Cable Viewer

Currently released so far... 16044 / 251,287

### Articles

Brazil Sri Lanka United Kingdom Sweden 00. Editorial United States Latin America Egypt Jordan Yemen Thailand

### Browse latest releases

2010/11 2010/12 2011/01 2011/02 2011/03 2011/04 2011/05 2011/06 2011/07
2010/11/28 2010/11/29 2010/11/30
2010/12/01 2010/12/02 2010/12/03 2010/12/04 2010/12/05 2010/12/06 2010/12/07 2010/12/08 2010/12/09 2010/12/10 2010/12/11 2010/12/12 2010/12/13 2010/12/14 2010/12/15 2010/12/16 2010/12/17 2010/12/18 2010/12/19 2010/12/20 2010/12/21 2010/12/22 2010/12/23 2010/12/24 2010/12/25 2010/12/26 2010/12/27 2010/12/28 2010/12/29 2010/12/30
2011/01/01 2011/01/02 2011/01/04 2011/01/05 2011/01/07 2011/01/09 2011/01/10 2011/01/11 2011/01/12 2011/01/13 2011/01/14 2011/01/15 2011/01/16 2011/01/17 2011/01/18 2011/01/19 2011/01/20 2011/01/21 2011/01/22 2011/01/23 2011/01/24 2011/01/25 2011/01/26 2011/01/27 2011/01/28 2011/01/29 2011/01/30 2011/01/31
2011/02/01 2011/02/02 2011/02/03 2011/02/04 2011/02/05 2011/02/06 2011/02/07 2011/02/08 2011/02/09 2011/02/10 2011/02/11 2011/02/12 2011/02/13 2011/02/14 2011/02/15 2011/02/16 2011/02/17 2011/02/18 2011/02/19 2011/02/20 2011/02/21 2011/02/22 2011/02/23 2011/02/24 2011/02/25 2011/02/26 2011/02/27 2011/02/28
2011/03/01 2011/03/02 2011/03/03 2011/03/04 2011/03/05 2011/03/06 2011/03/07 2011/03/08 2011/03/09 2011/03/10 2011/03/11 2011/03/13 2011/03/14 2011/03/15 2011/03/16 2011/03/17 2011/03/18 2011/03/19 2011/03/20 2011/03/21 2011/03/22 2011/03/23 2011/03/24 2011/03/25 2011/03/26 2011/03/27 2011/03/28 2011/03/29 2011/03/30 2011/03/31
2011/04/01 2011/04/02 2011/04/03 2011/04/04 2011/04/05 2011/04/06 2011/04/07 2011/04/08 2011/04/09 2011/04/10 2011/04/11 2011/04/12 2011/04/13 2011/04/14 2011/04/15 2011/04/16 2011/04/17 2011/04/18 2011/04/19 2011/04/20 2011/04/21 2011/04/22 2011/04/23 2011/04/24 2011/04/25 2011/04/26 2011/04/27 2011/04/28 2011/04/29 2011/04/30
2011/05/01 2011/05/02 2011/05/03 2011/05/04 2011/05/05 2011/05/06 2011/05/07 2011/05/08 2011/05/09 2011/05/10 2011/05/11 2011/05/12 2011/05/13 2011/05/14 2011/05/15 2011/05/16 2011/05/17 2011/05/18 2011/05/19 2011/05/20 2011/05/21 2011/05/22 2011/05/23 2011/05/24 2011/05/25 2011/05/26 2011/05/27 2011/05/28 2011/05/29 2011/05/30 2011/05/31
2011/06/01 2011/06/02 2011/06/03 2011/06/04 2011/06/05 2011/06/06 2011/06/07 2011/06/08 2011/06/09 2011/06/10 2011/06/11 2011/06/12 2011/06/13 2011/06/14 2011/06/15 2011/06/16 2011/06/17 2011/06/18 2011/06/19 2011/06/20 2011/06/21 2011/06/22 2011/06/23 2011/06/24 2011/06/25 2011/06/26 2011/06/27 2011/06/28 2011/06/29 2011/06/30
2011/07/01 2011/07/02 2011/07/04 2011/07/05 2011/07/06 2011/07/07 2011/07/08 2011/07/10

### Browse by creation date

66 72 73 75 79 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10
1966/12
1972/02 1972/08
1973/04
1975/03
1979/08
1985/03 1985/05 1985/06
1986/05 1986/08 1986/12
1987/06
1988/01 1988/03 1988/04 1988/07 1988/08 1988/12
1989/12
1990/01 1990/07 1990/08 1990/10
1991/05 1991/07 1991/11
1992/01 1992/03 1992/06 1992/09 1992/12
1993/01 1993/10
1994/11 1994/12
1995/01 1995/04
1996/07 1996/09 1996/11
1997/02 1997/03 1997/05 1997/06 1997/08 1997/10 1997/12
1998/05
1999/01 1999/09
2000/05 2000/06 2000/09 2000/11
2001/02 2001/03 2001/04 2001/05 2001/06 2001/07 2001/09 2001/10 2001/11 2001/12
2002/01 2002/02 2002/03 2002/04 2002/07 2002/08 2002/09 2002/11 2002/12
2003/01 2003/02 2003/03 2003/04 2003/05 2003/06 2003/07 2003/08 2003/09 2003/10 2003/11 2003/12
2004/01 2004/02 2004/03 2004/04 2004/05 2004/06 2004/07 2004/08 2004/09 2004/10 2004/11 2004/12
2005/01 2005/02 2005/03 2005/04 2005/05 2005/06 2005/07 2005/08 2005/09 2005/10 2005/11 2005/12
2006/01 2006/02 2006/03 2006/04 2006/05 2006/06 2006/07 2006/08 2006/09 2006/10 2006/11 2006/12
2007/01 2007/02 2007/03 2007/04 2007/05 2007/06 2007/07 2007/08 2007/09 2007/10 2007/11 2007/12
2008/01 2008/02 2008/03 2008/04 2008/05 2008/06 2008/07 2008/08 2008/09 2008/10 2008/11 2008/12
2009/01 2009/02 2009/03 2009/04 2009/05 2009/06 2009/07 2009/08 2009/09 2009/10 2009/11 2009/12
2010/01 2010/02

### Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z
Embassy Athens Embassy Asuncion Embassy Astana Embassy Asmara Embassy Ashgabat Embassy Apia Embassy Ankara Embassy Amman Embassy Algiers Embassy Addis Ababa Embassy Accra Embassy Abuja Embassy Abu Dhabi Embassy Abidjan Consulate Auckland Consulate Amsterdam Consulate Adana American Institute Taiwan, Taipei
Embassy Bujumbura Embassy Buenos Aires Embassy Budapest Embassy Bucharest Embassy Brussels Embassy Bridgetown Embassy Bratislava Embassy Brasilia Embassy Bogota Embassy Bishkek Embassy Bern Embassy Berlin Embassy Belmopan Embassy Belgrade Embassy Beirut Embassy Beijing Embassy Banjul Embassy Bangkok Embassy Bandar Seri Begawan Embassy Bamako Embassy Baku Embassy Baghdad Consulate Belfast Consulate Barcelona
Embassy Copenhagen Embassy Conakry Embassy Colombo Embassy Chisinau Embassy Caracas Embassy Canberra Embassy Cairo Consulate Curacao Consulate Ciudad Juarez Consulate Chiang Mai Consulate Chennai Consulate Casablanca Consulate Cape Town Consulate Calgary
Embassy Dushanbe Embassy Dublin Embassy Doha Embassy Djibouti Embassy Dili Embassy Dhaka Embassy Dar Es Salaam Embassy Damascus Embassy Dakar Consulate Dubai Consulate Dhahran
Embassy Freetown Consulate Fukuoka
Embassy Guatemala Embassy Gaborone Consulate Guayaquil Consulate Guangzhou Consulate Guadalajara
Embassy Helsinki Embassy Harare Embassy Hanoi Consulate Hong Kong Consulate Ho Chi Minh City Consulate Hermosillo Consulate Hamilton Consulate Hamburg Consulate Halifax
Iran RPO Dubai Embassy Islamabad Consulate Istanbul
Embassy Jakarta Consulate Jerusalem Consulate Jeddah
Embassy Kyiv Embassy Kuwait Embassy Kuala Lumpur Embassy Kinshasa Embassy Kingston Embassy Kigali Embassy Khartoum Embassy Kathmandu Embassy Kampala Embassy Kabul Consulate Kolkata Consulate Karachi
Embassy Luxembourg Embassy Luanda Embassy London Embassy Ljubljana Embassy Lisbon Embassy Lima Embassy Lilongwe Embassy La Paz Consulate Lahore Consulate Lagos
Mission USOSCE Mission USNATO Mission UNESCO Mission Geneva Embassy Muscat Embassy Moscow Embassy Montevideo Embassy Monrovia Embassy Minsk Embassy Mexico Embassy Mbabane Embassy Maputo Embassy Manila Embassy Manama Embassy Managua Embassy Malabo Embassy Madrid Consulate Munich Consulate Mumbai Consulate Montreal Consulate Monterrey Consulate Milan Consulate Melbourne Consulate Matamoros
Embassy Nicosia Embassy Niamey Embassy New Delhi Embassy Ndjamena Embassy Nassau Embassy Nairobi Consulate Nuevo Laredo Consulate Naples Consulate Naha
Embassy Ouagadougou Embassy Ottawa Embassy Oslo
Embassy Pristina Embassy Pretoria Embassy Prague Embassy Port Of Spain Embassy Port Louis Embassy Port Au Prince Embassy Phnom Penh Embassy Paris Embassy Paramaribo Embassy Panama Consulate Peshawar
Embassy Quito Consulate Quebec
REO Basrah Embassy Rome Embassy Riyadh Embassy Riga Embassy Reykjavik Embassy Rangoon Embassy Rabat Consulate Rio De Janeiro Consulate Recife
Secretary of State Embassy Suva Embassy Stockholm Embassy Sofia Embassy Skopje Embassy Singapore Embassy Seoul Embassy Sarajevo Embassy Santo Domingo Embassy Santiago Embassy Sanaa Embassy San Salvador Embassy San Jose Consulate Strasbourg Consulate St Petersburg Consulate Shenyang Consulate Shanghai Consulate Sapporo Consulate Sao Paulo
Embassy Tunis Embassy Tripoli Embassy Tokyo Embassy The Hague Embassy Tel Aviv Embassy Tehran Embassy Tegucigalpa Embassy Tbilisi Embassy Tashkent Embassy Tallinn Consulate Toronto Consulate Tijuana Consulate Thessaloniki
USUN New York USEU Brussels US Office Almaty US Mission Geneva US Interests Section Havana US Delegation, Secretary UNVIE UN Rome Embassy Ulaanbaatar
Embassy Vilnius Embassy Vientiane Embassy Vienna Embassy Vatican Embassy Valletta Consulate Vladivostok Consulate Vancouver
Embassy Windhoek Embassy Wellington Embassy Warsaw
Embassy Yerevan Embassy Yaounde
Embassy Zagreb

### Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ASEC AEMR AMGT AR APECO AU AORC AJ AF AFIN AS AM ABLD AFFAIRS AMB APER AA AG AE ADM AL ALOW ACOA AID ATRN AND ABUD ADPM ADANA APEC ARABL ADCO ANARCHISTS AADP AO AGRICULTURE AGAO ANET AMED AROC AY AORG ASEAN ACABQ AINF APCS AODE ARF AX AMEX AZ ASUP ARM AQ ATFN AMBASSADOR ACBAQ AFSI AFSN AC AOPR AREP ASIG ASEX AER AVERY ASCH AFU AMG ATPDEA ASECKFRDCVISKIRFPHUMSMIGEG AORL AN AIT AGMT ACS AGR AMCHAMS AECL AUC AFGHANISTAN ACAO
BR BB BG BEXP BY BA BRUSSELS BU BD BK BL BM BO BE BH BTIO BILAT BX BMGT BIDEN BP BC BBG BF BBSR BT BWC BEXPC BN BTIU
CPAS CA CASC CS CBW CIDA CO CODEL CI CROS CU CH CWC CMGT CVIS CDG CG CF CHIEF CJAN CBSA CE CY CD CT CW CM CONS CDC CR CN COUNTRY CONDOLEEZZA CZ CICTE CYPRUS CARICOM CTR CBE CACS COM COE CIVS CARSON COPUOS CAPC CFED COUNTER CV CKGR CHR CVR CLINTON COUNTERTERRORISM CITEL CLEARANCE CB CSW CIC CITT CARIB CAFTA CACM CDB CJUS CTM CAN CONSULAR CLMT CBC CIA CNARC CIS CEUDA CHINA CAC CL
DR DJ DHS DAO DCM DO DEFENSE DA DE DOMESTIC DISENGAGEMENT DK DOD DOT DPRK DEPT DEA DOE DTRA DS DEAX
ECON ETTC EFIS ETRD EC EMIN EAGR EAID EU EFIN EUN ECIN EG EWWT EINV ENRG ELAB EPET EN EAIR EUMEM ECPS ELTN EIND EZ EI ER ET EINT ECONOMIC ENIV EFTA ES ECONOMY ENGR ELECTIONS ECIP ERNG EXIM ENERG EREL EK EDEV ETRAD ETRC EPA EUREM ENVI EXTERNAL ELN ECOSOC EINVEFIN EAIDS ENGY EPREL ETRDEINVECINPGOVCS ECA EFINECONCS EDU ETC ENVR EAP EINN EXBS ECONOMICS EIAR EINDETRD ECONEFIN EURN ETRDEINVTINTCS EFIM EINVETC ECONCS EBRD ETRA ESA EAIG EUR EUC ERD ETRN EINVECONSENVCSJA EEPET EUNCH ESENV ENNP ECINECONCS ETRO ETRDECONWTOCS ECUN
FI FR FAS FOREIGN FTAA FREEDOM FBI FINANCE FAO FAA FJ FTA FARC FAC FM FINR FDA FOR FOI FO FMLN FISO
GM GG GERARD GT GA GR GTIP GY GLOBAL GCC GC GAZA GL GOV GOI GF GH GV GE GANGS GTMO GAERC GZ GUILLERMO GASPAR
HR HO HA HYMPSK HK HUMAN HN HURI HU HILLARY HI HUM HSTC HEBRON HUMOR
IZ IN IAEA IS IMO ILO IR IC IT ITU IV IMF IBRD IWC IRAQI IDB ISRAELI ITALY IADB ITPGOV ITALIAN ID ICAO ICRC INR IFAD IO IQ IPR IRAQ INMARSAT INRA INTERNAL ICJ INDO IRS IIP ICTY ITRA ILC ISCON IEFIN IA INTERPOL IEA INRB IAHRC ISRAEL IZPREL IRAJ IF ITPHUM IL IACI IDA ISLAMISTS IGAD ITF INRO IBET INTELSAT IDP ICTR IRC
JA JO JM JP JOHN JUS JOSEPH JAMES JOHNNIE JML JIMENEZ
KNNP KFLO KDEM KOMC KSUM KIPR KFLU KPAO KE KCRM KJUS KAWC KZ KSCA KDRG KCOR KGHG KPAL KTIP KMCA KCRS KPKO KOLY KRVC KVPR KG KWBG KMDR KTER KSPR KV KTFN KWMN KFRD KSTH KS KN KISL KGIC KSEP KFIN KTEX KTIA KUNR KCMR KMOC KCIP KTDB KBIO KU KSAF KSTC KBCT KIRF KICC KIRC KIDE KNUP KSEO KNUC KCFE KPWR KR KMPI KREC KCSY KHLS KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KOCI KREL KPRP KPRV KAUST KPAOPREL KCRIM KVIR KCRCM KPAONZ KNAR KHDP KHSA KMCC KHIV KTRD KTAO KPAOY KTBT KJUST KFSC KINR KWAC KGIT KMRS KSCI KENV KNPP KAWK KNDP KBTS KO KACT KX KVRP KPIR KCOM KAID KMFO KERG KTLA KNNPMNUC KPOA KRCM KCFC KNEI KCHG KPLS KFTFN KTFM KLIG KDEMAF KRAD KBTR KGCC KICA KHUM KSEC KPIN KESS KDEV KWWMN KOM KWNM KRFD KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KRGY KIFR KSAC KWMNCS KPAK KOMS KFPC KRIM KDDG KCGC KPAI KID KMIG KNSD KWMM
LY LE LABOR LO LAB LH LTTE LU LA LI LG LT LOG
MARR MX MASS MOPS MNUC MCAP MTCRE MRCRE MTRE MASC MY MK MAS MO MCC MCA MU ML MIL MTCR MEPP MG MP MAR MD MAPP MINUSTAH MZ MR MA MOPPS MTS MLS MILI MEPN MEPI MEETINGS MERCOSUR MW MT MIK MN MAPS MV MILITARY MARAD MDC MACEDONIA MASSMNUC MUCN MEDIA MI MQADHAFI MPOS MPS MC
NZ NATO NI NO NU NG NL NPT NS NP NA NATIONAL NC NSF NDP NIPP NSSP NE NGO NR NATOIRAQ NAS NZUS NARC NH NSG NAFTA NEW NRR NT NASA NAR NK NOVO NATOPREL NEA NSC NV NPA NSFO NW NORAD NPG
OTRA OECD OVIP OREP OPRC ODC OIIP OPDC OAS OSCE OPIC OMS OEXC OPCW OSCI OPAD ODIP OFFICIALS OFDP OPEC OIE ODPC OSHA OVIPPRELUNGANU OHUM OTR OMIG OSAC OBSP OFDA OVP ON OCII OES OCS OIC
PGOV PREL PARM PINR PHUM PM PREF PTER PK PINS PBIO PHSA PE PBTS PL POL PAK POV POLITICS POLICY PERL PA PNAT PCI PAS PALESTINIAN PPA PROP PERM PETR PREZ POLITICAL PO PRELPK PAIGH PROG PJUS PMIL PDOV PAO PBTSRU PGOR PINO PTERE PSI PRAM PGOF PG PTE PARMS PREO PRGOV PORG PP PS PKFK PSOE PEPR PDEM PINT PMAR PRELP PREFA PNG PTBS PFOR PUNE PGOVLO PHUMBA POLINT PGOVE PHALANAGE PARTY PECON PY PLN PHUH PEDRO PF PHUS PETER PU PARTIES PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PHUMPREL POGOV PEL PINL PBT PINF PRL PSEPC POSTS PAHO PHUMPGOV PGOC PNR PROV
QA
RS RP RU RW RFE RCMP RIGHTSPOLMIL RO ROBERT RM RICE REGION ROOD RELAM RSP RF RELATIONS RIGHTS RUPREL REMON RPEL REACTION REPORT RSO
SZ SENV SOCI SNAR SY SO SP SU SI SMIG SYR SA SCUL SW SR SYRIA SNARM SPECIALIST SENS SEN SN SC SF SMIL SARS SCRM SENVSXE SL SAARC STEINBERG SNARIZ SWE SCRS SG SAN ST SIPDIS SSA SPCVIS SOFA SENVKGHG SANC SHI SEVN SHUM SK SH SNARCS SPCE SNARN SIPRS
TRGY TBIO TSPA TU TPHY TI TX TH TIP TSPL TNGD TS TW TRSY TP TZ TN TC TR TF TINT TK TRAD TT TD TWI TL TV TERRORISM TO TURKEY TSPAM TRT TFIN TAGS TBID THPY
UNSC UK UNGA UN US UZ USEU UG UP UNAUS UNMIK USTR UR UY UNHRC USPS UNSCR UNESCO UNFICYP USAID USOAS UV UNMIC USUN UNCHR UNDP USGS UNHCR UNEP UA USNC UE UNVIE UAE UNO UNODC UNCHS UNDESCO UNC UNPUOS UNDC UNICEF UNCHC UNCSD UNFCYP UNIDROIT UNCND
VE VM VT VZ VEPREL VTEG VTIZ VTPREL VISIT VENZ VAT VC VI VN
WHTI WIPO WTRO WTO WHO WFP WS WA WZ WI WBG WMD WWARD WHA WITH WTRQ WEU WMO WB
XA XR XW XX XK XL XM XS XF XG XT XC XH XD XE XV XB XU XZ XY XQ XI XTAG
YI YM YL YE YMCS
ZU ZI ZP ZR ZOELLICK ZK ZF ZO ZL ZB ZH ZT ZJ ZEALAND ZN ZA ZANU

### Browse by classification

CONFIDENTIAL CONFIDENTIAL//NOFORN SECRET SECRET//NOFORN UNCLASSIFIED UNCLASSIFIED//FOR OFFICIAL USE ONLY

### Community resources

Follow us on Twitter Check our Reddit Twitter this Digg this page Contact us on IRC

courage is contagious

### Viewing cable 03OTTAWA1140, CANADIAN AUTO STRATEGY

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:

- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.

To understand the justification used for the classification of each cable, please use this WikiSource article as reference.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #03OTTAWA1140.

Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
03OTTAWA1140 | 2003-04-23 15:40 | 2011-04-28 00:00 | UNCLASSIFIED | Embassy Ottawa

`

    This record is a partial extract of the original cable. The full text of the original cable is not available.

` `

    UNCLAS SECTION 01 OF 03 OTTAWA 001140

    SIPDIS

    STATE FOR WHA/CAN (NORMAN) EB/TPP/BTA/EWH (SHEEHAN)

    STATE PASS USTR FOR SAGE CHANDLER

    USDOC/IA/KIMBERLEY BULKLEY

    USDOC FOR 4320/OFFICE OF NAFTA; 3134/OIO/WESTERN
    HEMISPHERE

    E.O. 12958: N/A
    TAGS: ETRD EFIN ELAB ELTN CA
    SUBJECT: CANADIAN AUTO STRATEGY

    REF: (A) USDOC 01384
         (B) 2002 Toronto 1916 (Auto Strategy)
         (C) Toronto 0985 (Ontario Budget cable)
         (D) Toronto 0246 (Capital Tax)

    -------
    Summary
    -------

    ¶1. An alliance of the Canadian federal government,
    Ontario provincial government, automotive sector
    manufacturers and labor unions are working to define
    and implement a long-term strategy to keep the Canadian
    automotive sector competitive (Ref B).  At least one
    element of the multi-prong strategy, the elimination of
    the federal and provincial capital tax, has already
    been embarked upon.  Implementation of the new strategy
    is expected to be a multi-year process with no firm
    timeline.  It is, however, very clear from statements
    given by both the manufacturing sector and government
    that all elements of the nascent auto strategy will
    scrupulously comply with WTO and NAFTA ground rules.
    End summary.

    --------------------------------------
    Scale of Automotive Industry in Canada
    --------------------------------------

    ¶2. The importance of the automotive industry to the
    Canadian economy cannot be overstated.  It is a major
    contributor to the Canadian economy, creating more than
    550,000 jobs, and generates approximately 12 per cent
    of the manufacturing sector's contribution to Canada's
    Gross Domestic Product.  The automotive sector also has
    seen the highest capital investment of all
    manufacturing industries.  Between 1991 and 2001,
    capital investment averaged C$2.9 billion per year.
    The Canadian automotive industry is fully integrated
    into the North American market.  In 2001, the
    automotive industry produced C$95 billion worth of
    motor vehicles - 90 per cent of which were exported,
    primarily to the United States.

    --------------------------------------------
    New Policy to strengthen automotive industry
    --------------------------------------------

    ¶3. The maintenance of this vital industrial sector is
    important to the federal government and to the Ontario
    provincial government, where most of the manufacturing
    capacity is located.  It is, however, a collection of
    government, labor, and corporate interests that
    comprises the Canadian Automotive Partnership Council
    (CAPC) that is in the process of developing a long-term
    strategic vision for the industry to ensure its growth
    and vitality.  Its membership includes the presidents
    of Canada's automotive assembly companies; senior
    executives from the parts, aftermarket, dealership and
    academic sectors; the president of the Canadian Auto
    Workers Union (Buzz Hargrove); and ministers of
    industry and/or economic development for the federal,
    Ontario and Quebec governments.  The Council is co-
    chaired by Michael Grimaldi, President of General
    Motors of Canada, and Don Walker, President of Intier
    Automotive, one of Canada's most significant automotive
    components manufacturers.

    ¶4. CAPC members met in Toronto in mid-December 2002 and
    reviewed a series of papers drafted by working groups
    that address five key dimensions of the nascent
    strategy: human resources; innovation; trade
    infrastructure; fiscal and investment measures; and
    regulatory harmonization.  These draft papers, and more
    about CAPC are available at the following URL:

    http://www.strategis.ic.gc.ca/SSG/am01451e.ht ml

    ¶5. The key questions raised in Ref A focus on fiscal
    and investment measures, the relevant CAPC proposals in
    this domain are outlined below.

    ----------------------------------------
    CAPC Fiscal & Investment Recommendations
    ----------------------------------------

    ¶6.  The CAPC Fiscal and Investment Policy Work Group
    recommends that the federal and provincial governments:

    -- Eliminate the federal Large Corporations Tax (a.k.a.
    the Capital Tax) and provincial capital taxes to remove
    a key impediment (see paragraph 9).

    -- Establish an Investment Tax Credit to encourage
    investment in new manufacturing machinery and
    equipment.

    -- Continue and expand the Manufacturing & Processing
    (M&P) deduction (a 7% deduction exclusive to M&P
    profits which the GoC is considering abolishing) to
    reduce the effective federal and provincial rates to
    gain a competitive tax advantage in NAFTA.

    ¶7. The CAPC group makes clear that any effort to
    provide an investment incentive must be transparent,
    available to all on equal footing (unlike the exclusive
    "Autopact" arrangements) and consistent with WTO and
    NAFTA rules.

    -----------------------------------------
    What is the timetable for implementation?
    -----------------------------------------

    ¶8. On the question of a timetable, the message we
    received from Guy Leclaire, Director of Automotive
    Policy at the Department of Industry (Industry Canada)
    is that the Canadian Automotive Strategy is a work in
    progress and that there is no firm timetable for
    implementation.

    ¶9. Nevertheless, one major element has been embarked
    upon.  The elimination of the federal capital tax
    proposed in the federal budget of February 18, 2003
    implements a principal recommendation of the CAPC.

    ¶10. Both the federal and provincial governments in
    Canada levy taxes on the capital of corporations.
    Unlike income taxes, which are paid when a corporation
    has taxable income, capital taxes must be paid
    regardless of whether a corporation is profitable.  The
    federal capital tax is levied on all corporations with
    more than $10 million of capital used in Canada; it is
    reduced by the income surtax paid by the corporation
    (Ref D).

    ¶11. The February 2003 federal budget proposed to
    eliminate the federal capital tax, as follows: - First,
    the capital threshold at which the tax applies will be
    raised, from $10 million to $50 million effective 2004.
    As of 2004 medium-sized businesses under the $50-
    million threshold will no longer have to pay the tax.
    Second, the rate of the tax will be reduced in stages
    over a period of five years so that by 2008, the tax
    will be completely eliminated.

    ¶12. At the provincial level, Ontario's 2003 budget
    (delivered in late March) also promised to eliminate
    the capital tax, though a 10% cut in 2004 and complete
    phasing out by 2008, in line with the federal
    government's plans (ref C).  Ontario's decision to
    start phasing out capital taxes follows similar
    decisions in Alberta and the three Territories, where
    capital taxes already have been eliminated, as well as
    in British Columbia and Quebec, where concrete cuts
    have been announced in recent budgets (Ref D).

    ¶13. According to the GoC the elimination of the capital
    tax over five years will be fully legislated in order
    to provide businesses and investors with the certainty
    needed to factor the tax reduction into their business
    decisions.  The GoC budget documents also allege that
    when the federal capital tax is eliminated in 2008, the
    average combined federal and provincial corporate tax
    rate in Canada will be 6.6 percentage points lower than
    in the U.S

    -------
    Comment
    -------

    ¶14. Leclaire emphasized that the Auto Strategy is
    intended to be more than simply a wish list for
    handouts from the government to industry.  Rather,
    Leclaire expects it will be an effort largely to match,
    or refine, existing government efforts (provincial and
    federal) with industry requirements.  For example,
    suggestions include eliminating regulatory impediments
    to investment (such as different manufacturing
    standards in USA and Canada); targeting more R&D funds
    to the automotive sector and making more auto R&D
    eligible for R&D tax credits; and providing more
    targeted investment in technical education to provide
    the workforce of the future.

    ¶15. Most significantly, there is no proposal for a
    local content requirement in any of the elements of the
    CAPC proposals.  The musings of CAW chief Buzz Hargrove
    (Refs A,B) in this respect are not indicative of the
    eventual GoC policy direction, nor industry intentions.
    And although the CAPC does recommend an Investment Tax
    Credit to entice investment in physical plant, it
    remains simply a recommendation whose form is not
    elaborated and one that has not yet been seized upon by
    government.

    ¶16. The clear message we have received from GoC
    interlocutors, one which is reiterated by CAPC, is that
    whatever the eventual size and shape of the Canadian
    Auto Strategy it will comply scrupulously with WTO and
    NAFTA strictures.

    Cellucci

`