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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.
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.
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.
Contact:
David Worts,
Executive Director
(416) 968-0150
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