U.S. claims on trade deficit with Canada inflated by misleading numbers

February 9, 2018

U.S. trade representative's numbers count goods from other countries that merely pass through Canada

Prime Minister Justin Trudeau today wraps up a three-day trip to the U.S. meant to drum up support on trade issues — the NAFTA negotiations in particular.

But he also may find himself countering misinformation about the U.S.-Canada trade relationship being spread by the Trump administration's own chief NAFTA negotiator.

U.S. Trade Representative Robert Lighthizer has been including goods that pass through Canada but don't originate here as Canadian exports in his export calculations, artificially inflating the United States' trade deficit in goods with Canada.

That explains why the trade deficit figure cited last week by Lighthizer is so out of line with reality, Canadian government sources say.

This was excerpted from the 9 February 2018 edition of CBC News.

Topic(s)

Trade Agreements

Information source

Canadian News Channel

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