3 i ACKNOWLEDGEMENT The Commission acknowledges with appreciation the able assistance of the staff of the United States International Trade Commission in the preparation of this report. ii CONTENTS OF VOLUME I Page Preface Introduction Nature of statistical data used to determine the impact Official United States import and export statistics- Transfer pricing data obtained by questionnaire from the major motor-vehicle manufacturers▬▬▬▬▬▬▬ Definitions of terms and concepts used in this report Overview of the agreement: Its history, terms, and impact- Terms of the agreement. Economic impact of the agreement Suggestions received for changes in the agreement or its Suggestions to limit the operation of the agreement- Suggestion to terminate the agreement- United States and Canadian automotive production, consumption, and trade flows prior to 1965-----United States and Canadian automotive production and consumption----- 51 51 Terms of the agreement United States and Canadian trade in automotive United States and Canadian automotive prices- The Bladen report. Canada's duty-remission plans- The threat of U.S. countervailing duties---The Agreement Concerning Automotive Products Between the Government of the United States of America and the Government of Canada, and the "letters of undertaking" relating to the agreement 58 61 63 66 66 67 68 Preamble 70 70 70 71 75 5 iii Provisions affecting duty-free entry into Canada-Annex A of the agreement ----- Collateral commitments; the "letters of under- taking" signed by the Canadian motor-vehicle Implementation by the United States- United States and Canadian trade-agreement policy----- Automotive Products Trade Act of 1965--- United States GATT waiver------- Certain adminstrative matters pertaining to the agreement- United States antidumping and countervailing duty Canadian administration of the restrictions in annex A of Impact of the agreement on United States and Canadian United States-Canadian automotive trade balances- Efforts of the Canadian motor-vehicle manufacturers to meet their commitments to the Government of Canada- United States and Canadian automotive prices-- Impact of the agreement on United States and Canadian investment expenditures and income----- Impact of the agreement on the United States balance of payments WARE AND HAND 151 Some statistical problems 151 Operations of the agreement that impinge on the United States-Canadian balance of payments Impact of the agreement on employment- United States adjustment assistance 151 154 154 157 157 Labor productivity in the assembly of passenger automobiles in the United States and Canada 164 Trends in United States and Canadian wage rates----- Profit-and-loss experience of United States motor-vehicle Profit-and-loss experience of Canadian motor-vehicle Profit-and-loss experience of General Motors Corporation- General Motors of Canada-- Profit-and-loss experience of Ford Motor Company Ford Motor Company (U.S.) Ford Motor Company of Canada Limited 164 165 167 167 170 171 171 172 173 173 173 Profit-and-loss experience of American Motors Corpora Profit-and-loss experience of International Harvester 7 V CONTENTS OF VOLUME II Page Appendix D.-Canadian Orders in Council establishing rebate Appendix E.--United States-Canadian Automotive Agreement Appendix F.--Letters of Undertaking- Letter from General Motors Co. of Canada, Ltd., Letter from Ford Motor Co. of Canada, Ltd., January 14, Letter from Ford Motor Co. of Canada, Ltd., January 14, Letter from Ford Motor Co. of Canada, Ltd., January 14, Letter from Chrysler Canada Ltd., January 13, 1965-------- Letter from American Motors (Canada), Ltd., January 14, Appendix G.--Canadian Orders in Council implementing the Appendix H.-Canadian Order in Council repealing rebate plan- L-1 M-1 |