Word: trudeau
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Trouble is, the issue is tangled in the election-year rhetoric of both countries. Prime Minister Trudeau has received so much mail on the auto pact that his political advisers are convinced that any major concessions could cost him a half dozen parliamentary seats from car-producing Ontario in this year's election. U.S. officials have taken to playing on Canadian fears of congressional retaliation, possibly by a reimposition of the 7% excise tax on Canadian-made cars-although things are not likely to come to that for some time. "There are elements in this country which are protectionist...
...Canadian nationalists would like, the report is expected to urge closer screening of foreign investments and possibly even compulsory Canadian shareholding of 51% or more in some local subsidiaries of non-Canadian corporations. That is hardly the sign of friendly capitulation that U.S. negotiators are impatiently awaiting from Canada. Trudeau said last week that his government planned to persist in scheduling new trade talks. Even so, the chances are unfortunately strong that U.S.-Canadian trade relations will grow still worse before they get better...
...Canada. "If the safeguards were lifted," said one official, "there would be no incentive for car manufacturers to stay in Canada." Because of higher taxes, a smaller market and other factors, Canadian-built cars retail for $200 to $800 more than equivalent models made in the US. The Trudeau government is afraid that Canadians would rush across the border to buy U.S. cars if the tariff were dropped. Finally, the auto pact has become a symbolic issue in Canadian politics and could affect the outcome of the federal election that is expected next June. Canada's auto-parts industry...
...have an agreement covering many other trade issues-notably relaxation of U.S. restrictions on purchases of Canadian uranium, aircraft and farm-machinery parts-ready for the President's signature. But if neither side tempers its stand on the auto pact, Nixon may sign nothing more important than Trudeau's guest book...
Canada's Premier, the proud parent of month-old Justin Trudeau, was given a copy of Dr. Benjamin Spock's Baby and Child Care. "Very interesting," said Pierre Trudeau. "I knew he was an antiwar leader, but I never realized he knew anything about babies...