Automotive industry in mexico pdfAs of the end of the previous year, the 3 nations that are a party to the NAFTA have not come to an agreement on the type that the updated guidelines of origin will take. A separate side agreement lays out a possible scenario in which the United States increases its standard most-favored nation” tariffs on autos, presently two.5 %. A possible new, unspecified rate would be applied to cars that do not meet the current or revamped NAFTA. Then-Guanajuato Gov. Vicente Fox, a pro-trade businessman who later became Mexico’s president, promoted creation of an automotive cluster to join the shoe market, mining and agriculture as economic drivers.
No wonder the talks to renegotiate NAFTA make progress in most chapters except for the automotive sector, exactly where the U.S. desires to change the guidelines of origin. In spite of a couple of dents to Mexico’s build up of auto assembly capacity, most OEMs with plant projects beneath development did not blink at the prospect of a NAFTA-much less situation, the potential election of an extreme populist President or larger earnings tax prices south than north of the border.
A lot more utilized cars are obtaining their way into Mexico, says the automotive business. How The Auto Business Is Reacting To The Tentative U.S.-Mexico Trade Deal NPR’s Ari Shapiro speaks with Michelle Krebs, an executive analyst at Autotrader, to get an notion of what the auto sector thinks of the trade deal announced Monday among the U.S. …Read More