Export Development Canada (EDC; french: Exportation et développement Canada) is Canada's
export credit agency
An export credit agency (known in trade finance as an ECA) or investment insurance agency is a private or quasi-governmental institution that acts as an intermediary between national governments and exporters to issue export insurance solutions ...
and a
state-owned enterprise
A state-owned enterprise (SOE) is a Government, government entity which is established or nationalised by the ''national government'' or ''provincial government'' by an executive order or an act of legislation in order to earn Profit (econom ...
wholly owned by the
Government of Canada
The government of Canada (french: gouvernement du Canada) is the body responsible for the federal administration of Canada. A constitutional monarchy, the Crown is the corporation sole, assuming distinct roles: the executive, as the ''Crown ...
. Its mandate is to support and develop trade between Canada and other countries, and help Canada's competitiveness in the international marketplace.
EDC products and services include
trade credit insurance, export financing for Canadian companies and for their foreign customers, equity investments,
bonding products, international market expertise, as well as information on opportunities in international markets.
EDC was founded in 1944. Its corporate headquarters is located in
Ottawa
Ottawa (, ; Canadian French: ) is the capital city of Canada. It is located at the confluence of the Ottawa River and the Rideau River in the southern portion of the province of Ontario. Ottawa borders Gatineau, Quebec, and forms the core ...
,
Ontario
Ontario ( ; ) is one of the thirteen provinces and territories of Canada.Ontario is located in the geographic eastern half of Canada, but it has historically and politically been considered to be part of Central Canada. Located in Central Ca ...
, and it has 21 regional offices across Canada and permanent representations in 21 cities in 15 foreign markets.
History
Founding (1944-2017)
In 1944, the ''Export Credits Insurance Act'' was proclaimed. Export Credit Insurance Corporation (ECIC) was created following WWII to help stimulate the Canadian economy, create jobs and help Canadian exporters.
In the 1940s, EDC began acting as a "trade facilitator for Canadian businesses doing deals abroad."
The ''Export Development Act'' proclaimed on October 1, 1969, repealed Part 1 of the ''Export Credits Insurance Act'' and established the Export Development Corporation (EDC) as successor to all property, rights, and obligations.
In 2001, EDC changed its name from Export Development Corporation to Export Development Canada.
In 2014, EDC joined the loan party and announced it would be giving US$500 million to Reliance Industries, the largest private company in India, a move criticized by
Maclean's
''Maclean's'', founded in 1905, is a Canadian news magazine reporting on Canadian issues such as politics, pop culture, and current events. Its founder, publisher John Bayne Maclean, established the magazine to provide a uniquely Canadian perspe ...
.
EDC in 2016 provided $1.2 billion in Canadian dollars in financing, and in 2017, was looking to provide loans worth CAD$1.3 billion to businesses in India.
EDC had previously financed
Tata Steel
Tata Steel Limited is an Indian multinational steel-making company, based in Jamshedpur, Jharkhand and headquartered in Mumbai, Maharashtra. It is a part of the Tata Group.
Formerly known as Tata Iron and Steel Company Limited (TISCO), Tata ...
,
Tata Communications
Tata Communications Limited (previously known as Videsh Sanchar Nigam Limited) is an Indian telecommunications company. It was previously a government- owned-telecommunications service provider and under the ownership of Department of Telec ...
, and Ultratech Cement, and over the past five years had done business worth $10 billion.
In 2017, it lent $215 million to
Idea Cellular
Idea Cellular
(commonly referred to as Idea, and stylised as ''!dea'') was an Indian mobile network operator based at Mumbai, Maharashtra. Idea was a pan-India integrated GSM operator and had 220.00 million subscribers as of June 2018. Id ...
in India.
Recent history (2018-2021)
In 2018, the
Office of the Auditor General of Canada stated "significant deficiencies" had been found in relation to risk management at EDC, after Above Ground found EDC did not have "effective screening for corruption," according to the ''
National Observer''.
Research in late 2018 found that EDC gave "12 times as much financial backing to oil and gas companies as it did to
clean technology companies over the last five years."
In May 2019, Oil Change International ranked EDC second in the world after China in "support for fossil fuels" financially, averaging $10 billion a year.
In 2019 EDC launched a review of a 2011 deal with
SNC-Lavalin
SNC-Lavalin Group Inc. is a Canadian company based in Montreal that provides engineering, procurement, and construction (EPC) services to various industries, including mining and metallurgy, oil and gas, environment and water, infrastructure, a ...
, over allegations the latter had been using money loaned by EDC for bribery purposes.
In October 2020, EDC predicted a 2021 global rebound after coronavirus.
In 2020, EDC had bookmarked $2 billion to spend by 2023 in support of women-owned businesses "looking to export."
In February 2021,
Garuda Indonesia was negotiating with EDC for "an early settlement" on the lease of six
Bombardier planes with a contract ending in 2024. Also that year, EDC loaned $500 million to
Vale
A vale is a type of valley.
Vale may also refer to:
Places Georgia
* Vale, Georgia, a town in the Samtskhe-Javakheti region
Norway
* Våle, a historic municipality
Portugal
* Vale (Santa Maria da Feira), a former civil parish in the municipali ...
, after lending Vale $1 billion in 2010.
Operations
Business model
EDC operates at arm's length from the federal government and according to commercial principles. EDC's mandate is spelled out in the ''Export Development Act''. In response to the global credit crunch, in 2009, the Government of Canada broadened EDC's mandate and scope of activity for a two-year period to include support for domestic trade and domestic business opportunities. The period was extended to March 12, 2014.
The corporation is financially self-sustaining. EDC raises funds by charging fees for its services and interest on its loans, as well as issuing debt in capital markets.
EDC operates according to a Corporate Plan approved annually by the federal government, and its Operating Principles dictate that it conducts its business in a manner that is respectful of applicable international agreements to which Canada is a party; is consistent with its Corporate Sustainability Responsibility (CSR) commitments; and ensures the sound financial management of its activities.
In 2011, EDC and BDC (
Business Development Bank of Canada
The Business Development Bank of Canada (BDC; french: Banque de développement du Canada) is a Crown corporation and national development bank wholly owned by the Government of Canada, mandated to help create and develop Canadian businesses throu ...
) announced the signing of a new protocol to coordinate collaborative efforts between the two Crown corporations to better benefit Canadian businesses.
Publications
EDC publishes an online magazine for Canadian Exporters, ''ExportWise'' (''Exportateurs avertis'' in French).
Locations
In addition to the Ottawa headquarters, EDC operates from 20 regional offices in Toronto, Kitchener, London, Mississauga, Windsor, Vancouver, Calgary, Edmonton, Regina, Saskatoon, Winnipeg, Montreal, Sherbrooke, Brossard, Drummondville, Quebec, Saint-Laurent, Halifax, Moncton, St. John's, Charlottetown; as well as from 21 offices abroad including in; Australia, Brazil, Chile, China, Colombia, Germany, India, Mexico, Peru, South Africa, Singapore, Turkey, the UAE, the United Kingdom and the United States.
Executive team
'
* Mairead Lavery - President and CEO
* Carl Burlock - EVP and Chief Business Officer
* Lorraine Audsley - SVP and Chief Risk Officer
* Stephanie Butt Thibodeau - SVP, People and Culture
* Jacques Chamberland - SVP and Chief Technology Officer
* Ken Kember - SVP, Finance and Chief Financial Officer
* Sameer Madhok - Chief Internal Auditor
* Miguel Simard - SVP, Legal Services and Special Risks
* Todd Winterhalt - SVP, Communications, Marketing and Corporate Strategy Officer
* Justine Hendricks - SVP and Chief Corporate Sustainability Officer
* Sven List - SVP, Trade Connections
* Dan Mancuso - SVP, Financing and Investments
* Julie Pottier - SVP, Channels
* Clive Witter - SVP, Insurance and Working Capital Solutions
Services
EDC provides
trade credit insurance and
export financial services,
bonding products and small business solutions to Canadian exporters and investors and their international buyers. EDC also supports Canadian direct investment abroad and investment into Canada. Much of its business is done in partnership with other
financial institutions
Financial institutions, sometimes called banking institutions, are business entities that provide services as intermediaries for different types of financial monetary transactions. Broadly speaking, there are three major types of financial insti ...
and through collaboration with the government of Canada.
EDC offers services for companies wanting to grow their business internationally, secure financing, invest or get financing, or other ends.
Governance
EDC is governed by a board of directors composed of representatives primarily from the private sector. The Board's responsibility is to supervise the direction and management of EDC. The Board reports to Parliament through the Minister for International Trade. Board members are appointed by the Government of Canada.
Board of Directors
'
* Irman, M. (Chair)
* Boivin, P.
* Culbert, H. (Vice Chair)
* Gordon, L.
* Gupta, K.
* MacWilliam, K.
* Matuszewski, P.
* McLeese, R.
* Payette, R.
* Sharma, M.
* Stairs Krishnappa, A.
* Yuers, K.
Sustainability and programs
Corporate Sustainability and Responsibility is an operating principle at EDC, and it has a partnership with
CARE Canada
CARE (Cooperative for Assistance and Relief Everywhere, formerly Cooperative for American Remittances to Europe) is a major international humanitarian agency delivering emergency relief and long-term international development projects. Founded ...
.
It has a youth education program, with the "International Business Scholarships." EDC awards up to 30 scholarships annually, 25 of which go to undergraduate university or college students interested in international business, with up to 5 additional scholarships for students in programs which combine business with environmental or sustainability studies. An EDC scholarship is worth a $4,000 cash award.
Events by EDC
EDC participates in a number of events, both their own hosted and partnered events.
EDC events include "Lets Talk Exports." Each spring, EDC's vice-president and chief economist travels across Canada to share his view on the global economy. There is also the "Global Export Forecast", by EDC's vice-president and chief economist, produced twice per year in April and October.
References
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Companies based in Ottawa
Federal departments and agencies of Canada
Canadian federal Crown corporations
Canada
Canada is a country in North America. Its ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, covering over , making it the world's second-largest country by tot ...
Foreign trade of Canada
1944 establishments in Canada
COVID-19 pandemic in Canada