TORONTO, April 10, 2017 /CNW/ - Scotiabank Economics today released the second of its North American Free Trade Agreement (NAFTA) report series. In this report, Scotiabank Economics looks at some likely areas of vulnerability in the event of a substantial revision of U.S. trade policy and provides simulation results from possible scenarios that are broadly consistent with recent statements by U.S. officials.
"Canada and Mexico are highly exposed to any changes in U.S. trade policy, as both countries send over three-quarters of their exports to the U.S., while only about one-quarter of global U.S. exports are sent to its NAFTA partners," said Jean-François Perrault, Chief Economist at Scotiabank. "But the U.S. isn't immune to negative shocks from changes in its trade policies. If negotiations to revise NAFTA fail, any move by the U.S. to impose tariffs on trade with Canada and Mexico would have a material macroeconomic impact on all three countries and potentially serious effects on individual states, provinces and industrial sectors."
Additional highlights of Scotiabank's NAFTA Report:
Scotiabank Economics is introducing a new resource: a guide to NAFTA. Visit Scotiabank Talks NAFTA for the latest reports and analysis: www.scotiabank.com/nafta
For the full report, visit http://www.scotiabank.com/ca/en/0,,3112,00.html
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SOURCE Scotiabank - Economic Reports
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