The Globe and Mail reports in its Tuesday, Oct. 6, edition that 12 countries on Monday reached an agreement on the Trans-Pacific Partnership, creating
the world's largest free-trade zone. The Globe's Bill Curry writes that Canada's concessions on auto
imports quickly came under fire
Monday following the announcement of the deal. Canada will allow
vehicles to enter the country from
Japan duty free within five years. The United States, however, negotiated a superior deal than Canada with a 25-year timeline
before similar tariffs would ease.
The privileged access of Canada's auto parts manufacturers, Magna International, Martinrea International, Linamar and others,
to the North American market will also
be diluted under the deal. Current rules under the
North American free-trade agreement
require that 62.5 per cent of auto parts come from
North America in order to avoid tariffs. 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.
The Canadian Vehicle Manufacturers' Association says it does not like the "differentiation in the
negotiated tariff transitions achieved by Canada
and the United States."
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