An executive at Mexican vehicle parts maker Rassini stated on Tuesday he saw little chance the United States would scuttle the North American Free Trade Agreement (NAFTA), regardless of promises by President-Elect Donald Trump to pull out of it.
“Although President-Elect Trump has stated that he might end NAFTA, we believe this is extremely unlikely,” Eugenio Madero stated during a teleconference with experts, adding that the deal is advantage for both Mexico and the United States.
If Trump proceeded with the plan, Madero stated Mexico would go back to “most favored nation” status and autopart developers would be subject to optimal tariffs of 2.5 percent, as per the World Trade Organization guidelines.
“The expense will eventually be handed down to the customer,” Madero stated. Rassini is working in the United States, Mexico and Brazil.
Throughout the campaign, Trump said to ditch NAFTA if he might not renegotiate it to obtain much better terms for U.S. workers. Companies around the world are on edge, fearing a new age of American protectionism could damage worldwide trade.
Given that NAFTA took effect in 1994, Mexican exports to the United States have increased six-fold to some $320 billion a year, transforming a once-closed economy into a hub for investment and a workshop for some of the world’s most significant companies.
