Trade will play increasingly important role in B.C.

Trade has been a cornerstone of our provincial economy for more than a century, thanks to abundant natural resources, an entrepreneurial population and prime location. But, over the last decade, geopolitical, social and economic unrest have generated instability. Conversations around the North American Free Trade Agreement have re-entered the news cycle and former prime minister Brian Mulroney, who negotiated the current deal decades ago, has indicated renegotiations may conclude in time for the 2019 federal election.

So, what does this mean for our province’s economic outlook?

The good news is this uncertain global trade environment hasn’t dampened the ambitions of B.C.’s business community. According to a recent B.C. Chamber of Commerce survey, 80 per cent of B.C. business owners expect to grow their operations over the next decade — and international trade is one of the primary ways they’re going to do it.

But to realize the full potential we need to adapt, make changes and collectively lead from the front or risk falling behind those who do.

Small and medium enterprises

Our business profile is uniquely British Columbian: Small to medium enterprises (SMEs) constitute 90 per cent of the province’s economic landscape and a similar proportion of our membership.

That means that B.C. SMEs — not major, multinational corporations — are the ones looking to trade their way to growth in the coming years.

However, the trade barriers facing SMEs can be significant, which is why the B.C. Chamber is hosting a forum later this month to help local businesses step up their exports.

Investment in trade

One of the main reasons B.C. has flourished as a trade hub is because we are a port city. The Port of Vancouver serves as an anchor of our trade gateway, moving more cargo each year than the next five largest Canadian ports combined.

A large part of the port’s success is due to supporting infrastructure, like bridges and roads, that allow for the efficient movement of people and goods throughout the region. We also have a robust ecosystem to support our region’s trade, including freight forwarders, customs agents and international lawyers.

But with the anticipated uptick of B.C. businesses looking to export, we need continued investment in local trade infrastructure. The Asia Pacific Gateway and Corridor Initiative — a program launched a decade ago to address trade-route congestion and infrastructure delays — should be revitalized.

B.C. must also continue to invest in trade-oriented support programs, like B.C. Export Navigator, which helps guide local business through the complexities of trade.

Trade policy

Today, taxes and tariffs imposed overseas are pricing Canadian products out of international markets. In China, for instance, Canadian goods are subject to high duties that result in unaffordable pricing. Consider Riversong Guitars in Kamloops. Domestically, one of their guitars sells for $1,000. By the time that same guitar arrives in China — with tariffs, freight and agency fees added — its price tag is nearly double.

A free-trade agreement with China is long overdue and imperative for addressing the widening trade deficit between our countries. We should explore opportunities for reduced trade barriers with Europe. Without a level playing field, B.C. SMEs will face challenges growing — or even sustaining — their businesses over the coming years.

B.C. has always shown itself to be resilient in the face of shifting trade winds.

But our ability to remain competitive relies on a readiness to make the necessary investment, recognize the policy opportunities and proactively help local businesses succeed abroad.

Val Litwin is CEO of the B.C. Chamber of Commerce.