How cutting your imports can lead to producing exports

A not-for-profit group in Nova Scotia is encouraging Prince Edward Islanders to reduce imports as a way to build the economy.

An analysis by the Centre for Local Prosperity says if 10 per cent of P.E.I. imports were replaced with local products it could create more than 3,400 jobs and increase GDP by $314 million.

There's an economic spinoff.— Robert Cervelli

Governments and institutions are a great place to start when it comes to reducing imports, said executive director Robert Cervelli. He argued they need to consider more than just the price in the procurement process.

"What governments and institutions don't take into account is there is multiplier effects for the local economy if you engage and contract with local businesses. There's an economic spinoff," Cervelli said.

"There's studies that have been done, for example, that show work done by a locally owned business can create as many as two and a half times more jobs than work done by a non-locally owned business."

Projects already underway

A good example that's already happening, Cervelli said, is the P.E.I. government funding an initiative to get more local food in Island schools.

A biomass program using chipped forestry waste to heat public institutions is another good example, he said.

Reducing imports can also have long-term benefits.

"When you get really good at import replacement, that naturally leads to exporting," Cervelli said.

"You're building local capacity in locally owned businesses, you're demonstrating viability in being able to produce something and sell it locally, then that very naturally leads to exporting it into other markets."

The Centre for Local Prosperity plans to offer workshops on reducing imports on the Island later this year.

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