Top automakers encouraged by report on Canada-U.S. cooperation

Canada’s top vehicle manufacturers whose operations are integrated in North America say they are pleased a new Canada-U.S. progress report.

The automotive industry accounts for over $100 billion in trade between Canada and the U.S., representing approximately 20 per cent of total trade between the two countries. Of the more than two million vehicles produced annually in Canada, Canadian Vehicle Manufacturers’ Association (CVMA) member companies account for 65 per cent of all production, with 89 per cent exported to the United States.

“We are pleased to see that material progress is being made in relation to the Action Plan under the Regulatory Cooperation Council and the Beyond the Border Action Plan and fully agree with the reports which acknowledge that a good deal more needs to be done,” said Mark Nantais, president of CVMA.

The association says better aligned product regulations make good business and public policy sense, which has led to a high level of cooperation between Canadian and U.S. regulators on the implementation of some of the most advance stringent vehicle safety and environmental regulations in the world.

“Going forward, one of the most important outcomes will be to institute a memorialized process of joint regulatory agency cooperation and development of regulations with systematic solutions to avoid the creation of new regulatory misalignments. Greater harmonization of product standards will reduce costs and make more advanced vehicle technologies more affordable for consumers,” Nantais.

The Better Border Action Plan that is being pursued now and over the next few years will be key to achieving more efficient border crossings and ensure qualifying trusted trader companies are able to more effectively move manufacturing parts and components across the border as required for the highly integrated automotive industry and its supply chain, the association added.

“The industry is looking forward to working with the government to implement all aspects of the action plans that will address our need for alignment of trusted trader customs facilitation programs, border crossing procedures and vehicle standards between Canada and the United States,” said Nantais.