NAFTA In Canada

Words: 1934
Pages: 8
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Course: Economic Environment of Business
Subject: Group Case Report
Batch: 2015-2017 Section: B Group No.: 3
Country: Canada Total Words: 1807 Total Pages: 8
Group Members
S.N.
Name
Roll No.
1
Aditi Bhandakkar
2015073
2
Anshuman Thakur
2015085
3
Brajesh Kailash Lahoti
2015090
4
Prathamesh Dicholkar
2015094
5
Radhika Rathi
2015111
6
Varddhaman Jain
2015126
CASE TITLE: “AUTOMOTIVE INDUSTRY OF CANADA IN DWINDLE”
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INTRODUCTION
Automotive industry in Canada consists of primarily assembly plants of foreign automakers having their headquarters in US and Japan, along with hundreds of manufacturers of automotive parts and systems. The Canadian automotive industry is integrated into NAFTA (Canada, US, Mexico), globally competitive, …show more content…
The agreement allowed Canada to tap & gain access to North American market which is one of the world’s largest automotive market, with annual sales of about 20 million units and annual production of about 16 million units solely in its North American market. Further, once the Comprehensive Economic & Trade Agreement (CETA) is enforced, it will guarantee access to the European Market. Besides that, the industry comprises of some of the world’s leading auto parts manufacturers which gives them an opportunity to develop long standing relationships with the foreign investors. Although the domestic sales of autos recorded high sales, there has been a continuous decline of the North American auto sales. The reason for this can be attributed to the following …show more content…
It has agreed to “phase out” the import tariff being levied on Japanese vehicles over a 5 year period. It also mandates that the tariffs on autos & auto parts should be reduced to “zero” in all the 12 member countries. It may certainly result in cheap vehicles for consumers, but it could change the competitive environment for Canadian manufacturers. The deal will give them the access to TPP member countries which represents 40% of the world’s output which includes markets like Japan, Malaysia etc. The deal also stipulates that the amount of content made in TPP member country for a vehicle to be imported tariff free will be reduced to 45% which is currently 62-62.5% under
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