Auto Pact

June 14, 2017

Cartoon by George Shane

By George Shane. Library and Archives Canada, 1991-26-295

1965

The Liberal government of Lester B. Pearson, in an attempt to increase exports to the United States, negotiated and signed the Canada-U.S. Automotive Products Agreement (known as the Auto Pact) in 1965. It created a single North American market for motor vehicles and parts. This agreement allowed manufacturers to rationalize their production for one market, and lower consumer prices. Canada was able to increase its share in the Canada-U.S. automotive industry to about 10 percent, which was double the pre-1965 figure.

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