Fixes for Auto Industry Must Include Harmonizing Cross-Border Rules: C.D. Howe Institute

TORONTO - While the auto industry in Canada faces tough financial and product development challenges, another threat to its sustainability looms - the increasing divergence of Canada-US regulations, according to a study released by the C.D. Howe Institute. In Potholes and Paperwork: Improving Cross-Border Integration and Regulation of the Automotive Industry, author Michael Hart examines one critical aspect of government policy that requires greater Canada-US cooperation: the need for common regulations governing safety, fuel consumption and environmental protection.

Hart assesses how differences in today's regulatory and border administration regimes undermine Canadian autoworkers' and suppliers' abilities to remain part of a fully integrated North American manufacturing base. He offers potential solutions to reverse the two governments' divergent approaches, including greater investment in infrastructure and technology, more reliance on risk assessments and random inspections, and better pre-clearance programs for goods, vehicles and people.