Rules of Origin for the Auto Industry in North America

Rules of Origin for the Auto Industry in North America will redefine the regional value chain. From 62.5% of regional contents that NAFTA required, to 75% with the new treaty and with explicit inclusion of steel and aluminum from local suppliers.

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Expected changes for the US-China relation with Biden

Well, not much! Certainly, President Trump went ballistic with China imposing high tariffs to many imports from China to US, but there is no reason for Biden to change what was already done by Trump. Although the manners and “tone” of the rhetoric is expected to be more diplomatic and conciliative, but there are unresolved issues on the US-China relation carried since the Obama era.

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US economic stimulus package will also help Mexico

The president the United State of America (USA) has signed a new $900 billion COVID relief legislation into law, and now the US economy will get more than a second stimulus check. “The new law renews some government financial assistance already starting to expire, including $300 weekly unemployment checks, an eviction-ban and help for small businesses to cover payroll” said several news outlets so far, but could be more coming.

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Foreign Direct Investment Outlook 2021

2020 has proved to be a very difficult year for almost all economies of the world. The global economic activities will halt and decrease for about 4.5% this year 1 , and there are consequences for corporation´s Foreign Direct Investment (FDI) as well! FDI in 2020 is expected to decrease in 40% with respect to 2019 2 . It is also expected to have a moderate recovery in 2021. Investment normally acts cautiously after an economic contraction, and the bounce back is tame by a loom forecast of potential recovery.

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