February 14, 2007
CAW notes Canada’s first auto industry trade deficit in 18 years
Toronto, Ontario – The CAW has noted that Canada has registered its first auto industry trade deficit in 18 years for 2006. Figures released by Statistics Canada yesterday revealed that Canada’s auto industry registered a $1.2 billion trade deficit, the first since 1988.
“It is no coincidence that Canada became a net importer in the auto industry last year at the same time we face unprecedented job cuts at North American-based auto manufacturers,” says CAW president Buzz Hargrove.
In 1999, Canada’s auto industry registered a $14.3 billion trade surplus, when Canada was the world’s fourth-largest auto assembler. The country fell to eighth place in 2005; the CAW says that if trends continue, the country will likely be tenth at the end of 2007. Automotive industry imports from Japan increased 15 per cent last year, resulting in a record deficit that exceeded $6 billion for the first time. Canada’s automotive industry deficit with the European Union also increased to more than $3.5 billion last year, while the deficit with Korea reached above $1.5 billion.
The CAW also says that surging automotive imports from Asia into the United States also had the effect of cutting Canada’s exports last year, as the U.S. is the traditional destination of most of Canada’s automotive output.