Canadian and U.S. businesses seem content with the North American Free Trade Agreement and don't see the need to remove trade barriers to other global markets, according to a UPS business survey.
More than half of the survey's respondents said they would prefer to maintain current trade restrictions. According to the Canadian UPS Business Monitor survey, the sentiment was strongest in the construction, manufacturing and retail sectors.
The opinion of small and medium business enterprises (SMEs) appears to run counter to the federal government's efforts to negotiate free trade agreements with Colombia, Japan, India and the European Union.
Despite the deepening troubles in the U.S. economy, 65% of SMEs were focused on expanding their business in the U.S. market, compared with only 19% who intended to take advantage of a growing middle class in Asia and 38% who planned to expand in Europe.
In the U.S., 42% of SMEs predicted business would grow between Canada and the U.S. over the next three years, despite a recession that could last until 2010.
The sentiment against widening free trade is likely due to SMEs feeling their North American market is big enough market. Approximately 50% of Canadian SMEs said they have enough business to deal with in Canada.