Defence Production Sharing Agreement
Encyclopedia
The Defence Production Sharing Agreement is a bilateral trade agreement between the United States
and Canada
that aims to balance the amount of military cross-border buying in order to avoid trade imbalances. Since its signing in 1956, it has led to a number of US companies sending military production to Canada in order to "offset" Canadian purchases of US military equipment. The Agreement has been amended on several occasions. The similar Defense Development Sharing Program organized sharing of military research and development.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
and Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
that aims to balance the amount of military cross-border buying in order to avoid trade imbalances. Since its signing in 1956, it has led to a number of US companies sending military production to Canada in order to "offset" Canadian purchases of US military equipment. The Agreement has been amended on several occasions. The similar Defense Development Sharing Program organized sharing of military research and development.