As the North American free-trade agreement negotiations proceed, the future of the pact threatened by the spectre of a U.S. withdrawal, the prospect of greater trade and business diversification beyond North America becomes ever more attractive to Canada. Even if the NAFTA talks don’t lead to the demise of the agreement, the prevailing uncertainty is affecting business planning and delaying decisions on investment and expansion.
This uncertainty reinforces the advantages of the long dreamed-of diversification of Canadian trade and investment. Canada’s trade has quietly diversified since the early 2000s. The U.S. share of Canadian goods and services exports has fallen from 83 per cent in 2002 to about 73 per cent today. Further rebalancing could reduce Canada’s reliance on one dominant trade partner.
Visit here for the full article written by Glen Hodgson, senior fellow at the Conference Board of Canada, via the Globe & Mail.