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The United States is set to renegotiate Nafta, a treaty with Canada and Mexico that President Trump scorned during his campaign. He has also taken aim at China for what he insists are unfair trade practices.
But American manufacturers depend heavily on a global supply chain, especially from Mexico, Canada and China which leaves them vulnerable in a trade war.
Negotiations for revising and modernizing the North American Free Trade Agreement (NAFTA) begin today, and American manufacturing workers whose jobs are dependent on exports are watching closely.
NAFTA renegotiation is underway. The United States Trade Representative (USTR) has opened negotiations up to comment by entities affected by NAFTA. The deadline for comments is June 12, 2017. As your partner and colleague, Co-Production International encourages you to let the U.S. government know how NAFTA works for you and what changes you would like to see.
There are two ways of looking at Laredo, Texas, a border city at the southern edge of the US.
One is as barren outpost of the US economy, condemned by geographic misfortune to a marginal existence. The other is as part of one of the most dynamic economies in North America: the border of Texas with the Mexican states of Coahuila, Nuevo León, and Tamaulipas.
Trade and globalization are here to stay. The share of global GDP due to trade, imports plus exports, has grown from 25 percent of global GDP in the mid-1960s to 60 percent today. The share of U.S. GDP due to trade over that same time period has grown from 10 percent to 30 percent. Contrary to the narrative put forward by some, today’s shifts in trade policy have largely not been driven by “good deals” and “bad deals” but on very real and conflicting economic forces. Facile references to “free trade” increasingly have little to do with economic reality. Our nation’s attitudes toward trade have been shaped by the evolving struggle over who has been helped and who has been disadvantaged by trade policy as our economy has developed.
- Mexico Hails US initiation of Nafta Renegotiation Process
- Trump Rules Out Swift Nafta Exit in Favor of Renegotiation
- Draft Shows Modest Nafta Tweaks
- Co-Production Manufacturing, NAFTA Updates and The Trump Effect Highlighted at CPI's Factory Tours
- The Uncertainty of NAFTA and Manufacturing in Mexico Under a Trump Era
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Mexico Manufacturing Industry News
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This article is a follow up to our original article: A Long Time Coming: Accelerated Exodus of Companies Leaving China for Mexico Due to Prolonged Trade War and Tariffs.
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What is Reshoring in Manufacturing?
The definition of reshoring is the process of bringing back manufacturing from overseas or offshore locations. In effect, bringing it back to your shores. Reshoring is the opposite of offshoring which...
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Manufacturing in Mexico accounts for over 17% of the country's total gross domestic product. That's 6% more than that of the US, and 7% greater than Canada's. Overall, manufacturing is among the most ...
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