Research conducted by the Canadian Federation of
Independent Business (CFIB) with the assistance of the National Federation of
Independent Business (NFIB) and the participation of the U.S. Embassy (Ottawa)
reveals a number of challenges and obstacles small- and medium-sized
enterprises (SMEs) must overcome in order to be able to successfully conduct
business across the border.
Earlier this year, Canada and
the U.S. issued
a declaration on the countries’ shared border. The objective of the pact was to
‘streamline and decongest’ the Canada-U.S. border, as well as find ways to
reduce and prevent regulatory barriers to cross-border trade. A high-level
commitment to improving the efficiency of the border will reduce the costs of
doing business, enhance security and facilitate trade. “A Canada-U.S. border
that is more effective, secure and trade-friendly will increase Canadian
competiveness and create jobs on both sides of the border,” stated CFIB vice
president, national affairs, Corinne Pohlmann.
CFIB’s policy brief, Border Barriers: SMEs Experience With Cross-Border Trade involved
interviewing 12 small business owners: eight Canadian and four American. This
report offers mixed results from Canadian small business owners about their
experiences with border agencies on both sides of the border.
The number one obstacle in cross-border trade for
smaller companies relates to the complexity of the process and its related
paperwork. The data shows the common thread in the problems faced by small
business is the varying requirements of government agencies and complicated
rules and regulations. “And, although the requirements of any one entity may
not be unreasonable, it is the combined effects that impede SME participation
in cross-border trade,” said Pohlmann.
“Simple measures, such as providing information in
plain language, making information sources readily accessible and easy to find,
providing contact information (email/telephone) to respond to questions and
creating a one-stop web portal with trade and border information specific to
SMEs, will help address some of these issues,” said Pohlmann. Adding, “With
this in mind, the brief offers policy maker’s practical recommendations on how
to make trade and border processes more small-business friendly.”
As both Canada and
the U.S. have a
strong entrepreneurial presence with SMEs accounting for half the GDP, more
than half of employment and the bulk of net new jobs, this research offers ways
to encourage cross-border trade. By focusing on small-business friendly
policies, making an extra effort to provide information and services geared to
small business’ unique needs, and creating a culture of service and
understanding of small business challenges within the Canada Border Services
Agency (CBSA) and
U.S. Customs and Border Protection (CBP) may help to encourage more small firms
to take the plunge and start looking to other markets to grow and expand their
business.
To view the full list of recommendations, visit www.cfib-fcei.ca.
