Economic uncertainty shakes small businesses in Saskatchewan, motivates global trade efforts

“Small businesses have been reeling from the impacts of a global pandemic,” Solberg said. “The ability to pay down debt was something that most businesses thought would come naturally as the pandemic came to an end, but then this trade war really shook things up and it’s been a really challenging time.”

A tarnished relationship with the US doesn’t mean a sudden uncoupling between the two countries, says Prabha Ramaswamy, CEO of the Saskatchewan Chamber of Commerce.

“They’re going to continue to be a trading partner simply because our economies are very integrated. We cannot replace the US as a trading partner overnight,” she said.

That will come with navigating another barrier: The surge and drops in oil prices due to the Middle Eastern conflict – which the provincial government priced conservatively in this year’s budget.

Solberg said the budget “largely overlooked” the needs of small businesses.

“There were no real measures…to appreciate the situation that they’re facing and provide some relief,” she said.

While acknowledging the province faces a rough economy, Solberg said support for small businesses could include raising the corporate tax threshold, and eliminating PST on business inputs which could return roughly $197 million to the economy.

The bottom line for independent business owners? The instability is delaying hiring, expansion, and investment.

“This is what we’re calling an entrepreneurial drought. Essentially, if we don’t do anything to reverse this trend, we risk losing many of the small business that make up our communities,” Solberg said.

Ramaswamy said that reverberates provincially.

“It’s not so much that a business is paying tariffs, but it’s more so the climate is so uncertain that businesses are very reluctant to make investments,” she said.

Diversifying the markets will be key in moving forward, Ramaswamy said.

A renewed focus on removing Canada’s internal trade barriers will inevitably strengthen its economy overall, she noted. Saskatchewan is in a better position than others when it comes to outside investment, she said, due in part to its nine international trade offices.

“We have something like $62 billion in private capital with about 60 projects. That is significant for this country. We live in a province where we have food, fuel, fertilizer. We have what the world needs.”

As an example, the province has supplied India with potash for half a century and can now leverage that relationship during a transitory trading period with the US.

“It says something about Saskatchewan’s rule on the global landscape and how we can shape and influence some very critical decisions,” Ramaswamy said.

A major decision Canada faces moving forward will be the renegotiation of CUSMA. On Tuesday, US Trade Representative Jamieson Greer said discussions will likely move beyond a July deadline. All three countries will decide whether to renew the agreement, withdraw from it, or continue under annual reviews and renewals.

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-With files from the Canadian Press

glynn.brothen@pattisonmedia.com

by Glynn Brothen

Economic uncertainty shakes small businesses in Saskatchewan, motivates global trade efforts

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