Mexican Auto Industry Opposes Latest U.S. Proposal on Nafta Rules

04/30/2018 The Wall Street Journal

automobileMexico’s auto manufacturing industry on Monday rejected a proposal presented last week by U.S. trade authorities that would impose new rules on the origin of components used in cars and pickup trucks sold tariff-free under the North American Free Trade Agreement.

Last Thursday in Washington, the U.S. Nafta negotiating team presented a proposal requiring 40% of the parts used in light vehicles and 45% of parts used in pickup trucks to originate in high-wage countries, according to Eduardo Solis, president of the Mexican Automotive Industry Association, known as AMIA.

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Mexico’s Economy Picked Up Pace in First Quarter

04/30/2018 The Wall Street Journal

digital economyMexican economic activity accelerated in the first quarter, growing at its fastest rate in six quarters as industrial production recovered and services picked up pace.

Gross domestic product, a measure of output in goods and services, expanded 1.1% seasonally adjusted from the fourth quarter of 2017, the National Statistics Institute said Monday.

The increase, which translates into an annualized rate of 4.6%, was the highest since the third quarter of 2016, and above the 0.8% expansion in the previous quarter.

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Secretary Ross and the Commerce Department Wrongly Conclude NAFTA Rules are Bad for the U.S.

10/4/2017 Forbes

Flag_of_the_North_American_Free_Trade_Agreement_(standard_version).svgBy Luis de la Calle

U.S. Secretary of Commerce Wilbur Ross published an important op-ed (These NAFTA rules are killing our jobs) in the Washington Post this past Friday, September 22nd.  In it, he claims to offer a serious analysis to show that the trade deficit with Mexico and Canada and lower U.S. value-added in Mexican and Canadian U.S. imports are proof the United States is losing under the North American Free Trade Agreement (NAFTA).  Secretary Ross aims to end the “loose talk” about industrial integration for automobile production in the region.

The problem with the article and the U.S. Department of Commerce paper it is based on is that they cherry pick statistics out of the March 2017, Trade in Value-Added (TiVA) database by the Organization for Economic Cooperation and Development (OECD), in an attempt to confirm the Trump’s administration bias that trade deficits are bad and lead to job losses.  This wrongheaded approach (the trade deficit with Mexico does not harm the United States) does a growing disservice to the comprehension of the importance of international trade for the economy and further politicizes the issue. More worryingly, it shows civil service officers can be influenced so that their analysis comports with White House views on trade.

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Ford Cancels Mexico Plant, Will Create 700 U.S. Jobs in ‘Vote of Confidence’ in Trump

1/3/2017 CNN Money

2000px-Ford_Motor_Company_Logo.svgFord (F) CEO Mark Fields said the investment is a “vote of confidence” in the pro-business environment president-elect Donald Trump is creating. However, he stressed Ford did not do any sort of special deal with Trump.

“We didn’t cut a deal with Trump. We did it for our business,” Fields told CNN’s Poppy Harlow in an exclusive interview Tuesday.

The $700 million investment will go to the Flat Rock, Michigan plant to produce more electric and self-driving cars. Ford believes electric vehicles will outsell gasoline-powered vehicles within the next 15 years.

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Michelin starts construction of its 69th plant in Central Mexico

08/24/2016 Economic Times

Industrial PlantGlobal Tyre manufacturer, Michelin Group has begun construction of its 69th global plant yesterday with an official ground-breaking and traditional first stone ceremony held with honored government dignitaries, key customers and company leaders at the new site in Leon, Guanajuato, in central Mexico.

“Our actions here today demonstrate our confidence in Mexico’s manufacturing environment, the skilled and talented workforce here and the infrastructure necessary to deliver tires efficiently throughout North America,” said Jean-Dominique Senard, chief executive officer of Michelin Group, based in Clermont-Ferrand, France.

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Despite fears, Mexico’s manufacturing boom is lifting U.S. workers

08/21/2016 Los Angeles Times

ensamblaje.jpgEnrique Zarate, 19, had spent just a year in college when he landed an apprenticeship at a new BMW facility in San Luis Potosí, Mexico. If he performs well, in a year he’ll win a well-paid position, with benefits, working with robots at the company’s newest plant.

Within a decade or so, most of the BMW 3 series cars that Americans buy will probably come from Mexico, built by people like Zarate.

“When you start with such little experience, and get such a big salary, it’s unbelievable,” says Zarate, whose father is a taxi driver and whose mother is a housewife.

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EVENT TOMORROW | Power Play: Energy & Manufacturing in North America

power playWHEN: Tomorrow, Tuesday, May 10, 9:00-10:30am

WHERE: 6th Floor Auditorium, Woodrow Wilson Center

Click to RSVP.

The Wilson Center’s Mexico Institute, Canada Institute, and the International Monetary Fund are pleased to invite you to our launch of the book “Power Play: Energy and Manufacturing in North America.” Despite the recent fall in energy prices, fuller development of energy resources in North America has potentially important implications for global energy markets and the competitiveness of North American manufacturing industries. The book “Power Play: Energy and Manufacturing in North America” describes the transformation of the energy landscape in North America due to the upsurge in unconventional energy production since the mid-2000s and tells the story of the energy-manufacturing nexus from the perspective of Canada, Mexico, and the United States, and the region as a whole. Based on the research done at the International Monetary Fund, the book discusses the energy boom and its macroeconomic implications for the three countries individually and for the region overall, exploring also how the changing energy landscape can affect the potential benefits of greater integration across the three North American economies.

Keynote Speaker

Alejandro Werner
Director, Western Hemisphere Department
International Monetary Fund

Additional Speakers

Lusine Lusinyan
Senior Economist
International Monetary Fund

Carlos Hurtado
Alternate Executive Director for Mexico
International Monetary Fund

Jim Prentice
Global Fellow, Canada Institute, Wilson Center
Former Premier of Alberta
Former Minister of the Environment, Canada

Meg Lundsager
Public Policy Fellow, Wilson Center
Former U.S. Executive Director and Alternate Executive Director, International Monetary Fund

Moderator

Duncan Wood
Director, Mexico Institute, Wilson Center

Click to RSVP.