Free or Fair Trade: A Case Study

Abstract

The tire industry had been going through substantial changes over the years due to domestic over-capacity and overseas competition. Uniroyal Goodrich was the largest tire manufacturer in Canada who was faced with drastic changes in the industry as well. Given that the Canadian economy was heavily dependant on the trade with the U.S., it was necessary to understand the turbulence and join the North American trade bloc with the U.S. and Mexico. This was the logical method to survive under a competitive free trade market. Furthermore, to encourage fair trade, the federal and provincial governments must have assessed foreign tire manufacturers based on the same sets of rules and regulations as existing Canadian companies. Without consistent industrial support by the government to ensure fair trade, it was challenging for Canadian tire manufacturers to access and thrive in a competitive global market.