A former Bank of Canada governor says renegotiating the North American Free Trade Agreement with president-elect Donald Trump will be dangerous for Canada’s automotive industry.
Part of Trump’s win has been credited to voters in the rust belt — Illinois, Indiana, Michigan, Ohio and Pennsylvania — where his anti–trade and protectionist promises played well with the electorate.
And he’ll remain beholden to those voters if he wants to stay in power, says Dodge.
“We’re going to have more of our classic border skirmishes with the Americans. The Canada-U.S. border will get thicker. I worry more about a lot of the bits and pieces that make trade difficult, as opposed to a wholesale slaughter,” he told the CBC’s Chris Hall in an interview for The House.
Former Bank of Canada governor David Dodge says Finance Minister Bill Morneau needs to focus on ‘setting the stage’ for the next four years ahead of this week’s federal budget. (Tom Hanson/Canadian Press)
“This is bad news for the auto industry in Ontario.… The only thing I can hope is the North American auto industry is so integrated across these borders and stuff flies back and forth so much that you can’t keep American factories operating without that flow taking place in the short run.”
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