Canada could lose 100K jobs with U.S. losing 200K if CUSMA dies: report
In July, the U.S. said it won’t renew the deal, known as CUSMA, in its current form. The clock is ticking for both sides to negotiate a new deal ahead of a fresh round of tariffs.
If the Canada-U.S.-Mexico free trade deal, also known as CUSMA, were to break down, it would result in over 100,000 job losses in Canada and more than twice that number in the United States, according to a new report by the Canadian American Business Council. The trade deal must be reviewed annually, adding volatility and economic uncertainty for businesses.
Meanwhile, the U.S. has warned of new 50 percent tariffs on Canadian goods, set to take effect on Aug. 19. A report by the Canadian American Business Council suggests that a successful renegotiation of USMCA could add 137,000 American jobs and 98,000 Canadian jobs by 2027, compared to the current situation. However, a breakdown of the deal would lead to a significant loss of jobs, with 214,000 fewer jobs in the U.S. and 102,000 fewer in Canada.
Business leaders emphasize the need for predictability in trade relations, stating that today's choices will determine North America's economic competitiveness for decades. Canada-U.S. Trade Minister Dominic LeBlanc and Chief Negotiator Janice Charette are in Washington to negotiate a new trade deal with the U.S. as part of President Trump's response to what the U.S. labels "discriminatory" measures, including provincial boycotts of American alcohol, retaliatory tariffs on U.S. vehicles and auto parts, and quotas on American dairy imports under Canada's supply management system.
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