The NAFTA Effect: Multinational Enterprises in Canada

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The NAFTA Effect: Multinational Enterprises in Canada

Canadian Economic Analysis Global Economic Analysis

Author: Alain Verbeke, Jefferson Huebner, Wenlong Yuan

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  • Most of the MNEs that we surveyed believe that the FTA-NAFTA have had either a positive or neutral impact on their organization.
  • There is a clear gap between U.S.-owned and EU-owned subsidiaries. The former reported an excellent performance vis-à-vis their local and global competitors, whereas the latter viewed their own performance less favourably.
  • U.S.-based MNEs have been able to transfer key knowledge and skilled personnel within the home NAFTA region more easily than have EU-based firms.
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This report examines the roles and characteristics of multinational enterprises (MNEs) operating in Canada during the post-NAFTA period, using a detailed survey of senior management representatives from 62 MNEs.

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