This briefing describes the economic impact of terminating the North American Free Trade Agreement.
The Impact of a NAFTA Dissolution on Canada’s Economy
The Impact of a NAFTA Dissolution on Canada’s Economy
Canadian Economic Analysis
$215.00
- If NAFTA is terminated, we assume that Canada will return to most favoured nation (MFN) tariffs under World Trade Organization agreements.
- MFN tariffs would average 2.0 per cent on Canadian exports and 2.1 per cent on U.S. imports. For some goods, such as trucks, tariffs would be significantly higher.
- Tariffs would make Canadian exports less competitive and increase the price of imported goods.
- In the year following the resumption of MFN tariffs, Canada’s GDP would fall by 0.5 per cent and the economy would lose about 85,000 jobs.
- Canada’s reduced ability to attract investment based on secured access to the U.S. market could result in an even worse long-term economic impact.
Customers Who Downloaded This Also Liked
10 min read
10 min read
11 min read
Require an accessible version of this research?
Upon request, Signal49 Research offers accessible versions of research. Please contact us to request your accessible version.
Learn more about our accessibility policies.
Effective January 26, 2026, AERIC Inc./Signal49 Research discontinued use of ‘The Conference Board of Canada’ name, logo and branding, which had been used by AERIC Inc./Signal49 Research under license from The Conference Board, Inc. The Conference Board, Inc. and its licensees, which are not affiliated with Signal49 Research, own all right, title and interest in THE CONFERENCE BOARD name and trademarks in Canada and have the exclusive right to their use in Canada since January 26, 2026.
