Toyota’s decision to build a luxury sports utility vehicle in southern Ontario places it at the nexus of Canada’s growing portfolio of free trade deals — a distinct advantage as tariff walls threaten trade globally, analysts say.
“The North American Free Trade Agreement is definitely the key undercurrent here,” Volpe said. “If the trade environment was negative they would never have made these investments, but there are likely other considerations involved in this too.” Though Toyota has no plans to export to the European Union at this time “we are always evaluating our opportunities,” said Scott MacKenzie, senior national manager, external affairs, Toyota Motor Manufacturing Canada.
Toyota’s latest decision suggests more vitality remains in the sector than it might appear, said David Worts, executive director of the Japanese Automobile Manufacturers of Canada . Trade liberalization is important to all automakers and it's the foundation of the auto industry in Canada