2005-2006 Annual Report: Program for Export Market Development (PEMD)

PEMD-Associations

The Program for Export Market Development, for Associations, provides financial support (contributions) to Canadian national sectoral associations for the generic export promotion of their industry's products or services. Eligible activities must relate to the improvement of market access or the development of market intelligence. In addition, activities must be for the benefit of the association's entire industry; members and non-members alike. These activities are particularly important for small and medium-sized enterprises, which are often unable to afford such undertakings on their own.

There are three types of international business promotion activities that are funded by PEMD-Associations: direct contacts (such as trade shows, outgoing missions and incoming visits); marketing tools (such as web site development targeting foreign customers, print materials and other materials that promote the export of associations' goods and services); and other marketing activities (such as research, awards programs, and indirect marketing that promotes relationship building, or improves access to foreign markets).

The cost of these activities is shared between the association and the federal government. Annual non-repayable contributions range from a minimum of $20,000 to a maximum of $100,000 (the maximum was increased to $150,000 of April 1, 2006). Through its assistance to associations, the program aims to meet the changing needs and expectations of the Canadian business community.

Each year, associations work alongside trade commissioners in Ottawa and at posts to develop their application. Trade Commissioner Service Officers at over 140 embassies and consulates around the world provide current information and advice on the merits of applications from the market viewpoint. This feedback on proposed PEMD-supported events from our posts is an essential criterion in the evaluation of a PEMD application. In addition to the post feedback, applications are also assessed according to export strategy, incrementality (the presence of new or expanded international market development initiatives), membership benefits and the association's performance in the past two years.

The number of Associations participating in the program has kept steadily in the range of 55 to 60 since the 2002 program changes. There were 55 associations approved for PEMD funding in 2005/06, with 54 of them actually using approved funds. A total amount of $3,029,506 was approved for projects to be carried out in the year, and an actual $2,248,761 was spent in the execution of these projects.

Several of the recommendations made when the Treasury Board authority for the program was renewed in April 2005 have been put in place in time for the 2006/07 PEMD-Associations application round. This is especially evident in the increased ceiling to $150,000, partnering with other organizations, and bringing companies along in PEMD funded events/activities.

Overview of Expenditures of PEMD-Associations ($ Million) - 5-Year period

When financially possible, PEMDAssociations offers a supplemental round of funding that lasts from late summer to late fall. Supplemental funding allows well performing associations to easily apply for extra funding in order to undertake activities that have arisen on short notice and could thus not be part of the initial application. There was no supplemental round of funding in 2004/05 due to budgetary constraints. There was however such a round in 2005/06 and close to $500,000 in new projects to be executed before March 31, 2006, were approved for 19 associations.