Japanese automakers praise new deal, but they’re aware a bumpy road still lies ahead

4 October, 2018

Warning: foreach() argument must be of type array|object, bool given in /home/mexiconow/public_html/sites/mexiconow/wp-content/themes/mexiconowwpnew/single.php on line 253

Toyota, Nissan and Mazda praised the revamped trade agreement in the North America bloc that left well positioned their operations over said region, although now there's yet to see the impact that the newly initiated negotiations between the United States and Japan will have on vehicle exports from their homeland to America.

Mazda, which currently does not operate assembly plants in the United States, but ships vehicles from Mexico and Japan to that market, called the agreement “a big step forward,” according to a Reuters report. Nissan, which makes cars in the United States, Mexico and Japan, said it was "encouraged" by the agreement.

Meanwhile, Toyota, the largest automaker in Japan, which imports vehicles from that country but also makes cars in Mexico, the United States and Canada, said it was “pleased” that a basic agreement has been reached. Other car manufacturers were not immediately available to comment.

Although the pact dodged the risk of the disintegration of NAFTA, there are still risks for Japanese companies because about seven million cars sold in the United States last year were shipped from Japan and no commercial agreement has yet been reached between both countries.

The United States and Japan agreed last week to start new trade negotiations. President Donald Trump wants to address Japan's trade surplus of US$ 69 billion, of which almost two-thirds comes from exports of cars, states the Reuters.

MexicoNow

- Automotive goods account for 31% of Mexico's exports in August and throughout the year

- US, Canada reach new deal to keep NAFTA as a trilateral bloc