Trade dynamics, employment and wages in the automotive industry in the framework of the renegotiation towards the T-MEC

Abstract

The main objective of this work is to evaluate the behavior in the commercial flow and employment in the automotive industry between Mexico, the United States and Canada in the time frame of the North American Free Trade Agreement (NAFTA) and its effect in the renegotiation towards the new T-MEC. Therefore, it incorporates the analysis of the macroeconomic variables of imports, exports, employment and wages; as well as the tax policy of the new trade agreement, specifically, on issues related to regional value content (RVC) and labor content value (LCV). The methodology is quantitative, so it is based mainly on the data of the variables studied for the three countries of the NAFTA region, which origin is the official statistics of INEGI, Statistics Canada, U.S. Census Bureau Economic Indicators and U.S. Bureau of Labor Statistics.