The president of the Automotive Parts Manufacturers’ Association says Canada isn’t being sidelined by early U.S.-Mexico trade talks on the Canada-U.S.-Mexico Agreement (USMCA) review.
Flavio Volpe tells AM800’s Mornings with Mike and Meg that this mirrors past negotiations and gives Canada a chance to see U.S. priorities before entering formal talks.
“We’ve been here before. In 2018 when we renegotiated the NAFTA, the Americans decided that one moment they just wanted to speak bilaterally to the Mexicans,” he said. “What we know is that we have a strong relationship with the Mexicans and we’re still talking daily with the Americans.”
Volpe calls a proposed 50 per cent American content rule for vehicles a potential “path forward.”
He says Canadian-built vehicles have gone from about 38 per cent content under NAFTA rules in 2019 to around 50 per cent today, making the target more realistic than it once was.
“They had been saying for a year and a half we don’t want Canadian cars. Now they’re laying out what the price of entry is and they’re saying the same thing they said in 2018. We want half of the contents to be American. Well in 2018 we said that’s crazy. Why would we agree to a floor that’s American and we’re not even close to it,” Volpe said.
He says any deal should also address steel and aluminum tariffs and digital trade.
“We need relief on steel, we need relief on aluminum, and we need to really get straight what our digital plan is vis-a-vis the U.S.,” said Volpe.
“It’s a path forward. It’s an important opening by the Americans. They’ll be tough at the table we know that, but, it’s not something that’s impossible.”
By July 1, officials are set to either decide to renew CUSMA for a 16-year period or agree to an annual review process.
-With files from CTV News