How the trade pact works for Mexico

Article Excerpt

NAFTA has provided strong economic stimulus for Mexico since its implementation in 1994. It was, therefore, essential for the Mexican government to conclude negotiations on a revised agreement as soon as possible. Some of the key terms of the new USMCA deal follow: 1) The new deal requires 75% of the value of a vehicle made in North America for the North American market to be produced within the borders of the trading partners. That’s up from the NAFTA threshold of 62.5% and is aimed at limiting the amount of parts from Asia and Europe, and boosting North American automotive manufacturing and jobs. 2) USMCA requires 40% to 45% of the value of any vehicle made in North America for the North American market to be made by workers paid at least $16 an hour. That should benefit Canadian and the U.S. workers 3) The new deal keeps tariffs on agricultural goods traded between the U.S. and Mexico at zero, and seeks to…

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