This audio interview features attorney Leslie A. Glick, an attorney specializing in International Trade and Customs.
“This is a model agreement that changes the trade landscape forever, and this is an agreement that first and foremost benefits working people, something of great importance to all three of us here today,” the President said.
After months of stalls and deliberations, late Sunday night, the United States, Canada and Mexico reached a new trade agreement to replace NAFTA right before the U.S.-imposed Sunday deadline.
Global Business Professor’s latest Audio Interview, “Automotive Growth in Mexico: What to Expect from the U.S.-Mexico Trade Agreement” features Hector Soto, managing director, San Luis Potosi Automotive Cluster (Mexico).
The White House announced that the U.S. and Mexico reached a preliminary agreement to modernize the North American Free Trade Agreement (NAFTA). The preliminary agreement, called the United States-Mexico trade agreement, currently excludes Canada, but sources say the three countries are working toward a three-way agreement possibly by the end of this week.
MEMA says that, while it appreciates the progress made by the Trump Administration and the Mexican government, it encourages a renewed focus on a three-party agreement that includes Canada.
The letter lists five specific recommendations to improve NAFTA, including retaining a tariff shift for automotive parts and providing incentives to U.S. companies to train and expand the U.S. workforce.
A 15 percent border tax would cost U.S. automakers and suppliers $22 billion a year, net; from leaving NAFTA, a 20 percent tariff on Mexican imports would drive up production costs per vehicle by $650 on average, according to BCG analysis.
In the letter, the three associations strongly support maintaining NAFTA and efforts to modernize the agreement, including “expand[ing] the existing framework that protects investments, facilitates trade and creates competitive value chains that benefit our members and their customers.”
After weeks of voicing a clear position on behalf of its members regarding renegotiating or modernizing the North American Free Trade Agreement, the Motor & Equipment Manufacturers Association testified before the United States Trade Representative during a June 28 public hearing.
The association took a firm stance on behalf of its members arguing that great care needs to be taken in renegotiating or modernizing the North American Free Trade Agreement.