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The Auto Pact: Investment, Labour and the WTO - Investment, Labour and the WTO (Hardcover)
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The Auto Pact: Investment, Labour and the WTO - Investment, Labour and the WTO (Hardcover)
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International Trade Law Canada and the United States signed the
Automotive Products Trade Agreement (Auto Pact) in 1965, thus
resolving a competitive crisis in Canada's auto industry and
extending that industry's vitality for another 35 years - until a
decision of the World Trade Organization (WTO) in February 2000
determined that the Pact violated international trading rules.
Following an unsuccessful appeal by Canada to the WTO's Appellate
Body, the pact formally came to an end in February 2001. For
policymakers and scholars concerned with international trade, the
story of the Pact presents a fascinating case in its own right. The
great value of this remarkable book, however, is its elucidation of
the main issue underlying the Pact and its forced ending: the
relationship between international trade rules on the one hand and
investment measures intended to encourage local economic activity
on the other. In this connection the Canadian auto industry -
centered in Windsor, Ontario, directly across the river from
Detroit, the heart of the industry in the U.S. - offers an
intensely concentrated sample of the triple nexus of investment,
labour and trade that lies at the core of economic development
worldwide. Sixteen expert authors, both practitioners and
academics, here open perspectives on this nexus that are of
profound significance for the future of international trade. These
encompass such matters as the following: the vulnerabilities of a
local community dependent on trade and open borders; labour union
tensions engendered by trade rule "levelling" that takes little or
no account of national or local economic realities; implications
for developing countries of the WTO finding that a
production-to-sales ratio is a prohibited export subsidy; the
impact of Mexico's role under NAFTA on the Canadian auto industry;
national and local regulation of government subsidies intended to
attract investment; ongoing multinational efforts to create a
multilateral regime to protect and regulate foreign direct
investment; and the persistent failure of the WTO to reach a
consensus on labour standards despite the clear provisions of major
international law instruments. All these issues and more are
brought into sharp focus by the history of the Auto Pact and the
implications of its demise. For this reason, this collection of
insightful essays will be of incomparable value to professionals in
every area of international trade. The Auto Pact: Investment,
Labour and the WTO was produced with the support of the
Canadian-American Research Centre for Law and Policy at the Faculty
of Law, University of Windsor.
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