International Monetary Fund has warned that CAD GDP is at risk
- in the event Nafta was terminated-as Mr. Trump has threatened to do-and there is a reversion to tariff rates under World Trade Organization rules, Canadian economic output could be reduced by 0.4% over the next four to five years, and "by even more if nontariff trade costs increase."
More:
- "economic anxiety is high due to trade tensions, uncertainty about the outcome of Nafta negotiations, and the impact of the U.S. [tax cuts] on Canada's medium-term competitiveness"
- a failure to reach agreement on a revamped Nafta "could impact investment and growth for an extended period."
The Wall Street Journal has more:
Canada Growth at Risk Due to Heightened Trade Anxiety: IMF
Trump administration's trade, tax policies could weigh on Canada 'for an extended period'
The Journal may be gated
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I would have thought the cost higher than 0.4%, but there you go.
