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Nafta Uncertainty Already Hurting Growth, Bank of Canada Says

  • Central bank flags U.S. protectionism as key risk to outlook
  • Firms may choose to invest overseas rather than domestically
Bloomberg business news

John Engler Says Ending Nafta Would Be a 'Big Failure'

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Renegotiation of the North American Free Trade Agreement is already taking a big toll on the Canadian economy, according to the nation’s central bank.

Uncertainty about U.S. trade policy will reduce investment growth by 0.7 percentage points and export growth by 0.2 percentage points in both 2017 and 2018, according to projections in the Bank of Canada’s quarterly Monetary Policy Report, released Tuesday in Ottawa.