119 111 IMPACT OF THE AGREEMENT ON UNITED STATES AND CANADIAN TRADE United States and Canadian Automotive Consumption, United States and Canadian consumption 1/ Automotive products. --Canada, accounting for 9 percent of the combined United States and Canadian population during the period 1960-64, 2/ accounted for less than 7 percent of United States-Canadian consumption of passenger automobiles, 3/ less than 7.5 percent of United StatesCanadian consumption of trucks and buses, 4/ and less than 6.5 percent of United States-Canadian consumption of original-equipment motorvehicle parts made in the United States or Canada. 5/ While both United States and Canadian consumption of automotive products grew overall during 1960-73, Canada's grew slightly faster than that of the United States, somewhat closing the gap between Canada's share of the United States-Canadian population and Canada's share of United States-Canadian automotive consumption. In 1973, Canada accounted for 9.5 percent of United States-Canadian population, 7.6 percent of United States-Canadian automobile consumption, 7.2 percent of United States-Canadian truck and bus consumption, and 10.1 percent of United States-Canadian consumption of original-equipment motorvehicle parts made in the United States or Canada. In 1974, Canada Data on United States and Canadian consumption of passenger automobiles are presented in tables 1-21 of this report. Data on United States and Canadian consumption of trucks and buses are presented in tables 53-64, and data on United States and Canadian consumption of originalequipment motor-vehicle parts are presented in table 80 of this report. 2/ See table 5 of this report. 3/ See table 1 of this report. 120 112 accounted for 9.6 percent of United States-Canadian population, 9.1 percent of United States-Canadian automobile consumption, 9.3 percent of United States-Canadian truck and bus consumption, and 12.2 percent of United States-Canadian consumption of original-equipment parts made in the United States or Canada. Passenger automobiles. --During the period 1964-74, Canada's consumption of passenger automobiles followed the same patterns followed by United States consumption, reaching peaks and valleys in just about the same years in both countries. Peak years for consumption of passenger automobiles in the United States and Canada were 1965 (9.3 million vehicles in the United States and 685,000 vehicles in Canada), 1969 (9.4 million vehicles in the United States and 756,000 vehicles in Canada), and 1973 (11.4 million vehicles in the United States and 935,000 vehicles in Canada). Some decline in Low consumption figures owing to strikes against the united State: and Canadian operations of the Ford Motor Company and General Motors Corporation occurred in 1967 and 1970 respectively. consumption ordinarily follows a record sales year in any event, but in 1974 the expected decline was deepened by the oil boycott by certain Middle Eastern petroleum producing countries that began in October 1973 and the quadrupling of prices of petroleum from virtually all producing countries. The recession, at least partly generated by the above facto further reduced automobile sales in the United States and canada althou the decline in Canada was not as great as that in the United States. In 1974, United States consumption amounted to 8.7 million vehicles and 121 113 Canada's amounted to 872,000 vehicles. The decline continued in both countries during the early part of 1975. Passenger automobiles imported from third countries accounted for an increasing share of the United States market and a declining share of the Canadian market during the 1960's and the 1970's. In the early 1960's imports from third countries accounted for up to a quarter of Canada's total consumption 1/ while accounting for only 5-7 percent of the United States market. 2/ By 1974. the third-country import share of the United States market had grown to 16 percent while the thirdcountry share of the Canadian market had dropped to 16 percent. During the first half of 1975, third countries accounted for 20 percent of United States consumption and 15 percent of Canadian consumption. As a result of Canada's greater dependence on imports from third countries to fulfill most of its demand for small cars (vehicles having wheelbases of less than 112 inches in length), small cars of United States-Canadian-type accounted for a smaller share of Canadian consumption than of United States consumption during the early 1960's. In 1964, United States consumption of small United States-Canadian-type automobiles accounted for 19 percent of total United States consumption of United States-Canadian-type automobiles. 3/ In Canada, the comparable 1964 ratio was 15 percent. 4/ By 1974, however, 39 percent of United 1/ See table 3 of this report. 122 114 States-Canadian-type automobiles consumed in the United States were small cars and the corresponding ratio in Canada was 40 percent. The Big Four passenger-automobile producers in the United States and their Canadian affiliates and subsidiaries have accounted for virtually all of the consumption of United States-Canadian-type passenger automobiles in the United states and Canada since 1960 prior to 1965, they accounted for 98.1-99.5 percent of United States consumption, 1/ and 98.1-98.7 percent of Canadian consumption; 2/ since 1967 they have accounted for 99.9 percent of United States consumption and 100 percent of Canadian consumption. General Motors is the leading supplier of United States-Canadiantype passenger automobiles in both countries, accounting for more than half of United States consumption and 40-45 percent of Canadian consump tion in most of the years since 1960. Ford Motor Company accounted for 25-30 percent of the market in both Canada and the United States during the period 1960-74. Chrysler Corporation accounted for 13-18 percent of the United States market in most of the years under consideration. but its share of the Canadian market grew significantly between the early 1960's and 1974. During the period 1960-64. Chrysler accounted for 12-18 percent of the Canadian market, and by 1974 it accounted for about a quarter of Canadian consumption. 1/ See table 11 of this report 2/ See table 15 of this report. 123 115 Trucks and buses. --United States and Canadian patterns of consumption did not follow parallel lines for trucks and buses as they had for passenger automobiles during the period 1960-74. Although consumption generally trended upward in both countries through 1973. United States consumption generally fluctuated during the period while Canadian consumption, with only one exception, was higher each year than in each preceding year. United States consumption of trucks and buses increased from less than 1.4 million vehicles a year prior to 1965 to peaks of 1.6 million vehicles in 1966, 1.9 million vehicles in 1969 and 3 million vehicles in 1973. Years of low United States consumption were 1967 with 1.5 million vehicles, 1970 with 1.8 million vehicles and 1974 with 2 7 million vehicles. Consumption of trucks and buses in the United States during the first 6 months of 1975 was substantially lower than it had been during the first 6 months of 1974. Canadian consumption of trucks and buses increased from less than 105,000 vehicles prior to 1965 to 153,000 vehicles in 1969, declined to 129,000 vehicles in 1970 and increased annually thereafter to 272,000 vehicles in 1974. A further increase in canadian consumption of trucks and buses occurred between the first 6 months of 1974 and the first 6 months of 1975. A strike by the UAW against Ford Motor Company's United StatesCanadian operations in 1967 resulted in reduced United States consumption of trucks and buses and a slowing of the increase in Canadian consump tion in that year Likewise, a strike by the UAW against General Motors 1 See table 53 of this report |