An Overview of Our Experience with #CETA Part 2

An Overview of Our Experience with #CETA Part 2 - Challenges

All businesses looking into operating outside of their own country must be aware of different cultures, methods of operation, banking and regulations from your home country. Small businesses require more upfront assessment of risk and opportunity because they do not have the human and financial resources to learn from their mistakes. It is usually one and done either success or failure.
The feedback I have received by participants at CETA Business Forums put on by the Canadian Trade Commissioners Service is that participation by small businesses is slow. 98% of Canadian businesses fall under the small business definition of less than 100 staff and revenue under C$15 million. CETA appears to have been developed primarily for the other 2% being medium and large corporation
Following are a number of factors that could be inhibiting small businesses but with support from knowledgeable resources in international trade, country uniqueness and funding avenues these challenges can be overcome and higher probability of success ensured.    

• One key item that must be highlighted is the cost in taking advantage of new trade deal like CETA. What is the cost in terms of manpower (i.e., senior management/owners time), airfare, hotels, daily expenses, in-country costs, trade show or networking event fees, cost of shipping goods, etc. …unless these costs are recovered in one year, or an immediate new sale, then small businesses are not inclined to do anything available under CETA. The current funding programs in federal or provincial governments are severely inadequate (50%) or less or nothing on some essentials. This area of providing incentives and funding to at least investigate opportunities must be modified.  Perhaps 100% Government assistance on the first trip with verification that the required upfront work is completed.
• The assisted from the Federal government to small businesses in obtaining free advice from Canada’s Trade Commissioners in a far off country is very expensive to access if you have to book fights and hotels chasing deals that may not come to pass for reasons beyond market considerations.​

There are significant opportunities for small businesses to sell into EU countries leveraging CETA. CETA opens doors to opportunities that may have been closed previously due to tariffs. As we have stated before success requires doing the research and accessing the expertise to provide the process, the unique knowledge of the country targeted and access to business networks for on the ground support.