In a popular Italian song of 1957, someone called Martino builds houses in Canada. Besides the musical comparison, the triangle Italy- House- Canada seems to be the most appropriate for the productive relation between the two countries in the field of furniture. This sector is influenced by the considerable housing expansion which is increasing in modern constructions frequently obtained by renovations, such as lofts, open spaces and ateliers.
Italian Ministry of Foreign Affairs says that Canada is the 9th largest furniture producer and consumer in the world with a 400 billion-dollar import quota in 2014. Although it is a great producer, the import-export of Canadian furniture has moved to the first direction. Domestic production has undergone considerable crisis, mainly in Québec which has imported kitchen components and accessories right from Italy.
Beyond that, Italian manufacture has a wider space earning a 4th place among importers, mainly for the satisfaction of high standard market segment. According to the General Confederation of Italian Industry – Confindustria – in Pesaro, Made in Italy is among the more demanding customers’ choices for its ongoing capacity to innovate form and content. New Canadian consumers are always looking for high-design, techno and functional furniture, capable to meet the needs of domestic spaces without losing comfort. Also for kitchens, orientation is towards a refined wood, glass, metal and leather mix, with modern lines and with solutions able to combine beauty and practicability.
Italian Style prospects now appear brighter. CETA (Comprehensive Economic and Trade Agreement) has been an important way to increase Italian niche in Canada. Since its entry in force on 21st September 2017, the agreement between the North American country and European Union is still awaiting ratification from each of the UE Member States.
The free trade agreement introduces a whole raft of facilities and mutual commercial recognitions in all sectors, removing almost all duties (customs tariffs). Who exports furniture from Italy enjoys the abolition of about 8% duties implemented by Canadian customs, granting a greater price competitiveness to Italian product, already rewarded with a turnover from 229 million in 2015 to 285 million dollars in 2016.
The first to turn to such new commercial context are likely to be upholstered and outdoor producers who have already started some partnerships with Canadian players thanks to local importers and distributors (exclusive territorial agreements, co-design, expo areas in directly rented, franchising).
Upholstered furniture area in the hearth of the Southern Italian region of Basilicata appears in pole position: institutions and trade organizations are on it for a flying start.
In order to be prepared, export companies are obliged to be registered on REX (Registered Exporters), a registered exporters system introduced in some countries in January 2016 and now it is requested for those who have goods which worth more than € 6.000 and want to benefit from CETA.
Through this registration, company can get a self-certification of origin where user gives own personal details and obtains a REX identification number for all kind of exportation.