KITCHENER — Canada will not sign a Trans-Pacific Partnership trade deal that would allow Japanese vehicles into North America with fewer parts manufactured here, says Ed Fast, the federal minister of international trade.

"We have made it very clear as a Canadian government that we will only sign a TPP agreement if it is in Canada's national interest," Fast said in an interview Monday during a visit to Waterloo Region.

The United States is leading negotiations among 12 countries, from Chile to Japan, for a free-trade agreement that circles the Pacific Ocean. Collectively, the countries involved represent 40 per cent of the world's economic output.

Without consulting Canada and Mexico, the Americans provisionally agreed to reduce the amount of North American parts in Japanese vehicles coming into Canada, the U.S. and Mexico.

Currently, Japanese vehicles imported into North America duty free must have 62.5 per cent of their parts made in North America. Washington and Tokyo had agreed to lower that to 30 per cent for parts and 45 per cent for light duty vehicles.

Auto parts manufacturing is a cornerstone of the southern Ontario economy, and the sector protested loudly when the developments came to light recently.

Waterloo Region's manufacturing sector employs some 65,000 workers. Many of the jobs are directly and indirectly tied to production of auto parts.

"We are absolutely committed to ensuring our Canadian auto parts sector remains strong," Fast said.

Federal government negotiators have had ongoing consultations with the auto parts manufacturers since Canada entered talks in 2012 for a Trans-Pacific Partnership agreement, Fast said.

"I am as minister confident that we will get an outcome that serves that sector well," he said.

"Unless the rules of origin continue to support a strong Canadian auto-parts sector, we can not support that agreement," he said.

After visits to the University of Waterloo, the Accelerator Centre and some local companies, and a round-table with business representatives in downtown Kitchener, Fast sat down for a brief interview with The Record.

His visit came as stock markets around the world reeled in the wake of a sharp plunge in China's main market. The Toronto Stock Exchange closed down 420.93, while the Dow Jones industrial average fell 588.4 points.

Meanwhile, the Canadian economy has been sputtering.

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Fast defended the Conservative government's economic track record.

"We have made it very clear that a low tax and low debt plan for our economy positions Canada to withstand these global economic shocks," Fast said.