Alaska's trade with Canada: overlooking the obvious.

• Author: Richardson, Jeffrey

Judging by the most recent statistics, trade between Alaska and Canada is small -- and dropping. But listening to Alaskans Donna Logan, Wayne Lofgren or Jim Kohler, you get the distinct impression that Canada is a sleeping trade giant offering numerous untapped markets for Alaskan entrepreneurs.

Reconciling the reality and the potential for more trade with Alaska's strapping next door neighbor is difficult. Because very few Alaskan businesses are currently profiting from a Canadian connection, there is little in the way of practical experience or expertise to inspire and inform others.

On the other hand, because today's Alaska-Canada trade volumes are low, anomalies are exaggerated. The statistical abnormalities make certain figures unreliable and misrepresent several important areas ripe for development by Alaskan entrepreneurs who have adequate capital and stamina to develop new markets.

"Canada's a very difficult market for us to analyze because there's a lot of interchange of product. There's a lot of interaction. How much of the export is for the end-consumer is difficult to determine," says Bill Aberle, who tracks trade statistics at the Alaska Center for International Business.

Alaska and Canada export similar commodities and tracing their destinations and economic impact as they move through the international marketplace is nearly impossible, Aberle explains. He acknowledges that because trade traffic with Canada is so light, deeper analysis has not been much of a priority. "Canada's just not a significant trading partner. It's of minor importance," says Aberle.

This situation persists despite approval a couple of years ago of the Free Trade Agreement between Canada and the United States. Effective Jan. 1, 1989, the agreement was intended to remove tariff and other trade barriers that time, proximity and natural affinity had not already erased.

Those who strive to keep their fingers on the pulse of Alaska-Canada trade charge that Alaska is throwing away the conspicuous virtues of increasing commerce with Canada to flirt with another less reliable potential partner, the Soviet Union. Or, that the state has put too many of its commercial eggs in the safe Asian basket, rather than take a reasonable risk in a new arena.

Wayne Lofgren, who's been developing connections across the border through family-owned Alaska Direct Transport, an Anchorage-based freight firm, calls neglect of Canadian opportunities a "disaster." Noting a strong affinity between Alaskans and residents of Northwest Territories, Yukon Territory and northern British Columbia, Loffren, says, "It's a prime area for Alaska; there's no competitive factor."

According to Ron Sheardown, Canada's honorary commercial representative in Alaska and president of Greatland Exploration, a mining consulting firm in Anchorage, Canadians have done a better job cultivating opportunities in Alaska than Alaskans have of cultivating opportunities in Canada.

"Generally, people overlook their neighbor. There hasn't been a real push on this end. I think generally the Canadians keep the flag out there," says Sheardown.

Donna Logan, an international-trade analyst and consultant, says, "I would characterize trade between Alaska and Canada as being almost embarrassing, almost non-existent." Logan is a Canadian who recently won her permanent U.S. resident status. In early August, she joined the Alaska Department of Commerce and Economic Development as an international trade specialist.

Logan estimates that Canada accounts for only 3 percent of Alaska's foreign trade and blames this state of affairs on ignorance and...