“How can we walk away from one of the largest free-trade agreements in the world — where we have an opportunity to participate and then don’t?” said Ontario-based Martinrea International company chairman Rob Wildeboer. Read more
Auto parts makers in all three countries are speaking publicly with a united voice on the matter, with industry leaders urging Ottawa, Washington and Mexico City to resist Japan’s efforts to water down domestic content rules for car manufacturing in North America.
Under the Japan-U.S. proposal, cars could be sold duty free in TPP member countries with only 45% TPP content and auto parts would be allowed to enter duty free as long as they had just 30% TPP content. Read more
Under the North American free-trade agreement, Canada, the U.S. and Mexico require more than 60% of cars and auto parts to be made within the NAFTA zone in order to enter their markets tariff-free.
The Japan-U.S. formula says that in the TPP zone vehicles would be tariff-free even if only 45% of their content is made within the TPP zone, and auto parts with as little as 30%. Read more
Both industries are concerned about concessions in the TPP talks. Read more
Mexico and Canada, which sell vehicles in the North American market under the NAFTA, with a 62.5% rule of origin ratio, want a similar ratio under the TPP. Japan wants a 45% ratio for autos, and a 30% ratio for auto parts.
Among other TPP member states, a source close to the farm sector of Australia said that whether the next ministerial will succeed depends on the outcome of auto trade talks between the four countries. Read more