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Auto Pact trade deal comes to an end

The Story

On Feb. 19, 2001, the Auto Pact dies. Four months earlier the World Trade Organization sent shock waves across Canada when it ruled that the Auto Pact violated international trade laws with a tariff system that favoured American manufacturers like GM, Ford and Chrysler. Many in the Canadian auto industry mourn the death of the Auto Pact. But others argue it changes little. Canada's auto industry, built on the back of the 36-year-old agreement, is now strong enough to go it alone. Canada's low dollar and skilled work force attract plenty of foreign auto investment. The Japanese and Europeans continue to do business here despite the tariffs. The United States also manufactures more cars and parts in Canada than stipulated in the Auto Pact. Canada's auto industry has become the sixth largest in the world. Experts say its future success will depend on a strong, competitive industry that can compete in the global market.

Medium: Television
Program: Sunday Report
Broadcast Date: Feb. 18, 2001
Guests: Michael Robinet, Jim Stanford, Brian Tobin, Tayce Wakefield, David Worts
Host: Alison Smith
Reporter: Raj Ahluwalia
Duration: 2:51

Did You know?

• In 1999, Toyota's Cambridge, Ont., plant was the most productive car factory in North America.

• In 1999, nearly 3 million vehicles were produced in Ontario. Eight major global car and truck manufacturers have plants in Ontario -- more than any other province or U.S. state.

• The Canadian Auto Workers said that Toyota and Honda spent about $2 billion on Canadian-made parts in 2001, compared with $30 billion by the Big Three.


The Auto Pact: En Route to Free Trade more