No. of Recommendations: 1
Mexico has had a free trade agreement with the EU for some years. This appears to be a refinement. The EU has also, recently, signed free trade agreements with Brazil and India.
This is probably more about the EU gaining access to cheap labor, than anything else. The downside is the EU will see the same social problems that the US is seeing from offshoring production. VW, for instance, is looking to put increasing numbers of Germans out of work, escalating their production headcount cut from 35,000 to 50,000. VW has significant production capabilities in Mexico, Brazil, and India. In 2024. VW announced that the ICE powered Golf, for EU sale, will be built in Mexico, rather than Wolfsburg, from 2027, as part of it's German RIF program.
Steve
