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Despite prominent world leaders now challenging trade deals with other countries, a survey has found most Canadian financial executives see the world continuing to open up to lucrative deals.AVIGATOR

The past several decades have seen the rapid rise of globalization, yielding more opportunities for businesses to trade internationally than ever before. However, recent uncertainties in the global market pose fresh challenges to Canadian companies looking to expand their business internationally.

Some of those challenges include identifying the right markets to target, managing the logistics of extending their operations on a global scale and making and receiving payments across borders.

As well, established trade pacts are in danger with prominent world leaders rethinking their approach to global trade due to a number of economic and geopolitical factors.

Despite this global uncertainty, according to a new study commissioned by American Express, nine in 10 (89 per cent) Canadian financial decision makers agree international trade is important to the success of their organization.

Canadian businesses remain confident and ambitious about international trade, understanding it is crucial to business growth. In fact, 85 per cent of financial executives surveyed said they believe opportunities for making deals beyond the Canadian border are increasing, with more than half (51 per cent) saying they plan to boost levels of international trade over the next 12 months.

At the same time, eight in 10 (82 per cent) financial executives surveyed said they understand their organization would lose its competitive advantage if barriers to international trade increased, while three-quarters (76 per cent) agree those barriers would dramatically affect their organization’s performance.

American Express also partnered with the Centre for Economics and Business Research (CEBR) to identify the top markets with the most untapped trade potential for Canadian businesses based on key trade drivers such as economic performance, regional trade agreements, the business environment and the ease of doing business.

According to the economic analysis, the United States topped the list of markets Canadian companies should look to for growth, which is not surprising considering the country’s geographic proximity, size and close cultural links. However, the analysis also revealed significant growth opportunities for trade in Europe, with France and Luxemburg coming second and third in the list of countries with untapped potential.

The recently signed free trade agreement between Canada and the European Union, which has been provisionally applied since September 2017, can be seen as one form of stimulus designed to help prompt additional trade flows between the EU and Canada.

In a world of uncertainty, smart businesses are investing the time now to plan their trading path strategically and sustainably, ensuring they are best placed to take advantage of global trade opportunities in the future.


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