Mexican Auto Jobs Quadrupled As Canada’s Industry Shrank: Report

A new analysis suggests Canadian negotiators may want to side with the U.S., and against Mexico, when the auto industry comes up in NAFTA negotiations in Washington, D.C. this month.

And its author, former CIBC chief economist Jeff Rubin, is arguing Canada may have no choice but to follow the U.S. and slap tariffs on Mexican auto imports, if the Trump administration chooses to do so.

The analysis, conducted for the Center for International Governance Innovation (CIGI), paints a good-news, bad-news picture of the 23-year-old North American Free Trade Agreement (NAFTA). On one hand, the deal has allowed consumers to enjoy lower prices on vehicles, and has improved carmakers’ profit margins; on the other hand, Canada’s auto industry has been losing jobs for years — principally to Mexico.