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Topic: Auto Pact


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In the News (Mon 21 Dec 09)

  
  WTO | Managing the Challenges of WTO Participation: Case Study
John Manley, Minister of Industry, recognized that the production-to-sales ratios were outdated, noting that ‘The Auto Pact was based on the fundamental premise that we should produce one vehicle for every one that’s sold in Canada, and we’re now producing two for every one that’s sold.’(44) Nor did the CVA requirements retain any significant meaning.
Automotive expert DesRosiers effectively agreed, explaining that the end of the Auto Pact was considered to be ‘employment neutral’,(47) and equated the event to ‘the couple that has been separated for twelve years without having their divorce finalized’.
He noted that ‘The auto sector, for all intents and purposes, was separated from the Auto Pact by the FTA and then NAFTA.
www.wto.org /english/res_e/booksp_e/casestudies_e/case9_e.htm   (5462 words)

  
  Auto Pact: Creating a Borderless North American Auto Industry, 1960-1971
The resulting auto pact gave both sides their wishes: the Americans got a continental-wide free trade zone in auto parts while the Canadians won production guarantees and content requirements under the agreement that specified that all auto product imports south of their border would come from Canada.
Still, while Reisman was pivotal in effecting the pact, and the specter of protectionist intervention by Canada made the Americans anxious to conclude an agreement before Mexican-style nationalization resulted, an agreement would never have arisen without the interaction of the multinational auto companies with their governments.
The pact elevated industrial policy to the international level; it is, perhaps, a model for solving current difficulties due to globalization in other industrial sectors.
eh.net /bookreviews/library/1056.shtml   (1095 words)

  
 Canada told to scrap auto pact   (Site not responding. Last check: 2007-09-15)
Japan and the European Union challenged Canada's participation in the auto pact, and yesterday the WTO sided with Japan and the EU on all fronts.
The end of the auto pact probably will mean more expensive luxury cars in the near term, if Canada decides to comply with the ruling by making the tariff the same for all auto producers.
Since the auto pact can be eliminated or changed through a government order in council, rather than a full parliamentary process, the WTO panel members "therefore recommend that the dispute settlement body request Canada to withdraw the export subsidy within 90 days," the ruling says.
www-personal.umd.umich.edu /~mtwomey/newspapers/UPACTN.html   (907 words)

  
 Canada-United States Auto Pact (1965): historical context, economic impact and related links
On January 16, 1965, the Canada–United States Automotive Agreement, commonly referred to as the Auto Pact, was signed by Canada’s Prime Minister and the President of the United States.
Based on a decision by the WTO dispute panel in 2001, the Auto Pact was abolished as the panel ruled that parts of the Canada–United States Auto Pact broke global trade rules by favoring some countries over others.
With the demise of the Auto Pact, there was much debate as to the direction the Canadian auto industry would take.
canadianeconomy.gc.ca /english/economy/1965canada_us_auto_pact.html   (840 words)

  
 CBC News Indepth: Autos
Windsor, Ont. – the heart of the Canadian auto industry – saw its population increase fivefold from 1904 to 1929.
Canadian auto output was 170,000 units in 1927 and 240,000 units in 1928.
There were fears that the death of the Auto Pact would have severe repercussions for the industry in Canada.
www.cbc.ca /news/background/autos   (1201 words)

  
 [No title]
The auto pact kept the peace--for now--largely because, in the grand tradition of U.S.-Japanese trade settlements, it left Washington and Tokyo ample room to quarrel about just what it was they had agreed to.
The pact provides for regular reviews to see how it is working out, yet prevents the U.S. from applying new sanctions if Japanese companies fall short of their promises.
The auto pact doesn't set much of a precedent for resolving these disputes, unless it is the precedent some Japanese fear: that from now on it will take a sanctions deadline for negotiators to make any progress.
www.econ.ucsb.edu /~tedb/eep/news/carwars.cadv.txt   (1310 words)

  
 CFHSS - Advocacy - Parliamentary Breakfast talk on Canadian Auto Tariff Policy   (Site not responding. Last check: 2007-09-15)
While Auto Pact status was out of the question at the time, the Canadian government offered Honda and Toyota duty drawbacks and duty remissions, which essentially allowed them to import parts and vehicles duty free if certain export performance levels were attained.
It continued until the announcement in June 1998 that Canada would not alter its tariff policy and that non Auto Pact members would continue to have to pay a tariff on imported vehicles (the tariff on imported cars was 7.3 percent in 1997, falling to 6.7 percent in 1998 and 6.1 percent in 1999).
The Auto Pact was an extremely innovative policy that arguably rescued a very weak Canadian assembly industry and allowed it to grow to the point where it is one of the most efficient in the world.
www.fedcan.ca /english/fromold/breakfast-molot1099.cfm   (2894 words)

  
 JAMA Canada - Position Papers: Comments on Auto Trade & Tariff Policy - February 1998
At the same time, imports of auto parts from Japan by non-Auto Pact companies dropped 15.4% in 1996 over the previous year, in spite of the fact that tariffs on imported auto parts were reduced to zero at the beginning of 1996 by the Government of Canada.
In 1989, the Auto Pact abruptly changed and became exclusionary as a direct result of the FTA negotiations with the U.S. What's more, over the last fifteen years or so, internationalization of the auto industry also changed both the competitive environment and the opportunities for cooperation and strategic alliances among globally-focused automakers and parts makers.
and non-Auto Pact importers that qualify for (currently or in the near future) but are denied Auto Pact benefits due to a provision in the FTA, and therefore also pay applicable MFN duties on vehicle imports.
www.jama.ca /ppapers/tariff_trade_policy/1998/index.asp   (1392 words)

  
 Gas-price surge strains oil-auto pact   (Site not responding. Last check: 2007-09-15)
Tyson Slocum, an energy specialist at Public Citizen, said the two lobbies have benefited from a “non-aggression pact.” But as pressure mounts on Capitol Hill against the oil industry, which has been reporting huge profits, the truce may be ending, Slocum said.
What makes oil lobbyists especially red in the face when discussing the auto industry is the recent embrace of E85, a fuel type that is 85 percent ethanol, which is made primarily from corn.
But overall, he said, he doesn’t believe that auto executives are taking a position in opposition to his industry.
www.hillnews.com /thehill/export/TheHill/Business/050206_gas.html   (832 words)

  
 CAW - TCA CANADA : News
The possibility of the liberal government further cutting or eliminating the Auto Pact is a bad idea coming at the worst of times.
The CAW wants Ottawa to reinstate the tariff on auto parts to at least match the United States tariff level; keep the Auto Pact tariff structure and to speak out for Canadian jobs rather than making it easier for offshore auto makers to sell into the Canadian Market.
Instead of doing away with the Auto Pact Ottawa should be encouraging Honda and Toyota to increase their investment in Canada.
www.caw.ca /news/videonews/archives/Auto_Pact_Campaign.asp   (410 words)

  
 Auto Pact - Search Results - MSN Encarta   (Site not responding. Last check: 2007-09-15)
Auto Pact - Search Results - MSN Encarta
In 1994 the United States successfully promoted the Uruguay Round of the General Agreement on Tariffs and Trade (GATT), which helped American auto...
The most important labor-management agreement in several years was negotiated at the White House in April 1964, under the personal surveillance of President Lyndon Johnson.
ca.encarta.msn.com /Auto+Pact.html   (181 words)

  
 JAMA Canada - News Release: February 19th, 2001 - JAMA Canada Statement on Repealing the Auto Pact
With respect to attracting investment and creating jobs in Canada, it is widely acknowledged that the Auto Pact has not been a factor for many years.
And while repealing the Auto Pact will end discriminatory tariff treatment, JAMA Canada would urge the Canadian Government to take the final step and remove the remaining 6.1% MFN tariff on finished vehicle imports.
With respect to Japanese auto investments in Canada, by 2003 there will be over 750,000 units of production capacity at Canadian operations of Honda, Toyota and CAMI, which represents about twice the level of current sales of all JAMA Canada members.
www.jama.ca /news/2001_02_19/index.asp   (374 words)

  
 End of an Era? International Challenges to the Auto Pact
The Auto Pact Agreement was signed in January 1965 between the governments of Canada and the United States.
It was one of Canada’s first attempts at cementing a stronger bilateral trade relationship with the U.S. The Auto Pact set out to rationalize the automotive industry; reduce tariff and non-tariff barriers; and increase automotive industry investment, production and employment.
This study examines the Auto Pact, the World Trade Organization (WTO) challenge, the options for Canada if changes to the Auto Pact are required and the broader implications of this case for Canadian trade policy.
www.conferenceboard.ca /documents.asp?rnext=150   (291 words)

  
 Testimony: NAFTA and Autos
Three-way auto trade in 2003 was $125 billion, representing 20 percent of total trade among NAFTA partners.
Since the 1965 Auto Pact and the CUSFTA essentially integrated auto trade between Canada and the United States, NAFTA’s greatest contribution to the auto sector was to bring Mexico into the fold.
While North America is somewhat less self-sufficient in the auto sector today than a decade ago, it seems likely that in the absence of NAFTA far more auto jobs would have been lost to Asian and European competitors.
www.iie.com /publications/papers/paper.cfm?ResearchID=612   (922 words)

  
 THE U.S. GETS TOUGH, AND A KOREAN AUTO PACT IS BORN   (Site not responding. Last check: 2007-09-15)
But the Clinton Administration decided to bypass the WTO last year in an attempt to crack open the Korean auto market.
Looks like the artillery threat worked: On Oct. 21, South Korea announced a plan to liberalize the fifth-largest auto market in the world, where foreign makes accounted for less than 1% of the 1.5 million vehicles sold last year.
Korean trade barriers and the nation's faltering economy have kept Big Three sales to Korea to just 321 vehicles so far this year, down from 3,863 total in 1997, according to the office of the U.S. Trade Representative.
www.businessweek.com /bwdaily/dnflash/oct1998/nf81023c.htm   (273 words)

  
 SEMA.org || Specialty Equipment Market Association SEMA
Canada is expected to appeal the still-confidential final WTO panel report that could require the Canadian government to effectively negate the Auto Pact by eliminating the preferential tariff benefits provided to the agreement’s signatories.
In the report the panel found that the Auto Pact’s tariff benefits violated Article 3 of the WTO Agreement on Subsidies and Countervailing Measures (SCM), which prohibits subsidies contingent on the use of domestic rather than imported goods.
The panel also found that the Auto Pact violates the most-favored nation provisions of the General Agreement on Tariffs and Trade and the General Agreement on Trade in Services, which require government to treat foreign goods and services no less favorably than domestic ones.
www.sema.org /Main/SemaOrgHome.aspx?ID=50637   (1586 words)

  
 Brazil, Argentina Two-Year Auto Trade Pact to Favor Argentina
But for the revised auto pact, Argentine automotive industry would have faced acute competition due to a surge in the Brazilian automotive imports into the country.
The two-year pact now gives the local industry participants enough room to devise strategies to counter the duty-free automotive trade with Brazil from 2010 onwards.
The revision in the auto-trade pact will give the much needed fillip to the domestic manufacturers and is also expected to generate positive signals to the global automakers to invest in Argentina.
www.frost.com /prod/servlet/cif-econ-insight.pag?docid=75975206   (748 words)

  
 Canada losing its grip on the auto industry - Capital News Online
The end of the pact may mean job losses, particularly with the industry preparing for a recession.
Under the Auto Pact, car makers would have had to pay tariffs if they had chosen to sell more cars in Canada than they built here.
The Canadian Auto Workers union is urging the government to put a new policy in place to protect Canada's auto industry.
www.carleton.ca /jmc/cnews/16022001/n2.htm   (682 words)

  
 Pact with auto dealer expected (printable version)   (Site not responding. Last check: 2007-09-15)
Carson City is expected on Thursday to take action on an agreement with one of the city’s biggest auto dealers to help him build a new Toyota sales lot and showroom.
Carson City’s new franchised auto dealers generate about 33 percent of the city’s annual sales tax revenue.
The city’s auto mall/auto row workgroup has been working nearly two years on incentive packages to retain the city’s auto sector.
www.rgj.com /news/printstory.php?id=104243   (183 words)

  
 News & Opinion; Auto Talk: GM: Canada Should Levy Tariffs, If Canada's Auto Pact's Scrapped Ward's Auto World - Find ...   (Site not responding. Last check: 2007-09-15)
But that's the position General Motors Corp. is taking in Canada, where status of the Auto Pact - a 34-year-old trade deal with the U.S. - is being threatened.
The Auto Pact, established in 1966, was designed to encourage investment in Canada, while allowing automakers to rationalize production there.
The flap with the WTO is a result of protests by Japan and Europe, which complained many of their carmakers were being unfairly excluded from the pact.
www.findarticles.com /p/articles/mi_m3165/is_1999_Dec/ai_62965407   (358 words)

  
 CBC News - Canada to appeal WTO auto pact ruling   (Site not responding. Last check: 2007-09-15)
The case against the pact was launched by Japan and the European Union.
Once a cornerstone of the Canadian economy, the auto pact was signed in January 1965 by Prime Minister Lester Pearson and President Lyndon Johnson.
Auto pact was signed in January 1965 by Prime Minister Lester Pearson and President Lyndon Johnson
cbc.ca /cgi-bin/templates/view.cgi?/news/2000/02/11/wto000211   (362 words)

  
 CTV.ca | End of auto pact threatens Canadian auto industry
19 2001 5:28 AM ET The Canadian auto industry will reach the end of an era Monday, when the 36-year-old auto pact expires, leaving corporate and political leaders to try to find a way to retain Canada's position in the industry.
Last year, the World Trade Organization ruled that the pact had to expire, because it worked as an illegal export subsidy that favoured the Big Three North American manufacturers over ones based in Europe and Asia.
But the auto pact did indeed provide a vital launch-pad for Canada's prominence in the auto sector.
www.ctv.ca /servlet/ArticleNews/story/CTVNews/1025816461639_21225661   (476 words)

  
 CBC News - Auto pact ruling expected from WTO   (Site not responding. Last check: 2007-09-15)
The World Trade Organization is expected to hand down an interim ruling Wednesday concerning one of the last remnants of the auto pact, a one-time cornerstone of the Canadian economy.
The pact between Canada and the United States was signed in January 1965 by Prime Minister Lester Pearson and President Lyndon Johnson.
A spokesman for Honda Canada agrees that in the new global economy the auto pact has outlived its usefulness.
www.newsworld.cbc.ca /cgi-bin/templates/view.cgi?/news/1999/09/08/wto990908   (343 words)

  
 FTA provides vehicle for driving into the future - Free Trade Agreement between United States and Canada; effect on ...   (Site not responding. Last check: 2007-09-15)
The United States and Canada have agreed to the removal of tariff and nontariff barriers and to new origin rules designed to ensure that the benefits of the U.S.-Canada Free Trade Agreement (FTA) accrue to North American auto and auto parts producers.
This is a more stringent test than the current 50 percent value added test under the Auto Pact.
The FTA will not change the Auto Pact in Canada; however, no new firms may qualify for Auto Pact or pact-like benefits in Canada.
www.findarticles.com /p/articles/mi_m1052/is_n2_v110/ai_7002896   (862 words)

  
 Canada fights for Auto Pact - The Auto Pact: En Route to Free Trade - CBC Archives
The Auto Pact is at the centre of the storm during the Canada-U.S. free trade negotiations in the mid-1980s.
The Auto Pact helped Canada become a carmaking powerhouse so Canadians want to protect it.
In the final agreement, the Auto Pact stays.
archives.cbc.ca /IDC-1-73-326-1717/politics_economy/auto_pact/clip7   (308 words)

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