Indigenous-owned businesses in Canada cut exports to the US indigenoustourismchamber.ca. They’re calling for action in response to new import rules that have raised the administrative burden of cross-border trade. This decision is a huge surprise given the two countries’ long history of free-trade relations. The Canadian Council for Indigenous Businesses (CCIB) has already taken the lead in working with CC-TCS to find solutions. New changes have created some pretty big obstacles.
Matthew Foss, the vice president of research and public policy at CCIB, made a key underselling point. Under the terms of the existing Canada-U.S.-Mexico trade agreement, he explained, Indigenous craftworks are exempt from tariffs. He knew that the paperwork required to obtain this exemption would burden small businesses. This confusing and opaque process will be hard for them to engage with.
Foss stated, “There needs to be a resolution to allow Indigenous Peoples to continue to undergo the trade routes that they have established and practised, and the treaties that have been signed in the past have suggested that these would be honoured.” He further remarked, “It’s up to the federal governments in Canada and the United States to figure out how to honour those.”
One small business that has been hurt by these changes is The Beaded Hero. Owner Stevi Riley, who operates this colorful community hub on Walpole Island First Nation, mentioned that about 50% of her orders come from the United States. After coming to terms with the new import regulations, she made the decision to stop selling to American customers altogether.
If you (the U.S.) don’t want Canadian products going over, I don’t want to deal with it. I don’t want things getting destroyed or things getting sent back, and I feel like that’s going to happen, Riley expressed.
Dominique O’Bonsawin, who operates Cedarlilie Beads, shared similar thoughts on social media. She declared that her company would cease U.S.-based sales beginning August 27. She pointed to the recent, welcome announcements of raising the de minimus threshold for purchases under $800 to clear customs and face the appropriate tariff rates. These rates are often between 10% to 50%.
“It definitely means less reach, which is a bummer because the U.S. would be a huge opportunity for growth,” O’Bonsawin added. She expressed doubt about the near-term resolution of these issues, saying, “I don’t see anything being done in the near future unfortunately, but I’m hopeful the next U.S. administration will do better for Canada and the U.S.”
Indigenous Business Corporation Donor Chairman and CEO Jack Royal emphasized the larger impact these changes will have. He conveyed that this current level of uncertainty in the U.S.-Canada relationship was producing a lot of instability. This volatility is harmful not only to Indigenous businesses, but to all Canadians too.
“Not being able to trade freely creates more distance and barriers for rebuilding relationships with communities in the U.S. We are related and connected, and this is frustrating,” Royal remarked. He called on Indigenous leaders to take leadership and compel governments to reassert rights. He further urged specific relief for small businesses being hit with these sudden new obstacles.
Royal stressed the importance of transparent consultation and guidance with First Nations. “Like other small businesses, what First Nations are looking for is some certainty and to look for support on how we can maximize our other options,” he said.
In response to these developments, Chief Roger Redman of Standing Buffalo First Nation has put forward a resolution aimed at securing funding for a legal opinion on Aboriginal and treaty rights concerning cross-border trade. This cooperative agreement is indicative of a broader frustration by Indigenous leadership at the state of their rights and capacity to participate in and contribute to interstate and international commerce.
As these businesses navigate an increasingly complex trading environment, the call for advocacy and support becomes more crucial than ever. The ripple effect from these commercial sales being stopped is felt throughout communities that depend on these cross-border transactions to maintain a profitable economic footing.
