NAFTA Review Looks Certain to Affect Japan Automakers

Economy

Tokyo, Aug. 28 (Jiji Press)--A U.S.-Mexico deal on revisions to the North American Free Trade Agreement looks certain to affect Japanese automakers making vehicles in Mexico for export to the United States, industry sources have said.

Under the deal, reached Monday, the United States and Mexico will introduce stricter conditions for automobile tariff exemptions.

If the NAFTA revisions are realized, Japanese automakers would face higher tariffs. They would have to change their North American market strategies, mainly by expanding their regional auto parts procurement, the sources said.

Among Japanese automakers, Toyota Motor Corp. <7203>, Nissan Motor Co. <7201>, Honda Motor Co. <7267> and Mazda Motor Corp. <7261> have passenger car plants in Mexico.

Toyota is building a new factory in Mexico, planning to launch operations there in 2020.

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Jiji Press