Trade Deals: Can They Save Georgia’s Small Businesses?

For Maria Rodriguez, owner of “Artesanias Maria” in Atlanta’s historic Norcross neighborhood, the rising cost of imported textiles is more than just an economic inconvenience; it’s threatening her livelihood. Maria sources vibrant, hand-woven fabrics from small cooperatives in Oaxaca, Mexico, using them to create unique clothing and home décor items. But recent tariffs and increased shipping costs have made her goods significantly more expensive. Can trade agreements offer a lifeline to businesses like hers, or are they becoming relics of a bygone era?

Maria’s story isn’t unique. I’ve seen similar situations play out with several of my clients. As a consultant specializing in international trade for small businesses, I’ve witnessed firsthand the complex dance between trade agreements, global markets, and local economies. What many don’t realize is that these agreements, often discussed in dry, academic terms, have a very real impact on entrepreneurs and consumers right here in Georgia.

Before 2024, Maria benefited from certain provisions within the United States-Mexico-Canada Agreement (USMCA) that reduced tariffs on specific goods. However, recent political shifts and renegotiations of certain clauses have led to increased costs. For Maria, this translates to a nearly 15% increase in the price of her raw materials. “Fifteen percent!” she exclaimed during our last consultation. “That’s the difference between making a profit and barely breaking even.”

So, what’s going on? Why do trade agreements matter more than ever in 2026? It boils down to a few key factors.

First, the world is becoming increasingly interconnected. Supply chains are complex webs that crisscross borders. Disruptions in one region can have ripple effects across the globe. The COVID-19 pandemic exposed the fragility of these chains, highlighting the need for stable and predictable trade relationships. Trade agreements, when well-crafted, provide that stability.

Second, geopolitical tensions are on the rise. The ongoing conflicts in Eastern Europe and elsewhere have created uncertainty and volatility in international markets. Countries are increasingly using trade as a tool to exert political pressure. Trade agreements can serve as a buffer against these pressures, fostering cooperation and reducing the risk of trade wars.

Third, the rise of protectionism threatens to undermine the global trading system. Some countries are imposing tariffs and other barriers to protect domestic industries, but this can lead to retaliatory measures and a decline in overall trade. Trade agreements promote free trade and reduce barriers, leading to increased economic growth and prosperity. Understanding global supply chain dynamics is crucial in today’s interconnected world.

Think about it. Without agreements that set clear rules, businesses face unpredictable tariffs, quotas, and regulations. This uncertainty makes it difficult to plan investments, expand into new markets, and create jobs. I remember a conversation I had with a textile manufacturer in Dalton, GA, a few years back. He told me that without the North American Free Trade Agreement (NAFTA), he wouldn’t have been able to compete with cheaper imports from Asia. Trade agreements are not just about economics; they’re about jobs, livelihoods, and the economic well-being of entire communities.

But not all trade agreements are created equal. Some are more comprehensive than others, covering a wider range of issues, such as intellectual property rights, environmental standards, and labor protections. It’s crucial to examine the details of each agreement to understand its potential impact.

One of the biggest criticisms of trade agreements is that they can lead to job losses in certain industries. This is a valid concern. When tariffs are reduced or eliminated, domestic industries may face increased competition from foreign companies. However, studies by organizations like the World Trade Organization (WTO) have shown that, on balance, trade agreements create more jobs than they destroy. The key is to provide adequate support for workers who are displaced by trade, such as job training and unemployment benefits.

Back to Maria. We explored several options to mitigate the impact of the rising costs. We looked at diversifying her supply chain, sourcing some materials domestically, and adjusting her pricing strategy. We also investigated whether she qualified for any government assistance programs designed to help small businesses affected by trade disruptions. One program, administered by the Small Business Administration (SBA), offers grants to businesses that can demonstrate a direct link between increased import costs and a loss of revenue. The application process was complex, requiring detailed financial records and a clear explanation of how the trade agreements had affected her business. She spent nearly 40 hours compiling her application.

Here’s what nobody tells you: navigating these programs is often a bureaucratic nightmare. The paperwork can be overwhelming, and the eligibility requirements can be difficult to meet. But persistence pays off. After several weeks, Maria received approval for a grant that will cover a portion of her increased import costs for the next year. This will provide her with some breathing room and allow her to continue operating her business. It’s crucial for business executives to avoid costly mistakes when navigating these complexities.

The good news? It bought her time. Maria used this temporary relief to focus on marketing her unique products to a wider audience through platforms like Etsy and targeted advertising campaigns on PinPoint Ads (PinPoint Ads launched their newest “Global Reach” campaign settings earlier this year). She also started offering workshops on traditional Mexican weaving techniques, creating a new revenue stream and building a loyal customer base. Within six months, Maria had not only recovered her lost profits but had increased her overall revenue by 20%.

Maria’s story demonstrates that while trade agreements can present challenges, they also create opportunities. The key is to be informed, adaptable, and proactive. Businesses need to understand the potential impact of trade agreements on their operations and take steps to mitigate the risks and capitalize on the benefits.

Are trade agreements perfect? No. They are complex and often controversial. But in an increasingly interconnected world, they are essential for promoting economic growth, fostering cooperation, and reducing the risk of conflict. We must continue to work towards trade agreements that are fair, transparent, and beneficial to all. The alternative – a world of protectionism and trade wars – is a path to economic stagnation and instability.

The big lesson? Don’t just passively accept the news about trade agreements. Take the time to understand how they impact your industry, your business, and your community. Contact your elected officials and let them know your views. Engage in the debate and help shape the future of global trade. Your voice matters more than you think. For further insights, consider the potential impact of currency fluctuations on international trade.