Thank you.
Thank you very much for the invitation and the opportunity to address the standing committee as you consider how the federal government can better connect small and medium enterprises with trade opportunities around the world. This is an important subject. It's important to us all.
It was said earlier today that one in five jobs in Canada depends on exports. Our research in Saskatchewan indicates that as many as one in three jobs depends on exports. The reason for that is relatively simple. We have a population of only 1.2 million people. It's growing but it's still a very small domestic market, so we have to ship and export what we produce outside of our borders in order to expand and to succeed economically.
It's for this fundamental reason that the Government of Saskatchewan, some 22 years ago, decided to move its trade promotion function away from the government bureaucracy and closer to the industry it serves. As such, Saskatchewan Trade and Export Partnership, known as STEP, is an independent and non-profit export promotion agency serving about 400 members from across the province, most of them SMEs. We have 15 directors on the board, 12 of whom represent the export industry itself. It is from this unique and highly successful model—and from this industry context—that we provide some observations the committee may want to consider.
Through the many witnesses who have been here before, on this trade matter and many others, I'm sure that you are well aware of the significant business challenges specific to the export industry—whether it's different cultures and languages, regional conflicts, tariffs and non-tariff barriers, unfamiliar legal and financial systems, fluctuating exchange rates, varying labelling and regulatory requirements, restricted export infrastructure, or expensive logistics, just to name a few. These create uncertainty for small business, and we all know that small business—any business—does not like uncertainty.
STEP is very supportive and appreciative of the federal government's efforts to improve market access through the removal and reduction of tariffs and non-tariff barriers through USMCA, CPTPP and CETA, which are critically important. Indeed, given a level playing field, our exporters can compete with anybody in the world.
It's important to note that when Canada enters into free trade agreements with other jurisdictions we're only reducing one or two of the exporter's total risks. STEP's suite of programs and services are designed to turn that remaining uncertainty into measurable risk. In addition to guidance and general counselling, STEP organizes ongoing trade missions and incoming buyer events. We do customized market intelligence services and offer market access programs that reduce the cost of marketing in new jurisdictions.
Very specifically, in support of the opportunities afforded our economy through recent free trade agreements, STEP organized nine round tables and seminars with Saskatchewan's export industry over the last year, including the one that was referenced by the chair. In addition, we published exporter guides for the South Korean, European and United States markets. More recently, in concert with CPTPP ratification, STEP participated in the creation of the Canada West Foundation's CPTPP guide for small businesses in western Canada. In the new year, STEP will partner with Global Affairs Canada to offer a CPTPP exporter seminar, and it has organized several outbound trade missions to Japan, Vietnam and Malaysia in the new year.
As you know, the federal government plays a critical role through Global Affairs Canada and the trade commissioner service, Western Economic Diversification, Export Development Canada, and the Business Development Bank. We work very closely with these federal agencies, and in fact provide and enjoy a co-office, co-location effort with Global Affairs Canada and EDC.
In addition to the ongoing support for these internationally engaged federal agencies, we would suggest two key areas of focus for the committee consider, the first being very close to home. Nationally, we believe the role of the federal government should be to help create an environment that is supportive of small and medium-sized businesses and helps SMEs to compete on the international stage through competitive taxation, fair regulation, and the construction and maintenance of export-enabling infrastructure. I would say that's most notably rail, port capacity and pipeline construction.
Internationally, the role of the federal government is to help path find for small business, continue to ensure market access, and promote and defend the Canadian brand abroad.
Thank you very much for your time and your consideration.