The Globe and Mail reports in its Tuesday edition that Canada and Mexico have long enjoyed privileged
access to the United States, the country with the
biggest economy in the world. The Globe's Bill Curry writes that special status
will be diluted under the Trans-Pacific Partnership.
TPP is similar to NAFTA in that it involves
pledges to reduce or eliminate tariffs. One of the biggest differences
will be felt by the highly integrated North
American auto sector. Current NAFTA rules require
that 62.5 per cent of auto parts come from North
America. Under the TPP, autos manufactured in
Canada must meet a new standard that 45 per
cent of the cost be based on parts made within
the TPP. Canada called this a victory that would
allow for more exports, but Unifor, the union representing
Canada's auto workers, condemned the
deal as "outrageous" and warned it will kill jobs.
Monday's deal may not be the end of NAFTA,
however. The TPP deal still requires the approval
of the U.S. Congress, and senior Democrats and
Republicans expressed strong reservations in
response to the details. Canada's support is contingent on a
positive vote for the deal in Parliament following
the Oct. 19 federal election.
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