From: brewnoserii@gmail.com   
      
   Globe and Mail - October 8, 2015   
      
      
   Canadian government omits key auto sector detail of TPP deal   
      
   Contrary to what government documents and the Prime Minister have said, the   
   local content requirements for some auto components under the TPP deal are   
   lower than advertised   
      
   The Canadian government has omitted a detail from its public explanation of   
   what would change for this country's vital auto sector under the Trans-Pacific   
   Partnership trade agreement.   
      
   And pressure is building on Ottawa to release the full text of this massive   
   Pacific   
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   Rim deal before voters cast their ballots in 11 days.   
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   International Trade Minister Ed Fast is pledging to make it public in a matter   
   of days.   
      
   It turns out, however, that, contrary to what government documents and Prime   
   Minister Stephen Harper have said, the local content requirements for some   
   auto components under the TPP deal are lower than advertised.   
      
   This is important because the agreement reached this week in Atlanta among   
   Canada and 11 other Pacific Rim countries would eliminate Canadian tariffs on   
   Japanese vehicles and make it easier for manufacturers to use offshore parts   
   in cars.  It would be a    
   boon for low-wage Asian suppliers but a challenge for Canadian firms.   
      
   Summaries of the deal from the Department of Foreign Affairs and International   
   Trade, and Mr. Harper himself, have focused on the fact that local content   
   requirements will be 40 per cent and 45 per cent for vehicle components.   
      
   "Just in terms of thresholds, we are no lower than 40 [per cent] on anything   
   and 45 [per cent] on most, which is a considerable improvement over an earlier   
   understanding between a couple of other partners," Mr. Harper said at a news   
   conference on Oct. 5.   
      
   However, some components will have local content thresholds as low as 35 per   
   cent.   
   This means 65 per cent of the content could come from countries outside the   
   TPP.   
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   Mr. Fast's office defended the government's explanations, saying they focus on   
   the components that Canadian firms produce in large quantities.   
      
   "It does go as low as 35 [per cent], but they are not key Canadian parts,"   
   spokesman Rick Roth said.  "Canada's TPP autos outcome is extremely strong in   
   all areas."   
      
   He said details on precisely which categories of auto parts will fall into   
   which local content rule will be released with the text of the deal.   
      
   Mr. Roth said the eight categories of auto parts listed as priority areas by   
   Canadian industry are covered by the higher thresholds.  He said the 35 per   
   cent category is still better than the 30 per cent that  Japan and the U.S.   
   had originally planned    
   for the TPP.   
      
   "The outcome Canada negotiated, with inputs from the parts industry, ensures   
   most key Canadian parts are at 45 [per cent], with others at 40.  Those facts   
   are what we've communicated."  He said details on precisely which categories   
   of auto parts will be    
   affected will come out with the text of the deal.   
      
   This means it is not possible to yet verify whether the categories of   
   components in which the most offshore content would be allowed actually are   
   made in large quantities in Canada.   
      
   A Nanos research poll suggests Canadians have concerns about the deal.   
   Three-quarters of respondents were worried about the impact on the dairy and   
   automotive industries, a new survey said.   
      
   Forty-seven per cent said they were not or somewhat not confident in the job   
   done by the federal government in negotiating the TPP.   Forty-two per cent   
   said they were confident or somewhat confident that Canada's interests were   
   looked after.   
      
   A full 73 per cent of respondents said it would be important or somewhat   
   important to them if the deal had a negative impact on dairy farmers.    
   Twenty-four per cent disagreed.  The Conservative government has agreed to pay   
   dairy farmers a combined $4.3-   
   billion in compensation for losses from the TPP and European trade deals.   
      
   Canadians were equally supportive of the auto sector, with 75 per cent   
   worrying about the impact, and 23 per cent saying it was not important.   
      
   NDP Leader Tom Mulcair, who opposes the Pacific Rim deal and is trying to   
   rally anti-TPP voters behind him, appears emboldened now that a major U.S.   
   political figure is also against it.   
      
   Hillary Clinton, the former first lady who wants to return to the Oval Office   
   as president, tried to give her faltering campaign a boost on Wednesday   
   by breaking with President Barack Obama and rejecting the TPP.   
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   "As of today, I am not in favour of what I have learned about it," said Ms.   
   Clinton, who is seeking the Democratic presidential nomination.   
      
   Said Mr. Mulcair: "I welcome news that Hillary Clinton has joined other senior   
   Democrats in the United States in opposing this bad deal.  It is now clearer   
   than ever that we don't have to accept Stephen Harper's TPP.   A better deal   
   is possible - if we'   
   re willing to stand up and fight for it."   
   [- - -]   
      
   Questions remain about whether the deal would accelerate the trend of auto   
   investment bypassing Canada in favour of Mexico and the southern United States.   
      
   The agreement replaces the North American free-trade agreement and its   
   requirement that vehicles sold in North America contain at least 62.5 per cent   
   content from the three countries with a new requirement that cars and trucks   
   can be sold tariff-free in    
   all 12 TPP countries with just 45 per cent content from those 12 countries.   
      
   The rules differ for parts, with that same 45-per-cent level required to be   
   considered duty-free for some parts and 40 per cent for others.   Included in   
   the 45-per-cent or 40-per-cent levels are engines, transmissions, chassis   
   components, bumper systems    
   and suspensions, sources said.  A third set of parts can be considered   
   originating in TPP countries with just 35 per cent TPP content.   
      
   Job loss estimates for auto industry:   
      
   https://d3n8a8pro7vhmx.cloudfront.net/broadbent/pages/4653/attac   
   ments/original/1444242804/TPP-joblosses-map.jpg?1444242804   
      
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