What does NAFTA have to do with Canada?

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alanjh595
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What does NAFTA have to do with Canada?

Post by alanjh595 »

With a trillion dollars in trilateral trade at stake in the NAFTA negotiations, hundreds of Canadian companies are watching with great interest. Some worry if the talks go south, their factories may have to follow.

Some Canadian firms could move part of their operations to the United States amid uncertainty over the future of the NAFTA trade pact, the nation’s export credit agency said on Friday.

The semi-annual forecast by Export Development Canada underlines the challenges posed by the more isolationist approach to trade of U.S. President Donald Trump’s administration.

https://globalnews.ca/news/3918573/cana ... u-s-nafta/


Loonie down to 74 US cents if NAFTA ends — here’s what could happen to prices

The Canadian dollar could slump to 74 US cents, down from around 79 cents currently, if U.S. President Donald Trump were to dissolve NAFTA, according to a BMO report published Monday.

That would compound the effect of higher trade tariffs to deliver a punch to Canadian wallets.

“It is arguably the consumer that would be the biggest net loser from the termination of NAFTA,” the study warns.

Indeed, higher prices and a slowing economy could force Canadians to trim their spending on retail items by $170 per household in 2019, according to a separate study also released Monday by global management consultancy firm A.T. Kearney in collaboration with the Retail Council of Canada.

https://globalnews.ca/news/3882571/naft ... ts-prices/


Expect to pay more for lots of stuff if Donald Trump dissolves NAFTA
U.S. President Donald Trump just might pull the plug on the North American Free Trade Agreement, leaving the entire continent’s state of trade in flux – while possibly driving up costs for Canadian consumers on a slew of goods from cars to groceries.

“Trade is so intertwined between the three countries, there will be higher costs on a wide range of goods,” said Milos Barutciski, who co-heads international trade and investment at Toronto’s Bennett Jones LLP.

“There is so much integration, that if you take away the lubricant that made the smoothness possible, consumers will feel the effects.”

Trump has said he might consider a bilateral pact with Canada in lieu of NAFTA.

Considering Canada and the U.S. have been operating under a trade agreement including Mexico for nearly a quarter century, however, many of the goods crossing between Canada and the U.S. include parts from Mexico.

The fact that goods can travel duty-free between the U.S. and Mexico during the manufacturing process helps keep the costs of many goods down, Barutciski explained. In other words, Canadian consumers benefit from U.S.-Mexico trade, even if Canada’s direct trading relationship with Mexico doesn’t boast a high dollar figure.

Take away the trade advantages between the U.S. and Mexico, however, and consumers will feel it in their wallets.

https://globalnews.ca/news/3797043/dona ... de-impact/
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fluffy
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Re: What does NAFTA have to do with Canada?

Post by fluffy »

I can understand that. If the current regime wants to favour US based businesses over foreign ones it makes perfect sense for Canadian businesses who do most of their business south of the line to move there. It may well mean their continued survival.
“We’ll go down in history as the first society that wouldn't save itself because it wasn't cost effective.” – Kurt Vonnegut
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