(RICHMOND HILL, ON) – The North American Free Trade Agreement has played a key role in shaping the modern day automotive manufacturing environment. As such, the recent renegotiation of NAFTA has been a hot topic of discussion for automakers, industry analysts, and consumers alike.
From an economic standpoint, NAFTA offered multiple benefits to the auto sector contributing to growth in the markets of all three countries involved. The concern with the renegotiation is that the changes to NAFTA will be decided on the grounds of politics rather than economics.
In this month’s Observations from DAC, we explore the impact of NAFTA on cost competitiveness in the industry, vehicle ownership, and employment. A discussion of the possible effects of a renegotiated NAFTA, whether that comes from a place of economics or a place of politics, is also included.