Canada and US Need a Trade Deal That Includes Cars

The mayor of Brampton says a bad trade deal is worse than no deal if it does not include the car industry. This is what many people have said about Canada's trade talks with the US.

Brampton's mayor, Patrick Brown, said he wants a trade deal but the US has proposed deals that do not include the car industry. So, he thinks no deal is better than a bad one.

Brown hopes that if there is a new trade agreement with the US, it will still allow free trade for cars.

Brown said this after a big car company, Unifor, said another company, Stellantis, might close a car factory in Brampton.

The head of Unifor, Lana Payne, said Stellantis will move its Jeep Compass production to the US and might close the factory in Brampton.

Payne said that even with these changes, Stellantis has promised to keep its commitment to Brampton and its workers.

Stellantis told Global News that it is starting talks with its workers and wants to find a way to keep making cars in Brampton.

New taxes on Canadian goods proposed by the US are a problem in the trade talks. A source says the two countries are not close to a deal to reduce these taxes.

It has been a week of trade talks in Washington, and many people think they are going well, with both sides looking at each tax one by one.

Even with good talks, there is still much work to do before a deal can be made, especially with new taxes set to start on August 19.

Global News is not naming its sources because they were not allowed to talk about the trade talks publicly.

Any deal the US agrees to will include some taxes on steel, aluminum, cars, and lumber. The US also wants Canadian stores to sell American alcohol again.

If a deal is made, taxes on Canadian cars and parts that follow the Canada-US-Mexico Agreement will stay, but might be lower than the current 25%.

Car industry insiders say these taxes are a big threat to the Canadian car industry and do not want any taxes on cars and parts that follow the agreement.

Lana Payne said Canada should not give in to US demands right now because the US has imposed taxes on Canada, and Canada has responded with its own taxes.

Payne said if no deal is made by August 19, Canada should respond strongly to the US.

The US has said it will not make a deal unless Canada lifts its taxes, which were a response to US taxes.

With the tax deadline near, Brown hopes for a deal that includes cars because the US taxes have hurt the North American car industry.

Global News got help from its reporters Sean O'Shea, Mackenzie Gray, Sergio Vargas, Bryan Mullan, Sean Boynton, and Uday Rana.

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