TORONTO, Sept. 12, 2014 /CNW/ - The Canadian Vehicle Manufacturers' Association (CVMA) is supportive of continued Trans Pacific Partnership (TPP) negotiations as countries move forward towards an agreement that has a significant opportunity to raise the bar on a number of fronts and bring multilateral trade into the 21st century. Chief negotiators from the 12 participating countries just completed the latest round of talks in Hanoi, Vietnam.
As part of the development of 21st century free trade agreements, the CVMA supports and highlights the following three key principles to a successful TPP:
The CVMA supports well-structured free trade agreements with countries that demonstrate reciprocal and commercially meaningful market access. As such, auto tariffs for imports must be phased out with sufficient transition time.
Secondly, a TPP agreement must address existing auto non-tariff barriers and include appropriate mechanisms in the agreement to deter future non-tariff barriers.
Thirdly, currency measures are integral to a successful TPP agreement. Currency disciplines ensure that market access provisions in the final agreement are not undermined by a country(s) inclination to manipulate its currency. Currency manipulation can be extremely damaging, as it can be used to unwind commitments made by the parties to the agreement resulting in significant economic consequences for one or more parties to the agreement. "The CVMA and its members believe the inclusion of currency disciplines in modern trade agreements can be done in an effective, fair and achievable manner. As such, we strongly encourage TPP negotiators to include these important principles as part of the TPP agreement", said Nantais.
About the Canadian Vehicle Manufacturers' Association (CVMA)
The Canadian Vehicle Manufacturers' Association is the industry association that has represented Canada's leading manufacturers of light and heavy duty motor vehicles for more than 85 years. Its membership includes Chrysler Canada Inc.; Ford Motor Company of Canada, Limited and General Motors of Canada Limited. Collectively its members account for 62% of vehicles produced in Canada, operate 5 vehicle assembly plants as well as engine and components plants, and have over 1,300 dealerships. 115,000 jobs are directly tied to vehicle assembly in Canada. Direct and indirect jobs associated with vehicle manufacturing are estimated at over 500,000 across Canada. Please visit www.cvma.ca.
SOURCE: Canadian Vehicle Manufacturers' Association (CVMA)
For further information: Mark Nantais, President, Canadian Vehicle Manufacturers' Association, 416.364.9333