Document jBBrL7VOwK2G9X378Qqd4Mr5k

For tho past scvoral years the Crnadien operation has been relatively static, and while advances have been cade in certain sectors, growth has been inhibited by the size of the total market, the difficulty of innovation, and the uncertainty regarding the future of the Automotive Free Trade Agreement. labile thi3 Agreement has not yot been extended to cover replacement parts, opinion iJ graving that despite opposition in seme quarters on both sides of the border1, this will ultimately happen. In the meantime, the not/ Anti-Imping Act recently enacted in Canada makes it easier to import into Canada at io-.rer price3 then before, because the imposition of dumping duty is no longer automatic, end requires a complaint by or. injured paroy before a penalty may- bo imposed. In other words, tho selling price to the purchaser in Canada need no longer bo the same as the Fair Market Value in tho country of origin, although Fair Market Value remains tho basis of customs duty. With th3 partial lowering of the tariff barrier in mind, plus the probability of its complete disappearance, v.m have prepared alternative summaries of the Five-- Tear Strategic Han and trill ultimately submit two alternative plans. Tho Basic Plan is predicated cm no change in the Automotive Trade Agreement, i. and v-m be `submitted complete with numbers. Tho Alternative Fl-~n will assume an early abolition of tariff barriers and will propose scao very far-reaching changes. Bocauoo of its radical Batura wo are taablo to include numbers, but at a later date wa will have gathered sufficient information to complete a projection. Basic Pl-.n (a) Statement of Objectives SPNY 005418 (l) Achieve 3.5 million dollars in ;hipnar.ts from AEB Canada in 1974. Normal growth would yield 2.S ; Hion. Hcvsvor by penetration of the U.S. bonded shoe exchar"r. --i-- SCF-ABEX-0037