Export Development Canada

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The Export Development Act proclaimed on October 1, 1969, repealed Part 1 of the Export Credits Insurance Act and established the Export Development Corporation (EDC) as successor to all property, rights, and obligations.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. 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 Communications, and Ultratech Cement, and over the past five years had done business worth $10 billion. In 2017, it lent $215 million to Idea Cellular 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, 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, 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) announced the signing of a new protocol to coordinate collaborative efforts between the two Crown corporations to better benefit Canadian businesses.