While that’s an increase, 86,000 units remains a small percentage of overall Canadian production.
“We anticipate with this new agreement, along with existing and future mandates, that we can grow those numbers even more,” CVMA president Mark Nantais told Automotive News Canada.
According to auto analyst Dennis Desrosiers, 100,000 exports would represent less than five per cent of the roughly 2.5 million vehicles made in Ontario each year.
“There are some vehicles, foreign in particular, that are targeting Europe out of Ontario,” he said. “That volume, though, in relation to total production volume, is relatively small.”
Honda announced in 2015 that its Canadian operation in Alliston, Ont., would produce the new CR-V model for the European market, marking the first time that its Canadian arm will export vehicles to Europe.
“The negotiation of a free trade agreement with Europe by the Government of Canada under CETA (the Canada-European Union Comprehensive Economic and Trade Agreement) was a catalyst for our decision to export CR-Vs," Honda Canada Chief Executive Jerry Chenkin said in a statement at the time.
Ford and FCA also export some vehicles from their factories in Oakville and Windsor, respectively, Nantais said.
The EU was expected to sign off on the deal before the end of October.
Nearly all 28 EU governments back the deal, which would be the bloc's first trade agreement with a G7 country.
Now, the Belgian state of Wallonia is threatening to veto the deal. Farmers in that region are afraid cheaper Canadian produce will price them out of the market. Under Belgium's complex federal political system, all the country’s regions must agree on the pact in order for it to be approved.