How will the New Nafta agreement affect you as a student?
The new North American Free Trade Agreement, or the United States of America-Mexico-Canada Agreement (USMCA) as President Donald Trump likes to call it, just got the approval of Canada and the United States in principle. This new deal has massive implications for people in Canada, but as students how will it affect you personally?
First thing that you might notice directly with the new free trade agreement is how it will affect your options at the grocery store. Now wine on our shelves will be full of alcohol from our friends to the south, especially from states such as Washington, Oregon and California. So you’ll have more options, but this may hurt B.C. wine makers as previous regulations made it so only B.C. wine could be sold in grocery stores.
If you’re planning on going on a road trip to the U.S. with some friends you can bring way more American merchandise back with you. Duty-free limits will be raised from $20 to $150. You can also now purchase more items online and have it shipped to Canada from the States for less due to this regulation change.
Food may go down in price, especially poultry, eggs and dairy, as the U.S. has negotiated a larger (around 7 per cent) share of the Canadian market. So watch for deals in the grocery stores soon as the U.S. can produce way more eggs and poultry thereby undercutting local more expensive producers.
Cheese, another dairy product, may also go down in price. So everything that goes on pizza may get cheaper.
“In the past, pizza dealers have complained about the high price they pay for their cheese due to marketing boards,” said TRU economics professor Derek Pyne.
Higher Canadian Dollar
According to TRU Economics Professor Belayet Hossain the Canadian dollar will rise due to a more stable market. This is good news for domestic students planning on doing study abroad, but international students will be negatively affected by our rising dollar especially in relation to the Indian Rupee and Nigerian Naira.
“The Canadian dollar is going to be strong (CAD already appreciated with this news). As a result, international students will be affected negatively; they need to bring more of their home currency to pay tuition and living expenses,” Hossain said.
This agreement still needs to get the approval of Parliament as well as the approval of Congress in the States.