During 2016, 2 million of the most popular cars and trucks purchased in the United States were built in Mexico.
That’s not as much of the market as it might sound. All told 17.5 million new vehicles were sold in the United States. Other imports of significance came from Canada and Japan.
However, Mexico as a car producer is making strides. Thirty years ago just 3 percent of cars made in North America originated there; by 2020 it is projected at 20 percent.
Wages paid are a factor in the boom, though perhaps not as much as is generally thought.
We in the U.S. have a tendency to disparage anything manufactured offshore. For years goods from Japan or China, as well as Taiwan, were considered inferior to what was marked “Made in U.S.A.”
Next time you’re in Walmart, try to find an appliance, piece of clothing or anything else made in the U.S. Most will have China on them.
Trump has proposed to slap a 20 percent import tariff on Mexican-made products to pay for his $15 billion wall he claims will curb illegal immigration. If the two things occur in a joint venture, Kansans are likely to end up wishing he would reconsider, or at least soften his approach to our neighbor to the south.
Quality of foreign-made goods by and large are not inferior to those made in the United States. And, that’s not to belittle American workers. In regards to the auto industry, much is done by robots, leveling the playing field when it comes to quality.
Consequently, the better approach is not to discard the North American Free Trade Agreement (NAFTA) and Trans-Pacific Partnership (TPP) as failures. Rather tweak if tweaking is needed and keep agreements in place.
Kansans should be particularly keen on not letting NAFTA slip away. Agricultural exports — wheat, corn and soybeans along with beef — are extremely important to the Kansas economy.
Let’s not shoot ourselves in the foot over political promises made in the heat of a campaign.
— Bob Johnson
