Canadian Plastics

U.S.-based Plastics Industry Association supports new trade deal with Mexico

The announcement of a bilateral agreement between the U.S. and Mexico "is a step in the right direction", the trade group says.

August 28, 2018   Canadian Plastics

A leading plastic industry trade group in the U.S. has offered its support for the recent announcement from the U.S. and Mexican governments that they’ve struck a preliminary agreement to replace NAFTA.

“The North American plastics industry has always stood firm in its support of modernizing NAFTA, having outlined our priorities more than a year ago when the process of renegotiation first began,” the Washington-based Plastics Industry Association said in a statement. “While we look forward to Canada’s involvement in finalizing the pact, this announcement of a bilateral agreement between the U.S. and Mexico is a step in the right direction toward a truly modern agreement that can deliver for the workers, families and communities who depend on the nation’s plastics industry. We are pleased to see progress toward the goal of building a strong, up-to-date trade agreement that’s better suited to today’s supply chain than the existing regime, and we applaud negotiators for their commitment to finding agreeable solutions that will benefit companies and workers in both countries.”

Along with the Canadian Plastics Industry Association and Mexico’s Asociación Nacional de Industrias del Plástico A.C., the Plastics Industry Association released a statement last year outlining what the three trade groups hoped to see from a renegotiated NAFTA.  These included continued support of the growth and development of the North American plastics industry, harmonization of regulations of all types as they affect the industry, a review of the Rules of Origin, a simplification and modernization of trade and customs documentation, ease of employee access throughout the continent, no new tariffs, and continued labour cost flexibility between the three nations.

​​​​​​​​​According to the terms of the deal struck between the U.S. and Mexico earlier this week, workers earning at least US$16 an hour should make 40 per cent to 45 per cent of autos. The agreement also mandates that 75 per cent of automobile content will come from within North America, an increase from the current 62.5 per cent.

The U.S. and Mexico also agreed on issues such as intellectual property, digital trade, labour, and financial services. The new deal would expire after 16 years with reviews every six years.

The deal does not include Canada at this point.


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