US – Canada Free Trade Collapse Would Cut US GDP by $1 Trillion

(WASHINGTON, USA) – The United States would lose about 214,000 jobs next year if it fails to extend its free trade agreement with Canada, according to a report by Oxford Economics prepared for the Canadian American Business Council.

Canada would lose 102,000 jobs in the same period. The combined job losses would exceed 300,000 across both countries.

If Ottawa and Washington do reach an agreement, the two countries would instead add 235,000 jobs in total.

The report also found that ending the agreement would speed up inflation in both Canada and the United States. It would also cause a fall in US GDP of $1.04 trillion, or £818 billion, and a decline in Canadian GDP of $208 billion, or £164 billion.

Successful negotiations would raise GDP and slow the pace of price increases.

Talks between Canada and the United States over extending the free trade agreement remain tense. President Trump has repeatedly said he is considering ending the deal.