Report warns of dire effects if NAFTA framework collapses
Auto-supply chain can’t be interrupted, local business leaders tell negotiators
The collapse of the North American Free Trade Agreement could have dire consequences for the Windsor-Essex economy, business leaders warn.
The consequences could include commuters being turned away at the U.S. border, the regional auto industry grinding to a crawl and the thriving greenhouse industry stopped in its tracks, according to a report released Thursday that has suggestions to improve the deal. The five recommendations have been given to Canada’s lead negotiators and Prime Minister Justin Trudeau.
“Our message is (that) on top of huge international issues they are working on, there are some really local pressing ones from the Windsor-Essex region they need to know about,” said Justin Falconer, senior manager for Workforce WindsorEssex, which assembled the report.
“These issues are top of the line for us here, but we don’t know if they have made it into their conversations.”
A primary recommendation of the report is the recognition of the auto sector as a “key priority” throughout negotiations. The supply chain for the industry cannot be negatively impacted, the report said.
“As (Tecumseh Mayor Gary McNamara) said, ‘Let’s see them build a car without this agreement,’ ” Falconer said.
Another recommendation is to ensure protections that allow for “cross-border labour mobility.” Nearly 7,000 workers in the Windsor area cross the border almost daily into Michigan — primarily to work in hospitals and the auto industry, Falconer said. McNamara noted how his own son and daughter-in-law both cross the border daily for whitecollar jobs in the auto industry. “Can you imagine in six months, for the mayor of Detroit or governor of Michigan, what this would mean for their hospitals?” he said. “You would be cancelling surgeries in the U.S. There will be a high impact on both sides.” Lines of communication have been open for local input to Canada’s primary NAFTA negotiators, but “the report ties everything together nicely,” said Stephen MacKenzie, CEO for the WindsorEssex Development Corp.
Talks first began over a year ago shortly after U.S. President Donald Trump took over. There are hopes some type of agreement to enhance or replace NAFTA will be reached by the end of May, but MacKenzie doesn’t feel the latest recommendations from the region are being submitted too late. “You won’t see the final deal signed anytime soon,” he said. “What I believe you will see is an agreement in principle, then one or two years to work out the details.
“Discussions will go on for some time and hopefully will be shaped by the points we have raised in the report.”
The report was released Thursday at Plasman Group Global Headquarters in Tecumseh. The corporation has more than 4,200 employees at 16 facilities that include four in the Windsor area, in addition to others in the U.S., Mexico and Europe. CEO David Wiskel noted how the outcome of NAFTA negotiations are significant for his company, which first began operations in Windsor nearly 40 years ago. The company designs and manufactures 500,000 exterior vehicle parts per day that includes bumpers, grills, mirrors and trim which are used to outfit four million vehicles per year around the world. “It’s critical for us that the (current) relationship between Canada, U.S. and Mexico remains,” Wiskel said.
“It’s also critical for Windsor and Essex County.” MacKenzie said his “worst fear” regarding NAFTA talks is a lack of conclusion as he has already noticed companies in the region putting expansion plans on hold. “I believe things will work out, but the uncertainty is keeping investment and job creation away,” he said. “Once that uncertainty is removed you will quickly see capital be invested in all three countries.”