New NAFTA, making Mexico great again?

[bone]

Not really, to me it strengthens Mexico's position and increases the production cost of vehicles. From a glance, there's no prerequisite to move production to the US, just North America. I suppose it's best to improve Mexico's economy than Asia's.

The deal framework does NOT necessarily improve Mexico's position at the expense of the US because 40-45% of the now 75% local (US and Mexican) content requirement must made by workers being paid at least $16 per hour.

The deal squeezes out Chinese auto parts and other Chinese supplies to the benefit of both US and Mexican workers. The exports China gives up will be replaced by content produced by Mexican and U.S. workers.

This deal also steps on Mr. Trudeau’s nutsack - his little corner just got a lot smaller.

I personally think it’s kinda brilliant.

 

[OptionsOptionsOptions]

The deal framework does NOT necessarily improve Mexico's position at the expense of the US because 40-45% of the now 75% local (US and Mexican) content requirement must made by workers being paid at least $16 per hour.
.

Compared to the 4.00 USD per hour for Mexican auto workers now.

 

[vanzandt]

Did the deal reduce the percentage of "The Wall" they are paying for now?

 

[bone]

Compared to the 4.00 USD per hour for Mexican auto workers now.

Right - so the calculus is that in the Southern or Mid-Western ‘right to work’ law States a component manufacturer could certainly start assembly workers out at $16/hour. And the new corporate tax laws make hiring American workers and being able to expense plant and material (versus a protracted depreciation schedule) investment for the next five years attractive versus paying Mexicans $16 per hour.

 

[bone]

Did the deal reduce the percentage of "The Wall" they are paying for now?

It would appear that the US and Mexico jointly decided that China should pay for the wall.

 

[bone]

Trudeau just rushed his Trade Minister down to Washington this afternoon. Third man out, weaker negotiating position now that Mexico and US have a fair bilateral deal that takes the auto sector away from Canada. Trudeau just lost any leverage he had left - he was too cute being the progressive light bringer and ignored some very basic negotiating principles.

https://www.reuters.com/article/us-...n-nafta-deal-possible-this-week-idUSKCN1LD1T4

 

[themickey]

https://www.bloomberg.com/view/articles/2018-08-29/u-s-mexico-pact-could-turn-the-tables-on-china

 

[bone]

https://www.bloomberg.com/view/articles/2018-08-29/u-s-mexico-pact-could-turn-the-tables-on-china

Great read. I’ve been very impressed with what the Mexican and US negotiators accomplished.

 

[bone]

https://www.cbc.ca/news/politics/tasker-freeland-nafta-talks-trump-1.4801706

Mexico's ambassador to Canada said his country is prepared to go it alone with the Americans if Canada and the U.S. are not able to resolve some lingering bilateral issues, namely the extension of intellectual property (IP) rights and a dispute settlement mechanism.

 

[Nine_Ender]

The deal framework does NOT necessarily improve Mexico's position at the expense of the US because 40-45% of the now 75% local (US and Mexican) content requirement must made by workers being paid at least $16 per hour.

The deal squeezes out Chinese auto parts and other Chinese supplies to the benefit of both US and Mexican workers. The exports China gives up will be replaced by content produced by Mexican and U.S. workers.

This deal also steps on Mr. Trudeau’s nutsack - his little corner just got a lot smaller.

I personally think it’s kinda brilliant.

As per usual, there are Americans like you that underestimate what Canada has going on and overstate the influence of the US on the planet. Toronto is the fastest growing IT center in North America. Trump is driving some of that business to Canada.

When I say Canadians don't care much about all this, I'm speaking the truth. It's all noise at this point. The minute the "Canadian auto sector" gets dinged is the minute that the big 3 US auto makers have a serious problem.