USMCA vs NAFTA, explained with a toy car

NAFTA made your car cheaper, USMCA could change that.

When the North American Free Trade Agreement began in 1994, auto companies in the US, Canada and Mexico could trade parts and cars without paying tariffs. And they could source parts and labor from the cheapest places. That is a big reason why US car prices have only risen seven percent in 25 years.

But the US Mexico Canada Agreement -- or USMCA for short -- could change that; the new law would increase the regulations that car manufacturers need to meet in order to sell tariff-free cars.

We built a Ford Mustang to explain.

[Vox]

Renegotiating NAFTA is the latest in the Trump administration's escalating rhetoric and action around international trade.

[ivanabakumov]

Never thought Id see Vox defend the automotive industry so passionately.

[molu]

If Obama, Trump and Sanders say the same thing, I don't know what to believe in anymore.

[zPheonixProductions]

Why are Americans so fixated on trying to save or bring back manufacturing jobs? Machines are going to completely replace manual labour in the next few decades... it's a lost cause

[PvpKatu]

Things not mentioned
Mexican farmers / food production
Isds
Environmental standards
Increasing business power

[pulcherius]

So a luxury item cost remains stable while necessities go through the roof. Great

[Curlyhairedasian]

You didn't explain NAFTA, you explained the automobile manufacturing industry in regards to NAFTA.. Fix the misleading title

[nelhuiliztli]

Can we talk about how Mexico has gotten the least benefits from NAFTA, especially in the Agricultural Sector?

[lightswitchy]

This makes it sound like NAFTA was *only* about Cars and nothing else.

[ZacAttack]

The real question is why is inflation gone up almost 100% in 25 years

[danielreed]

3:18 "US is producing more cars now than before NAFTA, same for Mexico and Canada"
The graph you showed says the levels basically stayed the same though...

[ocek]

It's interesting how these videos in support of NAFTA focus less on the workers and more on the product. One product, actually.

[professorplum]

Attention Vox: NAFTA destroyed my county in Kentucky as all our manufacturing left... steel mills, textiles, even American standard left us.

[BobMcCoy]

*Next Video: **_Donald Trump, Explained with an Orange_*

[MrGA]

NAFTA covers more than just the automotive industry. Look into Mexico’s small farmers and their struggle to stay afloat

[pcandrsn]

Does anyone else feel really bad about their life priorities because they just want to get one of those cool little model cars now? That looked like fun. 😳

[rontap]

I like how they say that NAFTA was the 'first major trade deal of its kind' but the EEC (European Economic Community) was already established in 1957.

[ads]

I love how you guys toed the line. The entire tone of your video is anti-USMCA yet you narrowly avoid committing to that position by using terms such as "could" instead of terms such as "will".

Even if the prices go up initially, wouldn't you expect it to reach some equilibrium just as it did under NAFTA? Also, isn't $16 / hour a good thing? That is a whole $1 / hour more than the $15 / hour liberal activist groups have been fighting for. I would have thought they would welcome this legislation.

[RiggingDoctor]

Transmissions and Avocados come from Mexico!

[napoleonibonaparte]

Just buy a Corolla. It’ll last a lifetime