Automotive Products Trade Agreement

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Automotive Products Trade Agreement

A 1965 treaty between Canada and the United States eliminating tariffs on motor vehicles and auto parts. Almost immediately, the agreement resulted in significantly more automotive trade. Proponents of the treaty (and free trade in general) argue the agreement created thousands of jobs in Canada while eliminating its trade deficit with the United States. Critics, however, point out that Canada's own car companies were entirely replaced by American counterparts. The World Trade Organization declared the agreement illegal in 2001, though by that time it had been largely replaced by NAFTA. It was informally called the Auto Pact and APTA.
References in periodicals archive ?
In particular, Mordue offers a detailed explanation of the forces associated with globalization that enabled foreign imports to gain greater market share in Canada by the late 1950s, and in so doing highlights the significance of international developments in hastening the Auto Pact in 1965.
The Auto Pact, which guaranteed that for every five cars sold in Canada, three would be assembled there, boosted car production in Canada, making it the largest manufacturing sector in that country, displacing the paper and pulp industry.
I like the title of the panel, because I think it identifies some of the key economic timelines experienced since the Auto Pact, (3) and those same timelines that will be a challenge to us as we move forward.
The creation of the 1965 Canada-US Auto Pact, an agreement that eradicated automotive tariff barriers in North America, unleashed a torrent of investment incentive battles between states and provinces.
In 1964, Prime Minister Lester Pearson and President Lyndon Johnson authorized negotiation of the Canada-US Automotive Products Agreement--the Auto Pact.
As his narrative would have it, Canadian governments were acutely conscious of the limits of their influence when it came to matters of global importance to the United States or in areas dealing with US national security, but outside of these realms, successive Canadian government's were successful in wringing out US concessions important to the Canadian economy, including the implicit veto given to Canada over US wheat sales to third countries, the Auto Pact that played a large role in solving Canada's balance of payments problems, and exemptions to punitive American legislation.
Her point is that they flourished in the protected Canadian market--the Bronfmans by the fact that Canada had no prohibition to match the Volstead Act, Bata by high tariffs and Stronach by the Auto Pact and closeness to U.
Under the terms of the Auto Pact, recounted a 1996 Wall Street Journal report from Toronto, the "Big Three" U.
through GATT and the Auto Pact, crafted a new economic partnership that bound the two countries together more tightly than ever before.
Auto Pact dating back to 1964 was struck down by the World Trade Organization in 2000 and rescinded by the Canadian government an 2001.
Canadian Auto Pact, nurtured and protected the Canadian auto industry from American products at a more than two-to-one Canadian advantage.
It has complied with the 2000 panel decision on the Auto Pact by extending the existing 6.