Skip to main content
Sister Publication Links
  • European Rubber Journal
  • Plastics News
  • Tire Business
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • Automotive
    • Tire
    • Non-Tire
    • Suppliers
    • Silicone
    • Online Exclusive
    • Latex
    • Technical Notebooks
    • Executive Action
    • Government/Legal
    • Opinion
    • Rubber Division IEC
    • ITEC
    • Blogs
    • Sustainability
    • Products
    • Wacky World of Rubber
  • War in Ukraine
  • Custom
    • Sponsored Content
    • White Papers
  • Resources
    • Directory
    • Classifieds & Mold Mart
  • Data
  • Events
    • RN Events
    • RN Livestreams/Webinars
    • Industry Events
    • Past Events
    • Rubber News M&A Live
    • 2022 Hose & Belt Manufacturers Conference
    • 2022 International Silicone Conference
    • 2022 International Tire Exhibition & Conference (ITEC)
  • Advertise
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
January 22, 2018 01:00 AM

Mood brightens on NAFTA's prospects

Eric Kulisch
Automotive News
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Jennifer Vuong, Automotive News
    Pictured are (from left) Martinrea Executive Chairman Rob Wildeboer; Flavio Volpe, president of the Automotive Parts Manufacturers' Association in Canada; McLarty Associates Chairman Thomas "Mack" McLarty; Oscar Albin, president of the National Auto Parts Manufacturing Association in Mexico; and Automotive News Publisher Jason Stein.

    DETROIT—Cautious optimism about the future of the North American Free Trade Agreement is beginning to replace the gloom and doom of recent months among auto industry leaders.

    Panelists at the Automotive News World Congress here put the odds of successful renegotiations between the U.S., Canada and Mexico at better than even now that President Trump can show voters enough concrete successes on the economic front to pull back from his threat to scotch the deal.

    "I think with passage of the tax reform package, some of pressure is off the White House," said Flavio Volpe, president of the Automotive Parts Manufacturers' Association in Canada. Trump "has got some good news. He doesn't need to use NAFTA to punish" a trading partner to demonstrate that he's helping middle-class workers and creating jobs.

    Trump has championed the cause of displaced manufacturing workers in the heartland and decried trade deals such as NAFTA for making it easy for companies to outsource production to low-cost countries such as Mexico.

    Fiat Chrysler Automobiles' announcement that it is moving Ram production from Mexico to Michigan and the decision by Toyota and Mazda to invest $1 billion in a joint Alabama assembly plant give the administration two victories to claim for U.S.-based manufacturing.

    Some U.S. businesses, including FCA US, are also paying employees bonuses that they say are attributable to savings from the $1.5 trillion tax cut law Trump signed last month.

    "If his surrogates can find a way to stitch those stories together, they can find a way to back off the boiler on NAFTA, and say we're getting the action we want" on reshoring manufacturing, Volpe said.

    The chances for negotiating success are now 90 percent, he said. He added that the talks have been aided by quiet meetings among professional trade negotiators without the presence of political leaders over the past month.

    Last week, Trump also signaled that he might be flexible on his threat to walk away from NAFTA and be willing to resume negotiations after Mexico's upcoming presidential election. Volpe suggested that would open the door to postpone talks until after the U.S. midterm congressional elections in November.

    Oscar Albin, president of the National Auto Parts Manufacturing Association in Mexico, said there is only a 25 percent chance that NAFTA talks will fall apart, despite hard-line positions put forward by the U.S. on rules of origin and other issues. He reached that conclusion, he said, after meeting last week with Mexico's minister of economy, Ildefonso Guajardo Villarreal.

    "I think we're going to muddle through. I give it a 60 percent chance that we'll have a modified, improved NAFTA," Rob Wildeboer, executive chairman, Martinrea International, told the audience.

    You can reach Eric Kulisch at [email protected]

    Letter
    to the
    Editor

    Rubber News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].

    Most Popular
    1
    Parker-Hannifin to sell Avon, Ohio-based unit for $440 million
    2
    Wacker aims to increase global silicone capacity
    3
    Hankook christens tire proving grounds
    4
    John Carroll explores silicone's history in keynote presentation
    5
    Succession plan, investments build foundation for RubberForm's future
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Rubber News delivered straight to your inbox, free of charge.

    Subscribe Today

    Subscribe to Rubber News to get the best coverage and leading insights in the industry.

    SUBSCRIBE
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter

    MISSION

    To serve companies in the global rubber product industry by delivering news, industry insights, opinions and technical information.

    Contact Us

    2291 Riverfront Pkwy, Suite 1000
    Cuyahoga Falls,
    OH 44221

    Customer Service:
    877-320-1726

    Resources
    • About Us
    • Digital Edition
    • Staff
    • Advertise
    • Order Reprints
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Careers
    • Ad Choices Ad Choices
    • Sitemap
    Partner Sites
    • Tire Business
    • European Rubber Journal
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    • Automotive News
    • Crain Brands
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • News
      • Automotive
      • Tire
      • Non-Tire
      • Suppliers
      • Silicone
      • Online Exclusive
      • Latex
      • Technical Notebooks
      • Executive Action
      • Government/Legal
      • Opinion
      • Rubber Division IEC
      • ITEC
      • Blogs
        • Products
        • Wacky World of Rubber
      • Sustainability
    • War in Ukraine
    • Custom
      • Sponsored Content
      • White Papers
    • Resources
      • Directory
      • Classifieds & Mold Mart
    • Data
    • Events
      • RN Events
        • 2022 Hose & Belt Manufacturers Conference
        • 2022 International Silicone Conference
        • 2022 International Tire Exhibition & Conference (ITEC)
      • RN Livestreams/Webinars
      • Industry Events
      • Past Events
      • Rubber News M&A Live
    • Advertise
    • DIGITAL EDITION