Canadian Legislative Issues
Trans-Pacific Partnership
On October 5, the Government of Canada announced that the members of the Trans-Pacific Partnership (TPP) have successfully concluded negotiations on a free trade agreement that will benefit Canada’s economy.
Through the TPP agreement, Canada will be provided with superior access to growing Asia-Pacific markets. Tariffs and other barriers faced by a wide range of Canadian products from various sectors will be cut, including manufactured industrial goods. Additionally, improved access in specific areas will be accessible through the agreement, including transportation services.
NAFA members may be interested in the TPP highlights related to automobiles and automobile parts manufacturing. Eighty-five percent of what Canada’s auto sector produces is exported. The TPP’s automotive provisions feature vigorous outcomes across a variety of areas, including in relation to tariffs and non-tariff issues. Additionally, Canada has bilaterally negotiated a set of auto-related elements with Japan that reflects the integration of the North American auto market. This includes a commitment to provide non-discriminatory treatment in relation to other TPP Parties on automotive standards and regulatory measures, specific dispute settlement procedures/tariff snapback, and safeguard provisions to protect against import surges.
Prime Minister Harper makes $1 billion Promise to Auto Sector
On October 6, Conservative Party Leader Stephen Harper announced an investment of $1 billion to the automotive sector over ten years, if re-elected. His proposal consists of investing massively in the Automotive Innovation Fund, in order to ensure a stable environment for new automotive investment in Canada.
The announcement has been criticized, as many consider this promise as a way to counterweigh the fact that Canada has agreed to the Trans-Pacific Partnership which will eliminate a 6.1 percent tariff on foreign automobiles and in turn increase the pressure on domestic automakers.
"The programs we have here are not compensation programs. They are incentive programs to attract this kind of investment into the sector and keep this kind of investment in the sector," said Harper.
Automotive is Canada’s largest manufacturing sector, accounting for ten percent of Canada’s economic output in manufacturing and hundreds of thousands of well-paying jobs.
Ontario Investigation into Volkswagen Canada and Audi Canada
Ontario’s Ministry of the Environment and Climate Change has launched an investigation into Volkswagen Canada and Audi Canada for probable transgressions under the Environmental Protection Act.
The province’s Environmental Protection Act forbids the sale of vehicles that do not meet with emissions standards. There are roughly 11 million cars on the roads in Ontario, among which 35,000 are Volkswagen and Audi cars related to the emission control controversy.
The province has also requested that Volkswagen Canada and Audi Canada share their Ontario plan and actions which they will undertake to fix the situation.
"The actions taken by Volkswagen Canada and Audi Canada are unacceptable. We want to make sure the right steps are taken to remedy this situation in a way that is easy for Ontarians, and ensures the province’s emissions standards are met," declared Glen R. Murray, Minister of the Environment and Climate Change.
Ontario has requested that Volkswagen Canada and Audi Canada come up with a solution for the province in the interest of car owners.
Quebec Electrification Plan
On October 9, the Premier of Quebec along with the Minister of Environment David Heurtel and the Minister of Transport Robert Poeti, announced the government’s five-year car electrification plan with the objective of having 100,000 electric cars on the province’s roads by 2020.
The government will maintain the rebates up to $8,000 with the purchase of electric and hybrid vehicles as a financial incentive for consumers and will also implement reserved lanes on roads solely for those types of cars which will not have to pay bridge tolls.
"The plan demonstrates that the fight against climate change is a growth opportunity for the green economy of Quebec, and that will benefit the entire population and future generations," declared Premier Couillard.
In order to have more electric vehicles on the roads, additional infrastructure is necessary such as public charging stations. The government intends to install 785 public charging stations and 60 fast public charging stations by the end 2016. Furthermore, the government has also committed to implement a zero-emission law within the province.
