With the U.S. and China feuding over a potential trade war, a University of Saskatchewan professor says it could affect Canada in two different ways.
Peter Phillips is with the Johnson Shoyama School of Public Policy.
He says there are two separate scenarios:
- Saskatchewan businesses would tbe able to export more of commodities like grains, pulses and seeds, oil and wood pulp.
- The second is that China would have to find a new market other than the U.S., so Canada could see more imports.
That could create more competition, possibly lowering the price of Saskatchewan products.
Then, with trade among Canada, the U.S. and Mexico and the uncertainty over the North American Free Trade Agreement, further challenges would be posed.
Phillips says generally speaking, all countries do better with predictable trade flows because we are all so inter-connected.