Canadian exporters feel pessimistic on NAFTA uncertainty, seeking new solutions
TORONTO — Nearly one-quarter of Canadian exporters believe they are negatively affected by looming NAFTA renegotiation uncertainty and are turning to creative solutions to succeed even if the free trade agreement fails, according to a poll by Export Development Canada.
The federal agency supporting export-oriented companies reported Friday that among the 23 per cent of firms surveyed that said they were negatively affected, several are contemplating strategies including moving operations south of the border, diversifying away from the U.S. or delaying investment or hiring.
Canada and the United States both expressed their hope in late summer that a new North American Free Trade Agreement agreement could be reached by year-end, but tense and combative discussions have necessitated extending negotiations to a March 2018 deadline.
However, Scotiabank economists believe even the March deadline is unlikely given that NAFTA negotiations have stumbled on several major U.S. demands, including a new requirement to increase U.S. parts in automobiles, the end of Canada’s dairy, poultry and egg supply-management systems, and the introduction of a possible “sunset clause” that could see the trade policy agreement reviewed every five years.