|
|
Speaking Notes for Yoshio Nakatani
JAMA Canada Reception
North York Room, Westin Prince Hotel
October 23, 2000
|
|
Good evening, ladies and gentlemen. As Chairman of JAMA Canada, I would
like to welcome you and to thank you for taking time from your busy schedules
to be with us here today.
Our main purpose in holding this reception is to introduce the President
& Vice Chairman of JAMA in Tokyo, who is here in Canada on his first official
visit. But before we ask Mr Suzuki to say a few words, I wanted to make
some observations about the state of the industry in Canada.
This is certainly an auspicious time for the Canadian auto industry.
At the same time, we are participants in a rapidly changing global industry
that, daunting as it may seem, creates a host of new challenges and opportunities
for automakers, suppliers, governments, workers and consumers.
Take for example: the impact of information technology (IT), wireless
communications and the internet; traffic congestion in urban centres and
the promise of ITS (intelligent transportation systems); globalization
and international harmonization of standards and regulations; environmental
issues including global warming, rising oil prices, and alternative fuel
technologies, to name a few of the complex issues that we face.
As I think everyone here is aware, the auto sector is a key driver of
the Canadian economy in terms of jobs, investment, trade and technology.
Production, exports, sales, and employment are as high as they have ever
been.
Altogether, Canada accounts for about 18% of North American output, while
we consume less than 10% of annual North American sales. No wonder Canada’s
auto trade surplus stands at more than $8 billion in the first half of
2000.
Companies continue to invest and plants are expanding. Honda in Alliston
officially began producing the Acura MDX earlier this month, and TMMC
in Cambridge will be the first plant outside of Japan to build the Lexus
RX300 in 2003.
At the same time, Canadian auto parts companies like The Woodbridge Group
and ABC Group have established plants in Japan. In fact, Woodbridge recently
opened its third plant in Japan with its partner Inoac.
And more Japanese auto parts investments are coming to Canada. In August,
Ube Manufacturing Canada became the 40th Japanese affiliated parts plant
to be established here. And just last week, Toyoda Gosei broke ground
for its new plant in Palmerston, Ontario.
With growing auto investments in North America, all JAMA Canada members
are sourcing more locally. Currently about 3 of every 5 vehicles sold
are built within NAFTA. Annual production capacity in Canada is 750,000
units, more than twice our sales last year. Altogether about 50,000 Canadians
are employed manufacturing, selling, servicing, exporting and importing
vehicles and parts.
The strength of the sector in Canada depends to a great extent on a well-educated
and dedicated workforce, positive economic factors including low inflation,
low interest rates, balanced budgets and reduced government debt, as well
as the strong confidence of the Canadian consumer.
Open trade and access to other markets is also critical to sustain the
level of production and export of parts and vehicles. While the majority
of Canadian-built vehicles are shipped to the US, almost 6,300 Odyssey
minivans have been exported from Ontario to Japan over the past 12 months.
Finally, a word about tariffs and trade. A few weeks ago, the Canadian
Government accepted the decision of the WTO to finally end the Auto Pact
by February 19, 2001. This change will establish equal treatment and open
competition for all automakers in Canada. At the same time, we agree with
Simon Reisman, the Canadian trade negotiator of the Auto Pact and the
FTA, that the 6.1% MFN tariff should be eliminated on all vehicle imports.
While there is a good case for unilateral reduction, we would also support
tariff cuts in the next round of multilateral trade negotiations.
In short, it is astonishing how much the industry has changed and grown
over the last twenty years. Of particular note is how much the relationship
between the auto industries in our two countries has deepened and matured.
It’s hard to say what will happen over the next 20 years, but I expect
the trend toward closer international cooperation and integration will
continue even as global competition gets tougher. I thank you again for
being with us today.
|
