Analyzes the performance of the industry after the North American Free-Trade Agreement took effect, in each of the three countries and on the continent as a whole. Also looks at the impact of environmental regulations. The studies were funded by automobile companies and reviewed by personnel representing them. Annotation copyrighted by Book News, Inc., Portland, OR
The auto sector is North America’s most iconic of industries. Since the North American Free Trade Agreement came into existence in 1994, the sector has undergone tremendous change: escalating concerns around climate change, advances in electric and automated vehicles, deindustrialization/reindustrialization, and the rise of low-cost locations as hubs for manufacturing. The North American Auto Industry since NAFTA examines the issues that have preoccupied the development of policy associated with the manufacture of automobiles in North America. The collection addresses the punctuations that have afflicted the industry since NAFTA’s implementation as well as the slower, incremental evolutions that have also occurred. Several aspects of automobility and the industry are explored, including but not limited to the Canadian, American, and Mexican automotive sectors and their evolution and interaction under evolving trade regimes. The book analyses issues surrounding labour, technology, trade policy, regional development, the environment, and broader societal impacts of the automobile. It also draws on the expertise of a wide cross-section of industry experts and scholars to provide readers with a deeper understanding of the automotive industry and its central role in North America’s economic, business, and political landscape.
This work examines the responses of unions and workers to regional integration and restructuring in the automobile industry in North and Central America. The focus is on the automobile industry in Mexico, which, because of its size and importance, is viewed as a strategic sector of the Mexican economy and was the focal point of talks between the US, Canada and Mexico during negotiations on NAFTA. Focusing on the period from 1980, John P. Tuman examines the changes implemented by firms to promote export production, he explores reasons for the variation in labour responses to restructuring, and he discusses the prospects for cross-border organizing and co-operation among automobile workers in Canada, the US and Mexico.
Over one million Americans are employed in manufacturing motor vehicles, equipment and parts. But the industry has changed dramatically since the U.S. "Big Three" motor vehicle corporations (General Motors, Ford and Chrysler) produced the overwhelming majority of cars and light trucks sold in the United States, and directly employed many people themselves. By 2003, most passenger cars sold in the U.S. market were either imported or manufactured by foreign-based producers at new North American plants (so-called "transplant" facilities). The Big Three now dominate only in light trucks, and are also now being challenged there by the foreign brands. The Big Three have shed about 600,000 U.S. jobs since 1980, while about one-quarter of Americans employed in automotive manufacturing (nearly 300,000) work for the foreign-owned companies. It is clear that the U.S. automotive industry has undergone many drastic changes that have had a net adverse effect on American interests. This book examines the causes of these changes. Congressional acts, increasingly stringent emission laws, the effects of NAFTA, labour unions and globalisation are all within the scope of this book.
This volume provides a comprehensive analysis of the economic, social, cultural and political dimensions of the evolving trilateral relationship among the three countries of North America. Contributors address such topics as energy, the environment, trade, labour, the maquiladora industrial sector of Mexico, the Mexican auto industry, and Canada - U.S. cultural relations.While other publications have focused on U.S. issues, this one emphasizes Canada and Mexico, yet adds significantly to our understanding of the place of the United States in this evolving trilateral relationship.
Analysing developments in digital technologies and institutional changes, this book provides an overview of the current frenetic state of transformation within the global automobile industry. An ongoing transition brought about by the relocation of marketing, design and production centres to emerging economies, and experimentation with new mobility systems such as electrical, autonomous vehicles, this process poses the question as to how original equipment manufacturers (OEMs) and newcomers can remain competitive and ensure sustainability. With contributions from specialists in the automobile sector, this collection examines the shifts in power and geographical location occurring in the industry, and outlines the key role that public policy has in generating innovation in entrepreneurial states. Offering useful insights into the challenges facing emerging economies in their attempts to grow within the automobile industry, this book will provide valuable reading for those researching internationalization and emerging markets, business strategy and more specifically, the automotive industry.
The seven contributions in this book examine the potential impact of a North American Free Trade Agreement (NAFTA) with Mexico on the U.S. economy. They cover such key aspects as the general sources of comparative advantage between Mexico and the U.S., regional and local effects on production and employment, and the effect on production in particular industries. The authors start from the premise that the trade agreement will have a small impact on the overall U.S. gross national product because the U.S. economy is large compared to that of Mexico and because there is already much unrestricted trade between the two countries. Several chapters consider how some sources of comparative advantage that cut across industries differential environmental regulations and wage differentials - may affect the outcome. These are followed by chapters that assess the locational effects on U.S. production, either from the viewpoint of which metropolitan areas will gain employment or of the scale effects-transportation cost-tradeoff. Concluding chapters address the effect of the NAFTA on several individual U.S. sectors such as agriculture, automobiles, and financial services. Peter M. Garber is Professor of Economics at Brown University. Contents: Introduction, Peter M. Garber. Environmental Impacts of a North American Free Trade Agreement, Gene M. Grossman, Alan B. Krueger. Wage Effects of a U.S.-Mexico Free Trade Agreement, Edward E. Leamer. Some Favorable Impacts of a U.S.-Mexico Free Trade Agreement, J. Vernon Henderson. Mexico- U.S. Free Trade and the Location of Production, Paul Krugman, Gordon Hanson. Trade with Mexico and Water Use in California Agriculture, Robert C. Feenstra, Andrew K. Rose. The Automobile Industry and the Mexico-U.S. Free Trade Agreement, Steven Barry, Vittorio Grilli, Florencio Lopez-de-Silanes. Opening the Financial Services Market in Mexico, Peter M. Garber, Steven R. Weisbrod.
The United States – Mexico – Canada Agreement (USMCA) was signed on November 30, 2018 and aims to replace and modernize the North-American Free Trade Agreement (NAFTA). This paper uses a global, multisector, computable-general-equilibrium model to provide an analytical assessment of five key provisions in the new agreement, including tighter rules of origin in the automotive, textiles and apparel sectors, more liberalized agricultural trade, and other trade facilitation measures. The results show that together these provisions would adversely affect trade in the automotive, textiles and apparel sectors, while generating modest aggregate gains in terms of welfare, mostly driven by improved goods market access, with a negligible effect on real GDP. The welfare benefits from USMCA would be greatly enhanced with the elimination of U.S. tariffs on steel and aluminum imports from Canada and Mexico and the elimination of the Canadian and Mexican import surtaxes imposed after the U.S. tariffs were put in place.
