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Canadian PM Mark Carney answered questions about the tariff case in Ottawa.
Canadian Prime Minister Mark Carney said on Thursday that the old relationship between the US-Canada is now over. The Canadian PM said this after Trump’s controversy over 25% tariffs on foreign cars.
Talking to reporters after a cabinet meeting in the capital Ottawa, Carney said that Canada’s old relationship with the US was basically made to keep the economy united, pursue security and military cooperation.
Carney said- threatening to capture, insult to Canada’s sovereignty
Carney also said that he can talk to Trump in the next 1-2 days. He said-
I am ready to interact with them but they will not take part in any business talks with the US until Trump shows respect for Canada. They are repeatedly threatening to capture Canada. This is an insult to Canada’s sovereignty.
If there is a conversation between the two leaders, then this will be the first time after Carney became Prime Minister when they have a conversation with the US President. Typically, any new Canadian talks to the US President on the phone immediately after assuming the post, but the two leaders have not had talks even after 13 days have passed.
The general election has been announced on 28 April in Canada.
After Trump’s announcement of tariffs on foreign cars, Carney stopped the election campaign and returned to Ottawa for a meeting of cabinet members working on Tariff War’s strategy with the US. (The picture is on 26 March.)
Canada’s auto industry damage due to tariff Earlier, Trump announced a tariff on foreign cars on 26 March. This will be implemented from next week. Carney said that after the decision of US President Trump to impose tariffs, Canadian people should now think about their economy again.
According to experts, Trump’s decision can be fatal to the Canadian auto industry. 5 lakh people in the country have got employment from this industry. Carney said that this is a direct attack on us, we will protect our workers and companies.
Carney said- auto pact with America is over
Regarding Trump’s tariff, Carney said that Canada will also impose counter -tariffs on America which will have a lot of impact on it. He described the Automotive Products Agreement (Auto Pact) between Canada and the US in 1965 as the most important agreement and said that it is over with this tariff.
American car companies got rich in auto pact
US President Lindon B.K. Johnson and Canadian PM Lester Pearson had tied up with this. It aims to unite the US-Canada auto industry and promote trade. For this, both countries removed the tariff on auto parts and vehicles business.
A condition was laid in the auto pact that the more cars sold in Canada, the more cars (or their equal value parts) were to be built in Canada.
In an easy language, if a company sold 100 cars in Canada, it had to produce at least 100 cars in Canada itself. This used to ensure that jobs in Canada remain and all production is not done in America only.
Lindon B. Johnson and PM Pearson on 15 January 1965 in Texas. Auto had signed the pact. Photo Credit- Library and Archive Canada
America’s 3 big car companies benefit from auto pact The effect of this was that in 1964, Canada’s auto exports were $ 75 million. It increased to $ 1.2 billion after four. Apart from the economy of Canada, America’s ‘Big Three’ auto companies, Ford, General Motors and Chrysler company benefited greatly.
Auto Pact finished after Japan’s complaint
However, the auto pact officially ended on 19 February 2001. The World Trade Association (WTO) ordered the closure of it. Indeed, Japan and the European Union had complained to the WTO that this pact violates the rules of the World Trade Association, as American companies get exemption in Canada which Big Three companies take advantage of.
However, by that time, the North American Free Trade Agreement (NAFTA), which was in force from 1 January 1994, replaced auto pact, and its role in controlling automotive trade had reduced. Therefore, its termination did not affect much.
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Read this news related to Trump’s tariff …
Tata Motors’s stock dropped 6% due to Trump’s decision: US President imposed 25% tariff on foreign cars, due to damage to Jaguar Land Rover
US President Donald Trump on Wednesday announced a 25% tariff on cars imported from abroad. Trump’s decision has led to a decline in shares of Indian company Tata Motors by about 6%.
In addition, the stock of the US automobile company General Motors declined by 3% on Wednesday. At the same time, the shares of Jeep and Chrysler’s owner company Stalantis also fell nearly 3.6%. Read full news here …