CUSMA Exit Would Wreak Economic Havoc on Canada

A new report from Deloitte Canada warns that if the U.S. were to withdraw from the North American trade pact, known as CUSMA, it would have severe but not catastrophic consequences for Canada's economy.

According to the report, boosting trade with a more diverse array of international partners would only plug part of the hole in Canada's economy, leaving gaps that need to be addressed through other measures. These could include removing interprovincial trade barriers and fostering new industries.

The authors of the report emphasize that while diversifying trade is essential, it is not a silver bullet for mitigating the impact of a U.S. withdrawal from CUSMA. They recommend that Canada must look beyond trade diversification to help make up the difference.