timberland sandals for kids ‘It’s going back to the wild
Forty thousand people in Windsor and Essex County work in manufacturing, 80 per cent in the auto industry.
Up Highway 401, in the London area, manufacturing accounts for another 30,000 jobs. That includes thousands in the auto parts industry, with more spread up and down the highway east and west of the city at parts factories that feed Big Auto in Southwestern Ontario.
Now, roll in the thousands more employees at the two big auto plants east of London Toyota in Cambridge and Cami Automotive in Ingersoll.
The result? The region reliance on the export driven auto industry its big customer, the United States grows even larger.
More than any other region of Canada, Southwestern Ontario lives and dies by the access to the giant American market that the North American Free Trade Agreement (NAFTA) provides. under NAFTA. under NAFTA. and Mexico for 24 years, the deal that the auto industry is based on.
That made Southwestern Ontario what one report calls Big Auto in Canada ground zero for the fallout of any American withdrawal from the continental trade treaty, and the many questions being asked as the troubled trade talks resume Tuesday.
An American pullout from NAFTA be disastrous, says Jonathan Azzopardi, president of mould maker Laval International in Tecumseh, near Windsor.
no other way really to put it, he said. our biggest partner, and we can afford to have them turn their back on us. President Donald Trump said last February he wanted to NAFTA. wants half the content of vehicles made in Canada and Mexico to be American. It doesn want a mechanism to resolve disputes. And it wants to renegotiate any new agreement in five years. proposals.
It a negotiation unlike any other. The point of trade deals is shared objectives and reducing barriers. Not this one: It America First, as America turns inward. withdraws, NAFTA will expire in six months. Then, said Azzopardi, I not telling you this to get everyone in upheaval,
it almost like it going back to the wild, Wild West. one knows what will happen. Free Trade Agreement? Or World Trade Organization rules?
Or would all three countries negotiate new, bilateral deals?
There is no road map for withdrawing from a trade agreement on this scale.
Reverting to WTO tariffs leave Canada unequivocally worse off than under NAFTA, but it would not be a disaster, concludes a study by the Bank of Montreal. The gross domestic product would be one per cent lower than it would otherwise be. The loonie would fall five per cent to 74 cents US. Consumer prices would rise 0.8 per cent. But policy makers, businesses and markets would adjust.
But certain industries and regions especially Ontario auto industry would be affected. would be affected most, the report states. more than almost any other industry and would be of the hardest hit. and Mexico, that parts to produce one vehicle cross the border up to seven times.
Companies couldn supply their plants if borders became barriers.
Even auto dealers would be affected because the cost of vehicles could jump by more than US$1,000, which would noticeably on consumer demand and dealership margins. Deliveries to dealerships likely would be delayed because of more regulations. D. Howe Institute. Canada would lose 25,000 to 50,000 jobs in the long term. Temporary unemployment during possibly long adjustment period could very significantly to these losses. certain sectors, including auto, will suffer hits to exports, the report says. Total sales in auto, chemicals, rubber and plastics will fall by as much as $4 billion.
On the front line are Windsor and Essex County, part of the biggest cluster of vehicle, parts and tool and mould makers in North America, a highly integrated,
binational economy with southeastern Michigan and beyond.