Cross-border companies not too worried about possible trade-policy changes
Posted February 10, 2017 9:52 pm.
Last Updated February 10, 2017 9:54 pm.
This article is more than 5 years old.
FERNDALE, WA (NEWS 1130) – Now that the US travel ban has been dealt a blow, attention returns to possible changes to trade policy between the US and the rest of the world.
Prime Minister Justin Trudeau meets face-to-face with US President Donald Trump on Monday and trade is expected to one of the topics.
“I think Canada is preparing really well to present their arguments,” says Jim Pettinger with UCanTrade in Ferndale, Washington which helps Canadian companies access markets in the US.
But he warns Canadian companies that outsource some manufacturing to China then sell in the US could be vulnerable.
“If some sort of a tariff of say 20 per cent is slapped on everything from China, that would affect BC companies that do manufacture in China and have their goods imported.”
He believes, though, that even if some goods were subject to new tariffs, the rise in costs wouldn’t be significant enough to choke off business.
“In the short run, the good news for BC companies is the loonie is at 75 cents for every US dollar. For every time they make a $100 sale, they get to deposit $130 in a Canadian bank account.”
He says if NAFTA were torn up, the two countries would revert to the original Canada-US trade agreement, a deal he calls ‘reasonable.’