As the new NAFTA comes into effect,

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Thread: As the new NAFTA comes into effect,

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    As the new NAFTA comes into effect,

    https://www.ctvnews.ca/politics/as-t...nada-1.5004707

    CARS COULD COST MORE
    Changes were made to what is called the “rules of origin” for autos. Basically, this means that there is a new requirement where each car made has to have a certain amount of high wage labour put into it, as well as certain amount of North American-made materials.

    The revised rules require a higher level of North American content in each vehicle, incentivizing more production and sourcing within Canada, the United States, and Mexico. Specifically the threshold has been increased from 62.5 per cent to 75 per cent.

    As well, automobiles now have a 70 per cent North American steel and aluminum requirement and 40 per cent of passenger vehicles must be made of materials, parts and labour produced or carried out by workers in a plant where the average hourly wage is at least $16 U.S.

    This could spark increased automotive production across the three countries, and offer new material production opportunities for Canadian auto part manufacturers. However, some auto industry experts have warned the requirements could result in higher prices for these vehicles if the anticipated higher production costs are passed along to consumers.

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    Re: As the new NAFTA comes into effect,

    I see Ford's Eco Sport, Transit Connect being affected. Might be the Maverick rush to the line.

    Buick Envision, Chevy Trax?

    What else?

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    Re: As the new NAFTA comes into effect,

    Quote Originally Posted by InCogKneeToe View Post
    I see Ford's Eco Sport, Transit Connect being affected. Might be the Maverick rush to the line.

    Buick Envision, Chevy Trax?

    What else?
    There is a trade deal with Korea, The Envision, Buick would be better off bringing it stateside

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    Re: As the new NAFTA comes into effect,

    The BAD News:

    Quote Originally Posted by InCogKneeToe View Post

    CARS COULD COST MORE
    The GOOD News:

    Not only will we keep our North American plants open, and employing thousands of US Citizens.

    The products they make just became even more valuable; 'overnight' (literally).

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    Re: As the new NAFTA comes into effect,

    I am fine with a higher cost if it supports N. American workers, even Mexico. And since this will be equal footing - all brands impacted, so hopefully this won't somehow favor one manufacturer over another.

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    Re: As the new NAFTA comes into effect,

    The big thing will be bringing manufacturing back. Closing those Canadian plants and US plants wasn't so bright after all now Mother Barrah eh?

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    Re: As the new NAFTA comes into effect,

    We also need appliance manufacturing as well as electronics manufacturing to come back this way

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    Re: As the new NAFTA comes into effect,

    Quote Originally Posted by mbukukanyau View Post
    We also need appliance manufacturing as well as electronics manufacturing to come back this way
    And pharmaceuticals. I can't imagine what imbecile would let that industry go to a deadly enemy. Oh wait. Money talks.
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    Re: As the new NAFTA comes into effect,

    Quote Originally Posted by Neanderthal View Post
    And pharmaceuticals. I can't imagine what imbecile would let that industry go to a deadly enemy. Oh wait. Money talks.
    Did you not get the memo? The plan was for a managed decline

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    Re: As the new NAFTA comes into effect,

    Quote Originally Posted by mbukukanyau View Post
    Did you not get the memo? The plan was for a managed decline
    Yeah, I knew they haven't been on our side since 1989. OTOH, if you're a Chicommie, all is well. Or it was until 2017. Everyone hated Kennedy too. Everyone but the people.
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    Re: As the new NAFTA comes into effect,

    Quote Originally Posted by Ed753 View Post
    The BAD News:



    The GOOD News:

    Not only will we keep our North American plants open, and employing thousands of US Citizens.

    The products they make just became even more valuable; 'overnight' (literally).


    Don't kid yourself. It's not going to make any substantial difference.

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    Re: As the new NAFTA comes into effect,

    From bad to worse? It's all in the details.

    https://www.thenewamerican.com/world...eid=10a789396b

    According to Article 23.12 of the USMCA, all three countries agree to cooperate on “addressing gender-related issues in the field of labor and employment,” as well as “addressing the opportunities of a diverse workforce, including: ... promotion of equality and elimination of employment discrimination in the areas of age, disability, race, ethnicity, religion, sexual orientation, gender identity.”

    In other words, as the video points out, if a man applies for a job and goes to the interview dressed as a woman with a demand that he be addressed with female pronouns and demonstrates even the mildest capacity to do the job, the employer may be forced to hire that individual or run the risk of a lawsuit.

    In fact, on June 15, 2020, a little over two weeks prior to the USMCA’s entry into force, the U.S. Supreme Court ruled 6-3 in Bostock v. Clayton County, Georgia that the 1964 Civil Rights Act also extends to protect gay and transgender employees from workplace discrimination. This ruling so happens to bring the United States into full compliance with the “gender identity” provisions in Chapter 23 of the USMCA.

    Chapter 23 also requires all three countries to “adopt and maintain in its statutes and regulations, and practices thereunder ... the effective recognition of the right to collective bargaining.”

    In other words, the USMCA could force Congress to pass national “collective bargaining” laws, overturning any individual state’s “right to work” laws.
    Last edited by Neanderthal; 07-10-2020 at 07:06 AM.
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    Re: As the new NAFTA comes into effect,

    ure, for those that aren’t familiar with NAFTA, let me give you a quick summary.

    NAFTA stands for the North American Free Trade Agreement. It came into force in 1994 and gradually eliminated most of the trade barriers between Mexico, Canada and the US.

    When Donald Trump was elected, he called for NAFTA to be re-negotiated, calling it the “worst trade deal” in US history.

    The signing of NAFTA today ends months of uncertainty for trade in North America as no one was sure if the three countries would agree a deal. Many were concerned that Trump would pull the US out of NAFTA, just as he did for the Trans-Pacific Partnership in January last year. At the time this affected the Mexico currency and drove the value of some US trade-related stocks down.

    There were also fears as to whether Canada would be a party to the NAFTA deal. Talks between the US and Canada had stalled and the US said it was happy to proceed with only Mexico. Mexico was quick to give away concessions, not only because NAFTA is good for trade (Mexico ships 4/5 of its exports to the US), but also because the outgoing President wanted to sign a deal before he left office and because the US had threatened to impose tariffs on car imports, which would damage the Mexican economy.

    By giving concessions away and agreeing to negotiate directly with the US, Mexico may have harmed relations with Canada, as the two had promised to maintain a common front during negotiations.

    In the end, Canada signed, largely because they are especially reliant on the US economy. In 2017, the US traded more with Canada than any other country except China. Canada had already been suffering a slowdown in investment due to the US lowering corporate tax. One assessment predicting the Canadian economy would contract by 2.2% without NAFTA

    So what has been renegotiated?

    Some of the key terms of the deal -- now called the United States-Mexico-Canada Agreement or USMCA -- include:

    The share of a car’s components made in North America had to rise from 62.5% to 75% for US and Mexican-assembled vehicles (Trump increasingly wants to bring back supply chains to the US even though it is more
    40-45% of the content going into a vehicle must be made my workers earning an average of $16 an hour (this will encourage companies to keep manufacturing in the US).
    US farms will gain access to 3.5% of Canada’s dairy market.
    USMCA Is to be reviewed every six years.
    Canada retains access to Chapter 19, which provides a dispute resolution mechanism for anti-dumping and counterveiling duties

    After the signing was announced, the Canadian dollar and the Mexican peso rose, which indicates greater confidence in the markets. The S&P 500 (a US stock index for the 500 public companies listed on the New York Stock Exchange) is also set to hit a record today

    What is the impact on law firms?

    When thinking about the impact on law firms, you might want to first consider the consequences on clients had a deal not been signed. There would be disruptions to supply chains and technologies in North America and a fall in international trade due to higher tariffs. Lawyers would need to help companies restructure their businesses. Deal value and volume would fall, affecting corporate teams -- although that might be mitigated somewhat in short term due to a rise in demand for lawyers who will be needed to interpret the WTO rules between the US and Mexico.

    Moving to the present, lawyers will be needed to help clients prepare for the impact of the new deal terms. Even if law firms don’t specialise in international trade law, lawyers should be aware of the changes and be prepared to answer relevant questions from clients or in-house counsel. The scope of USMCA applies across IP, litigation, commercial and employment, among other departments.

    Businesses that trade internationally will need lawyers to determine whether their goods are exempt from tariffs under USMCA and to ensure that they trade in compliance with NAFTA. In these cases, it might be useful for law firms to have offices in the US, Canada and Mexico, so they can advise on any additional local regulations for businesses, including licensing, certification or regulatory requirements.

    The new review period taking place every six years will mean clients need to undertake regular risk assessments in case the terms of USMCA are changed. Lawyers can help businesses to identify which parts of their business are most at risk and identify opportunities to mitigate that risk. This could mean restructuring their business, moving supply chains or acquiring companies to manufacture their goods. It could also mean renegotiating contract terms with suppliers.

    Lawyers will also be needed when it comes to cross-border investment disputes, to help companies take action under the dispute resolution provisions in compliance with USMCA.

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    Re: As the new NAFTA comes into effect,

    Quote Originally Posted by BlackGTP View Post
    I am fine with a higher cost if it supports N. American workers, even Mexico. And since this will be equal footing - all brands impacted, so hopefully this won't somehow favor one manufacturer over another.
    This bothers me tough. If Ford can build their best selling, most profitable F Series with UAW labor's wages, Why does Ram and some GM's use Mexican wages to produce similar products? Where does the left over savings go? Balance Sheets don't show that they are used wisely. Most any Profits, go to the Heads CEO/CFO and such, for doing what?

    Henry Ford's philosophy of "Pay the Worker so they can afford your Product" comes to mind.

    It is only a matter of time, that Mexico become as Solvent a Country as Canada and the US. Either by Gaining ground or Canada/US losing ground. Global Economy is just that, "Global". No one should decide their Wage should be $20 mil this year, even when what they achieved was less than Stellar. While fighting to keep their Employees wages down. The Heads, are a part of a Companies Structure, but they are nothing without the Foundation.

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    Re: As the new NAFTA comes into effect,

    Quote Originally Posted by InCogKneeToe View Post
    Henry Ford's philosophy of "Pay the Worker so they can afford your Product" comes to mind.
    This is a total myth. Never happened. Henry Ford paid his workers more so that they wouldn't keep walking off the line. The work was grueling. The turnover was killing him. It had nothing to do with wanting his employees to afford his product. It was all about retention and the desire to keep higher quality employees to keep the line moving faster. It was still all about profit, just like it is today.
    Last edited by TruckMan; 07-10-2020 at 10:51 AM.
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