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GM ANNOUNCEMENT SHOWS HOW THE NAFTA HELPS MICHIGAN

 LANSING, Mich., June 21 /PRNewswire/ -- The General Motors (NYSE: GM) decision to bring 1,200 jobs back to Lansing from Mexico shows how the North American Free Trade Agreement will help create more jobs for Michigan, Michigan International Trade Coalition Executive Director Leslie Touma said today.
 GM today announced it would move production of Chevrolet Cavaliers from Mexico to Lansing. About 70,000 to 100,000 of the autos will be produced at the Lansing Assembly Division operation.
 "GM and the UAW have apparently reached a tentative labor agreement that, based on a cost and quality basis, will allow production of the Cavalier in Lansing. This is an example of what other companies will be able to do under NAFTA unhindered by Mexico's trade balancing and local content rules."
 Current trade law makes it difficult to produce autos and auto supplies in the U.S. and ship them to Mexico, helping encourage locations of plants in that nation. For instance, a U.S.-made Cavalier sold in Mexico today carries a 20-percent tariff. Auto parts made in the U.S. and sold in Mexico carry tariffs of 10 to 20 percent.
 Meanwhile, the U.S. has very low tariffs on autos and parts made in Mexico and sold in the U.S. For instance, a Mexican-made Cavalier sold in the U.S. carries only a 2.5-percent tariff.
 Under the NAFTA, the Mexican auto tariff will immediately drop to 10 percent, and then will be phased out. That will make it easier for U.S.-made Cavaliers -- and other cars -- to be sold in Mexico, and lead to increased U.S. production and jobs.
 "The bottom line is that the NAFTA is a jobs creation agreement. Failing to pass the NAFTA means Mexican tariffs stay high. Passing the NAFTA lowers Mexican trade barriers, creating American jobs. It's important for Michigan workers and Michigan's members of Congress to understand this, and to support the NAFTA," Touma said.
 The Michigan International Trade Coalition is a group of more than 100 companies large and small formed to ensure Michigan understands how the NAFTA helps the state grow. For more information on the NAFTA and its impact on Michigan, call Leslie Touma at 313-456-8606.
 -0- 6/21/93
 /CONTACT: Leslie Touma of the Michigan International Trade Coalition, 313-456-8606/
 (GM)


CO: Michigan International Trade Coalition; General Motors Corporation ST: Michigan IN: AUT SU:

SB -- DE020 -- 4159 06/21/93 16:09 EDT
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Publication:PR Newswire
Date:Jun 21, 1993
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