With the United States-Mexico-Canada Agreement (USMCA) held up in Congress, the National Automobile Dealers Association (NADA) has come out in support of the agreement and publicly urged lawmakers to pass the deal in the name of competition and affordability.
Such was the tact taken by NADA Chairman Charlie Gilchrist at an Automotive Press Association luncheon this week. While NADA has supported the North American Free Trade Agreement (NAFTA) — the agreement scrapped by the Trump Administration to make room for the USMCA — they now note that the USMCA would be but the latest solidification of a favorable trade relationship between the U.S., Canada and Mexico.
“We cannot escape, nor should we try to undo, the reality that the U.S. auto industry is built on a favorable trading relationship with our two biggest trading partners — Canada and Mexico,” Gilchrist said.
He thinks President Donald Trump is unfairly accused of not understanding the auto industry. Gilchrist believes that Trump is pushing for renegotiation and strengthening NAFTA for the 21st century. He says the deal will ensure tariff-free exchanges of vehicles and auto parts in North America, which is the largest market for U.S. dealers.
“The U.S.-Mexico-Canada Agreement –- better known as USMCA –- that the President has negotiated will maintain auto production and distribution in North America,” Gilchrist said. “It will preserve the global competitiveness of the U.S. automotive industry. And it will enable dealers to continue providing affordable vehicle options for American consumers. But it will do more than that. Approval of USMCA will reduce the threat of tariffs on vehicles and parts by exempting those produced in North America. That is a big deal.”