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Ending NAFTA Would Hurt Growth, Competitiveness of Canada, United States: Report

Posted November 27, 2017

Under Economic Issues, International Trade Issues


(Nick Carey – Reuters)

Terminating the North American Free Trade Agreement would harm the U.S. and Canadian economies and reduce their competitiveness versus Asia and Europe, a report issued by the Bank of Montreal said on Monday.

According to the report, “The Day After NAFTA,” a failure to renegotiate the trade agreement between the United States, Canada and Mexico would lead to a 0.2 net reduction in real U.S. gross domestic product over the next five years, and a 1 per cent decrease for Canada’s economy.

U.S. President Donald Trump has threatened to withdraw from NAFTA unless it can be reworked in favour of the United States, arguing that the pact has hollowed out U.S. manufacturing and caused a trade deficit of more than US$60 billion with Mexico. Click here to read more.

Related:

The Day After NAFTA – Economic Impact Analysis (BMO Capital Markets)

End of NAFTA Would Cut 0.55% Off Canada’s GDP Says Study (Bayview News)

Canadian Retailers Face $38 Billion Double Whammy if NAFTA Fails (Financial Post)