Automotive News Canada - February 2018 - v2 - 4

4

* F E B R U A R Y 2018

NAFTA's new look: Optimism

Montreal talks were slow and contentious, but there
was more progress than in the previous five rounds
By JOHN IRWIN
TORONTO BUREAU

MONTREAL - TRADE
experts and those closest to the
latest round of talks are cautiously optimistic that a deal
could be reached to update the
North American Free Trade
Agreement (NAFTA).
In the meantime, though,
uncertainty over the trade pact's
future continues to cloud the
future of the Canadian auto
industry, as major automakers and suppliers indicate they
might hold off on investments
until after the NAFTA talks conclude.
Trade
negotiators from
Canada,
the United
States and
Mexico
gathered
in January
in downtown Montreal at the
Hotel Bonaventure, located in
a concrete labyrinth of a building that very well could act as a
metaphor for this complex, often
abrasive renegotiation.
Sources close to the negotiations struck a somewhat optimistic tone as the countries
sorted out various proposals,
including a framework laid out
by Canada that would allow
the cost of intellectual property, software and other components to be included in automotive rules-of-origin calculations,
one of the most contentious
subjects of the talks. The move
was aimed at addressing U.S.
demands that more of a vehicle's
components be sourced from
North America and from the
United States for the vehicle to
be traded tariff-free.
In remarks following
the sixth round of negotiations in Montreal, U.S.
Trade Representative Robert
Lighthizer slammed the proposal as a "poison pill" that would
do the opposite of what Canada
intends it to do, resulting in less
content from North America.
Lighthizer and Chrystia
Freeland, Canada's foreign
affairs minister, traded barbs on
a host of trade issues during a
press event following the round.

Canada Foreign Affairs
Minister Chrystia Freeland
cited U.S. numbers showing
Canada's trade deficit with
the United States.
(PHOTO: BLOOMBERG)

WHOSE DEFICIT?
In particular, the two had
differing views on whether
Canada had a trade deficit with
the United States, or vice versa,
both of them citing government
statistics from the other nation
to prove their point.
It "is worth noting that in
overall trade, including goods
and services, Canada had a
trade deficit with the United
States of nearly $8 billion out of
total bilateral trade worth $634.8
billion," Freeland said. "And let
me say, these aren't Canadian
numbers. They are from the U.S.
Bureau of Economic Analysis in
the Department of Commerce."
Still, all sides indicated some
progress was made in Montreal,
which is no small feat considering the utter lack of progress on
most issues during the first five
rounds of negotiations in 2017.
"This round was a step forward, but we are progressing
very slowly," Lighthizer said.
Mark Nantais, president of the Canadian Vehicle
Manufacturers' Association,
said the fact that the parties are
engaging on ideas is a sign that
negotiations were headed in the
right direction.
"The last round, the countries went away without even
having a discussion. And now
we've got a bit of dialogue going,
and we take that with encouragement," Nantais said. "We're
not dismissing what [Lighthizer]
said. These are tough negotiations. But at the same time,
they're still willing to sit down

U.S. Trade Representative Robert Lighthizer said that the
Montreal round was "a step forward." ( P H O TO : B L O O M B E R G )

and reconvene at the end of
February. We're encouraged by
that."
Two more rounds of renegotiations were scheduled for
February in Mexico City and
for March in Washington, D.C.
Mexico and Canada have signaled a willingness to extend
talks beyond March, as well.
NAFTA renegotiations have
cast a shadow of uncertainty
over the Canadian auto industry, which is heavily dependent
on trade with the United States
and Mexico to source parts and
ship vehicles. Canadian auto
executives have largely taken a
wait-and-see approach, delaying
potential decisions on investments and product strategy
until after talks wrap up.
"I think anybody that is contemplating any big investments
over the long term is probably
either waiting or they are going
to be biased to invest more in
the U.S. until there's an outcome
here," Magna International CEO
Don Walker said in November.

POSSIBLE SUMMER PAUSE
That uncertainty might
not go away any time soon,
despite some progress. Laura
Dawson, director of the Canada
Institute at the Woodrow
Wilson International Center for
Scholars, said she anticipates
talks lasting into 2019, after a
pause for the Mexico general
election in July and congressional midterm elections in the
United States in November.
"I think this is going to stay
on the shelf during this paralytic stage where negotiations have
stopped," Dawson said.
For companies deciding
whether to invest in Canada,
prolonged negotiations could
be bad news, but the United
States, at least for now, appears
less likely to leave the negotiating table. Dawson said the U.S.
business community, now that
an overhaul of the U.S. tax code
has been passed, has turned its
attention to trade and onto pressuring the federal government
to remain in NAFTA, while
Republican and Democrat legislators have exerted pressure
on the Trump administration to
stay at the table.
She cautioned, however, that
things could quickly change.
"I think Donald Trump has
proven to be a pretty unpredictable individual, so we are in
this period where he seems to
be re-embracing the global economy, albeit on his own terms,"
she said. "Is that going to continue? I don't know."
Flavio Volpe, president
of the Automotive Parts
Manufacturers Association, said
negotiators have a lot of ground
to make up before a new NAFTA
is created, but he was encouraged that small progress was
made.
"We're a long way from the
finish, but we've probably made
more progress, at least academically, than any of us anticipated," Volpe said. - ANC

Steve Demers, vice-president of business development for Hydro-Québec; Diane Lavoie, mayor of
Beloeil; Pierre Moreau, minister of energy and natural
resources; and Jean-François Crevier, president,
Group Crevier. (PHOTO: HYDRO-QUEBEC)

Fast-charge superstation
set up at Quebec gas bar
Electric Circuit
and Groupe
Crevier will open
10 more over
two years
By BENOIT CHARETTE

MONTREAL CORRESPONDENT

BELOEIL, QUE. - TWO
Quebec companies have
embarked on developing
a network of fast-charging
electric-vehicle "superstations" using existing service stations.
Circuit électrique
(Electric Circuit) and
Montreal-based Groupe
Crevier unveiled the first
universal fast-charging
superstation for electric
vehicles in Quebec here,
about 35 kilometres northeast of Montreal, in late
2017.
It represents a new concept of public outlet and a
new class of EV-network
partner: gas bars.
Located at the busiest
exit on Quebec highway 20
(Trans-Canada Highway),
the station offers four
50-kilowatt rapid chargers. All electric vehicles
currently in production
can be charged. The station is designed to grow as
demand increases, and it
allows for more terminals
and new technologies as
they arrive.
Groupe Crevier and
charging-terminal provider Electric Circuit intend
to equip 10 more service
stations with fast chargers
over the next two years.
"The needs of motorists are changing and service-station networks will
have to adapt and open up
to new energies to develop an attractive multi-fuel
offer for customers," said
Jean-François Crevier,
Groupe Crevier president.
"We want to position
ourselves in this era of
transition and send the
message that we will consider any new opportunity
that will allow us to meet
the changing needs of our
customers."
Groupe Crevier distrib-

CHARGING ON
Electric Circuit
in numbers: 2017
(Quebec and Ontario)
 
1,237 terminals, of which
92 are fast-charge
stations
 
178,095 charges
in 2017
 
18,485 Electric Circuit
members
 
1.3 million litres of
gasoline saved
 
3,166 metric tonnes
of carbon dioxide
emissions avoided
Source: Electric Circuit

utes fuel through 220 service stations in Canada,
mostly in Quebec under
the Gaz-O-Bar and Crevier
brand names.
"The deployment of
this type of infrastructure
is the most important factor in the adoption of electric vehicles, a crucial element if we want to achieve
our greenhouse-gas-reduction goals and build a new
Quebec [with a] low carbon footprint," said Pierre
Moreau, provincial minister of energy and natural
resources.
Several Quebec companies collaborated with
Electric Circuit on the prototype station. The centralized 200-kilowatt charging
module was designed
and manufactured by
Automation R.L. of
Varennes, Que. The architectural structure was
built by Scène Éthique,
also of Varennes.
In 2017 in Quebec and
Ontario, the Electric
Circuit expanded to 1,237
terminals, of which 92
were fast-charging; in
Quebec where it is most
prevalent, the network
had 1,219 terminals, 85 of
them fast-charging. Plans
are to install two more
fast-charging stations in
Montreal by the end of
2018, said a Hydro-Québec
spokesman. - ANC



Table of Contents for the Digital Edition of Automotive News Canada - February 2018 - v2

Automotive News Canada - February 2018 - v2 - Intro
Automotive News Canada - February 2018 - v2 - CT1
Automotive News Canada - February 2018 - v2 - CT2
Automotive News Canada - February 2018 - v2 - 1
Automotive News Canada - February 2018 - v2 - 2
Automotive News Canada - February 2018 - v2 - 3
Automotive News Canada - February 2018 - v2 - 4
Automotive News Canada - February 2018 - v2 - 5
Automotive News Canada - February 2018 - v2 - 6
Automotive News Canada - February 2018 - v2 - 7
Automotive News Canada - February 2018 - v2 - 8
Automotive News Canada - February 2018 - v2 - 9
Automotive News Canada - February 2018 - v2 - 10
Automotive News Canada - February 2018 - v2 - 11
Automotive News Canada - February 2018 - v2 - 12
Automotive News Canada - February 2018 - v2 - 13
Automotive News Canada - February 2018 - v2 - 14
Automotive News Canada - February 2018 - v2 - 15
Automotive News Canada - February 2018 - v2 - 16
Automotive News Canada - February 2018 - v2 - 17
Automotive News Canada - February 2018 - v2 - 18
Automotive News Canada - February 2018 - v2 - 19
Automotive News Canada - February 2018 - v2 - 20
Automotive News Canada - February 2018 - v2 - 21
Automotive News Canada - February 2018 - v2 - 22
Automotive News Canada - February 2018 - v2 - 23
Automotive News Canada - February 2018 - v2 - 24
Automotive News Canada - February 2018 - v2 - 25
Automotive News Canada - February 2018 - v2 - 26
Automotive News Canada - February 2018 - v2 - 27
Automotive News Canada - February 2018 - v2 - 28
Automotive News Canada - February 2018 - v2 - 29
Automotive News Canada - February 2018 - v2 - 30
https://www.nxtbook.com/nxtbooks/crain/canada_202402_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202401_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202312_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202311_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202310_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202309_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202308_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202307_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202306_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202305_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202304_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202303_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202302_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202301_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202212_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202211_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202210_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202209_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202208_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202207_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202206_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202205_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202204_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202203_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202202_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202201_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202112_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202111_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202110_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202109_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202108_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202107_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202106_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202105_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202104_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202103_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202102_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202101_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202012_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202011_ifm
https://www.nxtbook.com/nxtbooks/crain/canada_202011_acg
https://www.nxtbook.com/nxtbooks/crain/canada_202011_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202010_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202009_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202008_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202007_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202006_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202005_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202004_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202003_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202001_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201912_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201911_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201910_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201909_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201907_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201906_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201904_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201903_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201902_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201901_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201812_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201811_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201810_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201809_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201808_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201807_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201806_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201805_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201804_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201803_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201802_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201801_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201712_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201710_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201709_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201708_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201707_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201706_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201705_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201704_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201701_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201612_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201611_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201610_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201609_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201608_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201607_v2
https://www.nxtbookmedia.com