NAFTA uncertainty could be a roadblock to investments for Canada

OTTAWA (NEWS 1130) – Attracting investment to Canada is one of Justin Trudeau’s main goals. But according to some experts, it’s the possibility of a NAFTA failure that is turning off investors.

NAFTA re-negotiations are currently taking place in Montreal. Internationally, Canada’s competitive advantage has long been tied to our access to the US market.

“Come to Canada, invest in Canada, and you can export into the US market with no problem because NAFTA ensures that,” explains Ian Lee with the Sprott School of Business, adding the uncertainty around the future of NAFTA may hurt Canada’s classic sales pitch.

Lee says as the prime minister makes his pitch to global business and political leaders, the troubled trade talks make Canada less attractive and could lead to some tough questions for Trudeau.

“They are going to want some more compelling information and evidence that NAFTA is going to continue because if it isn’t, it’s going to lead to dis-investment in Canada” says Lee.

Trudeau took off this morning for the World Economic Forum in Davos, Switzerland.

Lee believes “it is going to make Canada less attractive, for the simple reason that it means they will have more difficulty, if they were to locate in Canada and if they were to access the US market.”

Meanwhile, there are more problems at the pivotal sixth round of NAFTA talks, with the US accusing Canada of being obstructionist, as the government looks to make progress on contentious US demands.

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