A new report that imagines what would happen if the North American Free Trade Agreement collapses has been released by BMO Economics.
It’s called the Day After NAFTA and it says that Canada would experience a net reduction of between 0.7-percent and 1-percent over five years in real GDP and consumer prices would rise around 0.8-percent because of a weaker exchange rates and higher tarrifs.
The report says that were NAFTA to fail, the biggest net loser would be, arguably, the consumer.
The report does conclude though that the failure of NAFTA is a manageable risk and we would adjust to that relatively quickly.
The next round of negotiations for NAFTA are slated for January in Montreal.
