Economy
September 20, 2017
Mexico’s Winning the NAFTA Auto Race
Written by Tim Triplett
The latest data on automotive production offers potential ammo to U.S. trade officials as they work to renegotiate the North American Free Trade Agreement. Assembly of both cars and light trucks is shifting from the U.S. to Mexico, with Canada largely on the sidelines.
Total light vehicle production in the U.S. and Canada has declined by 4.4 percent in the past 12 months, while in Mexico it has increased by 10.3 percent. Figures from the latest three-month period of June-August show an even more dramatic shift, with the U.S. down by 13 percent, Canada down by 8.1 percent, and Mexico up by 7 percent.
