Canadian Vehicle Manufacturers' Association

Canadian Vehicle Manufacturers' Association

May 03, 2007 11:50 ET

Canadian Auto Manufacturers Ask "Where's the Beef?" For Vehicles Entering South Korea

TORONTO, ONTARIO--(CCNMatthews - May 3, 2007) - The Canadian Vehicle Manufacturers' Association (CVMA) today called on the federal government to insist that Canadian-manufactured automobiles receive the same access to South Korea as Canadian beef.

"Canadian auto trade with South Korea has been as much of a one-way street as it has been for many of our food products so forgive us if we ask "where's the beef?" when it comes to ensuring access to South Korea for our cars." said CVMA President Mark Nantais in reaction to Foreign Affairs Minister Peter McKay's comments yesterday that a new trade agreement is imminent with South Korea following that country's welcomed promise to lift its ban on Canadian beef imports.

"The auto sector is a strong supporter of freer trade and would support a genuinely reciprocal agreement with South Korea if it actually ensured fair access for our Canadian-manufactured automotive products," said Nantais. "Given the importance of the auto industry to Canada's economy and international trade, we expect the Canadian government to achieve necessary guarantees that South Korea will eliminate its non-tariff trade barriers to cars and light duty trucks and put in place meaningful mechanisms to prevent them from arising again in the future."

Similar to our recent trade in beef, Canada's auto industry has faced a long pattern of significant and often changing non-tariff trade barriers that limit our ability to export Canadian-built vehicles to South Korea. Last year, over 125,000 Korean built vehicles were imported into Canada while less than 500 Canadian built vehicles were allowed into South Korea. All auto manufacturers from all countries only managed to account for 4% of Korea's 1 million unit new vehicle sales market in 2006. The direct result for Canada is a massive trade deficit in finished vehicles of $1.5 billion that accounted for 70% of Canada's total trade deficit with Korea in 2006.

About the Canadian Vehicle Manufacturers' Association

The CVMA is the national association representing Canada's leading manufacturers of light and heavy duty vehicles. Our membership includes DaimlerChrysler Canada Inc., Ford Motor Company of Canada, Limited, General Motors of Canada Limited and International Truck & Engine Corporation Canada.

In partnership with the Government of Canada and the Government of Ontario, CVMA members have contributed over 80% of almost $10.15 billion in new automotive (parts and assembly) investment announced over the past five years. These investments involve a transition to flexible manufacturing, new advanced skills training programs, significant investments in research and development, and the implementation of leading-edge environmental technologies.

In 2006, our member companies produced over 70% of the 2.55 million light duty vehicles built in Canada and accounted for 54% of all light duty vehicles sold in Canada. Our members purchase over 80% of all automotive parts produced in Canada for vehicle production across North America.

The automotive industry has been the driving force of Canada's economy for over 100 years.

Contact Information

  • Canadian Vehicle Manufacturers' Association
    Mark Nantais
    President
    (416) 364-9333
    Website: www.cvma.ca