It is very likely that automakers will implement a combination of the above. Charlotte Yates, Propst and vice-president of the University of Guelph, spoke about regional trade policy and the automotive industry from a Canadian perspective. Because Canada is a relatively small market in North America and cannot claim to be home to a major automaker, the country has less influence over the organization of public policy debate across the region, Yates noted. However, to achieve better future results for the Canadian automotive industry, it recommended that the nation pursue an industrial policy based on four principles: 1) focus on the broader concept of mobility (not just single cars); 2) Recognize that supply chains are integrated across borders; 3) distinguish between measures to support innovation and those that only stimulate production; and 4) to recognize the role of industry in influencing climate change and to invest accordingly. She stated that these principles could provide a comprehensive and cohesive policy framework that is currently lacking in Canada and argued that their adoption would allow the country`s auto industry to continue to prosper. European car manufacturers are global companies, exporting more than 5.6 million vehicles in 2019 and running a trade surplus of 74 billion euros for the EU. This is why the industry strongly supports the EU in its trade negotiation programme and promotes international trade agreements that offer mutual benefits and common rewards to the domestic sector and its foreign partners. Brussels, 14 September 2020 – just 15 weeks before the end of the Brexit transition period, leaders of the European car industry have joined forces to call on the EU and the UK to… The European car industry is in favour of further trade liberalisation.

Trade agreements can foster innovation, growth and prosperity for the EU and partner countries. To enhance competitiveness, ACEA supports trade agreements that are based on reciprocity, freedom and fairness and create a level playing field. The AceA also calls on policy makers to coordinate trade and industrial policy in order to create the conditions for a strong industrial sector. President Trump has indicated his intention to withdraw from NAFTA or renegotiate important provisions of the agreement. NAFTA has contributed to the growth of integrated automotive production and supply networks in the North American region and significant changes in the tariff structure will have a significant impact on automakers and suppliers. These effects range from the ability of automakers to provide an affordable set of vehicles that consumers need, to the ability to meet the demands of the globally costly raw material supply chain, to products that may not have sources within the United States. Robert Scott, Senior Economist and Director of Trade and Production Policy Research, Economic Policy Institute, also highlighted workers` concerns in his presentation on the impact of trade agreements such as NAFTA. Scott pointed out that trade growth tends to coincide with slower wage growth in the United States, particularly for workers with less than a university education. He suggested that increased trade and globalization account for much of the increase in college pay premiums observed in the United States since 1995. He also said that NAFTA and other similar trade agreements have led to growing U.S. trade deficits with Mexico and other countries, as well as lower wages and job losses in domestic manufacturing. 7 In the economy, the general theory of equilibrium looks at how the interaction between supply and demand in a multi-market economy will tend to achieve long-term price balance in all markets.