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Punting NAFTA Talks Into 2019 Would Cost Canada 0.2% of GDP: Scotiabank

Posted February 05, 2018

Under Economic Issues, International Trade Issues


(Scotiabank via Brinkwire)

Extending NAFTA negotiations into 2019 would prolong uncertainty for the Canadian economy and trim anticipated growth over the next year, says a forecast released Friday.

Scotiabank estimates that the lingering doubts would shave 0.2 percentage points off Canada’s potential GDP, while the bank projects the country would still see modest economic growth of 2.3 per cent on the year.

The timing question is increasingly relevant. With serious negotiating on the hardest issues just barely begun, and national elections in Mexico and the U.S. later this year, conversations are turning to what might happen when the current schedule of talks concludes in March. Click here to read more.

Related: NAFTA – The Macroeconomic Consequences of Disruption (Scotiabank)