The future of Japanese auto manufacturing investment in Canada could hinge on the stability of the Canada–United States–Mexico Agreement, according to Japan’s ambassador to Canada.
In comments reported by BNN Bloomberg and CTV News, Ambassador Kanji Yamanouchi said continued access to the U.S. market under CUSMA is essential for companies considering expanding vehicle production in Canada.
“That is the critical condition,” Yamanouchi said in an interview on CTV’s Question Period.
Canada’s automotive sector is deeply integrated with the broader North American market, with vehicles produced domestically often exported to the United States. Yamanouchi noted the scale of the American economy when explaining how automakers evaluate investment decisions.
“Canada is, of course, a G7 country. Your GDP is one of the top ten countries —$2.5 trillion. But you know the size of the U.S. market? $30 trillion.”
“All those cars made in Canada, of course sold in Canada, but at the same time, exported to the U.S market,” he added. “Private companies, that means they have to calculate to increase profit. So CUSMA is a very important part of the calculation.”
The remarks come as Canada, the United States and Mexico prepare for a scheduled review of CUSMA in 2026 — a process that could influence future trade rules governing the highly integrated North American auto industry.
Japanese OEMs already play a significant role in Canada’s manufacturing base. Toyota and Honda have operated assembly plants in Ontario for decades, producing vehicles for both the domestic market and export to the United States.
Industry observers say continued stability in the North American trade framework will remain an important factor as global OEMs decide where to allocate future production and investment.
