What was the purpose of the Auto Pact between the US and Canada?

Study for the Ontario Grade 10 History Exam. Prepare with quizzes and multiple choice questions, complete with hints and explanations. Get ready for your test now!

The Auto Pact, officially known as the Canada-United States Automotive Agreement, was primarily designed to eliminate tariffs on car manufacturers' exports between Canada and the United States. By removing these tariffs, the agreement aimed to encourage trade and investment in the automotive sector, benefiting both countries' economies. The Auto Pact allowed automobile manufacturers to produce vehicles more efficiently by capitalizing on the integrated supply chains and resources available in both countries. As a result, companies could sell their cars without the added costs associated with tariffs, fostering a competitive environment and strengthening the automotive industry in North America.

While some of the other options might touch on relevant themes related to trade and cooperation, they do not accurately describe the main objective of the Auto Pact. For instance, it was not focused on immigration barriers, manufacturing regulations, or tourism, which reflect broader or different aspects of bilateral relations between Canada and the U.S.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy