Electronic Commerce, Exchange Rate Volatility and Changes in Trade Patterns: Canada Under NAFTA

Spillovers and connectedness in foreign exchange markets: The role of trade policy uncertainty

“…The obvious reason leading to the trade tension and trade war was the large US trade deficit, mainly with China, Germany and Japan, where there have been accusations of competitive devaluation of the exchange rate and unfair trade practices ( Nasir & Jackson, 2019 ). The United States has also withdrawn from the Trans-Pacific Partnership (TPP), imposed tariffs and renegotiated the North Atlantic Free Trade Agreement (NAFTA) within the United States–Mexico–Canada Agreement (USMCA or also known as NAFTA 2.0) ( Brox & Fader, 2004 ). According to Baker, Bloom, and Davis (2019) , actions and events such as the US withdrawal from the TPP, the Brexit, and the US-China trade tensions raised import tariffs and escalation in trade disputes, which leads to a significant increase in the Trade Policy Uncertainty (TPU).…”