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2022 | OriginalPaper | Chapter

5. Make America Great Again: A New Auto Pact for the North American Car Industry?

Authors : Mathieu Arès, Charles Bernard

Published in: NAFTA 2.0

Publisher: Springer International Publishing

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Abstract

The automotive industry is the emblematic symbol of the North American economic integration process. The North American Free Trade Agreement (NAFTA) has established the necessary institutional foundations for the development of a highly competitive automotive industry, supported by a network of value chains adequately aligned with the comparative advantages profile of the three partner countries. The United States–Mexico–Canada Agreement (USMCA), for its part, introduces a new integrative logic characterized by a strategic dimension toward foreign manufacturers, a proAmerican retreat on manufacturing that echoes President Trump's protectionist rhetoric throughout the negotiations. The first section provides an historical picture of automobile manufacturing and discusses the determinants that have made the industry so critical to North American economic growth. The second section aims to define the changes between NAFTA and USMCA, pointing to the gradual implementation of regional mercantilism within the automotive sector.

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Title: Make America Great Again: A New Auto Pact for the North American Car Industry?
Authors: Mathieu Arès
Charles Bernard
Publisher: Springer International Publishing
Book: NAFTA 2.0
Print ISBN: 978-3-030-81693-3

Electronic ISBN: 978-3-030-81694-0

Copyright Year: 2022
DOI: https://doi.org/10.1007/978-3-030-81694-0_5