Auto Pact
In May of 2000 the World Trade Organization (WTO) ended the Canadian made Auto Pact.c The Auto Pact was an agreement constructed by Pierre Trudeau in 1965 that allowed companies to bring auto parts and vehicles from anywhere in the world into Canada without any tariff, but with two conditions.c One condition was a requirement of commitment to jobs in Canada, manufacturers had to produce one car in Canada for everyone they sold.c They also had to maintain a Canadian Value Added (CVA), which basically means no depreciation on Canadian made machinery and that parts in assembly were also made in Canada.c Automotive trade markets are among the most open in the world. They maintain no tariff barriers. This treaty kept North America happy however; the overseas companies were left with the shorter end of the stick. This caused the fall of the Auto Pact. The Auto Pact is too important to Canada, and Canada will suffer extreme losses.(reword) (give the main points)The 1965 Auto Pact is Canada's most successful trade agreement.c "We should be kissing his ass," says the wise yet youthful Jon Cooper as he refers to Trudeau's ingenious scheme. It is a building block of Canada. Since signing the Auto Pact, the
Canada's main concern with the end of the Auto Pact is the reduction of jobs due to companies not being forced to have manufacturing car plants in Canada anymore. With a statistic like one in seven jobs relates to the automotive industry in some way, one could see the raised concern if production were to decrease. An example of car production impact would be Ford cars recent lay-offs announcement. Owner Bill Ford made several mistakes in attempting to lower quality in order to decrease the prices. This slip cost the company $1.44 billion. This led to a ten percent employment cut amounting to approximately 35, 000 lay-offs. With the Auto Pact no longer existing, there are no restraints preventing Ford from allowing Canadian plants to take the hit. Of course Ford will not in fear of angering Canadian customers, but considering the ratio of employee per country, Canada is taking more of the fall. The overseas automobile was disgusted at the unfair treatment that Canada has given them. In 1998, Canada exported 17 vehicles to Korea, while Korea imports into Canada were around 30,900. This inequity from non-tariff barriers like targeted taxation or the refusal by regulatory bodies to disclose necessary standards compliance information. It is unfair to give overseas companies a 6.1 tariff to bring parts and vehicles into North America. The tariff rate has significantly dropped from a once 17.5 percent in 1965 however; no matter the decrease it is still unfair to not offer the same zero percent tariff. The tariff is only increasing the prices on the vehicles that overseas manufacturers sell the cars at. The oversea auto industries have lost an estimated $1.2 million to Canadian tariffs from 1997-2000.c "A trading pact that has meant so much to the growth of the eco
Some common words found in the essay are:
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Approximate Word count = 1205
Approximate Pages = 5 (250 words per page double spaced)
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