NovaLink, like other businesses that depend on manufacturing in Mexico, has been following the negotiations of the NAFTA treaty closely. The media has been bombarding Internet news sites and social media with various pro and con viewpoints from numerous sources as to the status of the treaty and what will happen if it is cancelled.

1. NOVALINK AND
NAFTA

2. IN FAIRNESS TO OUR CUSTOMERS,
CURRENT AND FUTURE, WE WOULD LIKE
TO TAKE THE OPPORTUNITY TO STATE
OUR POSITION ON NAFTA AND WHAT
OUR PLANS ARE FOR THE FUTURE
REGARDING THIS IMPORTANT TRADE
TREATY.
www.novalinkmx.com
2

3. NOVALINK, LIKE OTHER BUSINESSES THAT
DEPEND ON MANUFACTURING IN MEXICO,
HAS BEEN FOLLOWING THE NEGOTIATIONS
OF THE NAFTA TREATY CLOSELY. THE MEDIA
HAS BEEN BOMBARDING INTERNET NEWS
SITES AND SOCIAL MEDIA WITH VARIOUS
PRO AND CON VIEWPOINTS FROM
NUMEROUS SOURCES AS TO THE STATUS OF
THE TREATY AND WHAT WILL HAPPEN IF IT
IS CANCELLED.
www.novalinkmx.com
3

4. THE NEGOTIATIONS
FOR NAFTA WILL
CONTINUE FOR THE
FORESEEABLE
FUTURE
www.novalinkmx.com
4

5. CONTRARY TO INFORMATION COMING FROM SOME MEDIA
OUTLETS, THERE WILL BE NO “QUICK FIX” ON NAFTA; THE
NEGOTIATION HAS JUST STARTED, AND WILL PROBABLY GO
ON WELL INTO NEXT YEAR BEFORE ANY SORT OF
FRAMEWORK IS DECIDED. ACCORDING TO CNBC, “OFFICIALS
FROM THE U.S., CANADA AND MEXICO SAID: “…SIGNIFICANT
CONCEPTUAL GAPS WILL CHANGE THE NEGOTIATING TIME
FRAME. THE COUNTRIES WILL SCHEDULE MORE NEGOTIATING
ROUNDS “THROUGH THE FIRST QUARTER OF 2018” AFTER
NEW PROPOSALS “CREATED CHALLENGES,” THE OFFICIALS
ANNOUNCED.”
www.novalinkmx.com
5

6. THE CANADIAN CENTER FOR INTERNATIONAL
GOVERNANCE INNOVATION NOTES THAT IT
TAKES THE UNITED STATES ON AVERAGE ONE
AND A HALF YEARS TO NEGOTIATE A FREE TRADE
AGREEMENT, AS A REVIEW OF 20 SUCH DEALS BY
THE PETERSON INSTITUTE FOR INTERNATIONAL
ECONOMICS FOUND.
www.novalinkmx.com
6

7. FOR THEIR PART, THE MEXICAN
GOVERNMENT HAS STATED IT
WOULD LIKE TO SEE THE TREATY
COMPLETED BEFORE THEIR
PRESIDENTIAL ELECTIONS IN JULY OF
2018.
www.novalinkmx.com
7

8. WITH ALL THESE FACTS IN CONSIDERATION,
NEGOTIATIONS COULD TAKE AT LEAST 8
MONTHS, IF ALL GOES SMOOTHLY, TO GET AN
AGREEMENT OF THE TREATY COMPLETED. THIS
DOES NOT TAKE INTO ACCOUNT HAVING THE
TREATY RATIFIED BY THE AMERICAN, CANADIAN
AND MEXICAN GOVERNMENTS, WHICH COULD
TAKE ANOTHER 3 -4 MONTHS.
www.novalinkmx.com
8

9. PRUDENT PLANNING IS THE COURSE OF ACTION TO BE TAKEN AT THIS
TIME. WE AT NOVALINK ARE CLOSELY MONITORING THE PROCESS
THROUGH VARIOUS GOVERNMENTAL AND MANUFACTURING
ASSOCIATIONS. INDICATORS AT THIS POINT ARE THAT NAFTA WILL BE
MODIFIED AND UPDATED, BUT, WILL CONTINUE FORWARD. AS WE HAVE
SEEN, NOTHING IS FINAL UNTIL IT IS COMMITTED TO RATIFICATION
THROUGH THE CONGRESSIONAL PROCESS. WE ARE HOWEVER MOVING
FORWARD. NAFTA AND MEXICO HAVE BEEN AN INTEGRAL PART OF THE
SUCCESS OF US MANUFACTURING AND RETAIL COMPANIES; NOT TO
MENTION THE TENS OF THOUSANDS OF SUPPORT COMPANIES. THOSE
THAT HAVE BEEN A PART OF NAFTA KNOW THE BENEFITS AND THE
INDISPUTABLE FACTS SURROUNDING THE MANUFACTURING INDUSTRY
FOR THE PAST DECADES SINCE NAFTA’S INTRODUCTION.
www.novalinkmx.com
9

10. MANY US
INDUSTRIES WANT
NAFTA TO STAY
www.novalinkmx.com
10

11. MANY US INDUSTRIES, SUCH AS
ELECTRONICS, FARMING AND MOST
IMPORTANTLY THE US AUTOMOBILE
INDUSTRY, HAVE BENEFITTED GREATLY
FROM THE TREATY AND THEIR POSITION
ON NAFTA IS TO HAVE IT REMAIN IN
PLACE.
www.novalinkmx.com
11

12. ACCORDING TO REUTERS, THE TECHNOLOGY INDUSTRY, ALONG WITH THE
AUTO INDUSTRY AND ELECTRONICS MANUFACTURERS, ARE LOBBYING HARD
FOR NAFTA: “THE (ELECTRONICS) INDUSTRY NOW HAS ALMOST AS MANY
LOBBY GROUPS REPRESENTING ITS VIEWS ON NAFTA AS THE TRANSPORT
SECTOR, WHICH INCLUDES AUTOMAKERS. THAT SECTOR HAD 52 LOBBYING
GROUPS DISCUSSING THE TRADE PACT WITH GOVERNMENT OFFICIALS
BETWEEN APRIL AND JUNE. AGRICULTURE STILL DOMINATES THE NAFTA
LOBBYING EFFORT WITH 86 ARRANGEMENTS WITH LOBBYING
GROUPS. WHILE THE AUTO AND FARM LOBBIES ARE SEEKING TO PRESERVE
CROSS-BORDER SUPPLY CHAINS AND TO RETAIN ACCESS TO MARKETS IN
MEXICO AND CANADA, THE TECH SECTOR WANTS A REVAMPED NAFTA TO
HELP IT GROW FUTURE BUSINESS.”
www.novalinkmx.com
12

13. THE AUTOMOTIVE INDUSTRY IS EVEN
MORE BLUNT: AMERICAN AUTOMAKERS
SAY NAFTA HAS SEEN BENEFITS FOR THE
U.S. ECONOMY AND IS OPEN TO
“MODERNIZING” NAFTA, BUT WANTS TO
BLOCK SOME PROPOSALS THAT THEY
FEEL WOULD HURT SUPPLY CHAINS
ESSENTIAL TO HELPING THEM COMPLETE
PRODUCTION ON NEW CARS.
www.novalinkmx.com
13

14. ACCORDING TO THE DETROIT FREE PRESS: “THE AUTO
INDUSTRY ALSO ARGUES THAT MEXICO PROVIDES THE
INDUSTRY WITH AN ESSENTIAL LOCATION FOR LOW-
COST PRODUCTION AND SAYS NAFTA HAS ENSURED
THAT NORTH AMERICA, AS A REGION, IS COMPETITIVE
WITH OTHER LEADING AUTOMOTIVE REGIONS
ACROSS THE WORLD.”
www.novalinkmx.com
14

15. “LAST YEAR, THE U.S. IMPORTED $12.5
BILLION WORTH OF ENGINES AND
TRANSMISSIONS FROM MEXICO AND $5.2
BILLION FROM CANADA, ACCORDING TO
THE CENTER FOR AUTOMOTIVE
RESEARCH. ONLY ABOUT ONE THIRD OF
U.S. ENGINES AND ENGINE-PARTS
IMPORTS COME FROM OUTSIDE THE
REGION. – BLOOMBERG NEWS”
www.novalinkmx.com
15

16. THE PRESIDENT’S
POSITION ON NAFTA
CHANGES
FREQUENTLY
www.novalinkmx.com
16

17. PRESIDENT TRUMP’S POSITION ON NAFTA CHANGES FREQUENTLY; SOME
DAYS HE HAS INTENTIONS TO WALK AWAY FROM THE TREATY, OTHER DAYS
HE IS EAGER TO NEGOTIATE SOME NEW TERMS. THOUGH WE DO NOT DOUBT
HIS COMMITMENT TO NEGOTIATE FAIR TREATIES FOR THE US, WE BELIEVE
THAT THE EXPERTS IN INDUSTRY AND GOVERNMENT SEE THE TRUE BENEFITS
OF THE NAFTA IN THE ACTUAL DATA. WE ARE SUPPORTING THE PROCESS ON
MANY FRONTS TO MAKE SURE THOSE THAT WANT TO CAN LEARN FROM OUR
EXPERIENCE AND SEE THE ACTUAL DATA FROM THE SMALL TO MEDIUM SIZE
COMPANIES THAT MAKE UP THE MAJORITY OF COMPANIES STANDING TO BE
AFFECTED BY A WITHDRAWAL.
www.novalinkmx.com
17

18. THIS IS A FREQUENT TACTIC USED BY PRESIDENT TRUMP AS
A WAY TO GET LEVERAGE IN NEGOTIATIONS FOR THE
TERMS HE WANTS; PREPARING TO WALK AWAY AS A
THREAT TO GET PEOPLE TO COME BACK; TO DATE, TRUMP
HAS MADE ABOUT 35 CLAIMS TO “TEAR UP” NAFTA, ONLY
TO GO BACK (SOMETIMES ON THE SAME DAY) TO CLAIM
HE IS HAPPY HOW NEGOTIATIONS ARE BEING CONDUCTED
AND THAT THE US IS CONFIDENT TO HAVE A TREATY DONE
SOON.
www.novalinkmx.com
18

19. ACCORDING TO SALON, IN APRIL OF THIS YEAR,
PRESIDENT TRUMP TWEETED ABOUT GOING
BACK TO NEGOTIATIONS ON NAFTA BECAUSE
CANADA AND MEXICO HAD “BEGGED” HIM TO
COME BACK, HOWEVER, THIS WAS FAR FROM
THE CASE.
www.novalinkmx.com
19

20. “IT TURNS OUT THE REASON THAT TRUMP WAS
EAGER TO BACKTRACK ON HIS PROMISE TO GET
OUT OF NAFTA WAS NOT THAT OTHER
COUNTRIES WANTED HIS HELP — IT’S THAT HIS
BASE WOULD BE HARDEST HIT: AS NEWS OF THE
PRESIDENT’S PLAN REACHED OTTAWA AND
MEXICO CITY IN THE MIDDLE OF THE WEEK AND
RATTLED THE MARKETS AND CONGRESS,
COMMERCE SECRETARY WILBUR ROSS,
AGRICULTURE SECRETARY SONNY PERDUE AND
OTHERS HUDDLED IN MEETINGS WITH TRUMP,
URGING HIM NOT TO SIGN A DOCUMENT
TRIGGERING A U.S. WITHDRAWAL FROM NAFTA.
www.novalinkmx.com
20

21. PERDUE EVEN BROUGHT ALONG A PROP TO THE
OVAL OFFICE: A MAP OF THE UNITED STATES
THAT ILLUSTRATED THE AREAS THAT WOULD BE
HARDEST HIT, PARTICULARLY FROM
AGRICULTURE AND MANUFACTURING LOSSES,
AND HIGHLIGHTING THAT MANY OF THOSE
STATES AND COUNTIES WERE “TRUMP
COUNTRY” COMMUNITIES THAT HAD VOTED
FOR THE PRESIDENT IN NOVEMBER.”
www.novalinkmx.com
21

22. NOVALINK IS
COMMITTED TO THE
CONTINUED
SUCCESS OF ITS
CUSTOMERS
www.novalinkmx.com
22

23. AT NOVALINK WE REALIZE THE CONTINUED SUCCESS OF OUR CLIENTS DEPENDS IN LARGE PART ON THE
NAFTA BEING RE-RATIFIED AND REMAINING IN PLACE. OUR POSITION ON NAFTA FEELS THAT AS
COMPETITION IN THE LABOR MARKET DEEPENS, MEXICO PROVIDES LOW-COST MANUFACTURING
ALLOWING US COMPANIES TO KEEP HIGHER LEVEL, SALARIED, AND TECHNICAL POSITIONS RATHER
THAN LOSING THESE JOBS OVERSEAS. NAFTA MAKES ALL THIS POSSIBLE. THE LOSS OF REVENUE AND
JOBS WOULD BE A COLOSSAL MISTAKE FOR NUMEROUS AMERICAN INDUSTRIES NOT TO MENTION THE
UNITED STATES ECONOMY AS A WHOLE. THANKFULLY AND AS A FAIL SAFE, MEXICO ALSO HAS OTHER
TRADE AGREEMENTS WITH THE US THAT NOVALINK HAS UTILIZED OVER THE YEARS PRIOR TO NAFTA
BEING INTRODUCED. THOUGH NOT AS BROAD AS NAFTA, WE ARE IN A POSITION TO IMPLEMENT,
WHERE APPLICABLE, THESE OTHER PROGRAMS.
www.novalinkmx.com
23

24. SHOULD YOU WISH TO
DISCUSS IN MORE DETAIL
YOUR PROGRAM, FEEL FREE
TO REACH OUT TO THE
PROFESSIONALS AT
NOVALINK.
www.novalinkmx.com
24