Auto industry relieved by nafta 2.0 but results may be mixedAutomotive associations seek a North American agreement. Now, Canadian officials think the accomplishment of the NAFTA renegotiation, set to commence Aug. 16, hinges on Trump’s capability to claim a win on the auto front. And they believe the route to that victory lies in stricter labour and environmental standards to lessen Mexico’s low-wage advantage. As of this writing, the automotive industry in Mexico is in a state of uncertainty due to the approach of the renegotiation of the NAFTA.
Ross has mentioned that NAFTA’s guidelines of origin need tightening to avoid producers from outdoors the area to benefit from tariff-free access to the U.S. industry. He also has noted that autos now have several new electronic elements that have been not contemplated when the pact was negotiated in the early 1990s. chorus of automotive executives and sector groups warning that the Trump administration’s tough-line stance in talks to renegotiate Nafta could lead to unfavorable consequences for the sector.
The demands are aimed at meeting U.S. President Donald Trump’s NAFTA objectives of stemming the flow of U.S. carmaking jobs to low-wage Mexico and reversing a $64 billion U.S. trade deficit with its southern neighbor. warned such adjustments will upset a thriving North American auto market by burdening the complex supply chain erected about Nafta with added fees and complexity.
Automakers Want A Nafta That Keeps U.s. Auto Sector StrongAuto Industry Relieved By NAFTA 2.0, But Results May Be
nafta effect on canada auto industryOn September 30, 2018, a month after the U.S. and Mexico moved toward replacing the North American Free Trade Agreement (NAFTA), Canada joined to create a new continental trade agreement. Flavio Volpe, president of Canada’s Automotive Components Manufacturers Association, also stated Canada and Mexico would attempt to convince U.S. …Read more