Impact of USMCA on Metal Fabricators

Metal fabricators are worried about how content provisions in the U.S.-Mexico-Canada Agreement will impact their industry. The proposed trade agreement for North America includes provisions on steel and aluminum regional content for automobiles, but may extend to other manufacturing sectors.

“Too many people view NAFTA as just about cars when the agreement impacts virtually every aspect of the manufacturing sector,” said Omar Nashashibi, founding partner with The Franklin Partnership and a lobbyist for the Precision Metalforming Association (PMA) in Washington, D.C. “If the new NAFTA takes effect, you could see significant changes in supply chains for agribusiness, electrical, and other industries as multinationals examine expanding operations in Mexico and domestic companies re-examine their steel and aluminum sourcing to meet regional value content requirements. At PMA, we are advising our members in the U.S. to watch for increased competition from Mexico and additional demands from customers.”