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Posts Tagged ‘NAFTA news’

Trump Negotiators’ New Autos Proposal May Kill NAFTA Talks

Auto industry pleads for deal to be left alone.

by on Oct.13, 2017

Commerce Secretary Wilbur Ross is optimistic the U.S., Canada and Mexico will be able complete a renegotiation of NAFTA before the end of the year.

Trump Administration officials may have just offered up the proposal that puts the final nail in the coffin of renegotiating the North American Free Trade Agreement as the largest potential beneficiary of the plan, the automotive industry, begs for the deal to remain unchanged.

U.S. negotiators proposed more stringent content standards on vehicles, engines and other components that would be largely favorable to U.S. companies, immediately drawing backlash from Canadian and Mexican officials. President Trump has long advocated pulling out of the deal, including earlier this week.

The Last Word!

The administration believes vehicles must have more regional content to qualify for NAFTA tariff-free access, according to Reuters. Reportedly, Trump officials want to increase the North American content mandate to 85% from its current level of 62.5%, and 50% of content must be produced in the U.S. (more…)

Automakers Wary of Trump’s Plans for NAFTA Talks

President's plans contradict auto industry interests.

by on Aug.14, 2017

Negotiating points outlines by the Trump Administration have U.S. automakers concerned.

Despite continued promises to bring back automotive manufacturing jobs to the U.S. through a renegotiation of the North American Free Trade Agreement, the Trump Administration’s efforts are likely to harm to the auto industry.

The NAFTA talks are nearly set to begin and a few of the major sticking points outlined by U.S. negotiators have auto industry officials wringing their hands over the anticipated negative impact they’ll have.

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In attempt to increase the number of auto jobs, U.S. Trade Representative Robert Lighthizer wants to strengthen the rules of origin to block more parts from Asia as well as set a U.S.-specific content requirement for vehicles coming into the U.S. from Mexico. (more…)

Big Changes to NAFTA Could Put Big Hurt on US Consumers

Study shows automakers could see a big increase in costs.

by on Jul.19, 2017

The Big Three automakers would like NAFTA to remain status quo; however, the Trump administration is renegotiating the deal next month.

The proposed border adjustment tax and withdrawing from the North American Free Trade Agreement are unlikely to achieve President Donald Trump’s goals of keeping manufacturing jobs in the U.S. and could actually hurt manufacturing in the process.

Those moves by Trump, if enacted, wouldn’t reverse the trend of moving manufacturing jobs to low-cost countries and could potentially harm the U.S. motor vehicle industry by driving up the cost of new vehicles by hundreds of dollars and leading to the elimination of thousands of jobs in the U.S., a new study found.

Insight!

The study, commissioned by the Motor & Equipment Manufacturers Association (MEMA) and conducted independently by the Boston Consulting Group examined the real-world implications of a border tax and changes to NAFTA on the motor vehicle sector, which now depends on an integrated supply chain the depends on plants in Canada, the U.S. and Mexico. (more…)

No Change to NAFTA Rule of Origin, Mexico Auto Exec Says

Trump readying for trade deal negotiations.

by on May.23, 2017

The Big Three automakers would like NAFTA to remain status quo; however, the Trump Administration is renegotiating the deal this summer.

Trump Administration officials recently began the official process to open talks about renegotiating the North American Free Trade Agreement and they’re going to find the auto industries officially agree on at least one point.

The auto industries in the U.S., Mexico and Canada all believe there shouldn’t be any changes to the rules of origin, Eduardo Solis, president of the Mexican automakers industry group AMIA, told Reuters.

Trade News!

“Our position is that the trade agreement has been a success, and we shouldn’t be touching something as important as the rules of origin,” Solis told Reuters. (more…)

Trump Administration Begins Process of Renegotiating NAFTA

Talks will begin in August.

by on May.19, 2017

The Big Three automakers would like NAFTA to remain status quo; however, the Trump Administration is renegotiating the deal this summer.

The Trump Administration has begun the formal process required to open the renegotiation of the North American Free Trade Agreement this coming summer.

President Trump notified Congress this week of his intent to renegotiate the North American Free Trade Agreement. The talks with Canada and Mexico will begin “no earlier than August 16, 2017,” U.S. Trade Representative Robert Lighthizer said in a letter to Congress.

News Now!

During the 90-day countdown, USTR will consult with “Congress and American stakeholders to create an agreement that advances the interests of America’s workers, farmers, ranchers and businesses,” he said. (more…)

Trump Backs Off Assault on NAFTA

Under pressure from auto industry, Trump no longer plans to kill trade agreement.

by on Apr.27, 2017

President Donald Trump is discovering that getting a new version of NAFTA negotiated will be more difficult than simply signing an executive order.

Despite tangling with both Canada and Mexico in recent weeks, President Donald Trump appears to again be shifting direction over the North American Free Trade Agreement, the White House late Wednesday indicating it will no longer seek to eliminate NAFTA but rather find ways to make it more favorable to the U.S.

That shift may not play well with Trump loyalists who have roundly opposed free trade agreements and, in particular, sought a wall and tariffs to seal off Mexico. But it is receiving a warmer welcome in the business world, especially the auto industry, where North American borders have become completely porous in recent decades, raising the specter of major problems for manufacturers who routinely move parts and vehicles back-and-forth between the U.S., Mexico and Canada.

News Now!

“As the biggest export sector, U.S. auto companies need trade policies that open markets, while ensuring a level playing field in the markets to which we export. The integrated North American market is important to our global competitiveness,” American Automotive Policy Council said in a statement. (more…)

Mexico Trade Chief Says NAFTA Redo Must Benefit All

Ildefonso Guajardo spoke to the Detroit Economic Club.

by on Mar.06, 2017

Mexico's top trade official Ildefonso Guajardo told the Detroit Economic Club that any renegotiation of NAFTA must benefit all the parties.

The North American Free Trade Agreement should be revised, but only if all three signatories to the treaty benefit, Mexico’s top trade negotiator said in a speech in Detroit.

Mexico’s Secretary of Economy, Ildefonso Guajardo, told the Detroit Economic Club that NAFTA is 23 years old and said revisions could benefit Canada and Mexico as well as the U.S. However, he rejected the notion that the revisions should only help the U.S. as President Donald Trump has repeatedly suggested in comments on NAFTA.

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“It is not very wise to sit down with the skewed view there has been only one winner. We were all winners,” he said.  (more…)

Mexico Warns Trump to Cut Tariff Talk or NAFTA Redo is Done

Mexico's economy minister says he'll walk if a tariff is mentioned.

by on Feb.27, 2017

Mexican Pres. Enrique Pena Nieto and members of his government are readying for talks to re-open NAFTA.

President Donald Trump may be hurtling toward “put up or shut up” time as Mexican trade officials say they will end talks to renegotiate NAFTA if Trump follows through on his plan to apply a punitive tariff to vehicles coming from Mexico.

Mexican Economy Minister Ildefonso Guajardo has said the move would be a deal break and in an interview with Bloomberg, her reiterated his intention to end negotiations over the matter.

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“The moment that they say, ‘We’re going to put a 20% tariff on cars,’ I get up from the table,” he told Bloomberg. “Bye-bye.” (more…)

UAW Ready to Talk Trade with Trump

Union agrees with President-elect's plan to renegotiate NAFTA.

by on Nov.11, 2016

UAW President Dennis Williams says the union supports President-elect Donald Trump's plans to renegotiate the North American Free Trade Agreement.

The United Auto Workers, which had campaigned against Donald Trump this fall, is prepared to support the Republican President-elect in his bid to overturn the North American Free Trade Agreement.

Meanwhile, both the Canadian government of Justin Trudeau, whose own union supporters want the NAFTA re-opened, and the government of Mexico have signaled they are willing to open talks with the new Trump administration on changing NAFTA, which has been instrumental in the development of a robust Mexican auto industry.

Trade News!

“We will work with President-elect Trump as much as we can,” UAW President Dennis Williams said during a session with reporters at UAW headquarters in Detroit. (more…)