OTTAWA, Sept. 11, 2015 /CNW/ - Current reports indicating that some Trans Pacific Partnership (TPP) member-countries are seeking to obtain lower regional value content thresholds for auto-parts and light duty vehicles are of concern to Canada's primary steel producing companies. The CSPA strongly supports Canada's continued growth as a globally relevant, high value-added automotive manufacturing jurisdiction and is proud of our contribution as a supplier too many of the world's leading automotive OEM and parts suppliers based in Canada. We do not believe Canada's domestic interest should be compromised to the potential advantage of low cost jurisdictions outside the TPP.
The CSPA has maintained an active interest in the progress of negotiation on the TPP and fully supports the Government of Canada's defense of Regional Value Content thresholds. The CSPA believes that a minimum Regional Value Content by net cost of 50% for auto parts and light vehicles in the TPP is a reasonable compromise to the current 62.5% required in NAFTA. CSPA members are active contributors to the automotive supply chain in Canada. The North American automotive industry represented over one-third of the $14 billion dollars in steel shipped by Canadian producers in 2014. The CSPA and its member companies know first-hand that continued growth in the automotive sector is of significant benefit to the Canada economy.
The CSPA also believes that TPP negotiations continue to provide a clear-cut incentive for the Government of Canada to strengthen Canada's trade remedy system with an eye to the mitigation of potential injury to Canadian manufacturers from dumped and subsidized imports. The CSPA will continue to work towards the implementation of trade remedy modernization proposals which we believe should be adopted in a comprehensive and timely fashion
The Canadian Steel Producers Association (CSPA) is the national voice of Canada's $14 billion primary steel production industry. Canadian steel producers are integral to the automotive, energy, construction, and other demanding industrial supply chains. CSPA seeks to work with governments and industry partners to advance public policies that enable a globally competitive business environment for its member companies and supply chain stakeholders.
SOURCE Canadian Steel Producers Association
For further information: Media Contact: Joseph Galimberti, President, Canadian Steel Producers Association, 613-238-6049