Oh great solution...with all the auto parts made in Mexico...lets just slam the door shut and put ourselves out of work...
Good, or bad?
- Thread starter Swanny
- Start date
Oh great solution...with all the auto parts made in Mexico...lets just slam the door shut and put ourselves out of work...
paullud
Veteran Expediter
No it forces the plants to move to the US or Canada. The big issue with NAFTA is it forced manufacturers to look at costs for making and transporting goods back to the US and with it being much cheaper in Mexico they left. We need to become a manufacturing country again, as we turned our backs on the manufacturing industry and let jobs leave they were replaced with jobs at Walmart.
No they won't come back here..they'll go to Asia or somewhere else where they can make profits and be in business friendly grounds....the US is NOT friendly with business...TAX, TAX, TAX...
paullud
Veteran Expediter
OK, say the jobs do go to China, it still means there are port, warehouse, inspection, security, and driving jobs for those in America, not to mention we won't lose all the tariff money we get from stuff coming from there. You also have to remember that Calderone will not let it go that far, he likes power and does not want a coup.
greg334
Veteran Expediter
NAFTA wasn't the reason we saw jobs leave the country, it was another means for it to happen.
See I think many of you miss a few things about how a lot of this works, it isn't that the company just want to up and leave but they have to either find resources to make the products that they sell or go out of business.
On top of that, there has been and always will be outside of a planned economy what is called trade differences. This is one reason why the EU is on one currency, the one country accumulates the wealth and their cost of living increases as they export. Wages go up and then the price of the products they export go up too. THEN the country with the cheaper cost of living has the advantage and they start selling their products as exports to the first country, making it cheaper for the first country NOT to buy their own goods.
AT THIS moment there is growing concerns with China, and a possibility they may implode with their own DEBT problems and cost of living increases. It isn't the utopia that many claim to be and if their bubble bursts, we may be in a better position to capture some of our 'lost' manufacturing work. We already are seeing prices increase on electronics and machinery from China and India, another place of cheap stuff has followed suit with increasing of their prices along the same reasons.
The idea that Chinese good escape the tariffs because they are funneled through Mexico isn't true. If you ever imported products made in China or even for that matter, Europe, it doesn't matter where it passes through but where it originated from. Falsifying that will get it confiscated and sold off for the tariffs owed.
paullud
Veteran Expediter
You are completely wrong, we know they are doing this already, do you think the corrupt government of Mexico is stopping this or is it the corrupt government of China?
paullud
Veteran Expediter
Well we have a match made in Heaven..then....Corrupt government of the US of A....
HOW DARE YOU!!! Oh wait never mind.
greg334
Veteran Expediter
SHOW ME.
I worked at a customs' broker here in the area and learned how the system works. THIS is after I imported products from China and Russia years ago and had to deal with US customs on product labeling. A broker can face serious issues if they falsified documents to get products into the country, including jail time. The paper work has to follow a path that can be traced and the mexican or the chinese government are not the ones who have the final say so on what comes here and what gets paid.
paullud
Veteran Expediter
I am not saying it will be as much of an issue on the American side concerning this fraud, I am saying it will be an issue on the Mexican side, I think you might have what I said confused because you gave examples of what you did or working for the broker, unless you lived in Mexico when this was going on, I don't know your life story so that may be the case but I don't think it is. The companies send partially produced products from China to Mexico, the "final assembly" happens in Mexico making it a product of Mexico. I put final assembly in quotes because a lot of people think the final assembly is putting a stamp that says Made In Mexico or Hecho en Mexico on the product.
paullud
Veteran Expediter
Go ahead...Make my day!....
I would like to see a politician in the game for the love of his country rather than the love of money and power. Where you find power over others you will find corruption, yes even in the good ole US of A, that's why we need to support these patriot groups, I want a government that is afraid of it's people.
greg334
Veteran Expediter
Oh, that's not producing goods in china and then shipping them through Mexico as you seemed to have claimed. That is actually producing an end product in Mexico and using Mexico to move it here without tariffs. a bit of a difference.
See this is the thing - we also do that.
We the consumer, doesn't consider content to be important so a company like GM or Chrysler will build components in Mexico and ship them here for assembly. I get a kick out of the caravan with the If you lost your job because a number of components are made in Mexico and shipped to Canada to be put into a vehicle people think is made here. Another one is Dodge ram diesels, they are "assembled" in Mexico for some reason.
We have things made here to be assembled say in England or in France at one time or another. Ford did this for a bit in South America when he was trying to break into the market. He would ship knock down model T's to say Rio and have them assembled with some content from Brazil.
paullud
Veteran Expediter
I completely understand this but China is just sending things over to Mexico where there is nothing really happening other than they slap a Made In Mexico sticker on the product to avoid the tariffs.