OTTAWA (Reuters) -Canada is launching dispute settlement proceedings against auto manufacturer Stellantis over its decision to shift production from a Canadian plant to one in the United States, Industry Minister Melanie Joly said on Monday.
Stellantis said last month it would to move its Jeep Compass production from the Ontario city of Brampton to the U.S., prompting a threat of legal action from Canada.
Joly, speaking to legislators, reiterated that Ottawa felt the car maker’s announcement was unacceptable.
“We will start the 30-day period of the formal dispute resolution process in order to bring back production at the Stellantis Brampton facility. This is the start of the dispute resolution process,” she said.
U.S. President Donald Trump imposed tariffs on Canadian steel, aluminum and autos earlier this year, prompting Canada to respond in kind.
Last month Canada sharply reduced tariff-free import quotas for General Motors and Stellantis, citing their decisions to scale back manufacturing in the country.
Stellantis was not immediately available for comment.
(Reporting by David Ljunggren, Editing by William Maclean)
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