CANADA--UNITED STATES AUTOMOTIVE AGREEMENT (AUTO PACK)

by Ted Peterson
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On January 1965 the United State, under President Lyndon Johnson, and Canada Prime Minister signed an agreement called "Canada-United States Automotive Agreement. It was known as "AUTO PACT".
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It removed all tariffs on all cars, trucks, buses, tires, and all automotive parts between the two countries. This was asked by the large American car makers. When this was passed General Motors, Ford, and Chrysler agreed that automobile production in Canada would not fall below 1964 levels and that for every five new cars sold in Canada, 3 new ones would be made in Canada. This is taken place now. Also a large number of Jananese Cars are now made in Canada.
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In 1964 only 7% of vehicles made in Canada was sent to the United States but in 1968 60% were sent. The number of cars made in the US and sent to Canada went done to 40%. Canada has no Canadian Automotive Company, almost all cars sold in Canada are US made. Automobile parts production is Canada most important industry. Now days it is the largest industry.
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This act was abolished in 2001 when it was declared illegal by the World Trade Organization. It was replaced by NAFTA. See other web page in this set.
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