Government Efforts to Protect the Automobile Industry

22 The operation of facilities in both the United States and Canada, however, was not the most operationally streamlined method of operation for the Americanautomobile manufacturers. The American market in 1965 was just about 8.5 times as large as was the Canadian market, and there were more efficient ways of arranging production to march the adjacent markets than operating a completely separate gear up of production facilities in Canada.

Further, the automobile workers in Canada and the United States were, by the 1960s, members of the same international dig out unionthe United railcar Workers (UAW). The Canadian locals felt that access for Canadian production to the American market would improve their opportunities for work. Pressure, thus, was placed on both the Canadian and the American governments by both management and labor in the automobile and automobile move patience in each country.

An agreement was eventually reached between the twain countries which covered trade between the two countries in

22C. E. Beigie, The CanadaU.S.

self-propelled Agreement: An Evaluation (Toronto: Macmillan of Canada, 1982), 79.

automobiles and automobile parts. The effect of the resulting Pact was to bear off tariffs and all other duties on automobiles and automobile parts produced in one of the two countries and shipped to the other. In automobiles and automobile parts, at le

26automobile worker jobs added by Honda were, to a great extent, added at the expense of similar jobs at normal Motors, Ford, and Chrysler.

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