Trade Deal Helps Canada Goose Take Flight in Norway
Canada Goose, which manufactures and sells extreme-weather outerwear, is doing booming business in Norway thanks to the free trade agreement between Canada and the European Free Trade Association (EFTA) countries of Iceland, Norway, Liechtenstein and Switzerland.
Dani Reiss, the CEO of Canada Goose, says the free trade agreement (FTA) has helped the company do business and increase its market share in Norway.
Reiss says tariffs create price disparities between North America and Europe. “Not only is that difficult for companies to manage, but it’s confusing for consumers who are savvy and increasingly globally minded,” says Reiss.
The FTA’s elimination of tariffs has provided a boost to Canada Goose, an Ontario-based manufacturer and retailer of cold-weather wear.
“Reducing or dropping these duties allows global pricing to be more consistent—especially for companies like ours that are not direct retail brands,” Reiss says. “We work as best as possible to achieve global price parity, and this agreement helps us better achieve that.”
The company continues to increase its market share in Norway. “We’ve been in the market for more than a decade, and our business continues to grow significantly year after year, despite the population size,” says Reiss.
The company, known for its popular and distinctive down-filled jackets, has increased its revenue by 3,000 percent over the past decade, with sales now topping $100 million. Some of this growth can be attributed to Canada Goose’s increased market share in Europe. In Norway, the company increased its sales by more than 50 percent in 2011.
The FTA between Canada and EFTA came into force on July 1, 2009, aiming to liberalize and facilitate trade in goods and focusing primarily on eliminating tariffs.
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