MEMA Comments on Proposed Changes to NAFTA

The new US administration has brought with it a number of proposed changes. One of these changes involves updating the North American Free Trade Agreement (NAFTA) between the United States, Mexico, and Canada.

As the Motor & Equipment Manufacturers Association (MEMA) represents 1,000 vehicle and component manufacturers and suppliers, the organization aims to educate policy makers on the current role of NAFTA in the supply chain.

According to MEMA, the vehicle manufacturing sector is the largest of the US industrial segment, employing more than 871,000 Americans directly. When factoring indirect and supporting jobs, the number rises to 4.26 million jobs supported by motor vehicle parts manufacturing.

This is a major factor to consider when reorganizing trade deals and strategies. For this reason, MEMA has submitted comments to the US trade representative highlighting the benefits NAFTA has had in the development and growth of North American motor vehicle supply chains.

Currently, suppliers in this segment depend on an international network of vendors and customers to maintain their competitive edge. Even within individual companies, there are often multiple plants located in each of the NAFTA countries. This freedom of trade and commerce has allowed US manufacturers to thrive, which has led to increased employment and productivity within the US.

This is an exciting time for the vehicle design and manufacturing sector, as researchers continue to innovate with new processes and technologies. Autonomous vehicles aren’t the only advancement – though strides are being made in this area – collision avoidance systems, vehicle-to-vehicle communications, fuel efficiency and alternative fuels are all important developments that rely on strong economic support. Keeping costs low by working with other nations allows US manufacturers to invest more heavily in these high-tech improvements.

The role of MEMA is to foster growth among vehicle manufacturers, and NAFTA has been an integral component of this mission. While the Association supports efforts to strengthen US manufacturing, they want to be sure that all sides are well considered before action is taken. This is a delicate proceeding that could potentially impact millions of workers. As Pentaflex is a manufacturer of heavy vehicle components, we are monitoring this topic to see how everything plays out.

Would changes to NAFTA impact your business? Feel free to discuss this topic with us on Twitter. We look forward to hearing your thoughts.

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