Toronto, Ontaro, Dec. 13, 2017 (GLOBE NEWSWIRE) -- Most Canadian business owners have no contingency plans for their businesses after the North American Free Trade Agreement (NAFTA) renegotiation, despite concerns regarding the potential termination of the trade pact between Canada, Mexico, and the United States, according to a new BDO Canada poll.
The poll, conducted among 245 small, medium and large business owners across Canada, reveals that 66 per cent of respondents are not making contingency plans for the potential demise of NAFTA.
“The renegotiation of NAFTA has caused a lot of uncertainties, but the best course of action is to develop a plan to ensure that your business continues to thrive, no matter the outcome,” says Dean Elliott, Managing Partner, Central Group and Markets Strategic Lead, BDO Canada.
Business owners are most concerned that NAFTA negotiations could lead to unfair trade terms for Canada or Mexico. They are also concerned that the trade deal could be terminated, resulting in the imposition of more duties and regulations, price uncertainty and an adverse impact on business and profitability, the poll revealed.
To mitigate the impact of a renegotiated NAFTA, nearly all (92 per cent) of business owners polled say Canada should be looking to strengthen trade partnerships with other countries, particularly those in Europe and Asia.
Other interesting data from the poll:
- 86 per cent believe that U.S. President Donald Trump will exit NAFTA or attempt to negotiate unfairly in favour of U.S. interests
- The top five issues that business owners want to be addressed in NAFTA talks are:
- Cross-border movement of professionals (20 per cent)
- Fairer labour standards across all three countries (20 per cent)
- Duty-free threshold (18 per cent)
- Environmental provisions (15 per cent)
- Procurement (7 per cent)
Since the development of NAFTA almost 25 years ago, the economies in North America have drastically changed. E-commerce, which has been impacted by the duty-free threshold, was not addressed in original agreement. And the digital economy, which has brought about a whole new class of economic factors and relationships, was also not considered.
“A NAFTA update makes sense, but business owners need to be prepared to capitalize on and weather through any changes,” says Elliott. “Change brings both opportunities and challenges, and with a strong contingency plan in place, small and medium-sized businesses in Canada can make the most out of these NAFTA renegotiations.”
Canadian business owners believe that there could be opportunities arising from the NAFTA trade talks, such as more access to the U.S. market and fair competition, better access to other international markets if Canada strengthens its ties with other countries, and better and fairer labour standards across all three countries, resulting in more job opportunities.
A majority (75 per cent) of business owners believe that NAFTA will impact their business decision-making, regardless of their size or location.
For more information on this survey and how business owners can plan for potential impacts of NAFTA, click here.
Survey methodology
Conducted by BDO Canada, the survey of national scope was fielded online among 245 business leaders. The poll was conducted from September 21 to October 30, 2017 and entailed responses to 17 questions based on the impact of NAFTA renegotiations on the respondents’ businesses. The margin of error for a representative sample of this size is 6 per cent at the 95 per cent confidence level.
About BDO
BDO Canada LLP is a leading provider of professional services to clients of all sizes in virtually all business sectors. Our team delivers a comprehensive range of assurance, accounting, tax, and advisory services, complemented by a deep industry knowledge gained from nearly 100 years of working within local communities. As part of the international BDO network, we’re able to provide seamless and consistent cross-border services to clients with global needs. With nearly 67,000 people working out of more than 1,400 offices in over 150 countries, the network generates worldwide revenue of $7.60 billion.
BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO member Firms
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