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[–]3andfro 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (0 children)

This past year we saw a bitter strike between the UAW and the “Big 3” U.S. carmakers, which ended in significant increases in pay and benefits for workers. How will these companies that have plants in the U.S. and Canada be competitive with Chinese cars being made in Mexico?

Just this week, Elon Musk, the CEO of Tesla, said during the company’s quarterly earnings call that “if there are not trade barriers established, Chinese EV companies will pretty much demolish most other car companies in the world.”

How will politicians in the U.S., Canada and Mexico respond? Will the U.S. consider breaking or modifying the USMCA free trade agreement to raise tariffs on Chinese cars made in Mexico to protect American and Canadian UAW jobs? Will the U.S. and Canada allow Chinese cars made in Mexico to enter duty-free? Will Mexico somehow try to find a path to cater to both Chinese auto companies and U.S./Canadian politicians?

[–]RandomCollection[S] 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (0 children)

https://archive.ph/X7LaH

Mexico needs job creation and investment, but it is naive to imagine such significant Chinese investment will not cause serious relationship problems between Mexico and the U.S. and Canada in the future.

Ultimately, the US and Canada exploited Mexico as a cheap source of labor.

It seems that China is offering a far better deal. Of course Washington will huff and puff.