Political uncertainty impeding international trade, new Sage study finds

RICHMOND, B.C., July 03, 2019 (GLOBE NEWSWIRE) — Sage, the market leader in cloud business management solutions, today released the Canadian and global findings from its We Power the Nation survey. Polling 3,000 businesses in 12 countries, the latest research from Sage found that in 10 of the 12 nations surveyed, respondents cited “political uncertainty” as the largest barrier to their organization’s ability to invest in international trade in the next 12 months.

Businesses in Brazil and South Africa expressed the most political concerns (41%), followed by Spain (38%), with Canada ranking sixth (31%). Meanwhile, Europe was viewed as a priority trading market for all 12 countries, with North America close behind as it was a top three for all but one country.

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Despite their concerns, Canadian businesses remain more optimistic than their international counterparts, with 64 per cent expecting the amount of trade with customers and suppliers to increase next year, compared to 55 per cent in the U.S. and 49 per cent in the U.K. 58 per cent of Canadian businesses have already exported goods in the past 12 months, compared to 29 per cent in the US. Seventy-five per cent of Canadian businesses also rely on imports, making them one of the largest importers of the countries surveyed, behind only Brazil and Spain.

Given the importance of international trade, Canadian businesses are expecting the government to demonstrate its leadership with 29 per cent believing that removing trade barriers is the most important way for the government to support their international trade plans.

Despite the current state of the Canada-United States-Mexico Agreement (CUSMA) and other geopolitical headwinds internationally, Canada remains a committed trading nation. Our business success in large part depends on our ability to trade internationally,This survey demonstrates what Canadian businesses are expecting from our government to help them succeed. That includes creating a more trade-friendly environment both internationally and domestically.

said Paul Struthers, EVP and Managing Director of Sage Canada.

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