What’s At Stake For Canada When It Comes To NAFTA?
The Conference Board of Canada released a report last week outlining the potential effects on the Canadian economy if the country, along with Mexico and the United States, fail to renegotiate the North American Free Trade Agreement (NAFTA). The Conference Board found Canada would:
- Lose 85,000 jobs in the first year after NAFTA termination;
- Lose 91,000 jobs in the second year after NAFTA termination;
- Face tariffs averaging two percent on its exports (for some goods, tariffs would be much higher);
- See shipments to its southern neighbors fall 1.8 per cent in the year after termination;
- Lose 0.5 percent in economic growth; and
- See business investment fall by $3.3 billion in the year after termination.
The Conference Board also said Canada would suffer from a reduced ability to attract investment based on secured access to the U.S. market, an outcome that could result in a long-term economic impact that is even worse than the predictions above.