The US Commerce Secretary said that the new tripartite agreement would create several tens of thousands of jobs in the US auto sector.
The vast majority of the 250 thousand jobs in the automotive sector lost by the United States can be restored thanks to a new agreement reached by the United States, Canada and Mexico, said US Commerce Secretary Wilbur Ross. According to official statistics in August of this year about 950 thousand people were employed in the automobile industry of the United States.
At the same time, the minister did not explain how jobs were lost and how long it would take to return them. However, Ross noted that the requirements of the transaction increase the requirements for regional presence and salary increases for employees in this industry.
Earlier, US President Donald Trump blamed the loss of manufacturing jobs on the North American Free Trade Agreement with Mexico and Canada. Trump said that the reduction was due to the fact that the company moved production facilities to cheaper Mexico.
In 2017, almost 18% of all cars produced in the world were produced in three North American countries. This makes North America the third largest auto-producing region after China and Europe.
US automakers, including General Motors Co (GM.N) and Ford Motor Co. (F. N), welcomed the deal, despite higher costs. Signing USMCA will provide companies with the stability necessary for long-term business planning, assessing the prospects of investing.
Representatives of the US administration and the industrial sector said that the new trade agreement would require suppliers to move some production to the United States and Canada in order to satisfy the installation to ensure 75% localization against the previous 62.5%.