Washington, DC -- The Office of the United States Trade Representative today released an analysis of the estimated impact the United States-Mexico-Canada Agreement (USMCA) will have on investment and jobs in the U.S. automotive sector.
The analysis, based in large part on information provided by North American automotive manufacturers, estimates that over a five-year period the USMCA will result in:
- $34 billion in new automotive manufacturing investments in the U.S.;
- $23 billion in new annual purchases of U.S.-made automotive parts; and
- 76,000 jobs in the U.S. automotive sector.
“One of President Trump’s major priorities in renegotiating and replacing NAFTA was to discourage the outsourcing of American automotive jobs and instead to encourage more investment and manufacturing jobs here in the United States,” said United States Trade Representative Robert Lighthizer. “Information from all the major auto companies confirms that the new USMCA’s rules of origin will achieve this goal. These much-needed improvements are key to supporting more good-paying manufacturing jobs for American workers.”
The USTR analysis notes that the USMCA is already helping to stimulate billions of dollars in new auto manufacturing investments in the United States. Fiat Chrysler, Ford, General Motors, Toyota, and Volkswagen have publicly announced recent investments that were partly influenced by their anticipated need to comply with USMCA’s rules of origin.
To read the USTR analysis, please click here