The Trans-Pacific Partnership and the Automotive Aftermarket

The Trans-Pacific Partnership (TPP) is a yet-to-be-ratified agreement among twelve countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States, and Vietnam. Although the Government of Canada has agreed to sign the TPP, there is no guarantee the agreement will be ratified. However, if the agreement is ratified, it will lower tariffs on imported auto parts coming into Canada, lower tariffs on Canadian auto parts being exported to TPP countries, and lower the North American content required in vehicles and parts. It is believed that the TPP will not likely have a great impact on the automotive aftermarket. In anticipation of the new Liberal government’s review of the TPP, AIA has a prepared a special SPOTLIGHT research piece on the agreement and its possible impact on the automotive aftermarket.