What Does the Trans-Pacific Partnership Agreement Portend for the Canadian Automotive Industry?

If ratified, the Trans Pacific Partnership (TPP) agreement will likely have a significant impact on the global production strategies of automotive firms. The rules of origin and required levels of regional content-value for products to receive preferential tariff treatment under the TPP will significantly influence what, where, and how automotive components are produced both within and outside the TPP region. This article assesses the TPP's potential impact on automotive production in Canada. Although there may well be both winners and losers among Canadian automotive suppliers, the overall impact on automotive production and employment in Canada is likely to be negative.