The Automotive Parts Manufacturers Association (APMA) highlighted that Canada is aligning itself with US industrial security policy in four areas.

In the APMA’s view, the United States-Mexico-Canada Agreement (USMCA) is essential to addressing Chinese state-subsidized overcapacity in electric vehicles, batteries, steel, and tools. 

Industrial security policy 

The APMA made a key point. Canada has aligned itself with U.S. industrial security policy. To this end, it required Chinese companies to divest from Canadian critical minerals companies.

In addition, it applied strict national security reviews under the Canada Investment Act. As a result, it conducted dozens of assessments. Several ended in blocked transactions and forced withdrawals. Finally, the country implemented restrictions on imports of Chinese electric vehicles.

«We are not Europe. We are not Japan. Nor are we South Korea. We are completely aligned with the United States on this issue,» said Flavio Volpe, president of the APMA. 

This association represents Canada’s OEM suppliers. It covers key areas such as parts, tools, automation, software, critical minerals, and electric vehicle systems. Thus, it underscores its importance to U.S. workers and the country’s competitiveness.

Furthermore, Canada does not act as a foreign export platform. On the contrary, it does not compete with U.S. automotive production.

“We do not have a domestic car manufacturer. All vehicles assembled in Canada are manufactured by companies operating within the North American production system of the USMCA,” Volpe added. 

Manufacturing plants

Ford has been manufacturing vehicles in Canada since 1904. General Motors has been doing so since 1918. Stellantis and its predecessors since 1925. Added to this are Honda and Toyota, with almost 40 years of continuous production. However, the key point is another: these are North American program vehicles. They are manufactured for the regional market, by North American workers and with high levels of U.S. content.

Unlike Japan, South Korea, or Europe, Canada does not ship vehicles assembled abroad to compete with U.S. production. On the contrary, its industry operates within the regional production chain.

Canada is also the United States’ main foreign customer for finished vehicles. According to figures from the Office of the U.S. Trade Representative (USTR), in 2023 it purchased 34.2% of U.S. exports of passenger cars and light trucks. It also purchased 85% of heavy truck exports and 35% of auto parts.

This link is reflected in direct investment. Canadian-owned automotive companies operate more than 170 manufacturing plants in the United States. Together, they directly employ 47,500 American workers across the country.