Canada last had a positive balance in automotive trade in 2006 and the outlook for reversing our trade deficit on vehicles and parts looks grim, according to a new study by the Automotive Policy Research Centre.
That’s because Canada is losing out to Mexico on new automotive investment and has been building its deficit on vehicles and auto parts with the rest of the world, according to report author John Holmes.
In 2014, Canada’s trade deficit on automobiles and parts was $10.3 billion, according to the report titled Whatever Happened to Canada’s Automotive Trade Surplus?
“There’s two real drivers that have led to Canada from running a positive trade balance to being in a negative position,” Holmes, a faculty member at Queen’s University in Kingston, Ont., told CBC News. Click here to read more.