A Lot On the Line for Michigan in New Trade Deal
Mary Schuermann Kuhlman, Public News Service – MI
LANSING, Mich. – Congressional leaders are still trying to hammer out
a new trade agreement with Canada and Mexico, and there’s a lot on the
line for workers in Michigan.
The United States-Mexico-Canada Agreement (USMCA) would replace the 1994
agreement known as the North American Free Trade Agreement (NAFTA).
Exports within North America account for some 180,000 Michigan jobs, and
Michigan is second in the U.S. for trade with its neighbors.
Ford Motor Company’s President of Automotive Joe Hinrichs explained the
trade deal is especially crucial for the auto industry, which depends on
the free flow of trade between the three countries.
“So, for our workforce – where one out of six vehicles produced in the
United States are exported outside the U.S. – having a competitive USMCA
agreement ratified and certified, so we can plan the business, is very
important to our manufacturing footprint and to our employees,” said
Hinrichs.
Ford alone exports 380,000 American-made vehicles each year. It is
estimated that the USMCA will result in $34 billion in new investments
for the auto industry, and could create 76,000 new automotive jobs over
five years.
The deal raises the minimum wage and creates and protects manufacturing
jobs by offering companies incentives for engineering and production in
the United States. And Hinrichs sees that as good news for the roughly
46,000 workers at Ford’s 14 manufacturing plants in Michigan.
“We support the USMCA because it’s good for the U.S. auto industry, our
suppliers that fuel our success, and the workers and families that
depend on a strong Ford in this country,” he said.
Hinrichs also believes the agreement will modernize policies to match
the ways in which auto manufacturing, supply chains and the workforce
have evolved in the 25 years since NAFTA.
“Let’s get this planned, let’s get it approved,” he urged, “so we can
run our business, plan for the future and continue to invest in
America.”
Because the agreement allows for duty-free importation of products, some
companies like Ford contend they can offer a wider range of vehicles
and more choice for customers.
Mexico has already ratified the agreement. The U.S. Chamber of Commerce
is calling on lawmakers to approve the deal by the end of November, with
hopes that Canada will ratify it around the same time.