b'JULY 24 - AUGUST 20, 2023NORTH AMERICAS TRANSPORTATION & LOGISTICS NEWSPAPER 25(BOOSTScontinued fromsin.Idontthinkweveimpossible.Theresnowayshipmentsoflessthanthatthree countries. Additionally, page 6) seenoveramillionpeopleyoucandecouplewhereweamounttoavoiddutiesandCanadaandMexicomight required40%ofeachvehi- employedinautomanufac- are several years into USMCAtaxes.Whilethegoalwaschallenge some of the things cletocomefromfactoriesturing since before the greatfromthefactthatwearetoexpediteshipmentstothat the U.S. is doing to sup-paying at least $16 per hour.recession. So, these are posi- coming out of a pandemic thatconsumers,somecompa- port US manufacturing. Compared with NAFTA, thetive things. consumed the entire globe forniesaregamingthesystemPalisin points to the huge USMCAputspecificfocusPalisin noted that manu- the last three years.bysourcingfromoverseas,investment in semiconductor on increasing the wage ratesfacturersarehiringmoreAnother force for increasedsending the goods to Canadachips that the U.S. is making in Mexico to be more on parworkers.WenowhaveNorthAmericantradehasandMexico,andthencir- as possible cause for interna-with the US, so that gives usnearly13millionmanu- been the recent supply chaincumventingthe301tariffstionalconcern,andthenew kindofanadvantage,saidfacturingemployees,anditissues that pushed more man- bytakingadvantageoftheinfrastructurelawincreases Palisin. has not been that high sinceufacturers to localize produc- de minimis to drop ship thetherequirementsforUS-Anothersparkwastheprior to the great recession,tion. Supply chain crunchesgoods to the United States. based manufacturing.requirementthatatleastsaid Palisin. Theres a lot ofhaveincreasedinterestinAndthen,ofcourse, seventy percent of a vehiclereasons for it, but you couldnearshoringandonshoring,l ookinga head thedevilwillalwaysbein producers purchases of steelprobably point in some wayssaidPalisin.SothatshouldLookingahead,econo- thedetails.TheUSMCA andaluminum,hadtobetotherevisedtradeagree- havereallypositiveeffectmistsexpectthetripar- requires a large percentage of melted and poured in Northment with the USMC versusonemploymentandgrowthtiteagreementtocontinueauto parts to be manufactured America.ThisdecreasedNAFTA. So something goodwithintheUSandprobablytostimulatetradeamongin North America, said Pali-reliance for such metals fromis happening. Mexico as well. thethreeinvolvednations.sin. We need to make sure China imports. Yet another force was theThe USMCA will certainlythose are in the US and not in Such provisions put upwarda m urkyp iCture section301tariffsimposedstrengthen the trade relation- Mexico or Canada.pressureonsourcingamongDidallofthetripar- onChina.Theseresultedinships in North America, saidMostofthemembersof the three countries. The agree- titetradeincreaseemanateUScompaniesmovingpro- Palisin. It will give the USPalisinsassociationfeelthat ment focused more of our tradefromtheUSMCA?Prob- ductionofcomponentsandandMexicotheopportunitythe USMCA has helped level in North America rather than inably not. Isolating the agree- parts, as well as complete fin- tohavingmorepredictabletheplayingfield.Yetthere Asia and Europe, said Palisin.ments effect is complicatedishedproducts,frommain- supply chains. remainsroomforcompanies That can be important goingbecause of another factor thatlandChinatootherareas.Butthereremainsroomto be more aggressive in their forward,giventheconfronta- stimulated trade over the lastThoseincludednotonlyforimprovementintheinternationalactivity.Idont tions were having with Chinacouple of years: the post-pan- Vietnam,Malaysia,India,enforcement area. Its fairlythink we have as many manu-these days. demic recovery.We cannotandotherSoutheastAsianearlyintheprocess,butIfacturersexportingaswe Increasing tripartite tradeunderestimatetheimpactcountries, but also the Unitedthinktherewerealotofcould, said Palisin. So I think has come at a time of a similarthatthepandemichashadStates, Canada, and Mexico. promisesinUSMCAabouttheres an opportunity there to increase in American manu- onglobaltradeingeneral,Yetanotherstimulustomaking the wage rates morecontinue to increase that side of facturingingeneral.Afterand trade amongst the UnitedNorth American trade, if unin- competitiveinMexico,andthe equation for us.theblipcausedbyCOVID,States, Mexico and Canada intentional,wastheincreaseits unclear if thats happen- As for a final assessment there has been a big reboundparticular, said Craig. some years ago by U.S. Cus- ingatafastenoughpace,of the USMCA, it will have with manufacturing, particu- Separating the impact oftomsandBorderProtectionsaidPalisin.Theremightto wait. We dont know for larly in the auto sector, whichthe USMCA from the effectsoftheso-calleddeminimisalsobeconcernsaboutthesure how all this will shake is a critical one between theof the recent economic recov- exemption to $800 from thedisputemechanismsthatoutprobablyforacouple USandMexico,saidPali- ery, noted Palisin, is virtuallyformer$200,allowingforhave been put in place for themore years, said Palisin.SINO Ads2023_Air 8x10inc_P.pdf 1 14/6/2566 BE 12:0180+ COUNTRIES30,000+ BUSINESS MEETINGSOPEN TO ALLwww.sinoconference.comOFFICIAL ORGANIZEDSPONSOR JOINTLY BY'