If Canada is at a net trade loss with the U.S. why does it want to continue NAFTA?

If Canada is at a net trade loss with the USA why does it want to continue NAFTA?

 
If Canada is at a net trade loss with the USA why does it want to continue NAFTA?

Whether or not trade flows are in equilibrium is not a measure of fairness or prosperity.

Because Canada is a wealthier country than most of America's trading partners, it can afford to buy more of America's goods and services and therefore import more than it exports. This is wonderful for both countries. We get what we need, and the Americans get richer. We're not concerned about an $8 billion deficit because our bilateral trade with the U.S. is responsible for 1.6 million Canadian jobs. (By the way, it also results in 3 million American jobs, so they benefit even more). It's a classical win-win.


But to Trump, a "win" on NAFTA is to cause the two other parties -- Canada and Mexico -- to lose.

Canada’s minister of foreign affairs, Chrystia Freeland, is now in Washington, trying to save the deal. Let’s hope she succeeds.



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