CUSMA Breakdown Could Devastate Jobs and Economy: New Report
A new report from the Canadian American Business Council has sounded the alarm on the potential consequences of a breakdown in the Canada-U.S.-Mexico Agreement (CUSMA). The agreement, which was signed in 2020, has helped facilitate trade between the two countries.
The report, prepared by Oxford Economics, analyzed three possible outcomes of the ongoing trade talks: maintaining the status quo with current tariffs in place, a breakdown of CUSMA leading to hundreds of thousands of job losses and economic impacts on both sides of the border, and a successful renegotiation that would add jobs and boost GDP.
The worst-case scenario, which involves a breakdown of CUSMA, could lead to the loss of 214,000 American and 102,000 Canadian jobs. The report also estimates that this scenario would result in a $1.04 trillion US economic loss for the U.S. and $271 billion CAD for Canada by 2035.
According to Beth Burke, CEO of the Canadian American Business Council, 'it means real jobs and security and stability [lost] at a time where affordability is front and centre for so many Canadians and Americans.'