AFM131 Lecture Notes - Lecture 4: North American Free Trade Agreement, Automotive News

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM131
• Professor: Stephen Smith

Document Summary

The north american free trade agreement is an agreement that created a free-trade area among canada, united states and mexico, however recently this has not been the case. 2016 united state presidential negotiation campaign, trump"s party promised to renegotiate the. Nafta agreement and put an emphasis on the automotive sector because they believed jobs and investment were not returning back to the united states. Automotive manufacturing is one of canada"s largest industrial sectors making up roughly 10% of manufacturing gdp and provides billion to the overall gdp as stated by the government of canada. News canada talks about the impact this tariff would have on 5 main automakers, gm, ford, Fca, toyota motor corp. , and honda motor co. which all produced 2. 2 million vehicles and 1. 8 million of those were exported mainly to the united states. "it"s not an economically feasible prospect to import vehicles to the u. s. market in a 25 percent tariff situation," she said.