The United States has requested that Mexico investigate worker rights violations that were alleged to have taken place at one of the parts factories owned by Stellantis. Officials are curious about what’s been happening at Teksid Hierro de Mexico, a facility located in the border state of Coahuila that’s responsible for manufacturing iron casings, in regard to unionization. According to U.S. officials, this is the fourth such complaint under the United States-Mexico-Canada Agreement (USMCA).

Having supplanted the North American Free Trade Agreement (NAFTA) signed into law by the Clinton administration in 1993, USMCA sought to rebalance trade laws the Trump administration believed had disadvantaged the United States. However, it also sought to advance worker protections in Mexico and give employees an easier pathway toward unionization.  Read More >

On Wednesday, American truckers commenced a cross-country drive from California to Washington, D.C., to petition governments (local, state, and especially federal) to end all COVID-19 mandates. Known as The People’s Convoy, the group was inspired by the Canadian Freedom Convoy that was broken up over the weekend and effectively serves to spread its message within the United States.

The goal is to arrive in the capital early in March to pressure the Biden Administration into ending any formal federal emergencies pertaining to the pandemic. Defense Secretary Lloyd Austin has approved a request from the District of Columbia government and the U.S. Capitol police for 700 National Guard troops, widespread fencing, and 50 armored vehicles in anticipation.  Read More >

With the Ambassador Bridge having been cleared by police over the weekend, those protesting government mandates have literally been relegated to the sidelines. Canadian officers from a variety of departments, including Ontario Provincial Police, are now situated at relevant intersections and Windsor, Ontario, has declared a state of emergency in case demonstrators return.

But don’t think the story is over. The trucker blockade certainly caused trouble for the automotive sector and it suddenly seems interested in rolling the event into the industry’s ever-expanding list of excuses. Now that the rigs have all been removed, spokespeople have been chiming in and they’re being presented as rather single-minded on the matter. They want more assistance from the government to quash any protests that might impact their bottom line and are happy to have something else to blame for why the broader industry remains in such a pitiful state.  Read More >

The Freedom Convoy that originated in Canada last month has gained an incredible amount of momentum, garnering loads of support from citizens around the world. Sympathetic protests seem to be erupting everywhere while the original group of truckers remains planted on the streets of Ottawa to demand an end to government mandates. But honking at Parliament Hill for two weeks was only a portion of the convoy’s grand strategy.

Large groups of truckers have broken off to create blockades at meaningful border crossings, gaining control of North America’s already ailing supply lines. The most recent example resulted in the taking of the Ambassador Bridge in Detroit, an essential trade crossing for both the United States and Canada. Truckers have held the bridge for five days and automakers have begun announcing shutdowns due to supply issues. Meanwhile, the Canadian government has begun discussing an end to lockdown measures after failing to stop the protests and other nations appear poised to follow in its footsteps.  Read More >

When the United States-Mexico-Canada Agreement (USMCA) was being floated as a possible replacement for the North American Free Trade Agreement (NAFTA), one of the biggest selling points was the inclusion of new labor protections for Mexican workers. The Trump administration wanted to ensure serious labor reform took place south of the border to ensure union business was conducted responsibly and wages would increase. As a byproduct, USMCA is supposed to encourage North American synergies while gradually discouraging U.S. businesses from blindly sending jobs to Mexico to capitalize on poverty tier wages.

That theory will now be tested in earnest after General Motors employees from the Silao full-size truck plant voted overwhelmingly to dump the Confederation of Mexican Workers (CTM) for the Independent Syndicate of National Workers (SINTTIA). Read More >

Mexican and Canadian officials have been dropping hints that they’re not all that enthusiastic about the United States-Mexico-Canada Agreement (USMCA) since before Enrique Peña Nieto, Donald Trump, and Justin Trudeau all sat down to sign it in 2018. But just getting to that point required months of formal negotiations that rarely looked to be all that productive.

Sadly, things don’t seem to have changed now that the USMCA is in full effect. Last week, Mexico requested a dispute settlement panel under the terms of the trade pact to help resolve disagreements about the surprisingly contentious automotive content stipulations that determine whether or not vehicles and parts will be slapped with tariffs. Under the previous North American Free Trade Agreement (NAFTA), 62.5 percent of the vehicle’s components had to be sourced from member nations to be considered tax-exempt. In an effort to spur localized production, USMCA increased that number to 75 and not everyone is thrilled with the updated content requirements with Mexico claiming it’s not even sure how to apply them. Canada now intends to formally sign onto Mexico’s complaint against the U.S. over their divergent interpretation of rules.  Read More >

When the United States abandoned the North American Free Trade Agreement (NAFTA) to embrace the United States-Mexico-Canada Agreement (USMCA), it did so under the premise of crafting a better trade arrangement for itself. Established in 1994, NAFTA created a trilateral trade bloc that encouraged commerce between nations. But critics have accused it of encouraging the offshoring of U.S. jobs and dramatically suppressing wages — particularly within the automotive and manufacturing sectors.

Signed in 2018, and revised the following year, the USMCA was supposed to remedy those issues. But it’s been difficult to get all parties on board, especially when it comes to those persnickety rules of origin that stipulate how much of a vehicle’s hardware needs to be sourced from member nations.  Read More >

Today President Joe Biden committed to cutting U.S. fossil fuel emissions up to 52 percent by 2030. His statement came during a virtual climate change summit with 40 world leaders.

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The Supreme Court ruled on April 5th in the Google v. Oracle case, a copyright dispute over software. Their decision was that application program interfaces (API) are fair use in building compatible components.

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Ginetta, a British race car manufacturer for more than 60 years, has opened Ginetta North America in South Boston, Virginia, to provide support for their motorsports customers across North America.

From their U.S. base, Ginetta will be able to not only market, distribute, and sell their sports cars, but grow their presence and the brand. Part of the expansion into North America included the acquisition of TMI AutoTech, a leader in low-volume sports car manufacturing in the U.S.

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Lobbyists are reportedly seeking to soften the United States-Mexico-Canada Agreement (USMCA) now that there are some new faces in the White House. Signed in 2018, revised in 2019, and effective since 2020, the USMCA sought to restore North America’s manufacturing base with new content requirements and place the United States in a more favorable position than it held under the North American Free Trade Agreement. But industry groups are now claiming that interpretations from government agencies are gumming up the works, and accusing the U.S. of having a different interpretation from what the other nations had originally agreed upon.

“[The USCMA interpretation makes] meeting the … content provisions that much more difficult for everyone to achieve,” stated David Adams, president of Global Automakers of Canada.  Read More >

Automakers around the globe have been issuing warnings for weeks that the semiconductor shortage will eventually result in fewer cars and leaner profitability reports. But the absent chips are affecting just about every industry producing modern connected devices, creating fears that electronic prices could skyrocket as availability dwindles. Lockdowns effectively crippled semiconductor supply lines right as demand peaked and everyone is starting to get a little worried about how it’s going to impact production in other industries.

The White House is reportedly taking steps to mitigate the issue by tasking Brian Deese (Director of the National Economic Council) and Jake Sullivan (National Security Adviser) with coming up with a solution. It’s also asking embassies to assist chip suppliers around the world however possible and hopefully suss out a way to stop the global shortage. Meanwhile, Deese and Sullivan will be focusing the brunt of their efforts on Taiwan.

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Tires from South Korea, Taiwan, Thailand and Vietnam are about to get more pricey, as the U.S. Department of Commerce (DOC) announced yesterday preliminary duties in the antidumping duty (AD) investigations of passenger vehicle and light truck tires from those countries.

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Germany is eager to see the United States abolish trade barriers implemented by President Donald Trump now that it looks like Joe Biden has won the 2020 election. While that could all be undone by the sudden influx of legal actions taken by the Trump campaign as presumptive evidence of election impropriety streams in, Germany would still like to get the ball rolling on trade with the Democrats.

The nation’s automotive industry is petitioning leadership in the U.S. and European Union to align technical/regulatory standards and minimize the existing trade barriers. The German Association of the Automotive Industry (Verband der Automobilindustrie) or VDA has already endorsed the proposal with the lobby group’s president confirming its position in a recent webcast hosted by the Frankfurt business media club ICFW (Internationale Club Frankfurter Wirtschaftsjournalisten).

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The Trump administration has reportedly expressed an interest in deciding where and how automotive manufacturers do their business if they want to secure duty-free deals under the United States–Mexico–Canada Agreement (USMCA) that’s positioned to replace NAFTA. According to Bloomberg, there’s currently a discussion taking place between administration officials, congressional staff, and domestic and foreign automakers regarding the context of the legislation that lawmakers will ultimately have to vote on. The White House is said to want highly specific language that would allow it to select production rules unilaterally.

Considering how messy things have gotten with China, it could be useful to have extremely clear trade language and some direct oversight of businesses with global interests. But critics are worried the strategy could bring U.S. trade policy closer to the rigid policies already in place in the People’s Republic — a country America has attempted to distance itself from due to its ludicrous levels of government intervention.

The real fear is that the government could use this to give one manufacturer better treatment than another — cutting it a sweet deal for building in a politically advantageous area, for example. While plausible, we can’t confirm something that’s largely speculative.  Read More >