The U.S.-Canadian Automotive Products Agreement of 1965: An Evaluation for Its Twentieth Year, PRP 68
LBJ School of Public Affairs
This study will describe the specific difficulties which have arisen in the auto agreement itself and more recently in the changing nature of the auto industry. First, this report will describe the APTA in detail, discussing its origin and negotiation. Historical automotive trade data will be presented. Other reviews and studies of the auto pact will be examined. The report will describe current trade and economic situations to provide a context for the examination and debate of specific issues. Second, this report will analyze the changing environment of the agreement and discuss suggestions that have been offered in response to these changes. In doing so, it will assess the costs and benefits of implementing these suggestions. In particular, the possibly extensive effect of these proposals on labor, parts manufacturers, distributors, and local governments will be examined. Furthermore, discussion will focus on the significant effect of the recent recession on the auto industry. This study will present a number of options and recommendations. These recommendations will take into account the political pressures, anxieties, statutory limitations, and economic conditions of both the United States and Canada. Some suggestions will be original; others will restate points made by other authorities. The conclusion will summarize this report's recommendations.