Midterm results stoke trade fears

OTTAWA — Canadians are inspecting the new U.S. political landscape following midterm election results that many believe have added fresh trade-related uncertainty.

The Democrats’ majority victory in the House of Representatives could mean the ratification of the recently struck United States-Mexico-Canada deal will have to wait well into 2019 — or even until 2020.

Experts predict the pact will eventually gain approval, but until it’s ratified businesses will have to deal with considerable unknowns as they try to make longer-term decisions on export strategy and investments.

“There will be a lot of uncertainty for a number of months and that uncertainty is not good for Canadian business interests,” said Lawrence Herman, a Toronto-based trade lawyer with Herman and Associates. “There is a chance that the Democrats would agree to have this deal approved. On the other hand, as we’ve heard, there are those in the Democratic party who don’t want to give Trump and the Republicans any kind of break whatsoever.”