A Canada-based financial group outlines trade without the North American Free Trade Agreement in a new report called “The Day After NAFTA.”
BMO Financial Group of Montreal published the report that says the Canadian food and beverage industry would be highly vulnerable without NAFTA, and that Canadian and U.S. crop producers would face a moderate level of vulnerability. Specifically, Canadian food and beverage producers would face among the highest U.S. tariffs of all industries post-NAFTA, according to the Hagstrom Report. For beverage and tobacco exports to the U.S., Canada could see tariff rates approach 20 percent. Food exports would see U.S. tariffs return to around 4.5 percent, far lower than vice tariffs, but still the third-highest of all industries.
However, the report points out that less than 20 percent of Canadian crop products are sold into the U.S. marketplace, which would limit the impact on industry costs and profitability. Meanwhile, U.S. crop producers would also be affected, as the report says they would face tariffs averaging nearly four percent on exports to Canada and a lofty 11 percent on exports to Mexico.
From the National Association of Farm Broadcasting News Service.