PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

SBE Council Statement on USMCA Deal

By at 10 December, 2019, 3:15 pm

NEWS

FOR IMMEDIATE RELEASE

Washington, D.C. – Small Business & Entrepreneurship Council (SBE Council) president & CEO Karen Kerrigan issued the following statement on the announcement that an agreement has been reached between Democrat leaders and the Trump Administration on the United States-Mexico-Canada Agreement (USMCA), which means the trade pact could be voted on soon by the U.S. House and U.S. Senate:

“The vast majority of U.S. exporters and importers doing business in Canada and Mexico are small to mid-size businesses. These are significant markets for many small businesses and offer growth opportunities for many more U.S. entrepreneurs. Various provisions in USMCA will open the door to expanded commerce and partnerships.  USMCA reduces red tape, friction and direct costs at the border and beyond. It modernizes rules for our digital age and will boost e-commerce. USMCA promotes good regulatory practices and strengthens IP protections. All of these key provisions are critical in encouraging entrepreneurs to explore and pursue global markets, as it will be more affordable and less complicated to do so under USMCA. Moreover, small businesses are provided practical resources and a platform for engagement through Chapter 25, which provides us with a voice to address new barriers or conditions that may impact the ability of small businesses to trade.

“SBE Council looks forward to reading the negotiated text of USMCA so we can better grasp the impact on all small businesses. For example, we understand that the deal includes removal of the 10-year data-protection standard for biologics, which is very disappointing given the importance of protecting American IP. I will add that our bio-pharmaceutical industry is dominated by small innovative companies – among pharmaceutical and medicine manufacturing firms, 57 percent have less than 20 workers, 79 percent less than 100 employees, and 91 percent less than 500 workers.

“USMCA is vitally important to the growth and success of the U.S. economy. Small business America looks forward to taking advantage of expansion opportunities under USMCA and new agreements moving forward that will open global markets to their goods and services.”

See SBE Council’s USMCA FACT SHEET: USMCA Promotes Entrepreneurship and Small Business Growth.

Small Business Export Data

● Of the 55,755 U.S. firms that export to Mexico, 57.6 percent have less than 20 employees, 72 percent have less than 50 employees, 81.4 percent have less than 100 employees and 93.6% have less than 500 employees.

● Of the 94,278 U.S. firms that export to Canada, 61.8 percent have less than 20 employees, 76.6 percent have less than 50 employees, 84.5 percent have less than 100 employees and 94.7percent have less than 500 employees.

Import Data

● In terms of imports, of the 15,592 U.S. firms that import from Mexico, 58 percent have less than 20 employees, 67.8 percent have less than 50 employees, 74.3 percent have less than 100 employees, and 86.6 percent have less than 500.

● With respect to Canada, there are 17,374 U.S. importers and 43.2 percent have less than 20 employees, 55.4 percent have less than 50 employees, 64.9 percent have less than 100 employees, and 82.9 percent have less than 500 employees.

Read the USTR Fact Sheet on how USMCA benefits small businesses.

Contact: 

Karen Kerrigan, SBE Council president & CEO

e-mail: kkerrigan@sbecouncil.org

SBE Council is nonpartisan advocacy, research and education organization dedicated to protecting small business and promoting entrepreneurship. For 25 years, SBE Council has worked on and advanced a range of private sector and public policy initiatives to strengthen the ecosystem for strong startup activity and small business growth. Visit www.sbecouncil.org for additional information. Twitter: @SBECouncil

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