Has anyone posted or even seen the text to this alleged agreement? Is this going to turn into another Trump fake news and lie thing?
the auto industry part looks awesome.....for both countries
MORE AUTO PARTS MUST BE MADE IN NORTH AMERICA
Of the $149 billion worth of auto parts imported into the United States last year, 48 per cent came from Mexico and Canada, according to the U.S. International Trade Administration. The proposed deal between the United States and Mexico would likely increase that figure.
It would require that 75 per cent of autos contain parts made in North America, up from 62.5 per cent now required by NAFTA. And 70 per cent of the steel, aluminum and glass used to make a vehicle must also originate in North America. These requirements could possibly lead to fewer imports from Asia, Europe and South America.
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40 TO 45 Per cent OF VEHICLES WOULD BE MADE BY WORKERS WHO EARN AT LEAST $16 AN HOUR
A major wage gap separates autoworkers in the United States and Mexico, and this new provision aims to narrow it. An average Mexican autoworker earned $5.21 an hour, and auto parts workers make even less than that, according to a 2016 analysis by the Center for Automotive Research. That is about one-fourth the average hourly earnings of $21.68 for a U.S. autoworker, according to the Bureau of Labor Statistics.
Trump can say that the wage requirement will preserve factory jobs in the United States, while the Mexican government can say it will boost incomes in that country.
“There is no doubt this agreement creates incentives for the salaries in the auto industry grow over time,” Foreign Minister Luis Videgaray Caso of Mexico told The Associated Press. “A percentage of the value of the vehicle must be made in areas with high salaries. This generates a clear incentive for the salaries in Mexico eventually reach a higher level.”
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THE PACT WOULD EXPIRE IN 16 YEARS, BUT THE TWO COUNTRIES COULD REVIEW IT EVERY SIX YEARS AND RENEW IT FOR 16 MORE
The agreement would force countries to update the trade pact. One of the criticisms of the 24 year-old North American Free Trade Agreement was that it no longer applies to the economy as it exists today. It was forged before the internet, smartphones, social media or China’s entrance into the World Trade Organization — transformations that leave parts of NAFTA woefully outdated.
This new clause could create two forms of pressure: Countries would feel obligated to update the agreement in order to preserve it. But businesses could also face tremendous uncertainty if the agreement was on the verge of ending.
Details of the preliminary US-Mexico trade deal, at a glance