"thebigbossyboss" (thebigbossyboss)
10/23/2013 at 22:30 • Filed to: CETA
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"thebigbossyboss" (thebigbossyboss)
10/23/2013 at 22:30 • Filed to: CETA | 0
| 6 |
Well guys, here is an analysis of the Canadian Auto Industry, and how Prime Minister Harper's new free trade agreement will affect the automotive industry.
For those unfamiliar, Canadian car manufacturing, mostly consists of manufacturing plants here in good ol !!!error: Indecipherable SUB-paragraph formatting!!! . They used to make Western Star big rigs out west, in Kelowna, but they don't anymore. Here is a list of car assembly plants in Canada and what they were making in 2012. The GM Oshawa plant recently won a new contract, which isn't listed here.
!!! UNKNOWN CONTENT TYPE !!!
I know; they make Lancia’s in Canada!! (but it’s just a rebadged Grand Caravan) sorry guys!
(Pictured: not a real Lancia)
So…how does this change with the Canadian-EU Free Trade Agreement?
Well, no one quite has the text of the agreement yet, but based on the information Ford, GM, and the government have made public this is what we know for sure:
1) More Canadian cars will be exported to Europe:
“For passenger vehicles, the EU’s 10-percent tariff will be eliminated, providing Canada’s auto makers with a competitive advantage in the EU market that few other countries have.”
Celebrate Europeans, you guys are in for a whole shit ton of Lancia Voyagers.
2) More Magna! You know that Canadian autoparts billionaire whom now controls the government (or something) in Austria?? Yeah, Frank Stronach. Say hello to a lot more cheaper Canadian auto parts for Europe, because the 4.5% tariff on autoparts was eliminated.
“CETA will also benefit Canada’s lucrative auto-parts sector, not only because the sector will be incorporated into the Agreement, but also because CETA will eliminate EU tariffs on auto parts, which run up to 4.5 percent.”
3) This is related to number 1, but the number of vehicles allowed to be exported once they reach a certain level of Canadian content will increase. How many cars will be exported you say? Currently, about 8000 vehicles per year are allowed to be exported to Europe. With the new agreement, Canada will be able to export 100,000 cars to Europe, a twelve and a half fold increase.
100,000 Lancia voyagers? Nah….Let’s export 100,000 Camaro’s! Europeans be warned, the price of having a [Edit to add link n pic] !!!error: Indecipherable SUB-paragraph formatting!!! is about to plummet.
“These provisions are designed to work with Canada’s existing supply chains and allow for up to 100,000 passenger vehicles to be exported to Europe, a twelve-and-a-half-fold increase from our current average exports. At the same time, CETA encourages “made in Canada” production by granting unlimited preferential treatment to vehicles with higher Canadian content that are exported to Europe. Finally, CETA includes forward-looking provisions that allow for the adjustment of the rules of origin to provide additional flexibility in the event that the EU strikes free trade deals with other countries, such as the United States.”
Yes, you say that’s all great, but what about non tariff trade barriers??
You know, smog, bumpers, airbags, and etc (fun fact! Canada does not require abs by law, probably because the weather is always great in Canada. Oh wait…last year we had a day where the high temperature was -15 F (-26C). Ice anyone?
Well Canada and the EU will establish a non tariff trade barrier working group:
“CETA will establish a Canada-EU Regulatory Cooperation Forum that will facilitate dialogue between regulatory authorities and that will benefi t Canada by providing earlier access to the complex and sophisticated regulatory development system in the EU.”
Now that we heard about the potential benefits,let’s see what the car firms are saying: It looks good so far!
Ford
“Ford is a company built on free trade. Throughout our history, Ford has supported deals that provide an opportunity to increase effective two-way trade among all partners.
Expanding trade opportunities is fundamental to Ford's business plan and the EU market represents a significant global market for our vehicles.”
http://www.newswire.ca/en/story/12446…
GM:
““We applaud Canada and the E.U. for completing a modern, high-standard comprehensive economic and trade agreement that will provide enhanced opportunities for growth in both regions,” said Kevin Williams, president and managing director of General Motors of Canada. “We appreciate the hard work to find creative solutions that improve market access for Canadian-produced automobiles, while ensuring Canada continues to benefit from the integrated manufacturing sector that has developed in North America over the past 50 years."
http://media.gm.ca/content/media/…
Chrysler: We make lots of Lancia’s!!
Just kidding, Don’t know what Chrysler thinks. Couldn’t find a statement about it.
Anyways, that’s how the Canadian European-Union Free Trade Agreement looks for Canada’s manufacturers.
I'd say, the future of automobile manufacturing in Canada is looking pretty bright!
The Canadian Auto Workers Union disagrees however.
They say CETA will cost a bunch of autoworkers their jobs. I think this will increase Canadian auto worker jobs, not decrease them, because the USA does NOT have a free trade agreement with the EU, and therefore, US manufacturers are likely to build here cars they plan on shipping over there.
But that would be common sense. (In my humble opinion Jim Stanford's "economics" leave a lot to be desired) What's your take Oppo?
dogisbadob
> thebigbossyboss
10/23/2013 at 22:34 |
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Good stuff, eh? They figured Canadian cars should easily pass the moose test! (sorry)
No really though, US and Canada should just sign on to the UNECE standards. That would REALLY help the automakers out! They would only have to make two cars instead of four.
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thebigbossyboss
> dogisbadob
10/23/2013 at 22:37 |
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Working through regulatory vehicle standards is important. It's those non tariff barriers in all sectors that tend to really hang up trade these days, except in a few agricultural industries. I don't know what UNECE is though.
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dogisbadob
> thebigbossyboss
10/23/2013 at 22:39 |
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United Nations/European Economic Community or something
the international standards that non US-market cars meet
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thebigbossyboss
> dogisbadob
10/23/2013 at 22:40 |
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Ah.
Spasoje
> thebigbossyboss
10/24/2013 at 02:09 |
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Didn't manage to catch this in the article, but what will happen with the 6% duty we have to pay on non-NAFTA (i.e. EU in this case) made cars?
Otherwise, this can only be a good move for both Canada and the EU. Besides the obvious business benefits, it gives us here a bigger market to choose from. We'll be able to finally do what Europe has been doing all this time: buying any new car we want from across the pond and using it legally in our place of residence.
The CAW's statement seems to be the classic "while this may be for the greater good, it somehow doesn't fit our little, personal interests, so we'll oppose the idea" type of comment...
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thebigbossyboss
> Spasoje
10/24/2013 at 22:06 |
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I have heard from several sources that the 6.5% tariff on non NAFTA cars will be eliminated for cars from the EU.