered in the USA. The plaintiff argued that he was entitled to generous pay in lieu of notice of the termination of his employment and that the company’s employment agreement attempting to limit his entitlements at termination were unenforceable. Among his lawyer’s submissions regarding the allegedly unenforceable contract was ambiguity of the term “at will” in the agreement. Counsel submitted that the term is American and “commonly understood in Ontario to mean a termination without any notice or pay whatsoever.” 
 

"However, the defendant corporation surely spent thousands of dollars in legal fees and precious time to defend a poorly drafted Canadian contract that included an American legal term inapplicable in Canada."

Ultimately, the judge in Raposo was not persuaded by the plaintiff’s argument and the agreement limiting his entitlements at termination of employment was rescued. However, the defendant corporation surely spent thousands of dollars in legal fees and precious time to defend a poorly drafted Canadian contract that included an American legal term inapplicable in Canada.
 
A procedural decision from the Ontario Superior Court earlier this year called Maule v IBM Canada, the judge ruled that a plaintiff in a wrongful dismissal and discrimination claim against IBM Canada was able to enter evidence of the parent company - IBM USA – relating to mandates around promotion and termination, particularly of highly-paid older employees. 
 
While the allegations have not been proven in court – thus far the Court has only decided on the Defendant’s motion to dismiss – it is an important reminder that decisions from a US headquarters are not insulated and can be relevant and admissible in a Canadian action.

In Shearing v James Way Construction Inc, the issue decided in 2007 by the Ontario Labour Relations Board – an administrative tribunal – was if the overtime provisions of the Employment Standards Act, 2000 applied to work performed by the employee, Tony Shearing, in the USA. The employee helped to build fast food outlets for a construction business that was based in Kitchener, Ontario. The construction company periodically sent Shearing south of the border to build fast food outlets there. Thereafter, Shearing would resume his duties in Ontario. The Ontario Labour Relations Board found that the employee’s work in the USA was a continuation of his work in Ontario and thus he was entitled to overtime provisions under the Ontario act for work conducted in the USA.

These cases illustrate the distinct liability that American employers can assume when entering the Canadian market and underscore the necessity of counsel familiar and current with Canadian employment law. In my own practice, I have had the satisfaction of witnessing American clients fully converted to the practice of relying on sound legal advice at critical workplace decisions.  
 
Competent lawyers can significantly help American employers to avoid breaches and contain legal issues, thereby protecting Canadian workers while cementing Canada’s role internationally as a great place to do business.

For more information, please visit the Zubas | Flett Law website at https://www.employment-lawyers.ca/

Ted Flett is the Principal Lawyer at Zubas Flett Law Barristers and Solicitors. He advises and represents employers on the full arc of the employment relationship, from hiring to firing. Ted has appeared before the Ontario Human Rights Tribunal, Superior Court of Ontario and Ontario Court of Appeal. 
 

Air Canada Expands Flight Offerings and Connectivity Options

Author: Alfredo Hurtado, Director of USA Sales, Air Canada

Air Canada is focused on providing customers with more connection options and seamless connectivity through its global hubs, as the airline experiences continued demand for business and leisure travel.
 
With the summer season approaching, Air Canada is ramping up its flight offerings, providing travellers with more opportunities to explore destinations across Europe, Asia and North America. The airline’s strategic moves aim to capture additional passenger traffic, enhance connectivity, and balance out traditional seasonal fluctuations in travel demand.
 
Air Canada’s network expansion efforts involve increasing its schedule by adding new destinations. By doing so, the airline aims to attract more passengers and provide convenient travel options. Notably, Air Canada has focused on June due to changes in the U.S. school year calendar, making it an opportune time for increased travel.
 
The joint ventures Air Canada has established with United Airlines and Lufthansa have been instrumental in expanding route options for customers. By collaborating with these Star Alliance carriers, Air Canada has broadened their network to offer more routes, benefiting travellers seeking diverse destinations.
 
Air Canada continues to put an emphasis on sixth freedom traffic passengers connecting through its hubs. The airline’s strategic network design captures this traffic, helping mitigate seasonal fluctuations, and seeks to provide growth opportunities in passenger numbers and revenues year-over-year. Travellers can look forward to simple and efficient connections as they travel through Canada to their final international destinations, including same terminal connections at Toronto (YYZ), Montreal (YUL), Vancouver (YVR) and Calgary (YYC), no need to recheck baggage, customs preclearance while travelling back to the U.S. from an international destination through Canada, and shorter elapsed trip times between North America and Europe or Asia.
 
Corporate travel remains steady, particularly in North America, where a significant portion of Air Canada’s traffic originates. The airline’s well-established routes and reliable services make it a preferred choice for business travellers. Air Canada offers a range of tools, services, offers, and exclusive advantages for member business and corporate travellers.
 
Air Canada recently launched a new route connecting Vancouver and Singapore. The inaugural flight marked an expansion of the airline’s services in the Asia Pacific region, a move that benefits leisure and business travellers, enhancing connectivity between Canada and Southeast Asia. Travellers can connect to other destinations across Southeast Asia like Vietnam, Indonesia, Malaysia and Philippines, operated by Star Alliance partner Singapore Airlines. Additionally, Air Canada offers non-stop service from Vancouver to other sought out destinations in the region, such as Australia year-round and Bangkok seasonally.
 
Recognizing growing demand domestically, Air Canada has significantly increased its service to Ottawa. Travellers in the Canadian capital now have more flight options, improving accessibility and convenience. The airline will be offering up to 30 additional weekly flights this winter compared to 2023, in addition to extension of year-round flights to Calgary and Winnipeg, and additional capacity to Quebec City, Halifax and Vancouver. The expansion aims to meet the needs of passengers in the Ottawa region.
 
Air Canada’s premium products, such as business class and premium economy, have significantly contributed to top class customer comfort and flying experience. These offerings cater to travellers seeking enhanced comfort and services, Air Canada Signature Class, the airline’s end-to-end premium travel experience, is available on select international and transborder flights, offering premium amenities and services, and lie-flat pods in a dedicated cabin onboard. Customers can look forward to enhanced food and beverage options inspired by the airline’s culinary panel, including a four-course meal with rotating recipes, all infused with globally inspired flavours.
 
Air Canada’s proactive approach to network expansion, joint ventures, premium offerings, and targeted service enhancements positions it well for a successful summer season. Whether you’re planning a leisure trip or a business journey, Air Canada continues to be a consistent choice worldwide for travellers seeking best in class comfort and service. 

For more information, please visit the Air Canada website.

Alfredo Hurtado, Director USA Sales, Air Canada

The Business Case for Digital Accessibility

Author: Paul Awede, Accessibility Engineering Practice Lead, QA Consultants 

Digital accessibility refers to the practice of ensuring digital content, services, and technologies are usable by everyone, including people with disabilities. Did you know that over one billion of the world’s population has a legally recognizable disability? (World Bank Disability Inclusion Overview) In a world increasingly reliant on digital platforms and technologies, ensuring accessibility is not just a matter of compliance but also a fundamental aspect of inclusivity and equity. Yet less than 3% of the world’s websites are considered fully accessible by Web Content Accessibility Guidelines (WCAG) 2.0 standard. (The WebAIM Million)

The Essence of Accessibility

Accessibility is not just about compliance with standards and regulations or fancy features; it's about creating digital experiences that are truly inclusive and equitable for all users. While embracing accessibility design is a commitment every organization should embrace, the practice has abundant business use cases and benefits.

1) Empowerment: Accessible digital technologies empower people with disabilities to participate more fully in society, enabling them to access information, communicate, and engage with others on an equal basis. It empowers people of all abilities to fulfill their purpose, achieve their goals, provide for themselves, and support their independence.

2) Universal design: Accessibility benefits everyone, not just people with disabilities. For example, captions benefit not only deaf and hard-of-hearing individuals but also those in noisy environments or non-native speakers. There are both individual and organizational benefits to embracing accessibility.

3) Legal and moral imperative: While legal requirements and regulations vary by country, promoting digital accessibility is not just a legal obligation but also a moral imperative. Ensuring equal access to digital resources is essential for upholding human rights and fostering social inclusion. Some municipalities have even mandated and regulated digital accessibility, establishing minimum standards that organizations need to meet to be in compliance. Inaction in terms of digital accessibility can be very damaging to an organization’s reputation and costly to the bottom line with lost revenue, legal fees, and more.

4) Business advantages: Embracing accessibility can also be a strategic business decision. By making products and services more accessible, organizations can expand their customer base, improve customer satisfaction, and enhance their brand reputation.

Some of the benefits include:

a) Enhanced brand: Websites and online products are by far the most important organizational digital assets. An accessible web application will reach beyond the people who depend on that accessibility and give everyone who encounters it the sense that your organization strives to be inclusive. In Microsoft’s case, after taking a strategic approach to accessibility design, the improvements in products, the online consumer experience, and engagement with stakeholders strengthened its brand image overall.

b) Cost advantages: The myth that accessible websites cost more money to develop is just that – a myth. Designing and developing a truly accessible website does require the expertise of accessibility specialists and testing, but organizations who make the upfront investment usually see immediate financial returns. “Some aspects of accessibility, such as the use of style sheets, can actually reduce the costs of maintaining or updating sites, and this benefit should increase over time,” according to The Web Accessibility Initiative (WAI). Designing accessible websites up front also cost exponentially less money than trying to retrofit a website after launch. Digitally accessible web applications are easy to use and usually have higher traffic, resulting a noticeable growth in revenue. Accessibility strategies also reduce server load, which lowers the amount of server capacity and costs.

c) Relevancy: People prefer to interact with accessibility features because they are easy to use and easy to understand. Accessibility ensures that a wide range of people can effectively use websites and apps, helping brands' reach and relevance in the marketplace.

d) Improved search engine results: Search engines utilize search engine spiders to crawl, index, and rank pages within websites. Designing with accessibility in mind makes websites more compatible with these automated tools, resulting in better organic rankings and results. In NPR’s case, its “The American Life” broadcast, which reaches 2.1 million listeners weekly, increased its search traffic by nearly 7% simply by incorporating transcripts on their pages.

e) Increased market share: According to the World Health Organization (WHO), about 16% of the world’s population has a disability, of which 31% require digitally accessible products and experiences. For organizations that embrace digital accessibility, this equates to a substantial untapped audience, especially considering consumers who abandon websites due to accessibility challenges have an estimated spending power of $15.38B USD.

f)  Competitive advantage: Accessible websites reduce risk, improve time to market, and create a well-defined competitive edge over competitors. Gartner – an international research and data analysis consultancy – indicates that being accessible can improve your Total Available Market (TAM) from 15% - 46%. Furthermore, having non-accessible websites subject organizations to litigation, which averages $100,000 per claim. In 2020 alone, Accessibility.com reported there were 2,058 website accessibility lawsuits filed and 265,000 demand letters sent.

g) Brand differentiation: Consumers of varying abilities intentionally seek organizations who practice accessibility – online and offline. In fact, they will intentionally engage with more accessible website alternatives. In the Nucleus Research study in 2019, it found “U.S. retailers may be losing up to $6.9B annually to their competitors with more accessible websites.”
 

Why is Digital Accessibility Important?

Digital accessibility is not just a matter of compliance; it's about creating inclusive and equitable digital experiences that benefit everyone. In this section, we'll explore why digital accessibility is crucial, focusing on two key aspects: Enhancing User Experience and Government and Regulatory Mandates.

Enhancing User Experience

1. Inclusivity: Digital accessibility ensures that all users, regardless of their abilities, can access and interact with digital content and services. By removing barriers to access, organizations can reach a broader audience and foster a sense of inclusivity and belonging.

2. Improved Usability: Accessible design principles, such as clear navigation, consistent layout, and alternative text for images enhance the usability of digital products and services for all users. By making interfaces intuitive and easy to use, organizations can improve user satisfaction and retention.

3. Accessibility Features Benefit Everyone: Many accessibility features, such as captions, transcripts, and keyboard navigation, benefit not only users with disabilities but also users in diverse situations. For example, captions are helpful in noisy environments or for non-native speakers, while keyboard navigation is essential for users with motor impairments and power users who prefer shortcuts.
 

Government and Regulatory Mandates

1. Legal Obligations: Governments around the world have enacted laws and regulations requiring digital accessibility to ensure equal access to information and services for people with disabilities. For example, in the United States, Section 508 of the Rehabilitation Act mandates that federal agencies make their electronic and information technology accessible to people with disabilities. Similarly, the Americans with Disabilities Act (ADA) prohibits discrimination on the basis of disability and applies to digital services provided by places of public accommodation.

2. International Standards: International standards, such as the Web Content Accessibility Guidelines (WCAG) developed by the World Wide Web Consortium (W3C), provide guidance on making web content more accessible. While compliance with WCAG is not legally mandated in all countries, it is widely recognized as the de facto standard for web accessibility and is often referenced in legal settlements and regulatory requirements.

3. Risk of Litigation: Non-compliance with accessibility standards can expose organizations to legal risks, including lawsuits, fines, and reputational damage. As awareness of digital accessibility grows, stakeholders, including advocacy groups and individuals with disabilities, are increasingly scrutinizing organizations' digital properties for accessibility compliance.

Digital accessibility is important for enhancing user experience, reaching a broader audience, and ensuring compliance with legal and regulatory requirements. By prioritizing accessibility, organizations can create more inclusive digital experiences and mitigate legal risks associated with non-compliance. 

Ultimately, digital accessibility is about recognizing the diversity of human abilities and experiences and designing digital experiences that are inclusive, equitable, and empowering for all users. By embracing inclusive design principles and understanding the essence of accessibility, a more accessible and inclusive digital world can be created for everyone.

For more information on QA Consultants and their digital accessibility services, please visit their website. 

Paul Awede, Accessibility Engineering Practice Lead, QA Consultants, Toronto, Ontario, Canada

Riverside County: Where You Create Your Own Venture

Author: Kimberly Wright, Economic Development Manager, Riverside County Economic Development Department

Spanning a vast 7,303 square miles, Riverside County is a hotspot for business and innovation. Nestled conveniently close to economic giants like Los Angeles and San Diego counties, as well as major ports, businesses in Riverside County benefit from its strategic location. The county doesn't just rely on its location; it thrives thanks to a skilled workforce, with many graduates from the region’s 18 colleges and universities. Businesses may benefit from a host of supportive programs—from state tax incentives and startup assistance to expert guidance—that make it an ideal place for companies to expand.
 
Many top-tier companies have selected Riverside County for critical operations. The local economy is impressively diverse, stretching from tourism—with gems like Temecula Valley Wine Country and Greater Palm Springs —to industries such as education, automotive manufacturing, healthcare, and aerospace.
 
Riverside County also has a rich history of innovation, starting with the cultivation of the famous California Navel Orange that transformed the citrus industry over a century ago. Today, that innovative spirit is alive and well. The county buzzes with investors, visionaries, and entrepreneurs, all drawn by its thriving ecosystem of Innovation Centers.
 
The county's commitment to innovation doesn't stop there. It's a leader in Clean Energy, Health Tech, Life Sciences, AgTech, and Climate Tech, supported by nine innovation centers and the University of California, Riverside (UCR), the region’s only top-tier research and development institution. This blend of cutting-edge facilities and a dynamic tech ecosystem positions Riverside County as a frontrunner in innovation.
 
Riverside County is on the move, experiencing rapid growth, from 2017 to 2022, Riverside County’s Gross Domestic Product (GDP) grew by 37.2%. Since 2017, GDP from professional, scientific, and technical services have increased by 40.1% and all private industries have grown by 40.9%. This made Riverside County the fourth fastest growing large county in California and spells opportunity for entrepreneurs eager to push the boundaries of their businesses. The local tradition of research and excellence, fostered by universities and innovation centers, fuels the business ecosystem and drives job creation. 
 
More than just a place to reside, Riverside County is a community where you can innovate, grow, and lead. With a steadfast commitment to creating a supportive and vibrant environment for businesses, it continues to shine as a beacon of innovation and economic vitality.
 
For more information about Riverside County and the Riverside County Office of Economic Development, please visit and explore these links: 
Riverside County
Riverside County Office of Economic Development
Demographics Portal
Riverside County Innovation.

Kimberly Wright, Economic Development Manager, Riverside County Economic Development Department, Riverside, California 

Developing the North American Hydrogen Market - Supporting Demand

Author: Janet Howard, Partner, Fasken Martineau DuMoulin LLP,  Regional Leader of Fasken’s global energy and climate group and co-founder of the firm’s hydrogen energy advisory team.

You can’t see it, smell it, or taste it.  But can you hear the buzz?  

It can be grey, blue, green, pink, turquoise or white. It can travel as a gas by road, as a liquid by pipe, or as ammonia by ship.  It can be made from electricity. It can also make electricity. It is a carrier of energy. It is a storer of energy. It is not a battery, but it can help make them. It can be converted to derivatives, it can be used as a feedstock, it can generate heat and steam. It is not a source of energy, but it can be used as a source of power.  

Its versatility is its value.

Hydrogen is the simplest possible molecule (two protons and two electrons). Hydrogen can only exist by bonding to another hydrogen, a strategic partnership in its purest form.     
      
Production Side of the Market  

Economic production at scale is key.  Efforts are underway. North American governments have developed national and local level hydrogen strategies, deploying significant financial support and incentives. 

A production tax credit in support of U.S. project provides up to U.S.$3 per kg of hydrogen produced with low lifecycle greenhouse gas emissions. An investment tax credit in support of Canadian projects provides U.S.$12.6 billion to cover 15%-40% of an eligible project’s costs, based on life cycle carbon intensity.  Note the focus on the carbon intensity of the hydrogen and not the colour.      

It’s a lot of funding, a lot of focused effort, a lot of wrinkles that will be ironed out - notably those relating to additionality, time-matching and geographic correlation, at the moment.  
 

"With over 80 hydrogen production projects in various stages of development across Canada, clean  hydrogen production capacity could reach five million metric tonnes (Mt) per year. In the U.S. clean hydrogen production is expected to scale to 10 million Mt per year by 2030, 20 million Mt per year by 2040 and 50 million Mt per year by 2050."

With over 80 hydrogen production projects in various stages of development across Canada, clean  hydrogen production capacity could reach five million metric tonnes (Mt) per year. In the U.S. clean hydrogen production is expected to scale to 10 million Mt per year by 2030, 20 million Mt per year by 2040 and 50 million Mt per year by 2050. Globally, hydrogen production is expected to increase to 110 million Mt per year by 2030 and to 240 million Mt a year by 2040. (One Mt = 1,000 kg).  

It’s a lot of hydrogen - coming soon to a pipe or pump near you, hydrogen produced by natural gas, biomass, wind, solar, hydro, and eventually nuclear power.

Time now to shift the focus from production to the next steps necessary to develop the North American market.  

Who is going to buy all of this hydrogen?   

Demand Side of the Market

Demand is there.  The offtake agreements are not.  

Not a half bad position to be in considering that hydrogen markets have been slow to develop in the past on the basis that demand was uncertain and so production did not follow. This time appears to be different.

Incentives to Drive Down Price

What is needed to encourage buyers to sign offtake agreements to purchase the hydrogen? Likely, the right price and the right price may depend on who is purchasing and for what end use purpose.  

As a starting principle, the price of hydrogen competes with the price charged for conventional carbon emitting fuels (diesel, oil, and natural gas). In most cases the cost of hydrogen needs to be less expensive than these conventional fuels.   

In certain circumstances, a premium paid for hydrogen can be tolerable for some buyers, if the cost they pay for fuel in their business is a small enough line item in their budget.  If the business happens to be focused on decarbonizing its operations– all the better.

Increasingly, in certain cases the cost of hydrogen will also start to compete with the cost of electricity. As businesses seek to decarbonize through “electrification” the costs of electricity will come into play when assessing the costs incurred to run and charge an electric battery. If a business can get hydrogen more cheaply than it can acquire electricity, there will be an incentive to buy and secure supply. 

"It is estimated that the U.S, production tax credit could represent a 50-70% reduction in the cost of green hydrogen production in the U.S."

It is estimated that the U.S, production tax credit could represent a 50-70% reduction in the cost of green hydrogen production in the U.S. Assuming those savings can and will be passed along to the purchasers of the hydrogen, that’s a great start. Direct funding is a helpful next step.

The US Department of Energy has announced the award of U.S.$750 million in grants to 52 hydrogen projects across 24 U.S. states in an effort to drive down the cost of producing clean hydrogen.  More than 60% of the U.S.$750 million has been allocated to electrolyzer and fuel cell manufacturing with U.S.$316 million going to eight electrolyser manufacturers and U.S.$150 million to five projects scaling up fuel cell production.

In markets where government funding may not be as prevalent, there are impactful alternatives.  Electric utilities could reserve and allocate a portion of the electricity available from clean grids for industrial production at a fixed rate for a long term. Interruptible rate pilot projects are under evaluation in the Province of Ontario.

The use of contracts for difference, can also be effective in markets where a price is charged for carbon emissions. The Canada Growth Fund (CGF) has a mandate to use contracts for difference to de-risk investments in technologies or projects that reduce emissions and generate carbon credits. Through a carbon credit offtake agreement, the CGF purchases these carbon credits for a fixed price and a specified term. The first carbon contract for difference involved the CGF’s purchase of up to 185,000 tonnes per year of carbon credits for 15 years at a precedent setting price of Cdn$86.50 per tonne (Cdn$16 million per year and Cdn$240 million in total).

Incentives to Encourage End Use

As noted above, hydrogen is a very versatile molecule and can be used in several different applications.  Some end uses will be more accessible and make more financial sense early on, compared to end uses that might make the most sense, but take longer to develop.   

"Hydrogen is very light and can therefore carry more energy per unit of weight. These attributes position the molecule very well to decarbonize heavy industry and hard to abate sectors (heavy transportation, oil and gas refining, steel and cement making)."

Hydrogen is very light and can therefore carry more energy per unit of weight. These attributes position the molecule very well to decarbonize heavy industry and hard to abate sectors (heavy transportation, oil and gas refining, steel and cement making). These applications will require a significant and steady supply of hydrogen on a 24/7 hour basis that is not readily available at the moment.    

In the interim, as supply comes online and starts to scale, other applications might make more immediate financial and practical sense. For example, industry has safely used grey hydrogen for decades in applications including petroleum refining, aerospace applications, semiconductor manufacturing, pharmaceuticals, fertilizer production, glass purification and for the welding, annealing, and heat-treating of metals.  Replacing the use of grey hydrogen with clean hydrogen in these conventional applications could be low hanging fruit.  

Where else could we start?    

Anything that currently runs on diesel could be converted to run on clean hydrogen. Think trains, planes, freight and delivery trucks, cement trucks, fire trucks, garbage trucks, tractors, military vehicles, buses, boats, ferries, barges, snowmobiles, generators for portable power, equipment used in construction, farming, and mining.    

Hydrogen can also be used for heating. Several gas utilities are already starting to blend hydrogen into their natural gas pipelines- usually starting at 5%, working their way towards 15% with a view towards 25%.  Hydrogen boilers, similar in size to conventional ones, can be designed to burn both hydrogen and natural gas for heating.

There is potentially a lot of equipment that needs to be replaced so it can run or be powered by hydrogen. Government rebate programs to encourage its purchase could fast track development and deployment.  

Hydrogen can also enable the production of hydrogen derivates such as methanol, ethanol, sustainable aviation fuel, ammonia and kerosene which can be used in both industry and transportation.  

Incentivizing the production of e-fuels can address both the demand for green fuels and certain environmental concerns.  The requirement for CO2 in the production of certain e-fuels creates the opportunity for CO2 to be captured directly from the atmosphere from various industrial sources such as power plants or as a byproduct in biogas production. Government’s use of clean fuel standards has been helpful in generating momentum. 

Hydrogen itself and the oxygen generated from splitting water through the process of electrolysis can be used as feedstocks in certain industrial process including those directed towards manufacturing green steel, green iron ore and green cement.   If certain business is not yet ready for the hydrogen, initial offtakes for the oxygen may be of interest.  Oxygen is also used in the manufacturing of steel and in other industries, including  agriculture (for fish farming and wastewater streams) and healthcare (to treat respiratory illness).  

There is a lot of equipment that will be needed to produce the hydrogen.  

"In Canada, investment tax credits have been provided for clean technology and the manufacturing of clean technology that are needed to produce hydrogen, increasing supply and lowering costs."

In Canada, investment tax credits have been provided for clean technology and the manufacturing of clean technology that are needed to produce hydrogen, increasing supply and lowering costs.

In the U.S., the Department of Energy’s Hydrogen and Fuel Cell Technologies Office is focused on developing technologies that can produce hydrogen at U.S.$2/kg by 2026 and U.S.$1/kg by 2031 in support of the Hydrogen Energy Earth shot goal of reducing the cost of clean hydrogen by 80% to U.S.$1 per 1 kg in 1 decade (1 1 1).

Incentives to Develop Hydrogen Supply Chain 

Once produced, hydrogen is expensive to transport to get it to end use purchasers.  Until more is done to encourage the development of a reliable and steady supply chain of hydrogen, initial end use scenarios will be limited. Until then, hydrogen production projects will be constructed close to end users.

To enable transportation across shorter distances (by road) in a gaseous state, compressors and tube trailers are needed.  

For transportation across longer distances (by road, rail, or pipeline) in a liquid state, liquefaction facilities to convert hydrogen gas to a liquid, by cooling it (below −253°C/−423°F) and cryogenic tanker trucks and rail cars will be required. 

For transportation across longer distances (by rail or pipeline) in its gaseous state, conversion coatings, fiber reinforced polymer, austenitic stainless steels, and austenite-based alloys to help battle hydrogen embrittlement. 

Hydrogen will be on the move.  But to where?   

Refuelling stations will be needed.  Avoiding the creation of stranded assets will be critical for success.

"The U.S. has allocated significant funding to support the demand side of the market by focusing support on the creation of regional hydrogen hubs.  In October 2023, the U.S. Department of Energy announced the investment of U.S.$7 billion to catalyze nearly U.S.$50 billion in hydrogen investments across 7 selected regional clean hydrogen hubs across the United States."   

The U.S. has allocated significant funding to support the demand side of the market by focusing support on the creation of regional hydrogen hubs.  In October 2023, the U.S. Department of Energy announced the investment of U.S.$7 billion to catalyze nearly U.S.$50 billion in hydrogen investments across 7 selected regional clean hydrogen hubs across the United States.   

Ports will also be constructed for hydrogen’s export.  Likely in the form of ammonia from the East coast to European markets and from the West coast to Asian markets.  Liquefied hydrogen shipped from central Canada (perhaps from a deep water port in Manitoba) to Canada’s North might make more sense than ammonia, from an ecological perspective, to power remote communities not yet tied to the grid and in support of efforts to secure North American borders.  

Carrots and Sticks vs RED III

Approaches used in the United States compared to those used in Canada to incentivize the development of the hydrogen market are often compared with reference to carrots and sticks.  

The U.S. approach is largely based on the offering of significant funding to encourage change through  innovation, adoption, and transition.  

In Canada, greater reliance is placed on a system which imposes a price to be paid in connection with the emission of carbon, encouraging change through means to avoid costs which would otherwise be incurred.

The European Union has recently proposed a Renewable Energy Directive (RED III), effectively signing green energy targets into law, imposing mandates for industry and transport to use an increasing share of green energy.  The new directive includes a requirement for industries such as ammonia and chemicals production, oil refining and green steel for at least 42% of their hydrogen use to be renewable by 2030, increasing to 60% by 2035.

Export opportunities (for molecules and the technology needed to produce them could become abundant).  While there is an argument that the development of a robust export market facilitates the development of a domestic market, the demand side in North America will need to keep pace to be in a position to purchase when supply comes online.

Janet Howard is regional leader of Fasken’s global energy and climate group and co-founder of the firm’s hydrogen energy advisory team. She has a corporate transactional practice with a specialized focus in the areas of renewable energy and natural resources. Janet provides strategic advice to clients engaged in domestic and international corporate finance, merger and acquisition and private equity transactions. For more information, please visit https://www.fasken.com/en/janet-howard

Janet Howard, Partner, Fasken Martineau DuMoulin LLP,  Regional Leader of Fasken’s global energy and climate group and co-founder of the firm’s hydrogen energy advisory team.

Ontario Canada: Pioneering the Future of AI and Innovation

Author: Ontario International, Trade & Investment Offices in California and New York.

As Canada’s largest and most economically robust province, Ontario is once again leading the charge in economic growth and innovation. Across the province, dynamic Artificial Intelligence (AI) ecosystems cultivate opportunities for global investment.

"The unique triple helix model partnership between the provincial and federal governments, industry and academic institutions has been a unique dynamic shaping the world leading AI ecosystem in Ontario."

The roots of AI in Ontario run deep, spanning over three decades to the groundbreaking work of Geoffrey Hinton, the esteemed scientist from the University of Toronto who pioneered neural nets. ​Today, Ontario stands proudly at the epicentre of an AI-enabled future, boasting over 400 AI firms and institutions actively shaping a better tomorrow. This momentum is not serendipitous but rather fueled by substantial investments driven by world leading AI research from provincially funded educational institutions such as the University of Toronto, consistent provincial and federal investments in AI, along with industry investments in AI. The unique triple helix model partnership between the provincial and federal governments, industry and academic institutions has been a unique dynamic shaping the world leading AI ecosystem in Ontario.
 
Critical Technology Initiatives: Accelerating Ontario’s Innovation Drive
 
In 2022, Ontario strategically injected over $106 million CAD into vital technology initiatives geared towards driving economic growth. Central to this funding is the Critical Technology Initiative (CTI), a program designed in collaboration with not-for-profit organizations to advance technology development, commercialization, and adoption across key sectors crucial to Ontario’s future, including AI, quantum, blockchain, cybersecurity, and robotics. 
 
The CTI program tactically channels funding to multiplier-type institutions such as the Vector Institute and the Ontario Centre of Innovation (OCI), alongside Ontario Vehicle Innovation Network (OVIN) and 17 Regional Innovation Centres(RICs), all of which play a key role in enhancing the potential of high-growth companies. 
 

"Additionally, through the OCI, the province has accelerated industrial innovation with the launch of the Critical Industrial Technologies Initiative (CIT). This initiative is dedicated to integrating critical technologies such as AI, blockchain, and quantum into key sectors to help foster further advancements."

Additionally, through the OCI, the province has accelerated industrial innovation with the launch of the Critical Industrial Technologies Initiative (CIT). This initiative is dedicated to integrating critical technologies such as AI, blockchain, and quantum into key sectors to help foster further advancements. For example, the Ontario Bioscience Innovation Organization (OBIO) will receive up to $9.7 million CAD to facilitate the adoption of critical technologies in the life sciences sector and improve sector competitiveness, while $14.9 million CAD will be  allocated to the Waterloo-based Quantum Valley Ideas Lab (QVIL) to accelerate quantum science development and focus on growing Ontario’s talent in quantum technology.

These strategic partnerships and investments have yielded promising economic returns, totaling $13.9 billion CAD in investments over the last three years. 
 
Ontario’s Diverse AI Landscape: From Startups to Global Leaders

Ontario’s AI activity is anchored around the ‘Vector Institute’ and Toronto-Waterloo’s booming AI hub with the highest concentration of AI startups globally enabling automated analysis of med-imaging, real time decisions across all sectors, high efficiency communication, smart sensors, smart mining, live translation, speech recognition etc.
 
Ontario has transformed into a world leading AI hub of talent with 1,503 AI Masters enrollments and 1050 AI Masters graduates in 2022. This in-demand talent pipeline provides essential AI skills to 1,750 AI and AI-related technology companies that have created 20,634 high-paying jobs Ontario-based AI firms are also making significant strides in the self-driving car industry. Waabi Innovation Inc., founded by Uber’s former self-driving car lead and University of Toronto professor Raquel Urtasun, has developed an AI brain and a virtually simulated world to expedite the testing of self-driving cars. 
 
In addition to Ontario enterprises, multinational Bosch, Sanofi, Roche, Cerebras, NVIDIA, LG, Autodesk, Meta, Google Brain, Samsung, Adobe, Fujitsu, EtsyM Unilever, etc. launched AI Centres of Excellence or AI Labs in Ontario to scale innovative solutions. NVIDIA, for instance, houses a Toronto AI lab dedicated to research in computer vision, graphics, and machine learning, collaborating closely with the Vector Institute to push the boundaries of AI research. Similarly, Google has partnered with the University of Toronto and Vector to build its Google Brain facility in Toronto, reaffirming Ontario’s global leadership in AI innovation.
 
Tech Innovation Hotspots: Toronto-Waterloo Corridor and Beyond

These investments have cemented Ontario, particularly Toronto, as a premier global hub for AI innovation. In fact, last year, commercial real estate services and investments group CBRE ranked Toronto fifth in North America for its allure to companies seeking tech talent and employment opportunities for tech workers.
 
While Toronto remains a magnet for AI companies, other Ontario cities have also been experiencing remarkable growth in the sector. Ottawa, ranked #2 in Canada for overall tech talent and #10 across North America, boasts an even higher concentration of tech talent than Silicon Valley – a whopping 11.6 percent of all jobs in the market. Invest Ottawa’s IO accelerator program has also played a pivotal role in nurturing early-stage tech ventures, such as fundmore.ai, which utilizes machine learning to streamline the pre-funding process for loans. 

Further west, Waterloo Region ranks as the fifth highest concentration of tech talent in North America. The Waterloo AI Institute, a joint venture between the University of Waterloo faculties of engineering and mathematics, has over 230 researchers driving innovation across various fields, from disease detection and treatment to vehicle navigation. Additionally, the University is a key partner in the $290 million CAD SCALE.AISupercluster, an industry-led consortium dedicated to boosting Canada’s leadership in applied AI.
 
Nurturing Talent: Ontario’s Investment in Human Capital

"Ontario boasts the largest IT talent pool in Canada, with over 420,000 skilled workers, representing nearly half of the nation’s workforce in the industry."

Ontario boasts the largest IT talent pool in Canada, with over 420,000 skilled workers, representing nearly half of the nation’s workforce in the industry. With 71 per cent of adults holding post-secondary education credentials and approximately 65,000 STEM graduates entering the job market annually, Ontario offers a robust talent pipeline for tech companies. 
 
To further support job growth and talent development, Ontario has implemented innovative programs such as the Skills Development Fund and the Canada-Ontario Jobs Grant. These initiatives provide direct financial assistance to employers for workforce training, ensuring that businesses have access to the skilled professionals they need to thrive. Additionally, the Micro-credentialing Strategy program enables workers to upgrade their skills for in-demand jobs, while the Ontario Online Learning Consortium (OOLC), also known as eCampusOntario, facilitates online learning opportunities, including specialized courses in AI and other emerging technologies.
 
Driving Research and Innovation: Ontario’s Tech-Forward Approach
 
Over the next three years, Ontario is slated to invest $18 million CAD into bolstering the province’s Advanced Research and Computing (ARC) facilities, ensuring they adequately meet the burgeoning storage and computational demands for AI research and other critical technologies. Additionally, a substantial allocation of $47.4 million CAD will be directed towards modernizing aging ARC systems at prominent institutions such as the University of Toronto (Niagara Supercomputer) and the University of Waterloo (Graham Supercomputer). These systems play an indispensable role in driving technological innovation, providing crucial support to thousands of researchers, facilitating the development of numerous patent applications, and catalyzing the launch of countless tech startups. 
 
The Current AI Landscape: Ontario’s Economic Surge

"According to Vector Institute’s latest Ontario AI Snapshot, the province has witnessed the creation of 22,458 AI-related jobs, with over a third offering salaries exceeding $85,000 CAD per annum."

According to Vector Institute’s latest Ontario AI Snapshot, the province has witnessed the creation of 22,458 AI-related jobs, with over a third offering salaries exceeding $85,000 CAD per annum. This signifies a remarkable 210 percent increase compared to the previous year. Investment in Ontario AI experienced a substantial surge in 2021-22, with venture capital inflows reaching $2.86 billion CAD, marking a staggering 206 percent increase from the preceding year. Furthermore, during this period, 50 companies chose to relocate their operations to Ontario, highlighting the province’s appeal as an AI destination. 

Ontario represents a compelling market opportunity, with 51 percent of business executives acknowledging the pivotal role of AI in achieving their objectives and incorporating formal AI strategies into their business plans. Additionally, 56 percent of Ontario companies currently offer AI products or services, while an additional 44 percent plan to integrate AI in some capacity over the next two years.

Looking Ahead: Ontario’s Path to AI Excellence
 
Ontario’s commitment to AI innovation, coupled with its abundant talent pool and conducive ecosystem, positions the province as a global frontrunner in AI-driven technology. With ongoing investments and collaborations from both publicand private sectors, Ontario is primed for sustained economic growth and technological breakthroughs within the AI domain. Whether it’s optimizing road systems or revolutionizing legal document extraction technology, Ontario continues to lead the charge as one of North America’s foremost hubs for AI and technological advancement. 

Remote Hiring Trends of Canadian Companies

Author: Azhar Janjua, Head of Communitech Outposts, Kitchener, Ontario 

The world is changing fast and the technology sector remains dynamic. New challenges and opportunities pop up all the time and companies are constantly adapting.  

Leveraging the Work in Tech job board*, Communitech Outposts has been keeping a close eye on remote hiring trends of Canadian companies, especially for companies looking to tap into the U.S. market.
 
We noticed some interesting shifts in 2023 and into the early part of 2024, highlighting a strategic move in remote work dynamics and preferences for hiring based on location and skill.
 
A glimpse into 2023 and 2024
 
The year 2023 threw Canadian tech companies a curveball—revealing a decline in remote job postings for roles based in the United States. – 34% percentage decrease from January to December, signaling post-pandemic market realignments and adjustments. However, the early signs from 2024, particularly with a slight uptick in February, suggest it might be too soon to declare a complete turnaround. 
 
In discussions with Canadian businesses, some things are clear—there's an intent to embrace remote workers and increase exports, emphasizing the importance of quick market entry.
 
The U.S. market as a key target
 
The demand for tech roles in the U.S. in 2023 highlighted the interest in digital transformation, cybersecurity and cloud services. Big tech hubs like New York and San Francisco continued to attract a large portion of job postings. But here’s a twist: Austin and Boston are becoming increasingly significant, with 33 per cent of job openings being remote or in other U.S. states, indicating a deliberate spread of job postings across various cities. 
 
This shift tells us something big: Canadian companies are accessing a broad talent pool, enriching their strategies for talent acquisition with diverse skill sets and cultural fits.
 
Addressing the demand for specific skills
 
Canadian tech companies are on the hunt for talent across the border in the U.S., and it's not just about any skills. We dug into the job postings and found a clear focus on filling some key gaps to fuel their growth and innovation.
 
Sales and business development, software engineering and IT are at the top of the wishlist, highlighting the need for skilled folks who build the products, find new markets and keep everything running smoothly.
 
There’s also a big push for roles focused on improving customer relationships and user experience, such as customer service and design, marketing and communications, product management and operations. This varied demand shows that Canadian companies are serious about building well-rounded teams that can compete globally.
 
Distributed talent pool
 
Canadian tech companies are turning heads. Known for their innovation and growth potential, they’re attracting skilled talent from across the globe. 
 
American based applicants from California, New York, Texas and Massachusetts showed a strong interest to work for Canadian companies. And looking internationally, about 40 per cent of engaged applicants came from tech hotspots like India, the United Kingdom and Brazil, showing that Canadian tech is a great, trusted place to work and build a career.
 
Looking ahead
 
The way we work is evolving and Canadian tech is at the forefront. This remote hiring trend isn’t just about adapting to the times, it’s about building a whole new way to work—one where location doesn’t matter so that the best talent can come together to create amazing things and win big. 
 
Ready to take your Canadian company global at your own pace, without the headaches of setting up a foreign entity to hire and pay talent? Explore a world of opportunities and let Communitech Outposts’s Employer of Record be your tool for seamless international expansion and swift market entry. Head over to communitech.ca/outposts and take the first step towards a future without borders. 
 
Your global team awaits. 
______

*Work In Tech is a free job board dedicated to Canada’s growing tech community, built by founders, for founders, it’s a niche job board that puts homegrown tech companies on the global hiring stage.

Azhar Janjua, Head of Communitech Outposts, presenting at MAPLE Ontario Chapter Spring Reception in Toronto, March 2024.

Moving from Canada to the U.S.: What to Do With Your Canadian Dollar Investments

Author: John McCord CFP® CIM®, CRPC®, TEP, Vice President, PortfolIo Manager, Partner, Cardinal Point Wealth Management

The strong U.S. dollar has presented new challenges for individuals and families relocating from Canada to the United States.  As many know, the Canadian dollar has remained relatively stable for nearly a decade. It’s now valued at .73 against the U.S. dollar. This stands in contrast to the summer of 2014 when it reached a high of .94. 
 
In the past, when the currency values were closely aligned, many individuals planning a move to the U.S. opted to convert their bank and non-registered taxable investment accounts to U.S. dollars. After all, it's typically prudent to hold a meaningful amount of local currency within one’s country of residency. In addition, transferring funds to the U.S. often simplifies tax and foreign account reporting. Doing so can also enhance investment options, tax efficiency and financial planning.
 
However, the current exchange rate of the Canadian dollar presents complications, as many people are hesitant to convert their funds at such a significant discount to the U.S. dollar. There are three basic options available to those who prefer not to convert their Canadian dollar taxable investment accounts to U.S. dollars. 
 
Option 1: Leave your Canadian investment accounts in Canada.
 
Most Canadian financial advisors are not authorized to provide investment and financial planning advice to U.S. residents. A financial advisor must always be licensed in the jurisdiction where a client resides, irrespective of their citizenship status or the location of their assets. Therefore, upon becoming a U.S. resident, updating your mailing address to your new U.S. address will likely result in one of three scenarios:
 

• Your advisor may inform you that they are no longer able to provide investment advisory services to you and that you must work with someone in the U.S.

• Your advisor may explain that you can maintain your accounts on their Canadian platform, but they will be frozen, and no further trading or rebalancing can occur.

• Your advisor may clarify that they are registered in the United States and can continue overseeing all investment management services for your accounts.

 
It's important to reiterate that most Canadian advisors are not registered in the United States, making options 1 and 2 the most likely scenarios. If your advisor fits the third scenario, ensure that their services and expertise extend beyond merely providing investment management. 
 
The following considerations are important for those who choose to leave Canadian non-registered accounts in Canada.
 
Drawbacks of Canadian Funds: 
Canadian-traded mutual funds are typically not registered for sale to U.S. residents. Furthermore, Canadian traded mutual funds and ETFs are likely categorized as Passive Foreign Investment Companies or PFICs, subjecting their earnings and dividends to the highest marginal tax rates on U.S. income tax returns. Holding these securities can also lead to additional and more costly U.S. tax filing requirements.
 
Accounting Hurdles: 
Canadian custodians have a reputation for doing a poor job of complying with U.S. tax reporting requirements. For example, many do not prepare and submit annual U.S. 1099 tax reports showing dividends, interest, and long term versus short term capital gains. That noted, 1099 reports are required by law if you are a U.S. resident. Furthermore, many of the tax reporting forms Canadian custodians provide to U.S. resident clients are denominated in Canadian dollars. That means that you or your accountant must convert all taxable and reportable transactions to U.S. dollars before filing your U.S. tax returns. This additional work can increase the likelihood of errors and lead to significantly more time consuming and expensive accounting and tax preparation.
 
The Conversion Window:
If converting your funds to U.S. dollars once the exchange rate improves is still your goal, make sure your investment strategy is flexible enough to accommodate a future currency conversion. For example, you don’t want to be locked into investment products that must be held for a certain period of time. If they are locked when exchange rates improve, you may miss the opportunity to take advantage and convert because your funds aren’t accessible. Also, it’s important that your investment accounts are not allocated within volatile or speculative securities that are subject to sharp market swings. It would be unfortunate if exchange rates become attractive but the value of your Canadian dollar investment holdings are significantly lower due to poor market performance and downside volatility.
 
Tax-Aware Investing: 
Make sure your advisor is managing your accounts under an investment mandate that reflects your U.S. tax residency. As previously mentioned, U.S. residents are subject to long-term and short-term capital gains tax rates. If you sell an asset that has been held for one year or less, any profit is considered a short-term capital gain, and is taxed at your ordinary income rate which is up to 40.8%. If you sell an asset held longer than one year, any profit will be considered to be a long-term capital gain and is typically taxed at the considerably lower rates of 15% or 20%. But in Canada, there is no such thing as long-term or short-term capital gains. Canada has just one capital gains rate, and most Canadian portfolio managers are trained to oversee client accounts while applying that rate. Also, there are different types of investment securities, such as Canadian preferred shares, that are often attractive investments from a Canadian tax standpoint but not from a U.S. tax standpoint. It’s sensible for tax residents of the U.S. to invest in securities that distribute qualified dividends that are taxed at a more favorable rate than ordinary dividends. For these reasons and others, it’s in your best interest to confirm that a Canadian money manager or advisor has deep experience in working with U.S. tax residents. It is also important to understand whether they can strategically manage portfolios and be compliant with U.S. tax rules.
 
Reporting Requirements:
As a U.S. resident, you will be subjected to extra foreign account reporting requirements by the Internal Revenue Service. The accounts that you leave behind are domiciled outside of the United States and the IRS may require you to report specific information about them on a form called the FinCEN Report 114. Additionally, you may have to file an IRS Form 8938 called the Statement of Specified Foreign Financial Assets as part of your Form 1040 filing. These increased reporting requirements are time consuming and will likely lead to substantially higher tax preparation costs.
 
Leaving Canadian dollar taxable or non-registered accounts in Canada can be viable under limited scenarios for U.S. residents, but it's far from ideal considering the issues above.
 
Option 2: Move your Canadian Investment Account to the U.S.
 
Moving your Canadian dollar investment accounts to the United States will simplify financial and estate planning initiatives and often streamlines U.S. tax reporting. However, you will still face challenges. For one, most U.S. based financial advisors will automatically want you to convert your Canadian dollar accounts to U.S. dollar accounts, which obviously contradicts your goal of maintaining your holdings in Canadian dollars. The main reason why U.S. based advisors make this recommendation is that their firm, or its custodian, does not offer multi-currency accounts. The U.S. dollar is the only currency option that they can provide for your investments. It’s rare for U.S. investment firms to offer Canadian dollar denominated accounts because there is little demand for them in the United States.
 
Another critical consideration is that investment advisors who do offer multi-currency accounts may not know the Canadian investment market well enough to construct a proper investment portfolio. The act of opening a Canadian dollar denominated account for a client is possible in limited circumstances. That noted, it’s quite a different matter for a financial advisor or portfolio manager to have the knowledge, experience, and extensive training necessary to build and oversee Canadian investment portfolios that include Canadian traded securities.
 
All too often, clients are left holding their Canadian dollar investment accounts in cash, simply because they cannot find a qualified financial professional based in the United States to expertly invest those assets.
 
Option 3: Partner with an experienced and properly registered Canada-U.S. Cross-Border Advisor 
 
The sophistication of financial planning is enhanced when cross-border complexities are present. Individuals and families with cross-border requirements should review their situation with a multidisciplinary team who has access to a platform with which to address their unique needs. For example, when moving to, and or living in the United States, there are often a host of cross-border planning hurdles to work through. A true cross-border advisor will help construct an integrated Canada-U.S. cross-border financial plan that addresses issues such as tax and estate planning in addition to the management of investment assets. 
 
It’s critically important to align yourself with a firm that is comprised of seasoned professionals who have earned both Canadian and U.S. credentials and designations. These include but aren’t limited to Canadian CFPs, U.S. CFPs, Canadian CPAs, U.S. CPAs, and Chartered Financial Analysts licensed in both Canada and the U.S.
 
For the above reasons, the optimal solution is to partner with a legally registered advisor that can provide investment management and financial planning services in both Canada and the United States, without any restrictions or limitations. Doing so integrates investment accounts in both countries, helps provide compliant U.S. tax reporting on Canadian-dollar investment assets, allows for multi-currency investment accounts, helps facilitate foreign exchange, and includes comprehensive cross-border investment, tax, retirement, and estate planning expertise. This is the only structure that truly caters to Canadians and Americans navigating Canadian and U.S. cross-border complexities.
 

Cardinal Point is  legally registered to provide investment management and financial planning services in both Canada and the United States, without any restrictions or limitations. For clients who have investment accounts in both countries (RRSPs, IRAs, 401ks, Trusts, Non-Registered accounts, etc.), we construct integrated cross-border portfolios customized to each investor’s personal risk tolerance, needs, and goals. Please contact Cardinal Point to discuss your cross-border investment management, tax, retirement, and other financial planning needs. For more information, please visit www.cardinalpointwealth.com.

John McCord, CFP®, CIM®, CRPC®, TEP, Vice President, Portfolio Manager, Partner, Cardinal Point Wealth Management, Orange County, California.