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In conclusion, we can see that US-Mexico trade relations in the automotive sector are complex, with extra at stake than the headline trade deficit. It’s exhausting to predict the affect of disruption to present production chains, as a result of there are nonetheless numerous variables and great coverage uncertainty (for example, the precise particulars of any US coverage shift; the degree of trade rates offsetting; the extent to which the brief-term improve in value might be handed onto shoppers). However, there is little doubt that impediments to cross-border US-Mexico trade would have an effect on the incentives for automakers to find production in Mexico.
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