Canada–United States Automotive Products Agreement

The imposition of the tariffs led American automobile companies to produce models of cars specifically for sale in Canada, assembled at branch plants there.

[11] The jobs created by the new market conditions under the pact were almost exclusively blue collar; administration, research and development remained in the United States.

[12] By January of 1994, the new NAFTA agreement had gone into effect, which now included free trade on various other goods and products not just limited to automobiles, and had Mexico as a member as well.

[13] By joining the new WTO a few years earlier, Canada and the USA would be subject to its rulings and face a potential expulsion from the group if it did not comply by shutting down the Auto Pact.

The Auto Pact was abolished in 2001 after a WTO ruling declared it illegal, though by that time the North American Free Trade Agreement had effectively superseded it.