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Forbidden fruit no more?

Canadian recognition of EU safety standards, more exports from Canada to Europe part of CETA

Quote:

That French car you’ve wanted for so very long may be a possibility once a detailed free trade agreement between Canada and Europe is ratified in about two years time.

The agreement, announced in principle in Brussels today by Canadian Prime Minister Stephen Harper and European Commission President Jose Manuel Barroso, has a number of positive changes for the automotive sector from both industrial and enthusiast standpoints.

While the details of the Comprehensive Economic and Trade Agreement (CETA) are sealed as lawyers still need to go over the language, both parties have revealed some interesting details of the agreement.

What Canada Gets From Europe

All free trade agreements are a give-and-take affair. Due to Canada’s high ratio of exports (85-percent of passenger vehicles built in Canada are exported to other markets), it should be no surprise most of the benefits Canada will see have to do with opening up the European market to Canada-built vehicles and automotive parts.

From Government of Canada:

The automotive sector is a key driver of Canada’s economy and employs more than 115,000 highly skilled Canadians across the country. The Canadian auto industry is highly dependent on trade, with around 85 per cent of auto production exported every year. CETA provides historic new market access opportunities for the automotive sector and will allow significant increases of exports to Europe. The removal of tariffs along with flexible rules of origin will benefit vehicle and auto parts producers alike.

For passenger vehicles, the EU’s 10 per cent tariff will be eliminated, providing Canada’s auto makers with a competitive advantage in the EU market that few other countries have.

CETA will also benefit Canada’s lucrative auto parts sector, not only because the sector will be incorporated into the Agreement, but also because CETA will eliminate EU tariffs on auto parts, which run up to 4.5 per cent. This means that Canadian auto parts producers will have an important advantage over competitors in other countries.

In addition, CETA includes rules of origin which reflect Canada’s place within the integrated North American automotive industry. These provisions are designed to work with Canada’s existing supply chains and allow for up to 100,000 passenger vehicles to be exported to Europe, a twelve-and-a-half fold increase from our current average exports. At the same time, CETA encourages “made in Canada” production by granting unlimited preferential treatment to vehicles with higher Canadian content that are exported to Europe.

Finally, CETA includes forward looking provisions that allow for the adjustment of the rules of origin to provide additional flexibility in the event that the EU strikes free trade deals with other countries, such as the United States. Taken together, the CETA rules of origin give Canadian producers the opportunity to export to the EU market on a preferential basis now and in the years to come.

What Europe Gets From Canada

There is one major concession Canada has given the European Union and it could make things very interesting for car enthusiasts.

From European Commission:

Automotive sector – Canada will recognise a list of EU car standards and will examine the recognition of further standards. This will make it much easier to export cars to Canada.

And What Does This Mean For Us Car People

While 100,000 units does not seem like a massive number (Nissan produces around 500,000 vehicles per year in Tennessee), it is still significantly more than the 8,000 units the Canadian government currently says they are allowed to export.

The biggest change will be in tariffs. Manufacturers from Europe will (hopefully) be able to sell their vehicles for less in Canada, allowing more customers to purchase European produced vehicles. The same will be true for vehicles built in Canada for export (the Ford Edge is expected to be sold globally soon, built in Ontario).

However, the recognition of car standards will be the big money saver for European manufacturers and opens the door for vehicles like the Volkswagen Scirocco to be sold in Canada without having to meet certain Canadian vehicle standards.

CETA Means Big Changes For Canadian Automotive Industry - Autos.ca

I'm starting to dream of Astra VXRs and Renault Megane Cups...

I like the Peugeot's. They are very distinct in styling, have never really been in North America and are very recognizable as European cars.

They always stand out as something different.

So in a way, the opportunity to have one here is interesting, but on the other hand, it kind of takes away from that exclusivity and unobtainable quality.

"The biggest change will be in tariffs. Manufacturers from Europe will (hopefully) be able to sell their vehicles for less in Canada, allowing more customers to purchase European produced vehicles. The same will be true for vehicles built in Canada for export (the Ford Edge is expected to be sold globally soon, built in Ontario)."

... Or keep the price the same and greatly improve profit margins.
Posted via RS Mobile

I mentioned it in another thread, but barring lobbying from oil companies, this could open the gate for more options in diesel passenger cars other than VW's TDI.
Posted via RS Mobile

Quote:

Originally Posted by CorneringArtist (Post 8343713)

I mentioned it in another thread, but barring lobbying from oil companies, this could open the gate for more options in diesel passenger cars other than VW's TDI.
Posted via RS Mobile

I hope so too, but it's not just a matter of importing diesels over. Euro diesel is much cleaner than North America diesel (less sulphur) and it would take a large investment to convert them to run properly here.

Simply having the Canadian market wouldn't be enough, the US market would also need to have the demand for the automakers to invest. It's starting to happen though, MB, Audi and BMW are all rolling out new diesel vehicles in the next few years.

:okay:

Hmm... there's bound to be something that's going to keep prices high or bar importation because the Americans are going to be fuming

If not then I can't wait there are tonnes of awesome cars trucks vans etc etc to be had :fullofwin:

so... this only applies to new european vehicles? older vehicles still fall under the 15 year rule?

I want me an Alfa Romeo Mito GTA.

http://www.thetorquereport.com/alfa_...o_gta_new3.jpg

:drool:

I think cars will still have to br on RIV (Registrar of Imported Vehicles). If the car has not gone threw safety testing in Canada the car will have to be 15 years old to be imported.

brb dreaming of rs6 avant

Quote:

Originally Posted by Manic! (Post 8344139)

I think cars will still have to br on RIV (Registrar of Imported Vehicles). If the car has not gone threw safety testing in Canada the car will have to be 15 years old to be imported.

I thought there was an update a year or two ago saying that Ecode crash tests and regulations would be accepted essentially 'at par' with Canadian ones?

omgomgomg SciroccoSciroccoScirocco

Quote:

Originally Posted by Graeme S (Post 8344147)

I thought there was an update a year or two ago saying that Ecode crash tests and regulations would be accepted essentially 'at par' with Canadian ones?

i need proof please! i can't find anything online. otherwise all these dream cars everyone is posting up is just a 15 year dream... :cry:

gray market for all!
this is exciting if it actually happens

I'll take a cheap gti if a good portion of the owners are thinking of upgrading to a scirocco :D

Wow.....finally.

An Alpha Romeo would be dope :P

Quote:

Originally Posted by Graeme S (Post 8344147)

I thought there was an update a year or two ago saying that Ecode crash tests and regulations would be accepted essentially 'at par' with Canadian ones?

Pretty sure that was american standards which is how we ended up with the golf r32 and evo 8s/9s when we couldn't legally before however that was like 3/4 years ago. If the euro one was true there would be so many cars here that we have never seen.

Interesting news. Curious to see how this unfolds. I've been waiting for 2014 to import a 1999 European Domestic piece as per the 15 rule. Would be cool if the flood gates open for newer cars. I'm sure lots of us have a Euro shopping list that is waiting to be filled. lol.

My interest is very peaked to see what you are planning.

i dont think this is going to be retroactive.

It was in the U.S. case, hopefully it will be in this case as well.

Quote:

Originally Posted by Manic! (Post 8344139)

I think cars will still have to br on RIV (Registrar of Imported Vehicles). If the car has not gone threw safety testing in Canada the car will have to be 15 years old to be imported.

I guess you missed the part about adopting EU standards. That basically eliminates the RIV.

The RIV will still exist.. they will simply add european cars to the allowed list. You still will not be able to legally import a 2014 JDM Yaris, for example.

I would hesitate to import a renault/citroen/peugot etc.. it will be a pain in the ass to get parts in a timely fashion.