Advocate for Entrepreneurs and Small Businesses Applauds Signing of USMCA

By SBE Council at 30 November, 2018, 10:43 am

NEWS

FOR IMMEDIATE RELEASE

Washington, D.C. – The nation’s leading advocacy group for entrepreneurs praised the signing of the U.S.-Mexico-Canada Agreement (USMCA) in Argentina today, which will foster trade and enable business expansion through modernization of NAFTA. Small Business & Entrepreneurship Council (SBE Council) president & CEO Karen Kerrigan said this modern accord addresses key issues that will help to facilitate market expansion into Canada and Mexico, and is especially helpful to small businesses looking to go global.

“The USMCA will create stability and growth for cross-border commerce with Canada and Mexico, and various provisions of the agreement are particularly helpful for small businesses. As we have noted previously, maintaining this trilateral deal is critical for entrepreneurs and small business, as navigating one set of rules is more efficient and less cumbersome than dealing with two. We applaud President Trump and his team, as well as the leaders of Canada and Mexico, for going the distance and signing this trilateral agreement,” said Kerrigan.

According to Kerrigan, SBE Council is pleased to see modernized provisions that will directly help entrepreneurs and small businesses, such as:

● Strong intellectual property (IP) protections,

● An increase in the de minimis level of shipment value leading to the reduction of costs,

● A new chapter that takes into account the vast and growing digital economy, which will ease friction and costs,

● Eliminating a “local presence” requirement for cross-border service providers,

● A new chapter on “good regulatory practices” that could reduce duplicative red tape and costs for small businesses,

● The inclusion of specific support for small and medium-sized businesses regarding government procurement that focuses on policies to promote participation,

● And increased opportunities for small farmers and food-businesses to export into Canada and Mexico.

Read the USTR Fact Sheet on how the USMCA benefits and supports small to mid-sized businesses.

“We urge Congress to move quickly on the trade accord, as there are growth opportunities waiting for entrepreneurs and small businesses. Ratifying USMCA should be a routine bipartisan exercise, as the agreement will benefit small businesses in every state and across industries,” added Kerrigan.

According to the most recent data (2016) from the International Trade Administration small to mid-size businesses dominate trade with Mexico and Canada.

Export Data

Of the 57,098 U.S. firms that export to Mexico, 57.7 percent have less than 20 employees, 72.3 percent have less than 50 employees, 81.4 percent have less than 100 employees and 93.6% have less than 500 employees.

Of the 86,526 U.S. firms that export to Canada, 59.9 percent have less than 20 employees, 75.3 percent have less than 50 employees, 83.7 percent have less than 100 employees and 94.4 percent have less than 500 employees.

Import Data

In terms of imports, of the 15,481 U.S. firms that import from Mexico, 57.6 percent have less than 20 employees, 67.9 percent have less than 50 employees, 74.6 percent have less than 100 employees, and 86.8 percent have less than 500.

Regarding Canada, there are 17,277 U.S. importers and 43.3 percent have less than 20 employees, 55.7 percent have less than 50 employees, 65.3 percent have less than 100 employees, and 83.0 percent have less than 500 employees.

CONTACT:  Karen Kerrigan, kkerrigan@sbecouncil.org

Raymond Keating, rkeating@sbecouncil.org

SBE Council is a nonpartisan, nonprofit advocacy, research and education organization that works to protect small business and promote entrepreneurship. For nearly 25 years SBE Council has worked to successfully implement a range of policy and private sector initiatives to strengthen the ecosystem for startups and small business growth. To learn more, visit SBE Council’s website: www.sbecouncil.org. Follow on Twitter: @SBECouncil 

# # #