SAN ANTONIO – As the back-and-forth goes on over the North American Free Trade Agreement 2.0, some predict an agreement could come at the beginning of May, but not Richard Perez, president and CEO of the San Antonio Chamber of Commerce.
“I don’t think it’s feasible or realistic in May,” Perez said. “I think we’re going to push that back a little bit.”
Perez said he expects an agreement could be made “closer to the end of this year.” He said there are still some issues to be resolved, such as the current rules of origin for the automotive industry, which require 62.5 percent of the components to come from NAFTA’s three nations.
“Anything beyond what it is will have a negative effect on Toyota and many of its suppliers," Perez said. “Then we’re talking about upsetting the apple cart. That could be very devastating to thousands of employees just in San Antonio.”
Perez said, under the current level, Toyota has gone from a couple of plants to eight throughout the U.S.
There’s also the potential impact of a possible trade war with China to consider.
“It’s very concerning,” Perez said, since many of the products crossing Laredo’s World Trade Bridge “come from China through Mexico and through San Antonio."
Despite any obstacles still ahead, Perez said he and other business leaders are optimistic. He acknowledged that some parts of the country have lost jobs.
“Jobs have migrated. Jobs have changed because of technology and the agreement itself,” Perez said.
But in terms of new jobs and new investments, Perez said, “The net positive effect is real and is undeniable.”
Statement from SA Chamber of Commerce on Gov. Abbott's letter to US Trade Representative regarding NAFTA.do... by David Ibanez on Scribd
Abbott's letter to US Trade Representative Robert Lighthizer.pdf by David Ibanez on Scribd
Following are statements from the two Democratic gubernatorial candidates regarding NAFTA:
Andrew White:"We must respect our neighbors and value the relationship we have together. I'm for NAFTA. It's a huge benefit for Texas jobs and our economy. It's decades old, so if it needs updating, let's put our best and brightest on it - not Donald Trump and his Tweet machine."
Lupe Valdez: "Fair trade is key for a thriving economy that benefits all Texans. Any trade agreement must level the playing field and put the interests of our workers first. Unfortunately, too many Texans don't even have a fighting chance to make ends meet. Under Governor Abbott's leadership we have seen our economy fall from 3rd to 21st in the United States, no thanks to policies shifted solely to help the largest corporations and little to help average workers. If the goal during these renegotiations is to create a deal that benefits President Trump, Governor Abbott and their rich donors, I'd trust them to get that done. My campaign is about kitchen-table issues that keep families up at night. As governor I will not have a vote on trade deals, but you can bet I will fight for Texan jobs that pay a living wage, invest in an education system that prepares our children for an economy of the future and combat environmental degradation."