***Half of firms surveyed expect NAFTA to have
a positive impact on their business over the next two years***
***North American firms more optimistic about
business benefits from NAFTA than other trade agreements***
Despite uncertainty around protectionist trade policies,
business leaders in the United States, Canada and Mexico maintain a
positive outlook for the North American Free Trade Agreement
(NAFTA) and its impact on their firms, according to a newly
released report from HSBC ‘Navigator: Now, next and how for
business’.
More than 60% of business leaders surveyed across North America
believe governments are increasingly taking a protectionist stance
of raising trade barriers to defend domestic businesses.
But even amid ongoing renegotiations of NAFTA, half of firms
surveyed (U.S. 49%; Canada 52%, Mexico 53%) expect the impact of
the trade agreement to be positive over the next two years.
“In spite of the threat of new trade barriers, we expect growth
in cross-border business to continue, especially among our North
American neighbors. We’re seeing a lot of optimism from U.S.
clients right now stemming from factors like deregulation, lower
taxes, a somewhat weaker U.S. dollar, climbing energy prices and a
rise in global economic development,” said Wyatt Crowell, Head of
Commercial Banking, HSBC USA. “As the world’s largest trade bank
and leading international commercial bank in the US, we are
uniquely positioned to provide end-to-end coverage: from
structuring cross-currency financing transactions, to supplying
access to broader institutional markets and acting as clients’
primary operating and transactional bank.”
The HSBC survey of 6,000 international firms around the world
found that more than three in four (77%) businesses are optimistic
about their international prospects, notwithstanding the worldwide
concern among almost two-thirds of global businesses (61%) that
governments are becoming protective of their domestic
economies.
According to the survey, less than one in ten (9%) U.S.
businesses expect NAFTA to inhibit growth -- a smaller share of
firms with negative views of NAFTA than in Mexico (16%) and Canada
(13%).
In fact, the survey found that North American firms were more
positive about NAFTA than agreements with trading partners farther
from home. For example, a smaller share of Mexican firms (43%)
expected a positive impact from the Pacific Alliance – a trade
block comprising Mexico, Peru, Colombia and Chile – than from NAFTA
(53%). Similarly, Canadian firms saw less growth opportunity from
CETA (43%) and CPTPP (39%) than from NAFTA (52%).
“NAFTA has significantly benefitted Canada, Mexico and the
United States,” said Linda Seymour, Head of Commercial Banking,
HSBC Bank Canada. “It has facilitated increased trade, improved
customer choice, allowed for the provision of more services and has
fostered growth and greater co-operation among government policy
makers and businesses in all three countries.”
Firms in all three countries remain upbeat about doing more
business abroad, with Mexico leading the way with 87 percent of
firms surveyed expecting increased trade volume over the next 12
months, compared to 77 percent of U.S. firms and 70 percent of
Canadian firms.
“NAFTA has become a $1.2 trillion corridor for continental trade
and investment, and represents a good opportunity to business in
the three countries to grow and expand, said Juan Marotta, Head of
Commercial Banking, HSBC Latin America and Mexico. “HSBC has a
major presence in each NAFTA country, making us ideally placed to
connect businesses to opportunities across North America, as well
as around the world.”
In all three North American countries, surveyed businesses rank
NAFTA partners as their top two most important target markets for
expansion.
- U.S. firms identify Canada (20%),
Mexico (19%) and Japan (11%) as their primary markets for
expansion;
- Mexican firms are focused on expansion
in the United States (39%), Canada (27%) and Argentina (10%);
- Canadian firms see opportunity in the
United States (36%), Mexico (18%) and China (14%)
Other key survey findings include:
Canada
- To support their expected growth, over
half (54%) of the Canadian businesses surveyed project an increased
need for trade finance and the same proportion (53%) expect their
access to trade finance to increase.
- More than half (57%) of Canadian
businesses expect to increase their volume of trade in services in
the next 12 months.
- Business-to-business (B2B) services as
a share of total service exports are expected to account for just
over 50% of total services export by 2030, up from 42%
currently.
- Almost two-thirds of Canadian
businesses agree that data regulation (62%) and big data (55%) may
create barriers to open competition and cross border service
delivery.
Mexico
- More than two-thirds of the businesses
in Mexico surveyed expect to need more trade financing in 2018 than
last year, and a full 70% expect access to trade finance to get
easier.
- For nearly half (48%) of service
businesses, entering new markets is the key approach to growth
during the next 12 months, supported by increasing use of
e-commerce (24%). Better use of data (23%) and upscaling the
technology skills of employees (22%) are also considered among the
top three strategies by nearly a quarter of services
businesses
- Services exports, primarily driven by
tourism as well as financial services, will become an increasingly
important part of Mexico’s overall trade mix in the coming
decade.
- Reforms to make Pemex more agile and
competitive should help boost crude oil output in the years ahead,
as well as the production of downstream products such as fuels and
chemicals.
U.S.
- In light of the upbeat trade outlook,
just over half (52%) of the U.S. businesses surveyed expect to need
more trade finance over the next 12 months. A similar proportion
(49%) think their access to trade finance will improve.
- As the world’s leader in service
exports, the U.S. accounts for an estimated fifteen percent (15%)
of total international services trade, with business-to-business
services dominating the sector.
- Over a third (35%) of respondents think
technology use stimulates growth in services trade. After entering
new markets—the number one strategy for increasing service trade,
cited by a third of respondents—e-commerce is the second most
popular approach.
- More than three-quarters (77%) of U.S.
firms say easier access to data creates a more level playing field
in international business, while about two-thirds (68%) believe
data regulation would impede cross-border service delivery.
Note to editors:
HSBC Navigator: Now, next and how for business
HSBC Navigator is the most comprehensive report of global trade
and business confidence. It combines an economic forecast of medium
to long-term bilateral trade for exports/imports of goods and
services across 25 countries (by Oxford Economics), and a global
survey gauging business sentiment and expectations on trade
activity and business growth by Kantar TNS.
HSBC’s Navigator helps businesses capitalize on new
opportunities and make informed decisions for the future by
understanding the outlook for international trade.
The full report and country reports including Canada, Mexico
and the United States can be accessed here:
www.business.hsbc.com/trade-navigator
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 54 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:
http://www.hsbc.com/about-hsbc/structure-and-network/commercial-banking.
HSBC Bank Canada
HSBC Bank Canada, a subsidiary of HSBC Holdings plc, is the
leading international bank in the country. We help companies and
individuals across Canada to do business and manage their finances
internationally through three global business lines: Commercial
Banking, Global Banking and Markets, and Retail Banking and Wealth
Management. Canada is a priority market for the HSBC Group – one of
the world’s largest banking and financial services groups with
assets of US$2,522bn at 31 December 2017. Linked by advanced
technology, HSBC serves customers worldwide through an
international network of around 3,900 offices in 67 countries and
territories in Europe, Asia, North and Latin America, and the
Middle East and North Africa. For more information visit
www.hsbc.ca or follow us on Twitter: @hsbc_ca or
Facebook: @HSBCCanada
HSBC Mexico
HSBC Mexico is one of the leading financial and banking groups
in Mexico, with 971 branches, 5,532 automated teller machines and
approximately 16,000 employees.
Grupo Financiero HSBC is a directly controlled and 99.99 per
cent owned subsidiary of HSBC Latin America Holdings (UK) Limited,
which in turn is wholly controlled by HSBC Holdings plc.
HSBC Holdings plc serves around 38 million customers in 67
countries and territories in Asia, Europe, North America, Latin
America and the Middle East and North Africa. With assets of US
2,522 billion at 31 December 2017, HSBC is one of the world’s
largest banking and financial services organisations.
HSBC Bank USA, National Association (HSBC Bank USA, N.A.)
serves customers through retail banking and wealth management,
commercial banking, private banking, and global banking and markets
segments. It operates bank branches in: California; Connecticut;
Delaware; Washington, D.C.; Florida; Maryland; New Jersey; New
York; Pennsylvania; Virginia; and Washington. HSBC Bank USA, N.A.
is the principal subsidiary of HSBC USA Inc., a wholly-owned
subsidiary of HSBC North America Holdings Inc. HSBC Bank USA, N.A.
is a Member of the FDIC. Investment and brokerage services are
provided through HSBC Securities (USA) Inc., (Member NYSE/FINRA/
SIPC) and insurance products are provided through HSBC Insurance
Agency (USA) Inc.
HSBC Holdings plc
HSBC Holdings plc, the parent company of the HSBC Group, is
headquartered in London. The Group serves customers worldwide from
around 3,900 offices in 67 countries and territories in Europe,
Asia, North and Latin America, and the Middle East and North
Africa. With assets of US$2,522bn at 31 December 2017, HSBC is one
of the world’s largest banking and financial services
organisations.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180321005756/en/
Media:HSBCMatt Klein (US),
212-525-4644matt.klein@us.hsbc.comorCaroline Creigton (Canada),
416-868-8282caroline.x.creighton@hsbc.caorLyssette Bravo (Mexico),
52557211288lyssette.bravo@hsbc.com.mx
HSBC (NYSE:HSBC)
Historical Stock Chart
From Apr 2024 to May 2024
HSBC (NYSE:HSBC)
Historical Stock Chart
From May 2023 to May 2024