Does Mexico’s Auto Industry Threaten US?

Since the formation of NAFTA in 1994 Mexico has blossomed into one of the world’s leading producers of motor vehicles and parts. Manufacturers from all over the world, including the US, have established productions facilities there.

According to statistics from the Organisation Internationale des Constructeurs d’Automobiles (OICA) in 2015 Mexico made 3.6 million vehicles (passenger cars and commercial vehicles), of which over three-quarters were exported. Since 2000 production has risen at an average annual rate of 4.5 percent.

Mexico is now the biggest provider of vehicles to the US with $47.3 billion of Mexican-made units crossing the border in the first 11 months of 2016 and another $51.6 billion of parts making the same journey.

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