April 22, 2019 / Modified apr 22, 2019 3:50 p.m.

Report: New NAFTA Would Bring Growth, Employment Gains

An analysis found auto jobs would increase slightly, though vehicle costs could also rise.

Trucks mariposa Trucks carrying cargo at the Mariposa Port of Entry on the border of Arizona and Sonora.
AZPM

Though it still needs Congress’ approval, the United States-Mexico-Canada Agreement (USMCA) would increase GDP by $68.2 billion and add 176,000 jobs — a slight bump of roughly one-tenth of 1 percent. That’s according to new analysis from the United States International Trade Commission.

The deal would also set new North American content requirements for automobile manufacturing, a key industry in the region.

“The new USMCA really positions the Arizona-Sonora region to grow considerably when it comes to the manufacture of automobiles,” said Glenn Hamer, head of the Arizona Chamber of Commerce and Industry.

Electric vehicle manufacturing shows special promise, according to Hamer.

The USITC analysis found that under the deal U.S. automotive jobs would increase slightly, by around 28,000 jobs. However, costs for vehicles could also rise, spelling potential sales declines. Sonora, the Mexican state to Arizona’s south, is home to one of Ford’s largest manufacturing facilities.

Read the full report here.

Fronteras Desk
This story is from the Fronteras Desk, a collaboration of Southwestern public radio stations, including NPR 89.1. Read more from the Fronteras Desk.
By posting comments, you agree to our
AZPM encourages comments, but comments that contain profanity, unrelated information, threats, libel, defamatory statements, obscenities, pornography or that violate the law are not allowed. Comments that promote commercial products or services are not allowed. Comments in violation of this policy will be removed. Continued posting of comments that violate this policy will result in the commenter being banned from the site.

By submitting your comments, you hereby give AZPM the right to post your comments and potentially use them in any other form of media operated by this institution.
Arizona Public Media broadcast stations are licensed to the Arizona Board of Regents. Arizona Public Media and AZPM are registered trademarks of the Arizona Board of Regents.
The University of Arizona