October 5, 2015 1:55 pm
Updated: October 5, 2015 2:26 pm

Canadian auto union slams TPP deal, calls new content rules ‘outrageous’

A worker on the production line at Chrysler's assembly plant in Windsor, Ontario, works on one of their new minivans. The auto sector is one of the key sectors that were involved in the negotiations for the Trans-Pacific Partnership deal.


TORONTO – Canadian auto workers’ union Unifor predicts that 20,000 auto industry jobs could be lost as a result of the Trans-Pacific Partnership trade deal announced today.

Under the deal, Canada’s 6.1 per cent tariff on imported vehicles will be phased out over a five-year period.

And domestic content requirements – rules that dictate what percentage of a vehicle or auto part must be made within the TPP in order to be sold within the region tariff-free – will be slashed.

READ MORE: What Canadians should know about the TPP deal

Under the North American Free Trade Agreement, or NAFTA, an auto part needed to contain 60 per cent North American content in order to remain duty free.

For a fully assembled vehicle, the minimum content requirement was 62.5 per cent.

The new trade deal will allow for the tariff-free movement of vehicles that have as little as 45 per cent domestic content.

WATCH: Harper confident TPP deal means no job losses in farming or auto industries

© 2015 The Canadian Press

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