Canadian businesses possess a distinct competitive edge when venturing into global markets, particularly in countries that operate under one of the 15 free trade agreements (FTAs) established by our nation. These agreements not only eliminate tariffs on goods and services but also unlock immense opportunities and simplify cross-border business activities.
Jorge Rave, the chief representative for Mexico at Export Development Canada (EDC), emphasizes the significance of Canadian companies understanding the advantages offered by free trade agreements. These benefits include the removal of trade barriers, reduced customs and duty charges compared to competitors, and the establishment of a predictable and transparent trade and investment environment.
Rave further highlights that tariff liberalization and streamlined procedures are fundamental aspects of trade agreements, enabling Canadian companies to enhance their competitiveness, explore new exporting prospects, and achieve higher revenues in the global market.
It is well-documented that Canadian businesses engaged in exporting outperform non-exporting firms. They experience accelerated growth, generate greater profits, establish stronger connections, and exhibit enhanced competitiveness. Free trade agreements play a pivotal role in facilitating export activities by clearly defining the regulations governing trade among member nations. For Canadian exporters, these agreements serve as gateways to some of the world’s largest markets.
Mairead Lavery, President and CEO of EDC, emphasizes the significance of growth for many companies and underscores exporting as a vital strategy in this regard. FTAs grant Canadian businesses preferential access to over 50 countries and approximately 1.5 billion consumers, offering a valuable avenue for expansion.