Mergermarket.com quotes Toronto/Ottawa lawyer Clifford Sosnow in an article about the new NAFTA and the minimal impact on M&A, with US benefitting the most.
Clifford Sosnow, a Toronto-based partner and co-chairman of Fasken’s International Trade and Investment Group, said the US comes out ahead in USMCA in several ways. The biggest driver of change, he predicted, will be the new provision that requires at least 40% of a vehicle manufactured in Mexico, the US or Canada be made by workers earning at least USD 16 an hour. Vehicles that do not meet the target will be subject to a 2.5% tariff. The requirement also applies to expenditures on automotive R&D, which may comprise up to 10% of a vehicle’s labor value.