TORONTO - Bill Morneau says he understands the uncertainty surrounding NAFTA might be causing some companies to hesitate in making investment decisions.
The federal finance minister made the comments today when asked about the Bank of Canada's warning this week that elevated uncertainty over the future of the North American Free Trade Agreement would drive down investment in Canada.
Central bank governor Stephen Poloz says companies are becoming increasingly concerned about the unknowns of the ongoing NAFTA talks.
Poloz says the uncertainty means firms may decide to redirect their investments south of the border -- especially after the U.S. announced major, business-friendly tax reforms
He estimates the trade-policy uncertainty will lower investment by about two per cent by the end of 2019.
Speaking in Toronto, Morneau says the concerns reinforce the argument NAFTA has been a big positive for the economy -- and that the deal's benefits are well understood by investors.