Consumer Products from China: Safety, Regulations, and Supply Chains Key Points:

Thus, the US and Mexico have an opportunity to consider potential risks and ensure that new investment meets social, environmental and transparency standards and does not undercut the commitments embedded in the USMCA. [...] Third, the US can continue to grow the regional cooperation efforts of the US Department of Labor and the US Environmental Protection Agency with their Mexican counterparts. [...] The remainder of this section explores the trends in these Mexican manufacturing sectors over the last 30 years, including the potential impact of the Section 301 tariffs. [...] These authors find that the availability of low-cost manufacturing in China broadly dampened the potential benefit of NAFTA for Mexican export- oriented manufacturing, as China stepped into its role as the “factory of the world.” The next major milestone came during the global recession of 2009. [...] If these announcements yield actual investment in the coming years, it is likely that the increase in Chinese investment in these sectors will bring greater exports to the US and raise important policy questions for the US and Mexico alike.