autopact

=Auto Pact= = = === Canada and the United State signed the Canada-US Automotive Products Agreement, better known as the Auto Pact, in January 1965. This allowed free trades in automobiles between Canada and the US. In the past, the Canadian government had placed tariffs on cars coming into Canada from the US, which means Canadians paid about 30 percent more for their cars than American buyers. Canada imported more cars from the United States than exported, so a trade deficit appeared. All these forced the creating of Auto Pact. ===



=== The Auto Pact encouraged American companies to expand production in Canada. It would create jobs, and increase Canadian car exports to the US. Actually, the “Big Three” of Automobile manufacturing—Ford, Chrysler, and General Motors, did expand their factories into Canada after the signing of Auto Pact. Canada has an overall surplus in 1970, 1971, 1972 and 1982-1986 with the United State. However, the profits of the production of automobiles go to the United States and little money is spent on research and development in Canada. The Auto Pact is a very important event to the progress of automobiles manufacturing in Canada. Without the Auto Pact, the consumers won’t receive a price of cars as low as it was, which means we won’t see as many cars as we can now in the street. ===