Businesses much more likely to leverage deal with supply chain strategy in place
MISSISSAUGA, ON, May 5, 2014 /CNW/ - According to UPS Canada data released today, there is a significant divide between what small, medium and large businesses in Canada support in principle when it comes to free trade and how or if they plan to capitalize on the benefits.
UPS's Canada-European Union Comprehensive Economic Trade Agreement (CETA) survey, conducted by Leger, reports that more than 4 in 5 businesses in Canada see global trade as critical to driving private sector competitiveness. Some 84 per cent believe that trade diversification beyond North America is necessary. Yet, less than 25 per cent of businesses in Canada strongly support CETA, with another 44 per cent showing only lukewarm support.
"The ambivalence we're seeing among Canadian business may be a result of the fact that the deal is still very new," said Cristina Falcone, vice-president, public affairs, UPS Canada. "Still we're optimistic that as businesses learn more about CETA and how it opens up new opportunities for competitiveness, we'll see a stronger endorsement and strategic engagement with prospective new European customers."Other important findings from the UPS Canada CETA survey include:
- Two thirds of businesses currently export globally and of these companies, only one third export to the E.U.
- Of those businesses that target Europe for export, 37 per cent expect CETA to compel them to increase export volumes to E.U. markets
- Only 17 per cent of respondents anticipate the deal to motivate them to examine opportunities in Europe for the first time.
- Businesses that have a supply chain strategy in place (62.7%) are much more likely to believe that their organizations could leverage CETA to their advantage than those that don't (43.7%)
- Overall businesses were more likely to exceed their growth benchmarks with a supply chain strategy in place (24.6%), rather than without (16.3%)
- Nearly 6 in 10 organizations have a supply chain/shipping strategy