The opportunity for Ontario automakers to gain easier access to the overseas market is in jeopardy if the European Union (EU) doesn’t pass a proposed free trade agreement with Canada this month.
The Canadian Vehicle Manufacturers’ Association (CVMA) is anxiously watching the EU wrestle with the details of the Comprehensive Economic and Trade Agreement (CETA).
A small state in Belgium threatens to thwart the entire deal. It’s one that, if passed, would mean Canadian automobile manufacturers could increase the number of tariff-free exports from Ontario to the EU.
Ontario automakers currently ship about 14,000 vehicles to the EU every year. That number would increase to 100,000 tariff-free under the CETA.