Auto-Parts Suppliers Fear End of Nafta

The video discusses Magna International's earnings and the concerns about its growth coming from lower-margin sectors. It highlights the impact of NAFTA on Canadian auto suppliers, focusing on rules of origin and potential changes in tariff requirements. The discussion includes the possibility of NAFTA being scrapped and the contingency plans companies like Linamar have in place, considering a shift to WTO most favored nation status.

What is the main concern for investors regarding Magna International's growth?

• Investors are not concerned about the company's growth.

• Growth is expected from lower-margin business areas.

• The company is not exposed to global production trends.

• Growth is expected from high-margin business areas.

Which aspect of NAFTA is crucial for parts suppliers?

• Export quotas

• Import duties

• Rules of origin

• Tariff exemptions

What percentage of a vehicle currently needs to be produced in North America to qualify for tariff-free treatment under NAFTA?

• 75%

• 50%

• 85%

• 62.5%

What is Linamar's stance on the proposed 50% US content requirement?

• They fully support it.

• They find it reasonable.

• They consider it unrealistic.

• They are indifferent to it.

If NAFTA is scrapped, what status is expected to apply to trade?

• Free trade agreement

• WTO most favored nation status

• Bilateral trade agreement

• No trade agreement