Page 7 - July-August 2018 GSE Report Flip Book
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TRUMP ADMINISTRATION JJUALN. U- ARUYG. 22001188
TRUMP ADMINISTRATION
TRANSFORMING THE TRADE LANDSCAPE
The Administration submits 90-day U.S-Mexico trade modification notification to Congress
On August 30, President Trump notified the Congress of his intent to sign a trade agreement with Mexico—and Canada, if it is willing—90 days from now. “The agreement is the most advanced and high-standard trade agreement in the world,” said U.S. Trade Representative Robert Lighthizer. “ Over the next few weeks, Congress and cleared advisors from the private sector will be able to examine the agreement. They will find it has huge benefits for our workers, farmers, ranchers, and businesses. businesses.”
Lighthizer and his team have been negotiating with Canada through a year-long progress—at all levels—and officials continue working toward an agreement.
On August 27, the U.S. and Mexico released The United States Mexico Trade Agreement (Agreement), designed to form a manufacturing alliance that is beneficial to both countries by removing trade barriers, eliminating tariffs and subsidies and establishing beneficial terms of commerce. According to The Wall Street Journal’s Josh Zumbrum, the Agreement contains the following “big” provisions:
The Administration submits 90-day U.S-Mexico trade modification notification to Congress
The Trump administration fights for fairer trade
BIS warns of the “perfect storm” for the global economy
Automobile production. Under the new agreement, 75% of the content in automobiles must be sourced in North America to quality for tariff-free treatment, up from just 62.5% under the current Nafta.
High-wage auto production. The agreement stipulates that between 40% percent and 45% of auto content must be produced by workers earning at least $16 an hour. This would force companies to either maintain more production in the U.S. and Canada—where wages are higher—or pay higher wages in their Mexican factories. Either way, the requirement
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