Canadian SMEs To Benefit From EU FTA

A free trade agreement (FTA) with the European Union (EU) will create jobs and economic growth for all regions of Canada, the minister in charge has said, welcoming a report from small and medium-sized enterprises endorsing the negotiations.

Ed Fast, Minister of International Trade and Minister for the Asia-Pacific Gateway has spoken of the virtues of the prospective FTA, stressing that broadening and deepening Canada’s trading relationship with foreign partners is a key part of the government’s job-creating, pro-trade plan. He recently met with the Small and Medium-Sized Enterprises Advisory Board and received a report endorsing the government’s efforts to pursue free trade agreements with key trading partners.

The SME Advisory Board is made up of business owners and executives from across the country, representing key sectors of the economy. In particular, the Board's report offered support for the ongoing talks with the EU, noting that a comprehensive economic and trade agreement would lessen the complexities of doing business with the EU and create new trade opportunities and jobs.

The report projects that SMEs across Canada and in almost every industry sector support and would benefit from the development of bilateral trade agreements. 55% of businesses that responded to a survey for the report indicated they planned to increase their trading with the EU within the next three years. In 2008, approximately 8,350 Canadian SMEs were exporting nearly CAD16.1bn (USD15.9bn) in goods and services to the EU - totalling 52.7% of Canadian exports by value to this market.

Fast said of the report: “Small businesses represent 98% of all firms in Canada and employ nearly half of all working Canadians. So creating opportunities for small business abroad creates jobs and prosperity for Canadian small businesses and their workers and families. Small and medium-sized businesses understand the potential benefits of a trade agreement with the EU: a 20% boost in bilateral trade and a CAD12bn annual increase to Canada’s economy, equivalent to almost 80,000 new jobs and almost CAD1,000 extra for the average Canadian family. The negotiations toward a comprehensive economic and trade agreement with the EU are at the heart of our government’s job-creating pro-trade plan.”

Murad Al-Katib, Chairman of the SME Advisory Board and President and CEO of Alliance Grain Traders Inc., added: “Our research, conducted with the Canadian Federation of Independent Business, suggests that many Canadian SMEs would benefit from a trade agreement with Europe. A trade agreement with the EU represents an opportunity for small and medium-sized businesses to increase growth and create jobs by diversifying their exports.”

Nine round of talks have been held since negotiations with the EU opened in October, 2009. The Canadian government has said that, to date, significant progress has been achieved across the board, including in the core market access areas of goods, services, investment and government procurement.

Source: Tax News