Off The Wire
Bank of Canada sees lower potential risk from global trade disputes
VANCOUVER, Jan 9 (Reuters) - The potential downside risks from global trade friction seem to have eased as the United States and China near a deal although much uncertainty remains around implications of any such pact for Canada, Bank of Canada Governor Stephen Poloz said on Thursday.
“Certainly, it seems that the potential downside risks have eased as the United States and China approach a deal. This all bears watching during the coming year,” he told a business audience in Vancouver.
Poloz also said there was still plenty of uncertainty about what a U.S.-China deal could mean for Canadian exports and whether any more of the new tariffs the superpowers have imposed on each other could be rolled back.
The Bank has repeatedly expressed concern that Canada, which has an economy heavily reliant on exports, is vulnerable to protectionist actions.
“On the surface, there has been some improvement on this front lately, although it remains to be seen whether this will lead to a recovery of trade and investment,” Poloz said, noting companies are understandably reluctant to make big investments.
Reporting by Kelsey Johnson and David Ljunggren; Reuters Ottawa bureau tel 613 235 6745