(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.