Trade negotiations have become a confusing mash-up of abbreviations with an unclear list of countries.
But it’s simple to understand why auto sector representatives say Trudeau has put Ontario jobs at risk by signing the Trans-Pacific Partnership. You just have to know that 45% is less than 62.5%.
The president of the Auto Parts Manufacturer’s Association, Flavio Volpe, said TPP “could not be a dumber move.” Mark Warner, a prominent trade lawyer, said he didn’t see any improvements from the TPP text Canada rejected just three months ago. Jerry Dias, president of UNIFOR, the major auto sector union, called TPP a “total disaster” and said Ford, Chrysler and GM were also “furious.”
But the Japanese Auto Association of Canada supports TPP. And so does at least one Canadian billionaire operating auto parts plants in China.
Under NAFTA, vehicles assembled in Ontario plants can be exported to the U.S., tariff-free, if 62.5% of the value of the vehicle’s parts originated in North America.