The Globe and Mail reports in its Wednesday edition that the carmaking industry is in decline, casting doubt on its existence as Canada discusses USMCA renewal. The Globe's guest columnists James Arnett, James Hinds and Greg Sorbara write that currently, 20 per cent of its capital investment comes from federal and provincial governments, and a failed U.S.-Mexico-Canada Agreement talks could lead to its palliative care. Canada should be prepared, if the USMCA negotiations are unsuccessful -- or maybe even if they are successful -- to repurpose the auto industry and its employees for other sectors. During the Second World War, federal minister C.D. Howe converted the auto industry into the defence sector, producing crucial military supplies, especially for Britain, and significantly contributing to the Allied war effort. Prime Minister Mark Carney has made it clear that we need a major expansion of our small defence industry to confront today's threats. Canada should progressively drop all auto tariffs. Not only would American cars enter tariff-free, his would allow Canada to build on the trade deal announced recently in Beijing, in which Chinese electric vehicles could satisfy Canadian consumers demand for cheaper EVs.
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