18 October 2019
Mexico is quickly becoming North America's #1 assembly hub. Even the new trade agreement – which was developed to improve the competitive position of the US's industrial sector – cannot curb this development. This article will explain exactly what is going on.
By means of the trade agreement between the United States, Canada and Mexico (USMCA), President Donald Trump wanted to motivate car manufacturers to move their assembly activities from “low-wage country” Mexico back to the US, the Financieel Dagblad writes. The agreement includes new regulations with regard to the origin of car parts. However, it just so happens that many car manufacturers are already in compliance with these rules and will, therefore continue to assemble their products in Mexico.