In line with the notions of friendshoring, nearshoring, and de-risking, they find that Vietnam and Mexico are the big winners in the “Great Reallocation”, experiencing significant import share increases over the same time period, and especially in those products for which China’s import share drops were the largest (including auto parts, electronics, and semiconductors that are at the 5 Remarks by. [...] Economists describe this phenomenon of reduced trade growth between 2010 and 2019 as the “Great Trade Slowdown,” which is often attributed to the maturing of global supply chains.13 Like in the rest of the world, Canada’s imports have picked up again since 2021 as the world recovered from the Covid-19 pandemic. [...] We do so by augmenting the specification in the regression equation above with interaction terms with several product- level characteristics of interest, specifically: the upstreamness of the product p, the labor share in industry p, and the tariff on Chinese imports of product p imposed during the Sino- US trade war. [...] We attribute this to the impact of the CETA and CPTPP agreements which has increased the competitiveness of these regions compared to the US in the Canadian market. [...] Our result acts as a warning sign that the recent decision of the French senate to reject the ratification of CETA may have important repercussions on the supply chains that serve the Canadian and Ontarian market if it would unravel the EU-Canada trade agreement.
- Pages
- 30
- Published in
- Canada
