Canada and Europe Hash out Resolution for Auto Trade: Leaked Documents

By Scoffield, Heather | The Canadian Press, April 5, 2013 | Go to article overview

Canada and Europe Hash out Resolution for Auto Trade: Leaked Documents


Scoffield, Heather, The Canadian Press


Canada and EU plot resolution on autos

--

OTTAWA - Leaked European documents on the free-trade talks with Canada suggest the two sides have the bare bones for an agreement in the troublesome field of autos.

The Canadian Press has obtained a European list of outstanding issues on rules of origin, which have long been a barrier to a final Canada-EU free trade agreement.

The list, dated Feb. 5, is included in a memo from the European Commission's director-general for trade, addressed to the trade policy committee.

Included in the list is a proposal for a two-step solution to the problematic auto sector -- a sector that has proven difficult for negotiators to handle because Canada's auto production is so deeply intertwined with the U.S. market, making it nearly impossible to define what a "Canadian" car actually is.

The first step involves setting up a quota -- an approach used frequently by Canadian and European negotiators to deal with contentious issues -- while the second step involves negotiating arrangements with the United States.

The short-term quota "should be reasonable and based on current investment plans and export possibilities," the document states. "It is also linked to any growth clause."

That kind of quota design is unusual, since quotas are often based on historical production patterns and don't anticipate future changes.

However, the document does not say where the quota should be set. Canada proposes 100,000 passenger cars per year, but there is no indication that the EU would agree to that level.

Nor does the document say how Canada would divvy up the quota among auto manufacturers in Canada.

The quota -- which the EU calls "derogation" -- would eventually be removed after Canada, the EU and the United States reach an understanding of how to account for North American content in cars being shipped from Canada. Instead, it would be replaced with a stipulation that Canadian passenger vehicles should have no more than 40 per cent non-North American content.

"Derogation to cease, and maximum foreign content to be brought down to 40 per cent if and when there is an agreement with the U.S. providing for cumulation with Canada," the document states.

The "cumulation with Canada" part is key because it signals that the European Union is ready to recognize and deal with the deep integration of the Canada and U.S. markets.

"The reality of a Canadian-made car is that it crosses the border and contains parts that are intermingled with the American sector, and that's just the reality of the Canadian auto industry," said the NDP's trade critic, Don Davies.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Canada and Europe Hash out Resolution for Auto Trade: Leaked Documents
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.