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From the back cover: In this study, economist Ross Perry shows that all indicators point to a further restriction in the Canadian auto industry, resulting in further shrinkage of employment and the possibility of a major deterioration in the country's balance of payments. While the objective of the Auto Pact and Canadian automotive trade policy has always been job creation, Perry concludes that it will be increasingly difficult for the Canadian industry to be both viable and to generate jobs for the industrial heartland of Southern Ontario. Perry examines areas of specialization where Canada, with its advantages in energry-intensive products, could be competitive in the world market, and he outlines the two basic options for national policymakers - restructuring the industry for viability or resisting its decline.
Of developments in automotive policy in the United States and Canadaduring the past quarter century, and the prospects for the future. Alsoincluded is a discussion of the internationalization of the auto industry. Data are presented on trade balances between Canada and the United Statesfrom 1966-86 and Canadian value added from 1965-82.
Canada and the United States signed the Automotive Products Trade Agreement (Auto Pact) in 1965, thus resolving a competitive crisis in Canada's auto industry and extending that industry's vitality for another 35 years, until a decision of the World Trade Organization (WTO) in February 2000 determined that the Pact violated international trading rules. Following an unsuccessful appeal by Canada to the WTO's Appellate Body, the pact formally came to an end in February 2001. For policymakers and scholars concerned with international trade, the story of the Pact presents a fascinating case in its own right. The great value of this remarkable book, however, is its elucidation of the main issue underlying the Pact and its forced ending: the relationship between international trade rules on the one hand and investment measures intended to encourage local economic activity on the other. In this connection the Canadian auto industry and– centered in Windsor, Ontario, directly across the river from Detroit, the heart of the industry in the U.S.and– offers an intensely concentrated sample of the triple nexus of investment, labour and trade that lies at the core of economic development worldwide. Sixteen expert authors, both practitioners and academics, here open perspectives on this nexus that are of profound significance for the future of international trade. These encompass such matters as the following: and•the vulnerabilities of a local community dependent on trade and open borders; and•labour union tensions engendered by trade rule 'levelling' that takes little or no account of national or local economic realities; and•implications for developing countries of the WTO finding that a production-to-sales ratio is a prohibited export subsidy; and•the impact of Mexico's role under NAFTA on the Canadian auto industry; national and local regulation of government subsidies intended to attract investment; and•ongoing multinational efforts to create a multilateral regime to protect and regulate foreign direct investment; and and•the persistent failure of the WTO to reach a consensus on labour standards despite the clear provisions of major international law instruments. All these issues and more are brought into sharp focus by the history of the Auto Pact and the implications of its demise. For this reason, this collection of insightful essays will be of incomparable value to professionals in every area of international trade. The Auto Pact: Investment, Labour and the WTO was produced with the support of the Canadian-American Research Centre for Law and Policy at the Faculty of Law, University of Windsor.
Aspects of the auto manufacturing industry and the consumer automobile market in Canada are then presented, followed by a discussion of how industry and market policies could be aligned to benefit the auto sector, consumers and the environment. [...] Table of Contents Vehicle Fuel Efficiency and the Case for Regulated Standards 1 The Auto Manufacturing Industry in Canada 4 The Consumer Automobile Market in Canada 7 Aligning the Auto Industry and Markey Policies 12 Concluding Remarks 15 Pollution Probe 18 A Strong Canadian Auto Industry in a Fuel Efficient Future Vehicle Fuel Efficiency and the Case for Regulated Standards Environmental and eco [...] The advancements to improve fuel efficiency figures on page 3 offer one explanation why: levels, despite the pricier fuel regime.8 as technology is added to a vehicle to raise Opportunities to improve fuel efficiency were fuel economy, the incremental price of the often traded off against increases in other vehicle increases - but so do the fuel savings. [...] The US and Canadian vehicle markets are Due to the differences in the Canadian and different in this way, but also in other ways. [...] Otherwise, the potential of Canada's The shift in Canada's auto market towards market to contribute to the global demand smaller vehicles is part of a developing global for fuel efficient vehicles and technologies trend.