Canadian incomes
will increase by about $220 per year when the free trade deal with the European
Union comes into effect, says the Parliamentary budget officer.
He calls that
gain “modest”.
Wheat will be the
first agriculture export to make significant gains, he predicts.
Gains for other
agriculture exports will come more slowly. The beef and pork sectors have been
anticipating significant gains.
The report
released Tuesday estimates the trade deal would have lifted Canada's overall
economic output in 2015 by 0.4 per cent or $7.9 billion, had it been
implemented at the time
.
Canadian
exports of goods to the EU would have increased by $4 billion, services by $2.2
billion and investment by $3.1 billion, the analysis found.
"Starting
from relatively low levels, exports of goods will increase by 9.3 per cent and
services by 14 per cent,” the report predicts.
The PBO based
its analysis on 2015 because projecting into the future would have been more
difficult. It was also the most recent year for which a complete set of
economic data was available.
Sectors
including transport and motor vehicles, some metals and wheat will likely grow
more quickly, the budget office predicted.
On the other
hand, it also said some Canadian sectors will likely see slower growth under
the agreement, including textiles, some machinery and manufactured goods as
well as some dairy and agricultural products.
