PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

SBE Council Joins “Pass USMCA Coalition”

By at 25 February, 2019, 8:48 pm

SMALL BUSINESS INSIDER

by Karen Kerrigan-

On February 13, a diverse group of trade associations, businesses, and advocacy groups launched the “Pass USMCA Coalition,” an alliance advocating for the swift passage of the United States-Mexico-Canada Agreement (USMCA) by the 116th Congress. SBE Council is a member of this important coalition. (Read the media release about the effort here.)

As SBE Council president & CEO Karen Kerrigan outlined in a recent Op-ed on Fox Business:

Many small businesses rely heavily on North American trade to stay afloat. Of the U.S. companies that export to Canada and Mexico, three in four have fewer than 50 employees, and four in five have fewer than 100.” 

In the piece, Kerrigan spells out the benefits of “a modernized NAFTA” in several areas. Among key benefits, USMCA:

●  Strengthens intellectual property (IP) protections,

●  Addresses costly e-commerce trade barriers,

●  Prevents countries from imposing fees on goods and services traded digitally, and

●  Includes a small business chapter to ensure that more entrepreneurs fully benefit from the agreement.

The continuance of an agreement is vitally important from a cost perspective, as it is less costly to comply with one set of rules, rather than the different rules of two countries.

Advancing USMCA through Congress is a key SBE Council priority in our 2019 Policy Agenda for Entrepreneurs and Small Businesses.

Kerrigan joined host Gregg Stebben for an SBE Council-Forbes Books Radio podcast where she discussed the many benefits of USMCA, the task ahead for advancing USMCA through the Congress, and how entrepreneurs can help. Listen to the 8-minute segment here.

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

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.

SBE Council is educating members of Congress about the benefits of USMCA to the U.S. economy, small business and the growth of entrepreneurship.

Karen Kerrigan is president & CEO of the Small Business & Entrepreneurship Council.

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