Boy howdy, this article by The Associated Press is very telling.
First, it’s worth remembering that in the fine print of the USMCA deal, Mexico and Canada must comply with North American parts origination for anything they want to manufacture for sale into the United States. Meaning, all trade manufacturers must either create their component parts domestically, or purchase them from the U.S, Mexico and Canada. It’s the core point of the USMCA trade agreement.
Secondly, in an aspect exclusive to the U.S. part of the deal that President Trump and USTR Lighthizer insisted upon, if either Canada or Mexico are deemed to be non-compliant with the agreement, the USA can cancel/override any trade agreement Mexico or Canada have with another nation. It’s a heavy accountability hammer securing the gate into the massive USA market.
In an AP report today, Mexico is scrambling to find local or North American sources of parts and components, because President Trump is set to come into office and look at USMCA compliance. Apparently, Mexico has been using excessive amounts of Chinese component parts for goods being sent into the USA and Canada. Now they are quickly trying to source alternatives.
MEXICO CITY (AP) — Mexico has been taking a bashing lately for allegedly serving as a conduit for Chinese parts and products into North America, and officials here are afraid a re-elected Donald Trump or politically struggling Canadian Prime Minister Justin Trudeau could try to leave their country out of the U.S.-Mexico-Canada free trade agreement.
Mexico’s ruling Morena party is so afraid of losing the trade deal that President Claudia Sheinbaum said Friday the government has gone on a campaign to get companies to replace Chinese parts with locally made ones.
“We have a plan with the aim of substituting these imports that come from China, and producing the majority of them in Mexico, either with Mexican companies or primarily North American companies,” Sheinbaum said.
While Sheinbaum claimed Mexico had been working on that effort since the 2021 global supply chain crisis — when factories around the world were stalled by a lack of parts and particularly computer chips from Asia — it appears to be an uphill battle. Even the United States has faced big challenges in moving chip production back home despite billions in subsidies and incentives.
Mexico gained tens of thousands of jobs when U.S. and foreign automakers moved their plants to Mexico under the free trade pact to take advantage of much lower wages. But the idea that Chinese parts — or even whole cars — could be piggybacking on that arrangement to further hollow out the U.S. auto industry has enraged some people north of the border.
So Mexico is scrambling with private companies to get them to move parts production here.
“Next year, God willing, we are going to start making microchips in Mexico,” Mexican Economy Secretary Marcelo Ebrard said on Thursday. “Of course they’re not yet the most advanced chips, but we are going to start producing them here.” (read more)
It’s amazing how the results of a USA election can almost instantly change the behavior of multinational corporations and the governments’ they bribe.
However, it does lend a person to wonder why the Mexicans and Canadians didn’t have to worry about rule enforcement when Joe Biden was in office?
Would components manufactured in Mexico at a factory owned by China qualify as compliant with the origination rules?
I would imagine so, if they are made of Mexican sourced aluminum/steel/etc.
Enforcing Mexican sourced materials for their manufactured goods and components is whole other issue.
Lemme ask Aron and Shlep.
At least that scenario would employ Mexican and South American citizens, which means they could Remain In Mexico for employment opportunities.
Years ago Brazil passed a law requiring certain computer components to be domestically produced.
They were trying to jump start high tech industry in Brazil.
It was a fiasco and the Brazilian government ended up with poor quality computers or [so it was reported].
The head of the microchip division for a major American tech company in the 80’s told me that their chips were manufactured in Taiwan because Asian women have the highest manual dexterity in the world.
An Asian woman can manipulate small objects under magnification better than any white man or so he claimed.
It seems to me robotic technology would make that reason obsolete.
The Qanon conspiracy theory claims that Taiwan, South Korea, and Ukraine, are run by the globalists. And keeping high tech manufacturing in Taiwan was a geostrategic long range plan.
It would be simple just to import Asian women if needed to manufature chips here in America. That would have to be a small percentage of the overall workforce.
After achieving the position of CEO at Intel, Andy Grove moved Intel’s most advanced chip research and manufacturing facilities to Israel.
So I guess being located in a nation full of Asian women didn’t matter to Intel.
FYI, buy one of the Chinese chainsaws or dirt bikes. They work but the quality is almost toy like.
Neo-Tec replacement chainsaw coil $ 7.
Equivalent Husqvarna
chainsaw coil $ 80.
I remember taking a training course at a US electronics manufacturer about 20 years ago. I was surprised to see circuit boards and things like transformers being made there. I asked the engineer I was dealing with, how these things could be made profitably in the US instead of farming it out to the Far East? He said that once you get to a certain level of automation it doesn’t matter if things like this were made in the Far East or US. Since then, things have become a lot more automated and whenever I hear talk from big corporations about it being cheaper to manufacture in the Far East, I call their BS. Low value items like bamboo rakes or cheap toys, OK, but high tech items like computers, I don’t believe that any more. An argument could be made that the US population is too uneducated or stupid (especially with the large numbers of low IQ immigrants that have come in the past few years) to make high tech products, so that you need, higher IQ Asians to make them. I myself take that with a pinch of salt because in the plant that I was visiting 20 years ago, all the floor workers were Mestizos, even the engineer was a Mestizo. I think that the real reason behind the reluctance of manufacturers to move back to the US is that US workers know their rights, and might unionize. Much less chance of that happening in the Far East.
If you are talking about components made in Mexico by factories owned by China that come thru ports in the US, also owned by China, the answer is yes.
Yes, if the manufacturer was incorporated in Mexico and is capitalized and operated as an entity separate and distinct from its Chinese parent. Either a Mexican company formed as a Sociedad Anonima (“S.A.”) or a Sociedad Anonima de Capital Variable (“S.A. de C.V.”) would suffice. But no, if the manufacturer is only an unincorporated branch of the Chinese owner. These entities (S.A., or S.A. de C.V.) would be classified as “companies of Mexico” under NAFTA.
Mexico making chips? The plot thickens.
I view it as a neophyte grasping at straws.
They were talking about tortilla chips
hahahaha
Why not
Sundance talks a lot about pretending.
Politicians pretend that they know how their country’s economy works, when they don’t have the slightest idea how it works.
On those rare occasions when a Trump comes along who does understand about such things, the pols pretend that, not only will he ruin the economy,( that they know nothing about), but he’s also a threat to our democracy, (they also pretend that our Constitutional republic is a democracy because they hate the electoral college).
Then they bring in Nobel winning economists, like Paul Krugman, who is always wrong about everything, to prove that the US economy will go to hell under President Trump and 50 more Nobel winning economists sign a letter saying Krugman is right!
But they don’t believe any of the things they say!
What they really believe is that Trump is an economic genius who will grow the American economy like no one else can.
But they keep that to themselves!
Because if they told the truth, the DNC would make sure that they couldn’t get elected as dog catcher, let alone Senator, and the FBI would find some honey pot to accuse them of being a sexual predator and the CIA would accuse them of colluding with the Russians and the DOJ would put them in prison, (for being both a sexual predator and colluding with the Ruskies).
So everybody either shuts up or pretends to agree when Joe Scarborough tells us all that Biden is the best he’s ever been!
And that’s the way the system works, and will continue to work…
…until President-elect Trump becomes President Trump and changes everything!
And the pretending finally stops!
This yenta South of the boarder has been talking trash for some time now. Seems like reality has come home to roost.
Coming home to roost on a couple levels…the scramble to replace Chinese parts with US parts and the scramble to close the border on Mexico’s side so’s not to incur those import tariffs when Trump takes office.
Why is it that when Democrats are in charge they don’t have to make sure that treaties are enforced? And, why don’t they have to pay for it when they don’t?
cross posted at https://freedomaustralia.freeforums.net/thread/6337/mexico-fearing-trump-compliance-demand
So, in essence, the Mexicans were cheating on the agreement 5 seconds after the 2020 ballot fraud.
20 million came thru Mexico. They need to pay dearly.
Soon, Mehico will have millions of illegals that can work those factories
Mexico has 165 million people that will do the work Americans refuse.
That’s the reason Mexico is the most successful nation in world history and everyone wants to live there.
You forgot the /s.
Probably not in the hoped-for chip manufacturing me thinks.
I would not fly on any aircraft that relies on parts from Mexico and China….just sayin
Seems Mexico is afraid of their fingers being caught in the cookie jar.
The Mockingbird Fake News media has to be de-monoplized and destroyed. Its a major part of their Totalitarian Liberal World Order they truly started after WWII
“Totalitarian systems have always been maintained primarily by systematic indoctrination and propaganda, injected into the population on a daily basis via mass media (without mass media, it is not possible to generate such long-lasting mass formation as that which gave rise to Stalinism and Nazism). This way, the population is literally kept on the vibrational frequency of the voice of totalitarian leaders.”
― Mattias Desmet, The Psychology of Totalitarianism
Colkitto, another “great thinker” observed that it (the full spectrum propaganda machine) works best in an advanced nation where the majority of the population has a formal education.
An ex CIA member wrote a book about using it in South America titled something like “The Wonderful Wurlitzer:…”
[The people dance to the tune of the CIA organ.]
Describes using control of critical information sources to move the people in a desired direction and destroy political opposition, in the targeted nation, to CIA goals.
I guess Trump is well aware of this problem since he refers to the media as “Enemy of the People”.
BTW, Tucker Carlson tells a story of a source telling him that the large porn companies on the internet are ran by the intelligence agencies for blackmail purposes.
Similar to Sundance presenting Twitter as an unprofitable business model subsidized and ran by the intelligence community.
Article about Tucker at
Lifesitenews.com
Can we revisit the ruination of community and residential real estate along the exact part of a North Carolina river where, in the entire world, the silica quartz needed for chip manufacturing comes out of the ground?
Like what is the country of origin for those manufacturers that already own land there, scooping up our rare US earth elements? And will probably be buying up more property when the past owners are too dead or missing to rebuild?
Maybe Trump needs to worry about who imports and exports what, not just from Mexico, but also the US.
Mexico has been facilitating an invasion at our southern border. That is an act of war, not the act of a signed treaty partner.
What’s to stop China from just stamping made in Mexico on it all ?