Hundreds of Quebec businesses say they are on edge based on U.S. President-Elect Donald Trump’s anti-free trade rhetoric.
During the campaign, Trump famously spoke of NAFTA as the “worst trade deal ever” for the U.S.
“I'm going to renegotiate NAFTA, and if I can't negotiate a great deal, then I will terminate it because it has been a disaster,” he said during the campaign.
Hundreds of small and medium business in Quebec work hand-in-hand with suppliers and distributors in the United States.
The U.S. is the largest trading partner for Canada, and is the final destination for 70 per cent of Quebec's exports.
More than 20 years after NAFTA came into effect, many businesspeople say there is no separating the economy of the three countries involved.
"It's an integrated North American economy, and in and in many of those U.S. states, led sometimes or often by Republicans, many, many hundreds of thousands of jobs depend on this integrated economy," said Michel Leblanc of Montreal's Board of Trade. “President Trump is likely to understand the value of this relationship and if they decide to rediscuss NAFTA, what;s good about it will prevail.”
Quebec business owners say both countries need a healthy manufacturing segment. The province has more than 1,200 manufacturing businesses.
Meanwhile Eric Tetrault of the Quebec Manufacturers and Exporters Association said whatever Trump thinks he can do, he will have to deal with members of a Republican Party who do not necessarily think as he does.
"NAFTA is bigger than the president. This is a congressional thing and Republicans are free traders. So I myself really doubt they would follow him if he goes as far as that," said Tetrault.
Former premier Jean Charest, who initiated negotiations between Canada and the EU, said Trump’s election spells opportunity for Quebec businesses.
“Canada can reposition itself in the world as being the place to go in North America for investment, for labour moblity, and for manufacture. If we play our cards right now, we have the Canada-EU trade deal. We can take advantage of the situation,” he said.
Mayor Denis Coderre said trade is a two-way street, and he is confident that Trump will recognize that if he stops foreign products from entering the U.S., American-made products will have a tough time being sold elsewhere.
Other business leaders said they are waiting for Trump to come up with real policy, pointing out the president-elect changed his mind about just about everything over the course of the campaign.
The Caisse de depot said it expects considerably market volatility in the months to come.
"The results of the U.S. elections add an additional level of uncertainty to the global economy. As a result, we expect to see increased volatility in the months ahead until the economic policy stance of Mr. Trump's administration becomes clearer," said the Caisse in a written statement.