Trumping TPP & NAFTA: The US Presidential Results are In, Now What?

The article is a reflective analysis of the cross-border automotive supply chain and how any tinkering with certain NAFTA rules could shift the ground of this highly integrated manufacturing sector.
 
“We aim to move past the headlines and the one-liners” said Ms. Matthiesen. “Companies in the US, Canada, and Mexico have built a dynamic and high-tech manufacturing platform, offering thousands of well-paying jobs. These are uncertain times. Companies are calling us for our advice because they want to be ahead of competitors. They are taking stock now of their production line, their supply chain, and their growth strategies.”

Now more than ever, the article is particularly instructive to Canadian companies in light of President Trump’s executive order issued yesterday to remove the United States as a signatory to Trans-Pacific Partnership and to permanently withdraw the United States from TPP negotiations. The executive order also stated that “it is the intention of my Administration to deal directly with individual countries on a one-on-one (or bilateral) basis in negotiating future trade deals.” This action comes the day after President’s Trump’s pronouncements that he will commence actions to renegotiate the NAFTA and pursue bilateral trade negotiations with TPP countries.

This article was originally published in the Winter 2017 edition of Lead, Reach and Connect, which is published twice a year by Matrix Group Publishing Inc. for the Automotive Parts Manufacturers’ Association. It has been reproduced with permission.