High Skills Low Wages Productivity And the False Promise of Nafta Hearing Be

Cover High Skills Low Wages Productivity And the False Promise of Nafta Hearing Be
High Skills Low Wages Productivity And the False Promise of Nafta Hearing Be
Housing United States Congress House Committee On Gover
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Auto companies to produce in Mexico rather than export from the U. S. Include (1) a trade balancing requirement that companies export $1. 75 for every dollar they import; (2) a requirement that cars produced in Mexico have a 36% domestic content before they can be sold to Mexicans; (3) maquiladoras that were granted special exemptions from Mexican tariffs if they exported their output; and (4) formidable import quotas and tariffs that are still 15-20% which made it necessary to leap over those ...trade barriers in order to sell the rapidly growing young auto market of Mexico. All of these forced investment schemes disappear under NAFTA, making it far more attractive to simply export vehicles and parts to Mexico from the U. S. And Canada.
Shaiken puts considerable emphasis on Mexican production of auto engines and assembly of the Ford Escort and Mercury Tracer in Hermosillo. These examples are actually quite ironic, since NAFTA would surely increase the relatively competitiveness of U. S.


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