P.E.I. businesses wary of NAFTA talks

Possible changes to NAFTA are unsettling to business people in P.E.I., says the local director of the Canadian Federation of Independent Business.

Erin McGrath-Gaudet says a new survey by CFIB shows nearly one-third of Canadian small businesses that trade with the United States and/ or Mexico say that the potential renegotiation of the North American Free Trade Agreement will alter their export and import plans.

“There is a real concern, among our membership, that any changes to NAFTA could have significant effects on their ability to sell goods and services abroad, on their cost of importing goods, and on their ability to pass savings on to consumers,’’ she says.

“As the negotiations begin, we want to ensure that a new deal creates even more, not less, business opportunities for Island firms.’’

McGrath-Gaudet notes that small and medium sized enterprises in Canada are key stakeholders in the tri-lateral pact, which helps to facilitate approximately $1 trillion (US) in trade between Canada, the United States and Mexico. Data from Industry Canada shows that, of all the firms in Canada that export, over 90 per cent are considered small businesses.

One-in-three of the small businesses surveyed by CFIB say that favourable free trade agreements influence their trade decisions.

“Given their prominent role in the Canadian economy, small and medium sized business owners should have a big say in the future of NAFTA and any changes that may ensure,’’ says McGrath-Gaudet.

CFIB is making several recommendations for consideration in the renegotiation of NAFTA, which include ensuring the free flow of labour, including a chapter specifically addressing the needs and challenges facing small and medium sized enterprises (SMEs), reducing overall administrative burden on small businesses, improve the speed at which trucks are able to cross the border, ensure trade remain as duty-free as possible, and review ways to improve current dispute resolution mechanisms.

Gaudet says CFIB, which is Canada’s largest association of small and medium-sized businesses with 109,000 members, will continue to participate in government consultations to ensure that small business owners’ concerns are taken into account.