Automotive Industry in RGV to be Most Impacted by New Trade Agreement

MCALLEN, Texas - As the new United States-Mexico-Canada Agreement (USMCA) moves forward, Congressman Vicente Gonzalez says the automotive industry here in the Rio Grande Valley will be impacted the most.

"Overall, I think I am happy there is a deal first of all. You know they say the devil is in the details, so you have to go back and crunch some numbers."

Congressman Gonzalez feels the agreement will benefit the U.S. dairy market, the American wine market and here in the Valley, Gonzalez says the automotive industry will be most impacted.

"With this agreement, automotive manufactures would have to manufacture 75% of the vehicle within the NAFTA country whereas right now that number is 64.5%."

One area where the Congressman says he feels is a missed opportunity for discussion involves security. Companies who want to start a businesses in Mexico, must invest heavily in security and that basically equates to a tax. Something he says congress should address during discussions before approving the deal.

"It takes 60 days for the president to sign it and then it needs to go to congress. If everything lines up we will probably be voting on it by the end of the year."

Gonzalez also says automotive labor unions will also benefit from this new agreement. He says Mexican factories that import automotive parts will now have to pay their workers a minimum of $16 an hour.

The new trade agreement will no longer include a longer sunset clause. Extending the clause from 5 years to 16 years. The three countries will now meet every six years to discuss changes to the agreement.