Japan Automobile Manufacturers Association of Canada

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Japanese Auto Industry in Canada - Trade Issues - Support for CPTPP

Why JAMA Canada Supports the Comprehensive & Progressive TPP (CPTPP)

Over the past 50 years, trade liberalization has brought significant benefits to Canadians and the auto industry in Canada*, since Japanese automakers first set up in Canada in 1965. With a highly trade-dependent auto sector and a small domestic market, open and trade efficient borders are critical to ensuring a vibrant Canadian auto industry in an era of global competition and cooperation.

Canada has now completed trade agreements with South Korea (CKFTA) and Europe (CETA). Vehicle imports from Korea are now duty-free, and EU imports will follow now that CETA is provisionally in force.

If Canada's 6.1% tariff is applied only to vehicles from Japan, our members and their dealers will be at a distinct disadvantage in the Canadian market. Moreover, this will send a strong message to automakers in Japan, as well as to our members here that Canada is prepared to treat some automakers more favourably than others — a serious issue of equity and balance in Canada's automotive trade policy. If we are less competitive due to the absence of a trade agreement with Japan, this will have implications across all of our operations in Canada.

The solution is clear. A CPTPP comprehensive trade agreement will not only maintain a level playing field on vehicle tariffs for the benefit of Canadian consumers, but will also increase competition that will bring greater choice and new innovations in vehicle safety, lower emissions, higher fuel efficiency, alternative power trains (like electric, fuel cell, hybrid and plug-in hybrid vehicles) as well as the promise of greater mobility and reduced congestion through connected and autonomous vehicle technologies.

Currently, only one in four, or 25% of Japanese brand sales in Canada are imported from Japan. But these represent about half of the more than 100 models sold to consumers that are critical for JAMA Canada members and dealers to be able to competitively meet the varied transportation needs of Canadians.

*Key Facts:

  • In 2016, JAMA Canada members as a group sold 680,314 passenger vehicles — overall, record sales for the third year in a row. Market share rose to 34.9% in 2016.
  • There are 1,238 Japanese brand dealerships in cities and towns all across Canada employing about 44,500 Canadians in sales, service & repair.
  • 2016 was also another record year in Canada for Japanese brand vehicle production and exports. Over 1,012,000 passenger vehicles and 2,000 medium duty trucks were manufactured in Ontario, representing 43% of total light vehicle output in Canada.
  • Since 1993, Canada has exported 4.5 million more Japanese brand vehicles than were imported from Japan, US, Mexico and other countries combined.
  • Total Employment (direct & indirect) 79,865    
    Head & regional offices 2,144   (JAMA Canada members)
    Vehicle manufacturing 12,296   (Honda, Toyota & Hino Motors)
    Japanese auto parts related plants 20,919   (60 parts related plants — Ont/Que/BC)
    Dealerships in Canada (est.) 44,506   (1,238 dealerships across Canada)

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