Before the signing of the 1965 Auto Pact by Canada and the US, American car companies were forced to produce Canadian-specific models in branch plants located largely in Ontario. But with America exporting most of the required components, Canada racked up big trade deficits due to the value of parts crossing the border. The Auto Pact abolished automobile-related tariffs between the 2 countries and, in exchange, the Big 3 automakers pledged that Canadian auto production would not fall below 1964 levels. Canada would produce a smaller variety of vehicles, but in greater numbers – many of which … [Read more...]