Thank you, Mr. Chair and honourable members.

On behalf of the 15 members of the Global Automakers of Canada, I appreciate the opportunity to testify before you this morning, on the important subject of Bill C-100, an act to implement the agreement between Canada, the United States of America and the United Mexican States.

As you may know, the Global Automakers of Canada is a national trade association that comprises the exclusive Canadian distributors of all vehicle manufacturers, with the exception of the Detroit-based automakers and Tesla.

The members of the GAC have a long-standing history of supporting transparent, open, rules-based trading relationships between Canada and its major trading partners. Traditionally, that has meant the United States and Mexico. While that continues to be the case, we have also strongly supported the Canada-EU CETA and the CPTPP, as well as the Canada-Korea free trade agreement.

With respect to the talk at hand, however, the Canadian automotive industry and Canadian consumers have benefited significantly from special access to the United States market via a system of managed trade agreements and free trade agreements, dating back to the Auto Pact in 1965, which provides jobs, economies of scale and efficiencies for the industry in Canada.

Our members support the ratification and passage of the CUSMA, as it will allow our members which have a footprint in all three countries continued preferential access to the U.S. market. Without putting too fine a point on it, members of the GAC are very concerned that the uncertainty associated with finalizing this outstanding trade negotiation is having a deleterious impact on business, not only the automotive business, but far beyond.

Thus, the sooner the agreement is ratified the better. Ratification will provide certainty in the North American manufacturing region that is currently lacking, and the appropriate context for investment and business planning.

Over the course of the negotiations, the GAC has been part of each round of the discussions. Some have said that any deal is better than no deal. We don't believe this to be the case. It was important for Canada to be able to work constructively and creatively among the shifting sands of the negotiations.

Given where the U.S. started with this negotiating position regarding the automotive industry, we believe the deal that has been signed represents the best outcome that could have been achieved. Is it ideal? Perhaps not, but as noted before, it provides industry with access, certainty and the opportunity for review, which were missing from the NAFTA.

The members of the Global Automakers of Canada encourage the ratification of this agreement.

Thank you for your time. I would be happy to answer questions in due course.

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