Trump’s NAFTA replacement could harm car production – Dallas Fed research
Authors say Mexico could face biggest loss from USMCA deal
US president Donald Trump’s new North American trade agreement could decrease the trade area’s automotive production competitiveness, research from the Federal Reserve Bank of Dallas finds.
The US-Mexico-Canada Agreement (USMCA) imposes “more restrictive rules-of-origin requirements will increase production costs that, in turn, will imply higher prices, reduced output and a decrease in consumer surplus in the region”, Daniel Chiquiar and co-authors write.
The authors estimate the effects of
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