BRUSSELS: Honda Canada announced that its Alliston manufacturing factory will produce the next-generation CR-V model destined for the European Union (EU) market, marking the first time that the auto company will export vehicles to Europe.
Canadian Prime Minister Stephen Harper hailed the announcement made by Honda Canada.
Today’s announcement is significant for Canada’s automotive and advanced manufacturing industry. Our government has worked hard to open new markets for Canadian companies and we are pleased that Canadian vehicle manufacturers like Honda are already preparing to take full advantage of the many benefits that the Canada-EU Trade Agreement will generate,” said Harper.
Honda Canada’s decision was made possible by the historic market access provided by the still-to-be ratified Canada-EU Trade Agreement, which is paving the way for increased Canadian exports to the world’s largest integrated market of more than 500 million consumers.
Under the Canada-EU Trade Agreement, Canadian auto manufacturers will have the ability to export vehicles annually to the EU on a preferential basis under a flexible rule of origin.
Also under the agreement, the EU will eliminate the 10 percent tariff on passenger vehicles providing Canada’s auto makers with a competitive advantage in the EU market. It will also eliminate, immediately upon entry into force of the agreement, its tariffs on auto parts, which run as high as 4.5 percent.
