The US and Mexico are coming closer to the NAFTA compromise, which involves the rules that govern whether automobiles made in Mexico are qualified for zero tariffs under the NAFTA compromise. This will help Trump's goal of getting rid of the quarter-century-old-trade-pact, which he describes as the worst trade deal ever. There is a lot of controversy about the topic, but the auto industry will benefit greatly from it.
Questions for discussion:
1) Do you think that the NAFTA compromise should go through and why?
2) Do you think that the controversies are reasonable?
3) How do you think the NAFTA compromise will affect the automotive industry in the long run?
I chose this article because it has a lot to do with the transportation industry and if the NAFTA compromise goes through, there can be much more manufacturing efficiency among automobiles. If there is no tax for importing cars made in Mexico, it can decrease the cost of the cars made there. Also, there can be a lot more cars made, which also will decrease the cost because there will be so much of them. The prices of cars can be a sensitive topic for some people. Some people have no problem spending a lot of their hard earned money on a car, while others don't care for the more expensive cars, and just want something to get them from point A to point B. The reduced prices of cars can help out many people financially and leave them money to spend on other things in life.
Source: https://www.nytimes.com/2018/08/03/us/politics/united-states-mexico-nafta.html?rref=collection%2Fsectioncollection%2Fpolitics&action=click&contentCollection=politics®ion=stream&module=stream_unit&version=latest&contentPlacement=7&pgtype=sectionfront
I believe that the NAFTA compromise should not go through because it would create chaos for businesses like the auto industry that have arranged their North American supply chains around the deal’s terms. I do believe it is reasonable for controversy because there are pros and cons to this whole situation, how ever in the long run I believe it will only cause major problems, like Dom said, there is no tax on importation of cars made in Mexico to the United States. After looking into this situation more, i have gathered enough information to make an opinion on if we should stay with the NAFTA compromise or not based on what the future would look like. Several agricultural products would face much higher duties. American farmers would see a 25 percent tariff on shipments of beef, 45 percent on turkey and some dairy products, and 75 percent on chicken, potatoes and high fructose corn syrup sent to Mexico. I believe we shouldn't go through with dropping the NAFTA.
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