The Canada-U.S. free trade agreement and the auto pact: a history of the automotive provisions and an examination of the state of the Canadian automotive industry
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The efficiency of Canadian firms was expected to improve under the Auto Pact with the U.S., which allowed duty free passage of new automotive equipment subject to certain conditions designed to protect the weaker Canadian industry. The Auto Pact was prevented by these Canadian safeguards from being a true free trade agreement (FTA), but it was an important step towards reducing the barriers to bilateral automotive trade.
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