Mexico Fears Loss of US-Canada Trade, Scrambles to Replace Chinese Parts

[BumRushDaShow]

Source: Newsweek

Published Nov 23, 2024 at 11:15 AM EST


Mexican officials fear that rising tensions with the United States and Canada, in which they allege are serving as a conduit for Chinese parts and products into North America, could jeopardize their nation's inclusion in the U.S.-Mexico-Canada Agreement (USMCA) as Mexico scrambles to replace the Chinese auto parts and products.

What Is USMCA?

The USMCA, signed in 2020 during Trump's first term, is the president-elect's replacement of the 25-year-old North American Free Trade Agreement (NAFTA) negotiated by President George H.W. Bush and pushed through Congress by President Bill Clinton in the mid-1990s. In his 2016 White House bid, Trump slammed NAFTA and promised to negotiate a better trade agreement. When signed, the deal required more car parts to be manufactured by workers in one of the three countries, which is a 13 percent increase from the previous rule.

However, Mexico's concerns have been exacerbated by President-elect Donald Trump winning a second term and a politically struggling Canadian Prime Minister Justin Trudeau. Trump has recently made a tariff hike the core of his economic policy during his 2024 campaign, proposing a 10 percent general rate for all countries. In addition, Trudeau, has recently faced political opposition from his own Liberal Party as several members have asked him last month not to run for another term.

Three Liberal members of Parliament said they were among 20-plus lawmakers from the party to sign a letter asking Trudeau to step down before the next election, which can take place any time between this fall and October 2025. The letter has not been publicly released. While over two dozen lawmakers are enough to raise alarm it's on the lower end of the 153 Liberals in Canada's House of Commons.

Read more: https://www.newsweek.com/mexico-fears-loss-us-canada-trade-scrambles-replace-chinese-parts-1990612

[surfered]

1. The dotard's words have effect.

[Jackson jr]

2. Mexico is to blame

Mexico benefited millions of cheap automotive parts against the deal made in 2017 between US/Canada & Mexico. The new Mexican president is now telling Canadians that they walk back from that deal with China.

[Jackson jr]

3. Politicians and auto industry groups in the U.S. and Canada have upped their criticism of Mexico, expressing concern

Politicians and auto industry groups in the U.S. and Canada have upped their criticism of Mexico, expressing concern that the country is becoming a haven for Chinese automakers trying to circumvent North American tariffs on its products.

https://www.cbc.ca/news/business/mexico-china-ev-automakers-1.7386314

[littlemissmartypants]

4. Help with post composition:

It's not necessary to include in the reply text box the complete text from the reply title box, FYI.

Since it looks like you're new, I thought you might like to know about that. It's going to save you from retyping a bunch!

❤️pants