Auto industry associations want renewed NAFTA focus

Automotive industry associations representing vehicle and parts manufacturers in Canada, the U.S. and Mexico issued a joint statement on Tuesday urging all three countries to adopt a renewed focus on trade negotiations to modernize the North American Free Trade Agreement (NAFTA).

“As a new government forms in Mexico on December 1st, 2018, we believe now is the time for all parties to return to the negotiating table with a renewed commitment to the modernization of a cohesive three-country NAFTA agreement,” said the groups, according to a Canadian Vehicle Manufacturers’ Association (CVMA) news release.

“We have a great opportunity to update this trade agreement and it is in the best interest of all three countries to refocus on establishing a new NAFTA agreement that will allow the North American auto industry to remain globally competitive.”

The associations include: The Alliance of Automobile Manufacturers, American Automotive Policy Council, Association of Global Automakers, Asociación Mexicana de la Industria Automotriz, Canadian Vehicle Manufacturers’ Association, Global Automakers of Canada, Motor & Equipment Manufacturers Association, Canadian Automotive Parts Manufacturers’ Association, and Industria Nacional de Autopartes A.C.

Their comments come as certain nations begin to feel the impact of U.S. tariffs on imported steel and aluminum, and as the threat to introduce a 25 per cent tax on auto imports continues to loom over the NAFTA agreement where this issue has been a sticking point for several months. The CVMA said they have been working actively with the governments in all three countries towards a modernized NAFTA.

“The CVMA and its members remain highly engaged with the Canadian government to support their efforts as part of these very intensive NAFTA negotiations,” said Mark Nantais, CVMA President. “With respect to steel and aluminum tariffs, we are working closely with the Government to analyze impacts and avoid unintended outcomes that could undermine automotive investments, competitiveness and the thousands of jobs generated by the auto industry in Canada.”

U.S. steel and aluminum import tariffs have already resulted in job losses in Canada in areas like Sault Ste. Marie, Ont. Taxes on auto import tariffs would be “catastrophic” to the Canadian auto industry and economy in general, according to various news reports.

Related Articles
Share via
Copy link