The agreement reached with the EU completely protects the existing automotive production plant in North America and for new investments of companies in Mexico.
Mexico becomes the only country that will export automobiles to the United States with a tariff zero rate and with certainty in the face of the constant threats of the President of the United States, Donald Trump, to impose strong tariffs on the sector. This was said by the Secretary of Foreign Affairs of Mexico, Luis Videgaray Caso.
For his part, Jesus Seade Kuri, Head of Negotiating NAFTA appointed by the incoming Government, said that a framework for the automotive sector has been created. He also assured that the agreement in the automotive sector is balanced and satisfactory.
The new pact between Mexico and the United States would require that 75 percent of the automotive content be manufactured in North America, above the current level of 62.5 percent.
The agreement would also require Mexico that the equivalent of 40 percent of the cost of a light car be produced by workers who earn a wage of at least $ 16 per hour, while for pickup trucks and heavy vehicles the percentage would rise to 45 percent.
Light vehicles assembled in existing plants that do not comply with this, will pay 2.5 percent tariffs.
Matt Blunt, president of the American Automotive Policy Council, which represents three of the largest US auto companies, said yesterday that the group was optimistic about the new agreement, although it was still reviewing the details.