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Business Wire 1-Nov-2018 9:00 AM
Preliminary USMCA Deal Likely to Support Regional Growth Opportunities Identified by Businesses in the US, Mexico and Canada
Despite concerns about protectionist measures, businesses in the United States, Mexico and Canada expressed a high degree of confidence about international trade opportunities, according to HSBC's latest Navigator Survey. Results show that firms in North America exhibited more interest in doing business within the region, likely due to ongoing uncertainty regarding trade negotiations happening around the globe.
"Businesses are clearly finding ways to move from uncertainty to growth," said Jaron Campbell, US Head of International Subsidiary Banking, HSBC Commercial Banking. "Despite a number of global developments, we've observed a renewed sense of energy across all sectors and industries around doing business within the North America region."
For example, firms in all three countries ranked their regional partners as their top two markets for growth:
Pivoting to intra-regional rather than inter-regional trading opportunities is also observed in other regions. European companies citing Asia as a top market for growth dropped from 26% in the first quarter to 13% now, North American firms citing Asia fell from 33% to 15%, and Asian companies citing North America slipped from 29% to 21%. At the same time, more Asia-Pacific companies are looking at China specifically as a future growth market, a four percentage point increase to 16%.
Although fielded before the preliminary framework of the rebranded United States-Mexico-Canada Trade Agreement (USMCA), survey data show that in both the US and Canada, nearly half (46%) of businesses felt that NAFTA will help their business in the next three years. Businesses in Mexico were more optimistic with 58% of those surveyed reporting it will help their business in the next three years. If approved, USMCA will likely strengthen the desire to capitalize on the growth opportunities previously identified within the region.
Key Findings for the US
Key Findings for Mexico
Key Findings for Canada
Note to editors:
HSBC Navigator: Now, next and how for business
HSBC's Navigator report comprises a global survey gauging business sentiment and expectations on trade activity and business growth from 8,650 decision-makers in 34 markets. Research was conducted by Kantar TNS for HSBC between August and September 2018. HSBC's Navigator helps businesses capitalise on new opportunities and make informed decisions for the future by understanding the outlook for international trade.
The full report can be accessed here: www.business.hsbc.com/trade-navigator
HSBC Holdings plc
HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. The Group serves customers worldwide from around 3,800 offices in 66 countries and territories in Europe, Asia, North and Latin America, and the Middle East and North Africa. With assets of US$2,603bn at 30 September 2018, HSBC is one of the world's largest banking and financial services organisations.
HSBC Commercial Banking
For over 150 years we have been where the growth is, connecting customers to opportunities. Today, HSBC Commercial Banking serves around 1.7 million customers across 53 markets, ranging from small enterprises focused primarily on their home markets through to corporates operating across borders. Whether it is working capital, term loans, trade finance or payments and cash management solutions, we provide the tools and expertise that businesses need to thrive. As the cornerstone of the HSBC Group, we give businesses access to a geographic network covering more than 90% of global trade and capital flows.
For more information visit: www.hsbc.com/about-hsbc/structure-and-network/commercial-banking.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181101005153/en/