The second reason is more specific to the company. In 2017, Ford committed to building new facilities in Michigan and renovating old ones. A trade agreement that will promote North American and U.S. production will increase the value of these investments. 4. Finally, the agreement contains subsidiary letters from the United States to the Mexican and Canadian authorities promising exemptions from possible future U.S. tariffs on certain vehicles and auto parts, in particular 2.6 million passenger cars manufactured in Mexico, all Mexican light trucks and $108 billion and $32.4 billion in auto parts from Mexico and Canada. Second, because the agreement has encouraged the production of more auto parts in North America, dependence on low-cost parts from overseas will decrease, which will also increase production costs. The agreement could even support the relocation of auto parts production from Mexico and Canada to the United States, given that the majority of automotive production facilities are located in the United States and companies prefer to keep parts sources close to assembly plants to minimize supply chain delays. First, tariffs on cars from Canada and Mexico, threatened by the Trump administration, had the potential to severely disrupt automakers` supply chains. The new USMCA is removing this tool from Trump`s commercial arsenal – much to the relief of the auto industry. The burden of increased production costs can be offset by the assurance that these rates are now eliminated. IPCIPC (www.IPC.org) is a global interprofessional organization based in Bannockburn, Ill., dedicated to the competitiveness and financial success of its 5,900 member companies representing all facets of the electronics industry, including electronic design, printing cardboard manufacturing, assembly and testing.
As a member-oriented organization and a reference source for industrial standards, training, market research and public policy advocacy, IPC supports programs to meet the needs of the global electronics industry for approximately $2 trillion. The CPI has additional offices in Washington, D.C.; Atlanta, Ga.; Miami, Fla. Brussels, Belgium; Bangalore and New Delhi, India; Bangkok, Thailand; Qingdao, Shanghai, Shenzhen, Chengdu, Suzhou and Beijing, China. The North American Free Trade Agreement (NAFTA) between the United States, Canada and Mexico has been in place since January 1994. Reducing or eliminating EU-wide tariffs has enabled manufacturers and vehicle suppliers to optimise operating structures by locating assembly and supply chain manufacturing under the best cost conditions, helping to maintain the competitiveness of the domestic automotive industry, with increasing global capacity.