U.S. Commission Finds New North American Trade Deal Would Boost Economy, Automotive Parts Industry
The U.S. International Trade Commission estimated the proposed new North American free trade deal would modestly boost the U.S. economy but could reduce U.S. vehicle production, according to a Reuters report.
The economic assessment of the U.S.-Mexico-Canada Agreement, released on Thursday, said the trade deal would increase U.S. real gross domestic product by 0.35 percent, or $68.5 billion, on an annual basis and add 176,000 U.S. jobs, while raising U.S. exports.
The report’s estimates are for year six of the trade deal, once it is fully implemented.
Auto industry employment would rise by 30,000 jobs for parts and engine production, but U.S. vehicle production would decline in and U.S. vehicle consumption would be reduced by 140,000 units because of higher prices, or 1.25 percent of 2017 sales, the report said.
The report may give ammunition to opponents of the deal. The leaders of the three countries approved the deal last year, but it still must be approved by the U.S. Congress. The deal is a replacement for the more than two-decade-old North American Free Trade Agreement.
The auto industry had been a key focus of the deal for the Trump administration.
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