U.S. NAFTA demands on auto rules of origin could backfire, experts say

Greg Keenan Steven Chase Adrian Morrow - The Globe Mail
August 17, 2017

The following is an excerpt. To view the full article please visit the link below

"Changing rules of origin in a way that raises costs by 2.5 per cent or more could prompt auto makers to simply ignore the NAFTA market-access provisions, pay the 2.5-per-cent tariff and scrap the costly rules of origin documentation," said Dan Ciuriak, a former chief economist with the Department of Foreign Affairs and International Trade, who now heads Ciuriak Consulting Inc.

Auto companies could shift production to China and supply the U.S. market from there, Mr. Ciuriak said, as Ford Motor Co. will do with its Focus compact car after the Trump administration criticized the company for planning to build …

* * *

The opinions expressed in this article/multimedia are those of the author(s) and do not necessarily reflect the views of CIGI or its Board of Directors.