What NAFTA has done
NAFTA has helped transform the auto industry. Since 1994, the industry has had
• Tariff-free movement of vehicles and parts among the U.S., Canada and Mexico
• More integrated 3-country manufacturing operations
• Creation of more global vehicle platforms
• A higher U.S. motor-vehicle trade deficit with Mexico
• Many low-wage jobs created in Mexico
• The geographic center of vehicle production shift to U.S. Southeast, Mexico
• Canadian vehicle production decline
Since the North American Free Trade Agreement was enacted in 1994, automakers and suppliers have operated tariff-free in three countries as if those countries were one, building a powerhouse manufacturing and trading bloc.
