Mr. Speaker, I am pleased to have the opportunity to speak to the concerns of the member for Windsor West about Canada's auto industry and the ongoing free trade negotiations with South Korea.
The member would have us believe that Canada's auto sector is on life support when the facts clearly show otherwise. Canada's auto industry assemblers and parts makers are some of the most successful and competitive in the world.
Our industry employs over half a million Canadians. Automakers have 12 major assembly plants with the 13th coming on line in 2008. They produced 2.5 million cars and light trucks in 2006, or about 16% of all North American production. In fact, in 2006, Ontario outperformed Michigan for the third year in a row as the highest automotive producing region in all of North America, all this while maintaining high quality standards.
That said, a global restructuring is taking place within the North American auto industry. The Detroit based assemblers are making some tough but necessary decisions to stay competitive, as we have all heard about recent events in the industry. Our concern is for the people impacted by these business decisions. Workers affected are eligible for assistance through the HRSDC programs in addition to their severance packages.
With some companies restructuring, other companies within Canada's auto sector are expanding and creating new jobs. Toyota is building a new $1.1 billion assembly plant in Woodstock, Ontario, which will come on line in the fall of 2008. Honda is investing $154 million in a new engine plant in Aliston, Ontario, which also will come on line in 2008.
Despite a difficult period for the Detroit based automakers, Canadian branch assembly plants are winning product mandates. The new Chevy Camaro will be proudly built in Oshawa. The new Dodge Challenger, DaimlerChrysler awarded to its Brampton, Ontario facility. In Oakville, Ford is building two new successful crossover vehicles, the Edge and the Lincoln MKX. I understand Ford is going to have another new model starting in the next year. Our Canadian automakers are renowned for their quality. These mandates reaffirm that a job well done will be rewarded.
Canada's new government will continue to work to ensure that our auto sector remains strong. The auto industry is vital to our economy, as are the spin-off industries associated with this sector. Our constructive measures in budget 2006 to reduce corporate and personal taxes make Canada an even better place for auto investment. Our strategic economic plan in Advantage Canada will create a better business environment for all industries.
Budget 2007, widely considered the best budget for Canadian manufacturers in decades, continues to reduce taxes, accelerates capital cost allowance writeoffs, cuts red tape, invests in modern infrastructure, and is geared to develop a skilled and educated workforce. Canada's new government is setting the stage for economic growth, innovation and opportunity.
As for the member's concern about the impact of a free trade agreement with South Korea, it is our contention that such an agreement will have a limited impact on Canada's auto sector, and the overall benefits outweigh the concerns. The implications of the proposed elimination of the tariff are relatively small when compared to the size of the automotive industry. With the tariff currently only being 6.1% and that would only be eliminated on roughly 8% of total Canadian vehicles sales, the impact is negligible. However, the proposed deal has the potential to deliver significant commercial benefits across a wide range of the Canadian economy, from agriculture to high tech services to investment.
Free trade agreements ensure that Canadian companies are competitive in key markets. The United States and other countries are aggressively negotiating free trade agreements, including with South Korea. Canada has a similar interest in actively negotiating improved market access for our products and services, including the auto industry.
There is no deal yet, but what I can tell the member for Windsor West is that this government will only agree to a free trade deal that delivers substantial benefit for Canada and all Canadians.
The member talked about the fee bates. I will get to that--