Ford Motors Just Showed Us What the TPP Will Do to the US Economy

February 10, 2016   |   Claire Bernish

Claire Bernish
February 10, 2016

(ANTIMEDIA) Ford Motor Company announced plans to manufacture 500,000 vehicles at its new factory in Mexico in 2018 — and the company isn’t alone in the move. The announcement came after delegates from 12 countries signed the Trans-Pacific Partnership, the massive treaty ironically called a ‘free trade deal,’ which analysts have predicted could cause the loss of nearly half a million U.S. jobs.

According to the Wall Street Journal, Ford’s Mexico operations, which should double its 2015 production, will originate from a new assembly facility in San Luis Potosí, as well as from the expansion of a factory in Mexico City. This plan “mirrors” a $5 billion investment by Ford rival, General Motors, to double its production capacity in Mexico by 2018.

While the TPP has been touted by politicians as an extraordinary benefit to the U.S., Mexico’s lower labor costs will instead help that country’s economy reap the rewards — already evidencing the enormous trade deal’s similarities to NAFTA (the North American Free Trade Agreement), which many have come to view as a disaster for the U.S.

Incidentally, the Ford announcement comes on the heels of negotiations by the United Auto Workers union for more expensive labor contracts. The Detroit Free Press reported that on Friday, “UAW President Dennis Williams said automotive investment in Mexico is a ‘huge problem.’

“Williams argues that Ford, as well as General Motors and Fiat Chrysler Automobiles, are all earning profits now in North America and says they don’t need to move production to make profit.”

So-called ‘free trade deals’ are specifically named as one of many reasons a number of vehicle manufacturers from around the world have recently invested heavily in production and operations in Mexico.

As the Wall Street Journal reported, “Most global auto makers have in recent years opened new assembly plants in Mexico or announced plans for one, including BMW AG, Volkswagen AG, and Toyota Motor Corp.” Honda and Kia have also partially moved operations there.

Hourly labor rates in the U.S. are around five times greater than those for Mexican workers — a gap that is expected to widen in coming years.

“There is no reason, mathematically, [for automakers] to go ahead and run to countries like Mexico, Thailand, and Taiwan,” Williams said. Perhaps the reason comes down to profit-seeking, and though U.S. automakers continue to do well, Mexican labor remains more cost-effective.

But the nightmare of the TPP, which is often dourly and accurately dubbed a corporate coup, appears to be affecting U.S. job prospects already, as the migration of jobs in the interest of cheap labor has begun — exactly as predicted.


This article (Ford Motors Just Showed Us What the TPP Will Do to the US  Economy) is free and open source. You have permission to republish this article under a Creative Commons license with attribution to Claire Bernish and theAntiMedia.org. Anti-Media Radio airs weeknights at 11pm Eastern/8pm Pacific. Image credit: Clément Bucco-Lechat. If you spot a typo, email edits@theantimedia.org.

Author: Claire Bernish

Claire Bernish joined Anti-Media as an independent journalist in May of 2015. Her topics of interest include thwarting war propaganda through education, the refugee crisis & related issues, 1st Amendment concerns, ending police brutality, and general government & corporate accountability. Born in North Carolina, she now lives in Cincinnati, Ohio.

Share This Post On

12 Comments

  1. Ultimitely, it is in thie consumers court….Boycott products that sendour jobs overseas…..I started with Nabisco/Kraft/Mondelo ….no more Oreos for me. and I love Oreos…..great opportunity for a "made in the USA campaign by GM and Chrysler…..stop buying Fords and Ford will get the message right quick….

    Post a Reply
  2. Still amazed that the bought and paid for Politicians that are selling out America….and lowering the standard of living….want the biggest baddest military in the history of the world. If you have a service economy where 70% of all new jobs are $7 dollars an hour…..how are you gonna pay for the biggest military? Idiots. $19 Trillion in debt and still helping their cronies lower the standard of living. This will end badly.

    Post a Reply
  3. They don't want us to deal with it. The more distracted we are; working double jobs trying to make enough money to pay our bills will keep us mindless slaves. That's what they want. Look up the interview of Rockefeller on the microchip implants and a world dictatorship run by the wealthy elite. Their goal is control.

    Post a Reply
  4. If our big three are going to make the products everywhere but in north america then i won t buy them . plain as that

    Post a Reply
  5. Absolutely! Buy products that hire and invest in the United States. It was the American tax payer that bailed these companies out. They should never forget that.

    Post a Reply
  6. Did you read the article? Ford is building a facility to "rival" one already made their by GM…

    Post a Reply
  7. ᴍʏ Fʀɪᴇɴᴅ's ᴍᴏᴍ ᴍᴀᴋᴇs $73 ʜᴏᴜʀʟʏ ᴏɴ ᴛʜᴇ ᴄᴏᴍᴘᴜᴛᴇʀ . Sʜᴇ ʜᴀs ʙᴇᴇɴ ᴏᴜᴛ ᴏғ ᴀ ᴊᴏʙ ғᴏʀ 7 ᴍᴏɴᴛʜs ʙᴜᴛ ʟᴀsᴛ ᴍᴏɴᴛʜ ʜᴇʀ ᴄʜᴇᴄᴋ ᴡᴀs $20864 ᴊᴜsᴛ ᴡᴏʀᴋɪɴɢ ᴏɴ ᴛʜᴇ ᴄᴏᴍᴘᴜᴛᴇʀ ғᴏʀ ᴀ ғᴇᴡ ʜᴏᴜʀs.
    ᴄʜᴇᴄᴋ ᴍʏ sᴏᴜʀᴄᴇ:———>>
    https://www.facebook.com/Usa-Work-Trends-1662429877364248/?app_data=visitor_mode&sk=app_190322544333196

    Post a Reply
  8. ᴍʏ Fʀɪᴇɴᴅ's ᴍᴏᴍ ᴍᴀᴋᴇs $73 ʜᴏᴜʀʟʏ ᴏɴ ᴛʜᴇ ᴄᴏᴍᴘᴜᴛᴇʀ . Sʜᴇ ʜᴀs ʙᴇᴇɴ ᴏᴜᴛ ᴏғ ᴀ ᴊᴏʙ ғᴏʀ 7 ᴍᴏɴᴛʜs ʙᴜᴛ ʟᴀsᴛ ᴍᴏɴᴛʜ ʜᴇʀ ᴄʜᴇᴄᴋ ᴡᴀs $20864 ᴊᴜsᴛ ᴡᴏʀᴋɪɴɢ ᴏɴ ᴛʜᴇ ᴄᴏᴍᴘᴜᴛᴇʀ ғᴏʀ ᴀ ғᴇᴡ ʜᴏᴜʀs.
    ᴄʜᴇᴄᴋ ᴍʏ sᴏᴜʀᴄᴇ:———>>
    https://www.facebook.com/Usa-Work-Trends-1662429877364248/?app_data=visitor_mode&sk=app_190322544333196

    Post a Reply
  9. I know a few years ago if you wanted a car with the most American parts in it, you had to buy a Honda Accord.

    Post a Reply
  10. ❥━║║█++❥home job for Every one❥++█║║━❥

    + ᴍʏ Fʀɪᴇɴᴅ's ᴍᴏᴍ ᴍᴀᴋᴇs $73 ʜᴏᴜʀʟʏ ᴏɴ ᴛʜᴇ ᴄᴏᴍᴘᴜᴛᴇʀ using his Facebook Account.. Sʜᴇ ʜᴀs ʙᴇᴇɴ ᴏᴜᴛ ᴏғ ᴀ ᴊᴏʙ ғᴏʀ 7 ᴍᴏɴᴛʜs ʙᴜᴛ ʟᴀsᴛ ᴍᴏɴᴛʜ ʜᴇʀ ᴄʜᴇᴄᴋ ᴡᴀs $20864 ᴊᴜsᴛ ᴡᴏʀᴋɪɴɢ ᴏɴ ᴛʜᴇ ᴄᴏᴍᴘᴜᴛᴇʀ ғᴏʀ ᴀ ғᴇᴡ ʜᴏᴜʀs.

    |ᴄʜᴇᴄᴋ ᴍʏ sᴏᴜʀᴄᴇ|★════►► https://www.facebook.com/USA-online-Working-Way-964948890260249/?ref=s&sk=app_190322544333196

    Post a Reply
  11. Ford Motor Company could not make a profit or a large enough profit on the car if it had to be manufactured in the United States. thank you UAW. the market is always right in an economy like ours. supply and demand determines the price at which cars will selland the Prophet that Ford is entitled to after negotiating.

    Post a Reply

Submit a Comment

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>