Contents:
Auto Pact in Canada
Auto Pact
Definition of Auto Pact by Rand Dyck and Christopher Cochrane (in their book “Canadian Politics: Critical Approaches”) in the context of political science in Canada: The 1965 bilateral Canada–U.S. agreement under which automobiles and auto parts flowed across the border duty free as long as the value of purchases equalled that of production in each country.
Definition of Auto Pact
The Canada social science dictionary [1] provides the following meaning of Auto Pact: Officially known as the Canada-US Automotive Products Agreement. This agreement, signed in January 1965, established a link between the number of vehicles sold in Canada and the amount of automotive manufacturing activity that must be carried out in Canada. The agreement provided that manufacturers must ensure that value added by automotive manufacturing activity in Canada must not fall below the level established in 1964. The agreement also provided for percentages of Canadian manufacturing content to be increased as total Canadian sales values rose. Initially, the agreement was intended to ensure that the Canadian economy gain an appropriate proportion of the manufacturing activity and employment benefits that flowed from car sales, by foreign, chiefly US corporations, to Canadian consumers. Over the years since 1965, Canada has in fact maintained a higher ratio of value added manufacturing activity to sales than the levels provided in the Autopact. While the pact has helped ensure a strong automotive manufacturing presence in both Ontario and Quebec, it has entrenched complete foreign domination of an important sector of the Canadian economy.
Auto Pact: Resources
Notes and References
- Drislane, R., & Parkinson, G. (2016). (Concept of) Auto Pact. Online dictionary of the social sciences. Open University of Canada
Resources
See Also
- Politics
- Political Science