The Canadian Manufacturers & Exporters (CME) welcomed this week’s announcement that Honda Canada will be producing its next-generation cross-over vehicle for the European market at its Alliston, Ontario facility.
“I congratulate Honda Canada on seizing the potential that the Canada-EU Free Trade Agreement will provide to many Canadian companies,” said Jayson Myers, CME president & CEO in a press release. “This is a made-in-Canada success story that has global rewards.”
The trade group noted that this is the first time Honda Canada will export to the European market, which it said was a result of the Comprehensive Economic Trade Agreement (CETA) signed last year between Canada and the European Union. Presuming the deal is ratified possibly by next year, Canadian automakers will receive a competitive advantage in the EU market due to the elimination of the current 10% tariff on passenger vehicles.
Honda’s announcement is about jobs, Myers said. “As a result of new global opportunities, the 4,000 employees at Honda Canada’s Alliston facility will grow by 400 and bolster 1,500 suppliers that account for approximately $2.1 billion per year in parts and services. That’s not just good news for Canadian manufacturing, but for Canadians.”
Related: Honda Canada to Export Vehicles to Europe for the First Time (Canadian Press)