Mohandes Magazine Winter 2021 - 2022

region as well as from natural gas, coal seams,
hydroelectric dams and uranium deposits.
Demand increased for machinery and equipment
used in exploring, developing and distributing
these energy resources. Increased supply of energy
permitted Canadian manufacturers to achieve
internationally competitive scales of operation.
Canadian-manufactured machinery and equipment
have been used in energy development and
production throughout the world.
In the second half of the 20th century, four key
developments in trade policies and practices
significantly affected Canadian manufacturers.
They included:
20th Century:
Throughout the 20th century, manufacturing contributed
significantly to the economic well-being and prosperity
of Canadians. Between 1945 and 1999, manufacturing
accounted for a high of 24 per cent and a low of 15 per
cent of Canada’s total real output of goods and services,
or Gross Domestic Product
By 1999, manufacturing accounted for approximately
19 per cent of Canada’s Gross Domestic Product, and
2 million jobs. In this period Canada’s manufacturing
industry was strongly affected by computer technology,
energy-price escalation and trade liberalization.
The first industrial computer was introduced in
Canada in 1957. Since then, computer technology has
found widespread use in manufacturing for tasks such
as production, inventory control and accounting. The
use of computer-aided design (CAD), computer-aided
manufacturing (CAM) and robotic technologies has
increased rapidly.
Electronics made the explosive growth of Canada’s
telecommunications industry, which reached worldwide
by the 1980s. Canadian manufacturers participated
in the Aerospace industry by designing and producing
communication satellites.
The rapid rise in world oil prices in the 1970s had a
stimulating effect on the development of Canada’s energy
resources, particularly from bitumen in Alberta’s oil sands
MOHANDES MAGAZINE 8
The Canada-US Automotive Products Agreement
(or “AUTOPACT”);
The General Agreement on Tariffs and Trade (GATT);
Globalization of production; and multi-lateral Free
Trade agreements reached with the US in late 1987 (Free
Trade Agreement or FTA) and its expansion in 1994 to
include Mexico (North American Free Trade Agreement
or NAFTA).
The 1965 Canada-US Automotive Products Agreement
(AUTOPACT) between Canada and the US created a
conditional, duty-free environment which has allowed
the Canadian and US industries to rationalize according
to appropriate economies of scale, resulting in efficient
industries that serve an integrated Canada-US market.
The Autopact benefited both countries at different
times. Canada gained in higher level more production, an
increase in trade and productivity, a greater share of North
American automotive employment and lower consumer
prices.
Canada was one of 23 major trading nations that
signed the original GATT treaty in 1947. GATT was
a multi-lateral agreement signed by 85 nations and 30
provisional signees; its rules called for the elimination of
discriminatory treatment in international commerce in
order to maximize the use of world resources and thereby
raise living standards.
GATT membership was part of a national commitment
to the principle of “freer trade,” which over time increased
the volume of manufactured goods to Canada. There have
WINTER EDITION 2021/2022