Mexico-US trade deal cheers automotive companies - leatherbiz: Leading Leatherbiz

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Mexico-US trade deal cheers automotive companies

28/08/2018
Automotive original equipment manufacturers (OEMs) have welcomed a new agreement between the US and Mexico, saying they believe the new arrangement will allow them to carry on with business as usual.

Mexico, the US and Canada have been in talks to renegotiate the North American Free Trade Agreement (NAFTA) since 2017. On August 27, 2018, Mexico and the US announced they had successfully concluded negotiations on a replacement deal.

According to the new deal, OEMs will continue to be able to import finished vehicles into the US duty free as long as 75% of the content is made in either the US or Mexico. This is higher than the percentage under NAFTA, 62.5%.

Automotive industry commentators have said the 75% target ought to present no problem to current North American automotive supply chains, but this is contingent on Canada being involved in the new agreement too.



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