In what can be called the biggest test yet of the new North American free trade agreement, Canada and Mexico walked away the victors.
A trade dispute panel has ruled in their favour in a disagreement with the U.S. about what auto content rules mean under Canada United States Mexico Agreement, also known as the new NAFTA deal.
The U.S. argued the agreement called for 75 per cent of the complete vehicle to be manufactured in North America, but the other two partners disagreed and filed a formal complaint.
Unifor Local 444 president Dave Cassidy, May 1, 2019. Blackburn News file photo.
Unifor Local 444 president Dave Cassidy called the American position terrible for free-trade.
"The reality is those content rules would have put us back into this whole protectionism thing -- We were concerned. That would have really put a damper on the auto sector," Cassidy told WindsorNewstoday.ca. "This was a victory yesterday."
Canada and Mexico made the case that 75 per cent of a vehicle's components, the transmission or engine, needed to be built on the continent.
Cassidy believes the victory will encourage more investment because it'll boost demand for domestically-made parts.
"We're up from 62 per cent to 75 per cent. That gives those three jurisdictions a bigger piece of the pie," he explained.
He argues it should also make the supply chain more efficient.
"Our supply chain is so volatile right now," Cassidy said. "We're not going to have to go overseas [for parts]."
Unifor Local 444 represents workers at the Windsor Assembly Plant and several auto parts suppliers. Cassidy believes the victory could mean greater job security for his members building the components needed for assembly.
"Potentially, we could add some more members," said Cassidy. "People are going to do the investing -- especially in Canada."