The Auto Pact

The auto pact is a trade agreement between Canada and the United States for automotive parts and vehicles. It is known as the most successful trade agreement, helping Canada become one of the world’s biggest automobile producing countries. This agreement allowed North American companies to import cars duty-free from anywhere in the world. It also guaranteed free trade of automobiles and parts between Canada and the US. This meant that manufacturers could locate their …

…overseas but being able to benefit like North America did. This ruling put an end to the thirty-six year trade agreement between the two counties. This pact was a great boost in the Canadian and American automotive industries. Since our economies are a great deal from the automotive industry, the governments also benefited. The pact greatly expanded the automobile industry. It is because of this that our society today relies on cars like we do.