Canada could benefit if the US renegotiates NAFTA
Posted January 23, 2017 10:03 am.
Last Updated January 23, 2017 10:05 am.
This article is more than 5 years old.
OTTAWA, ON. (NEWS 1130) – If US President Donald Trump follows through on a promise to renegotiate the North American Free Trade Agreement, Canada could benefit — even though the discussions are filled with risk.
There’s no doubt Canada could face a significant economic impact if Trump decides to throw up a trade wall around the US. However, CIBC Chief Economist Avery Shenfeld says if Trump only targets Mexico then our country could attract new international business. “In the best case, we actually see a bit of a gain over time as activity that had shifted to Mexico takes a second look at Canada.”
But if Canada becomes collateral damage in trade action, 20 per cent of our economy could be impacted, which would stifle growth for years to come.
Canada’s ambassador to the US is even now suggesting the Trudeau government may cut some side deals with Trump’s team in order to protect our interests, adding talks with US officials are ongoing.
Trump Advisor Stephen Schwarzman, who is in Calgary meeting with the cabinet, says “trade between the US and Canada is very much in balance and the way trade should be.”
He believes the risk to Canada is low, in terms of collateral damage without NAFTA in place. “I don’t think [Justin Trudeau] should be enormously worried.”
The US sells more manufactured goods to Canada than Canada does in return.
