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Interesting read on Canada and the auto industry.


“...the new U.S.-Mexico-Canada Agreement on trade is leveling the playing field on labor costs, Tanguay says. The Canadian auto industry is also poised to benefit from the nation's other deals — such as the Canada-European Union Comprehensive Economic and Trade Agreement. It might help a Canadian EV plant be designated as a global supply source, in much the same way that BMW's plant in South Carolina builds crossovers for the world.

...the federal government's push for zero-emission vehicles as part of Prime Minister Justin Trudeau's climate agenda made support of a Ford EV plant very appealing.”
 

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Trudeau has made no bones about his goal of having Canada as the world's free-trade manufacturer, being in every free trade organization he can find so that anything made in Canada can easily be exported anywhere. Mexico is in that favored position for the Americas, which is why those plants are still fully occupied even though there are many issues related to being there and Mexican sales are pretty minimal. (The low wages, safety and health requirements, and environmental rules are also part of it, I suspect.)
 

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Canada also completed a comprehensive trade deal with the EU a few years ago that will see Canadian-built cars subject to zero tariffs on import to the EU. (US product is levied at 9% in a decades-old trade dispute that no US administration has bothered to revisit; the USA levies no taxes on European-built cars, but 20%+ on European light-goods vehicles).

This is the logical thing for a country the size of Canada. Yes, it's a big country, and a rich one, but its population is less than Spain's - there isn't a big enough domestic market for the amount of things Canada can make, so export markets are much more important. That used to mean almost exclusively the USA, but the last few years have shown that it can't always rely on its longest-standing friend to always be friendly to it in trade, so the country has been looking to broaden its horizons.
 

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Sorry, the globalist ship has sailed East.

Brampton got nothing in the UNIFOR deal. Windsor got a promise for an electric vehicle in 2024, after current deal expires, and everyone in leadership at Chrysler owes the late Sergio's Windsor a favor for what he built.
 

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Not sure why auto manufacturing wouldn't be lucrative to be in Canada vs the USA. Exchange rate alone means an American company is paying Canadian workers about $0.77 on the dollar. Add to that the fact that the employer doesn't need a fully comprehensive primary health care plan as part of the benefits package here. Labour costs have to be lower north of the border.
 

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Canada also completed a comprehensive trade deal with the EU a few years ago that will see Canadian-built cars subject to zero tariffs on import to the EU. (US product is levied at 9% in a decades-old trade dispute that no US administration has bothered to revisit; the USA levies no taxes on European-built cars, but 20%+ on European light-goods vehicles).

This is the logical thing for a country the size of Canada. Yes, it's a big country, and a rich one, but its population is less than Spain's - there isn't a big enough domestic market for the amount of things Canada can make, so export markets are much more important. That used to mean almost exclusively the USA, but the last few years have shown that it can't always rely on its longest-standing friend to always be friendly to it in trade, so the country has been looking to broaden its horizons.
The US levies 2.5% on EU cars, the EU levies 10% on US cars. It is 25% on EU light trucks.
 

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Sorry, the globalist ship has sailed East.

Brampton got nothing in the UNIFOR deal. Windsor got a promise for an electric vehicle in 2024, after current deal expires, and everyone in leadership at Chrysler owes the late Sergio's Windsor a favor for what he built.
I blame Diaz Windsor got commitment lost go round. Brampton should have been priority this round. Just my .02
 

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It's my understanding that the EU taxes new imported auto's at 14%, the US import tax is 2.5%. That said their isn't one auto producing country that lets in US produced new vehicles at less than what we charge them ? In other words the US D3 are always at a disadvantage tax wise. Not to mention the currency manipulation exporting power houses use.

Now let me say I'm on my third Dodge Challenger built in Brampton thus I can say the quality borders on flawless inside and out ! Well done Brampton workers.
 
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