By Stephen Downer, Special to Tire Business
SILAO, MEXICO — Donald Trump's presidential election victory in the U.S. has shocked the Mexican business community, and none more so than the flourishing automotive cluster in the state of Guanajuato, central Mexico.
“There is concern, especially in the automotive industry, and we have to watch the situation very carefully,” Franco Herrera Sánchez, Guanajuato's under-secretary of investment promotion, told Tire Business Nov. 11.
Mr. Herrera was a guest of honor at a Pirelli Tyre S.p.A. ceremony marking the 10 millionth tire built by the Italian company in the Mexico state.
During his run for the White House Mr. Trump repeatedly threatened that if he won he would scrap — or attempt to renegotiate — the North American Free Trade Agreement (NAFTA), which was aimed at expanding trade between the U.S., Canada and Mexico and make the three countries more competitive in the global marketplace.
According to material on About.com, NAFTA was signed by President George H.W. Bush, Mexican President Carlos Salinas de Gortari and Canadian Prime Minister Brian Mulroney in 1992. It was ratified by the legislatures of the three countries in 1993, then approved by the U.S. House of Representatives by a vote of 234 to 200 on Nov. 17, 1993, with the U.S. Senate approving the agreement three days later by 60 to 38 on Nov. 20.
President Bill Clinton finally signed NAFTA into law on Dec. 8, 1993, according to the website, and it entered into force Jan. 1, 1994, as one of President Clinton's top priorities.