Mexican Media Brands
Canada, Mexico, U.S. Sign New Trade Pact
Today the leaders of the U.S., Canada and Mexico signed a trade pact intended to succeed the North American Free Trade Agreement.
#economics
Share
Today the leaders of the U.S., Canada and Mexico signed a trade pact intended to succeed the North American Free Trade Agreement.
The ceremony during this week’s G20 summit meeting in Buenos Aires, Argentina, caps bruising negotiations and political posturing. “It’s been a battle,” acknowledges President Donald Trump, who launched the negotiations in August 2017 after condemning NAFTA as the “worst trade deal ever.”
Called the U.S.-Mexico-Canada Agreement, the pact now faces months of ratification by the legislatures of the three countries. In the U.S., Democrats promise a fight to make the deal stronger on worker pay, job generation and environmental protection.
Trump predicts easy passage for the USMCA. So does U.S. Trade Representative Robert Lighthizer, who expects ample support from Democrats. “The negotiations are not going to be reopened,” he declares. “The agreement’s been signed.”
Skeptics, including auto industry groups, caution that the new agreement adds complex compliance standards that could discourage future investment in the region. The accord raises the local content requirement to 75% from 62.5% and stipulates that 40% of a vehicle’s content must be made by workers who are paid at least $16 per hour.
RELATED CONTENT
-
On Global EV Sales, Lean and the Supply Chain & Dealing With Snow
The distribution of EVs and potential implications, why lean still matters even with supply chain issues, where there are the most industrial robots, a potential coming shortage that isn’t a microprocessor, mapping tech and obscured signs, and a look at the future
-
On Headlights, Tesla's Autopilot, VW's Electric Activities and More
Seeing better when driving at night, understanding the limits of “Autopilot,” Volkswagen’s electric activities, and more.
-
On Quantum Navigation, EVs, Auto Industry Sales and more
Sandia’s quantum navi, three things about EVs, transporting iron ore in an EV during the winter, going underwater in an EV (OK, it is a sub), state of the UK auto industry (sad), why the Big Three likes Big Vehicles, and the future of logistics.