Small Businesses Could Benefit From Trade Pact
The U.S. government is in talks with Pacific and European countries to make trade agreements that could benefit small businesses. Many choose against exporting products because of expensive tariffs, ample paperwork, and delays in customs are a burden, but the Trans-Pacific Partnership and the Trans-Atlantic Trade and Investment Partnership would make it easier.
Only 1 percent of U.S. companies currently export goods, according to The Associated Press, but the trade agreements could change that. Not only could they help businesses increase their revenue, but they could help create new jobs and improve the overall U.S. economy.
“Trade agreements are important because they open up new marketplaces to small businesses, which ultimately translates into more jobs and greater economic growth,” said Sam Graves, R-Mo., chairman of the House Small Business Committee, according to the AP.
The North American Free Trade Agreement with Canada and Mexico is one such agreement that has facilitated easier exporting. The 20 year old pact eliminated tariffs for products that are at least 51 percent made in the United States. The AP reported that a quarter of exports from U.S. small and medium sized businesses in 2011 were to Canada and Mexico.
The Trans-Pacific Partnership, which would be between the United States and 11 countries near or on the Pacific Ocean would create $124 billion in U.S. exports a year, the AP reported, citing a study from the Peterson Institute for International Economics. The Trans-Atlantic Trade and Investment Partnership, which includes the entire European Union, would create $23 billion in exports a year, according to the European Center for International Political Economy.
Small business owners seeking increased business capital to meet increased demand if the agreements are signed should seek loans from nontraditional lenders like National Funding. Ease of access and more flexible terms are among the many benefits of small business loans from such lenders.