Canada–United States Automotive Products Agreement
Type | Trade agreement |
---|---|
Signed | 1965 |
Expiry | February 19, 2001 |
Parties |
The Canada–United States Automotive Products Agreement, commonly known as the Auto Pact or APTA, was a trade agreement between Canada and the United States. It was signed by Prime Minister Lester B. Pearson and President Lyndon B. Johnson in January 1965.[1][2][3]
History
During the years before the Canada—United States Automotive Products Agreement was in place, a series of tariffs were imposed on
The imposition of the tariffs led American automobile companies to produce models of cars specifically for sale in Canada, assembled at branch plants there. Although these models were sold under different names, they were similar to the American models, but with cosmetic changes in design.[4][5]
The signing of the agreement in 1965 removed the tariffs between the two countries. In exchange, the Big Three car makers (
After the signing of the Pact, far fewer models of cars were produced in Canada; instead, larger
The agreement resulted in lowered prices and increased production in Canada, creating thousands of jobs and increasing wages. These newly created jobs were highly localised to southern Ontario, with little employment benefit to the rest of Canada. However, approximately one-third of Canada's population resides in southern Ontario as of 2017[update].[11]
The jobs created by the new market conditions under the pact were almost exclusively
The agreement also prevented Canada pursuing free trade in automobiles elsewhere internationally, and this North American exclusivity led
By January of 1994, the new NAFTA agreement had gone into effect, which now included free trade on various other goods and products not just limited to automobiles, and had Mexico as a member as well. In January of 1995, these three countries and many others across the world had joined the newly formed World Trade Organization, which was to be the successor to the GATT group.
Other automobile manufacturers around the world complained to the
References
- ISBN 978-0-07-082988-6.
- ^ "Auto Pact". Radio-Canada, 2002. Archived 2007-11-27 at the Wayback Machine
- ISBN 978-0-8157-9148-5.
- ^ "1967 Pontiac Beaumont – Canadian Supercars Got 427 Conversions Too". Hot Rod, April 30, 2015 Richard Truesdell
- ^ "Canadian 'Cheviac' is 'one rare bird'".Chron, By Heidi Van Horne, August 13, 2013
- ISBN 978-1-55130-226-3.
- ^ The National Finances. Canadian Tax Foundation. 1984. pp. 256, 267.
- ^ a b c Crane, David. "Canada—United States Automotive Products Agreement". The Canadian Encyclopedia. Retrieved 2013-12-16.
- ISBN 978-1-139-49144-0.
- ^ "Canadian motor show report and pics". Autocar, 15 February 2013
- ^ Statistics Canada (February 8, 2017). "Population size and growth in Canada: Key results from the 2016 Census". Archived from the original on February 10, 2017. Retrieved February 8, 2017.
- ^ Lighting Regulation Round the World: What, How, Where, and Why Drivingvisionnews.com, retrieved 2011-02-22
- ^ "WTO tells Feds to dismantle auto pact". CBC News Oct 14, 1999
- ^ "Auto pact defunct Monday". CBC News, Feb 20, 2001
Further reading
- Anastakis, Dimitri (2005). Auto Pact: Creating a Borderless North American Auto Industry, 1960-1971. Toronto: University of Toronto Press. ISBN 0802038212.
External links
- CBC Archives A multimedia look at the Canadian auto industry before and after the trade agreement.