The U.S.’ rising national debt has some owners and stakeholders of Canadian small- and medium-sized enterprises (SMEs) so concerned that they’re looking to take their exports elsewhere. And the problem doesn’t seem to be improving, according to recent study commissioned by UPS Canada.
The survey, which was conducted by Angus Reid, found that a whopping 85 percent of SMEs considered the U.S. national debt problematic and potentially detrimental to trade. What’s more, 60 percent of these individuals stated that the issue is so pronounced that exporters should seek out other regions immediately.
This study is compounded by Export Development Canada’s recent projections that the nation’s exports will revert to pre-recession levels by 2012 and that emerging markets will comprise half of Canadian exports by 2025.
“Many businesses are beginning to see that there are advantages to diversifying exports so that there’s a healthy balance between their reliance on the U.S. market and other strategic global markets,” UPS Canada President Mike Tierney said in a statement. “Canadian economists and the Bank of Canada have long called for the diversification of Canadian exports and it seems many of the country’s SMEs are beginning to take heed.”
In addition to Brazil, Russia, India and China, Canadian SMEs cited Korea and Mexico as particularly attractive regions for exporting goods.