NAFTA & USMCA Explained

How much has the price of cars gone up in the last 25 years?

• 7%

• 45%

• 1%

• 86%

What does NAFTA stand for?

• North American Free Trade Agreement.

• North Africa Free Trade Agreement

• North America Free Tax Agreement

What is a tariff?

• Taxes on imported and exported goods.

• A tax related to food. 

• A person who is in law enforcement. 

What percent of the parts need to come from North America to make the "tariff cut"?

• 85.5%

• 25%

• 62.5%

Why would a car in Mexico cost less?

• Labor and parts are cheaper in Mexico.

• Cars in Mexico are not an important resource to the people there. 

• The value of money is less in Mexico. 

True or False: The US is making more cars now than before NAFTA was in in place?

• True

• False

Many Americans blame Mexico (and NAFTA) for the decline of manufacturing jobs in the U.S. What might be a better explanation for those job losses?

• Lack of interest working in the auto industry

• Machines/Automated Technology (Robotics)

• Immigration tensions

• Inflation (rising prices)

What does the USMCA stand for?

• United States Mexico Canada Agreement

• United South Mexico Canada Agreement.

• It does not stand for anything. 

What TWO major changes did USMCA propose?

• 90% rather than 50% of the parts must come from North America

• 75% rather than 62.5% of the parts must come from North America

• 80% of those parts must come from workers who make at least $30/hr

• About 40% of those parts must come from workers who make at least $16/hr

What is NOT a possible consequence of the USMCA changes?

• Companies may start building cars elsewhere (losing more jobs)

• Car prices may go up

• We may have too many cars