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For Immediate Release
June 1, 2000
The WTO appellate report released on May 31, 2000 has upheld the
key findings of the dispute settlement panel’s final report issued
earlier this year. These reports confirm that changes are necessary
to bring Canadian automotive tariff policies related to the Auto
Pact into line with international trade rules.
For Immediate Release June 1, 2000 Statement on the Final Appellate
Report of the WTO Dispute Settlement Panel on Canadian Automotive
Trade Policy The WTO appellate report released on May 31, 2000 has
upheld the key findings of the dispute settlement panel’s final
report issued earlier this year. These reports confirm that changes
are necessary to bring Canadian automotive tariff policies related
to the Auto Pact into line with international trade rules. In practical
terms, JAMA Canada continues to urge the Government of Canada to
adopt trade policies that are open, transparent and non-discriminatory,
with changes to ensure equal treatment for all automakers in Canada.
Moreover, we urge the Canadian Government to make a commitment to
remove the Most Favoured Nation (MFN) tariff on finished vehicles
as soon as possible.
Since the FTA in 1989, auto tariff policy in Canada created a fragmented
two-tiered industry that treated some automakers more favourably
than others. In addition to being in contravention of WTO rules,
this policy created negative signals for international automakers
and parts manufacturers that had invested, or that might have considered
investments in Canada. However, with this report, the Canadian Government
is obliged to address the discriminatory aspects of the current
policy, and at the same time consider the long term benefits for
both automakers and consumers in Canada from the elimination of
tariffs on finished vehicles. And by eliminating import duties on
finished vehicles, Canada would also be matching the current 0%
MFN tariff on vehicles and parts in Japan.
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The Canadian auto industry is healthy, competitive and profitable.
At the same time, it is heavily dependent on trade due to the fact
that over 80% of all autos made in Canada are exported, while the
majority of vehicles sold in Canada are imported. With twice as
much production as consumption in Canada, tariffs only add non-manufacturing
costs that, in a highly competitive market, are a burden for both
automakers and consumers.
For further information, contact:
David Worts
Executive Director
Tel: 416-968-0150
Fax: 416-968-7095
Email: [email protected]
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