The Economic Perspective: “The New NAFTA”

I’m Mary Walden with economist MW welcoming you to the economic perspective.  Today’s program looks at the new NAFTA.  Mike, it appears the US Congress will approve the new NAFTA treaty, now called the USMCA.  The new treaty will update the trading rules between the US, Mexico, and Canada.  What are some of the major changes, and how will they impact North Carolina?

Mike: Summary Answer

  • Big changes in auto manufacturing – increase in requirement for parts made in North America, and also on wages rates paid to auto workers
  • NC has a parts industry – should increase output
  • Also, new wage requirements should increase chances of NC getting an assembly plant
  • Changes for pharmaceutical industry should help NC
  • Last, NC dairy farmers should be helped by new rules making it easier for them to sell in foreign markets
  • So, should increase NC jobs
  • I’m MW

Mary: And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.