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A Saskatchewan trampoline manufacturer is hoping is hoping no delays spring forward during the renegotiation of the Canada-United States-Mexico agreement (CUSMA).
The Canadian federal government gave official notice to both countries it wants to renegotiate the deal on Tuesday.
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The free trade agreement is set to expire on July 1.
Luke Shaheen, the managing partner with Crazy Ape Extreme Equipment, said the current deal has helped protect the company.
“There’s always stress in business,” he said. “There’s definitely stress with the CUSMA negotiations.”
Employees at Crazy Ape Extreme Equipment sew together strips of fabric. (Gillian Massie/ 980 CJME)
The Regina-based trampoline manufacturer’s biggest customer is the United States, Shaheen said, with over 50 per cent of its product sent south.
“There is a lot on the line,” he said. “We’re optimistic. No matter what things are going to move forward … we have to be ready to pivot.”
Shaheen attended a meeting with the Saskatchewan government to give feedback ahead of the CUSMA renewal.
Shaheen said the company has been creating trampolines since the 1970s. (Gillian Massie/ 980 CJME)
He said told the premier’s advisory council he would like to see a larger emphasis on manufacturing with materials from North America in a renewed deal.
“That’s what we do every day,” Shaheen said. “We need to see the economy come back to that.”
Shaheen isn’t jumping to any conclusions yet, and remaining positive before negotiations begin.
Trump border rules causing an ‘administrative burden’
The Regina-based company has faced challenges at the American border over the past year and a half.
In the past, Shaheen said there were exemptions that let products free flow across the Canada-U.S. border.
He said that hasn’t been the case since Donald Trump took office.
“It’s been an administrative burden,” Shaheen said. “It’s manageable for now.”
Each order that passes across the border now requires robust paperwork detailing its customs clearance.
Shaheen said Crazy Ape Extreme Equipment has already pivoted plans with different challenges from the United States. (Gillian Massie/ 980 CJME)
Shaheen said more staff members have been hired to keep up with the extra administrative work.
“We have to put every nut and bolt and component on customs paperwork,” he said. “They ask where that nut and bolt came from. Where the steel came from. Where the steel was poured. Everything.”
Shaheen said the steel for some parts of the trampolines comes from United States is already subject to a 25 per cent tariff.
He said the company has lost several $100,000 due to diminishing profit margins, and had to raise its prices.
“It’s a very rare thing, but when all of our raw materials are going up exponentially, it was something we had to do,” Shaheen said.
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