China aims to ‘infiltrate’ US-Mexico-Canada trade deal, says American manufacturing group
The Alliance for American Manufacturing says China is trying to circumvent the USMCA through its automotive investments in Mexico
However, analysts cautioned that full decoupling from China’s automotive industry remains difficult, given North America’s continued dependence on Chinese-sourced motor vehicle components and Mexico’s legacy of export manufacturing plus quick access to the US border.
The Washington-based research and advocacy group Alliance for American Manufacturing has urged the Trump administration not to renew the US-Mexico-Canada Agreement (USMCA), as the three countries launched the pact’s first mandatory six-year review on Wednesday.
“The United States has a critical opportunity to renegotiate the agreement and defend America’s workers,” the alliance said, backed by domestic manufacturers and the United Steelworkers trade union.
“Though China is not a partner in this trade deal, its automakers are working hard to leverage it to infiltrate the US market. A strong USMCA with robust rules of origin would establish a necessary roadblock to Beijing’s US auto market access.”