Opening up Canada - small U.S. businesses and the U.S.-Canada free trade agreement

Nation's Business, Jan, 1988

Opening Up Canada

Small-business owners, especially those in northern states, could reap a market and manpower windfall if the U.S. Congress and the Canadian Parliament ratify the draft trade agreement negotiated in late 1987.

A major goal of the treaty between the two nations that already have the world's largest bilateral trade--more than $130 billion of goods and services crossed the U.S.-Canadian border in 1986--is to reduce nontariff barriers.

Among such barriers as seen from the U.S. side of the border are product standards and testing requirements that appear aimed at excluding imports from the United States. Other examples include "buy-Canadian" policies set for certain government purchases and purportedly weaker protection in Canada for U.S. intellectual property such as movies and books.

U.S. negotiators also say the treaty will make it easier for Canadian investors to enter U.S. markets and provide a new source of capital.

Negotiators say the treaty will ease travel restrictions--another common nontariff barrier--on business and some professional people who cross the border for jobs. This could make it more attractive to use Canadian professionals such as architects, engineers and some consultants. Your business could be attractive to them because of currency exchange-rate differences.