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Mexico Pact Eases Car Makers’ Concerns
Automakers will have to ensure that 40 to 45% of a car's content is made by workers in the U.S. earning at least $16 per hour. If this is not met automakers pay a 2.5% tariff for cars brought in from Mexico. Mexico makes 2.3 million cars and Canada 1.8 million. Automakers invested tens of billions of dollars in Mexico turning it into a lower cost export hub. This has led to job loss in the U.S. Mr. Trump's efforts in the new trade deal with Mexico are designed to increase investment in the U.S. auto industry.
United States - Mexico Trade Agreement, USMCA
08/28/2018
President Trump pushes forward with a trade deal with Mexico to replace NAFTA, leaving out Canada. The new deal changes provisions that allowed Mexico to challenge U.S. trade penalties. It also require the 40-45% of U.S. content to be made using wages of at least $16 per hour. Automakers had invested tens of billions in Mexico to turn it into an export hub using lower cost labor, hurting American workers. The deal is aimed at increasing investment in American jobs in the auto industry.
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Mexico Pact Eases Car Makers’ Concerns
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Linked Articles
Mexico Pact Eases Car Makers’ Concerns
WSJ 08/28/2018
What the U.S.-Mexico Trade Pact Says
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