Voices “We've had integration between the automobile markets in Canada, the United States and Mexico dating back to the Auto Pact of 1965. And it was extended further with the North American Free Trade Agreement.”
-Dr. Matthew J. Slaughter, Professor of International Economics, Tuck School of Business, Dartmouth College, during recent congressional hearings on a proposed auto industry bailout package. |
Perspectives: The Auto Industry
Ottawa, Ontario share auto bailout concerns
Toronto Star
November 18, 2008
Ontario teamed up with Ottawa on a visit to Washington to get the "lay of the land" regarding a U.S. bailout of the auto industry. The federal and provincial governments are on the same page when it comes to salvaging the battered sector, Ontario Economic Development Minister Michael Bryant said.
Public bailout of auto sector unwise course
National Post
November 22, 2008
Responsible for about half a million jobs, entire communities would be brought to their knees if the auto sector were to collapse overnight. But if governments – whether in Toronto, Ottawa, Michigan or Washington – believe they can ride to the rescue of a mature industry that's facing a long-predicted, but until recently ignored shift in the economy, they will be wrong.
Big Three bailout can be "win-win"
Hamilton Spectator
November 21, 2008
Each and every minute, $1.2 million worth of goods and services are exchanged between Canada and the United States; and almost one-quarter of the merchandise crossing the border in the world's biggest trading alliance is used to build cars and trucks. For that reason, letting the so-called Big Three Detroit automakers fail would devastate both economies.
If Detroit falls, foreign makers could be buffer
New York Times
November 17, 2008
The failure of one or more of Detroit’s Big Three would put a huge initial dent in American manufacturing, but in time foreign car companies would pick up the slack by stepping up production in their North American plants. “You would have an auto industry in the United States more like that of Mexico and Canada: foreign-owned,” said Sean McAlinden, chief economist at the Center for Automotive Research.
In The News
Recession here, PM ready to open wallet
Globe and Mail
November 24, 2008
Canada is slipping into recession and an “unprecedented” fiscal stimulus is being considered, Prime Minister Stephen Harper warned. He admitted he is both worried and surprised by the depth of the global financial crisis.
Canada pledges auto aid, cap-and-trade system
Reuters
November 19, 2008
Canada pledged new aid to its ailing auto sector this month, and, in an apparent shift, it also said it would work toward a North America-wide cap-and-trade system to limit greenhouse gas emissions. The minority Conservative government made the promises in a policy speech marking the start of Parliament and quickly passed its first confidence hurdle when it won the support of the main opposition Liberal Party.
The Prime Minister's speech is available here
Canada and Colombia sign free-trade pact
Montreal Gazette
November 21, 2008
The leaders of Canada and Colombia have signed a new free-trade agreement that opens new markets for Canadian goods. The deal will hold companies operating in either country to international labour standards, and encourage the use of voluntary codes to protect the environment.
Less bang from the lower Canada buck
Reuters
November 14, 2008
The Canadian dollar's fall to a four-year low last month should make Canada's exports more attractive to U.S. customers, but the plunge in the economy south of the border makes a big wave of fresh orders unlikely.
InnovationThe engine of progress
Known globally in both academic and industrial circles as “Mr. Clean Diesel,” Ming Zheng has established a $3 million laboratory at the University of Windsor’s Centre for Automotive Research and Education (CARE), which has become the envy of institutions worldwide. “The diesel produces much less carbon dioxide than the regular combustion engine and it’s much more efficient,” says Zheng. “The higher the fuel efficiency, the lower the carbon dioxide emissions.” Click here for more on CARE.
NAFTAnow
In 1994, the North American Free Trade Agreement (NAFTA) came into effect, creating one of the world’s largest free trade zones and laying the foundations for strong economic growth and rising prosperity for Canada, the United States, and Mexico. The NAFTA partners have now created a website to provide Canadians, Americans, and Mexicans with information about how NAFTA works and the many ways in which it has improved the lives of North Americans.
Publications
The Impact on the U.S. Economy of a Major Contraction of the Detroit Three Automakers
Center for Automotive Research
“It is reasonable to expect that a permanent contraction in the U.S. auto industry would negatively impact the auto industries of Canada and Mexico, since producers in these regions rely heavily upon U.S.-produced parts and components. This interdependency of the NAFTA automotive producers means that the total economic impacts presented here underestimate the full impact of the scenarios. The decline of Detroit Three production in Canada and Mexico would result in further U.S. losses in employment, income, and government revenues.”
Weathering the Weather: Global Export Forecast
Export Development Canada
According to the October Global Export Forecast, Canadian export growth will decline further through 2009 with a recovery unlikely before mid 2010. The report indicates that Canada’s exports are being hit hard; however, exporters should benefit from a lower Canadian dollar, which is forecast to stabilize in the mid-80 cent range through 2009.
Blog
Automonster.ca
"Earlier this month many of the world’s biggest automakers detailed ambitious electric-car plans that promise zero emissions but will demand patience from consumers and subsidies from governments to succeed… "
AutoMonster.ca is a website/blog dedicated to any and all automotive topics. They report on all car news from Canada and around the world and are passionate about cars and the car industry in Canada.
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November 2008
Multimedia
Auto parts outlook
Gerry Fedchun, President, Automotive Parts Manufacturers' Association of Canada, discusses the current industry outlook in a recent video interview with the BNN (Business News Network).
Where will the credit crunch end?
Stephen Poloz Senior Vice-President, Financing Products Group, Export Development Canada, gives his take on when the credit crunch will end.
PeopleThomas d'Aquino, Chief Executive and President of the Canadian Council of Chief Executives (CCCE)
In an open letter to president-elect Barack Obama, the CCCE's Thomas d’Aquino highlights areas of common interests and values between the U.S. and Canada, and the challenges the new president will face.
Read the letter here
State Trade Fact Sheet
Virginia: The Old Dominion
Virginia and Canada had a mutually beneficial relationship in 2007 with bilateral trade flows totaling $5.2 billion. Canada was the state’s most important export destination, purchasing $2.4 billion in Virginia merchandise. The Commonwealth sold more to its northern neighbor than to China and the United Kingdom — the state’s next largest export markets — combined. In fact, Virginia–Canada exchanges surpassed $14.5 million on an average day.
The Monitor
The Monitor is a concise and insightful look at the U.S.-Canada business and economic relationship. This collection of news articles, scholarship and thoughts from leading economists, journalists, academics and members of the business community is meant to provide you with an overview of the various perspectives on the dynamic and interconnected nature of the U.S.-Canada economic relationship. Each month we focus on a core subject of importance to both economies; this month features a spotlight on the auto industry.
We welcome your feedback and hope to highlight some of your comments each month. Write to us and tell us what you think at: connect2canada@
canadianembassy.org
Regards,
The Monitor Staff
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