CUSMA a ‘critical condition’ for increased Japanese auto manufacturing in Canada: Ambassador
BNN Bloomberg
As the Canadian government prepares to review CUSMA this summer — a deal the U.S. president is signalling he’s prepared to abandon — Japan’s ambassador is reminding Canada just how high the stakes are for a key component of Ontario’s economy.
Japanese Ambassador to Canada Kanji Yamanouchi says continued access to the U.S. market, as provided for under CUSMA, is essential for current and potential increased Japanese investment in auto manufacturing in Canada.
“That is the critical condition,” Yamanouchi said in an interview airing Sunday on CTV Question Period . “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,” added Yamanouchi. “(For) private companies, that means they have to calculate to increase profit. So CUSMA is a very important part of the calculation.”
Last year, U.S. President Donald Turmp imposed a 25 per cent tariff on Canadian-made automobiles, with a complicated carveout for the U.S. content in imported vehicles. Trump has also repeatedly stated that the U.S. doesn’t need cars made in Canada or Mexico and that he wants to bring back auto manufacturing positions to the United States.
Japanese auto makers, meanwhile, are a critical source of automotive production and employment in Ontario.
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Prime Minister Mark Carney has landed in Japan on the final stop of a 10-day trip that also included Australia and India.
Prime Minister Mark Carney has landed in Japan on the final stop of a 10-day trip that also included Australia and India.
Prime Minister Mark Carney has landed in Japan on the final stop of a 10-day trip that also included Australia and India.
Prime Minister Mark Carney has landed in Japan on the final stop of a 10-day trip that also included Australia and India.
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