Page 3 - Auto Pact News Today

People and in canada. the latest goes to the eu japan economic partnership that accounts for one third of the world economy. its a brand new trade deal that leaves the u.s. out in the cold. heres the new deal thats been agreed to, tariffs on agricultural products traded between the united states and mexico will remain at zero. the new requirements focus on car parts and production. 75% of auto content must be made in the united states and mexico. thats up from the original nafta requirement of 6...

That are because of this trade dispute that were in with mexico. the agreement includes new requirements on car parts and production. under this deal, 75% of a cars parts must be made in the united states and mexico. thats up from top original nafta requirement of 62.5%. now, add to that that 40% to 45% of the parts of the cars must be made by workers earning at least $16 an hour. not an average of $16 an hour, but they have to have a minimum of $16 an hour. the u.s. trade representative says th...

Name nafta. here he was. >> we are going to call it the united states/mexico trade treatment. well get rid of the name nafta. has a bad connotation. i will be terminating the existing deal and going into this deal. we will start negotiating with canada relatively soon. they want to start -- they want to negotiate very badly. but one way or the other we will have a deal with canada. >> the president has long called the 94 nafta deal between the u.s. mexico and canada a ripoff and quote the worst ...

Agreement on trade issues and rescind these tariffs. by the way, it is not just motorcycles. products including whiskey, and typically kentucky whiskey, bourbon, juice, boats, and playing cards have been hit with this tariff hammer. with me is my old friend from cnbc, phil lebeau. he covers the auto industry, including the motorcycle industry. phil, youre an expert on this. before there was nafta, there was a free trade agreement with canada. >> right. >> before there was a free trade agreement,...

That, my friends, gives us a trade surplus of $8.4 billion. >> boom. >> canada says it will impose retaliatory tariffs on u.s. goods july 1st. it remains to be seen what they will be. no doubt, u.s. exporters will feel the pain. the u.s. trade rep says the canada was the united states largest goods export market last year. >> all right. thank you for that. cnbc is joining us. ron, heres the probm. you rember back in the day, before nafta, back in the day before the free trade agreement, you and ...

Partner at mckenzie and company. also the chair of the canadian finance ministers advisory council on economic growth. good to see you. >> good to be here. >> this is one of those remarkable relationships, strategic, military, economic, and otherwise relationships between two countries that most people dont know about. >> exactly. i mean it is a deep, long standing relationship. and hopefully it will strengthen even through these bit of rough times right now. >> what is interesting about deals l...

Remember when nafta came to be and before that the free trade agreement with canada and the fact that came with the auto pact between canada and the united states which was an active decision to create assembly in canada for american company cars at the time. the president is treading on dangerous water here. he torpedos the talks with the canadians and says the answer will be to tax cars coming from canada. that shows a poor understanding of basic economics. >> it does. and canada is our basic ...

Mexico. that was 2015. its the latest year in which we have numbers. canada and mexico remain the largest destinations for u.s. exports. so this is the stuff that donald trump never says when he talks about it. and what people talk about in terms of jobs, hallie, 14 million u.s. jobs are said to rely directly on nafta and in theory they pay 15% to 20% more than jobs that are lost to nafta. this is the past that donald trump leaves out. but the fact that jobs have been lost is important. >> i wan...

Later. >> we want to dive into some of the impacts some of these executive orders could have. lets bring in ali velshi who know as thing or two about all of this. to set it up, break down nafta. give us the nuts and bolts. >> and where better to do this than in the hallie and ali segment. nafta took effect in 94, derived from the u.s./canada free trade agreement. before that there was the auto pact between canada and america. it was designed to sell american and canadian products more into the m...