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Uncertainty continues for auto parts makers even as Trump moves toward deal with Mexico

Michigan auto show
Michigan International Auto Show
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President Trump's the tentative deal calls for 75 percent of car parts to be made in either the U.S. or Mexico in order for a vehicle to be "duty-free"

 

President Trump says he has reached a trade deal with Mexico to replace NAFTA, even though the agreement announced on Monday does not include Canada.

This bilateral agreement with Mexico is preliminary, and it must be approved by Congress.

Many U.S. lawmakers are making it clear: that won't happen unless Canada is part of the deal.

Ann Wilson is the Senior VP of Government Affairs for the Motor and Equipment Manufacturers Association (MEMA). Wilson joined Stateside’s Cynthia Canty to discuss the potential impact of the United States-Mexico Trade Agreement.

Wilson said it's good that the administration is making progress with Mexico, but added that NAFTA works because it is a three-party agreement. 

“Michigan is so close to Canada, you know the importance of that trade, and we really do need to make sure we bring Canada in as an equal partner,” Wilson said. 

Listen above to hear Wilson discuss how these proposed changes could impact the auto parts industry and the consumer.  

(Subscribe to the Stateside podcast on iTunes, Google Play, or with this RSS link)

 

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