These days, many small businesses may be able to get a better foothold in areas well beyond their own ZIP codes by going international, which has been made possible by the proliferation of the Internet and a greater focus on globalization. Along those lines, the federal government is now working on deals with a number of nations around the world to help ease the process of exporting goods.
Right now, this might only affect a miniscule number of small businesses, as only about 1 percent of all companies across the country are actually involved in exporting, regardless of their size, according to a report from the Associated Press. However, the U.S. is now working on both the so-called Trans-Pacific Partnership and the Trans-Atlantic Trade and Investment Partnership, which would make it easier for companies here to export by getting rid of tariffs, cutting down on paperwork, and expediting the customs process.
The partnership across the Pacific would allow for quicker exporting to 11 Asian countries and could create as much as $124 billion in American exports per year, while the deal with nations that are in the European Union has the potential to generate another $23 billion annually, the report said. That, in turn, could boost revenues in the U.S., and thus create new jobs.
“Trade agreements are important because they open up new marketplaces to small businesses, which ultimately translates into more jobs and greater economic growth,” U.S. Rep. Sam Graves, a Republican representing Missouri who also serves as chairman of the House Small Business Committee, told the news agency.
Why is this good for small businesses?
Again, relatively few companies in the U.S. are currently involved in exporting, but that number rose appreciably after the North American Free Trade Agreement was signed, and it’s hoped these two trade deals will likewise prompt more activity in this regard, the report said. While there is no certainty that these deals in particular will be a success, the likelihood seems high that many companies large and small could benefit.
Many small business owners are likely to have concerns about their bottom lines with the economy improving at the rate it has, but even if they don’t get involved in exporting they can still do more to improve it. This could include taking the time to shop around for more affordable small business insurance coverage, including policies for commercial insurance, to potentially save thousands of dollars per year.