Trade expert Lawrence Herman of the C.D. Howe Institute has some advice for the Canadian auto sector as Canada, the United States and Mexico approach the renegotiation of NAFTA.
“My advice to automotive companies, or to the automotive sector … the automotive industry generally, would be to think about possibly the worst-case scenario but to wait.
“I don’t think it’s timely to make decisions at the present time,” he told Export Development Canada in an interview.
As Herman points out, the original NAFTA document grew out of the original Auto Pact between Canada and the United States and now includes Mexico in a highly-integrated trade deal.
“Changes to disrupt that integration could be very serious, indeed,” he said.
You can watch Herman’s entire interview in the video below.