NKF and GRUPO PRODENSA Partner to Address Looming NAFTA Renegotiation

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Last fall, a central promise of Donald Trump's presidential campaign was the complete renegotiation of the 23-year-old NAFTA trade pact. Following his election, the President’s signature campaign promise became a much more jarring and (potentially) impactful reality.  
 
A controversial topic since its inception, critics of NAFTA have long argued against the agreement, blaming it for domestic job losses and wage stagnation. Proponents argue it contributed to the development of cross-border supply chains and improved U.S. competitiveness. There is segmented industry data to defend (or refute) each of these positions.
 

Today, regardless of what side you fall, it’s becoming more and more clear that organizations will not be able to ignore the impact these changes will have on their day-to-day operations, real or perceived. For instance, did you know that a Border Adjustment Tax (as proposed by Paul Ryan) would no longer allow the cost of goods sold related to anything imported be expensed (deducted) on an income statement and the revenue derived from anything exported would not be taxable? In addition, capital investments made in the U.S. may become immediately and fully deductible from a corporation’s tax liability.  

While it remains unclear if the elements of the proposed plan will be accepted, altered or rejected the impacts could be dramatic and will vary by industry. Bottom line; supply chain scenario planning and “what-if” analyses will be required to avoid costly surprises and potential business disruptions.

To help organizations address these challenges and minimize impact, NKF is proud to announce our strategic consulting partnership with GRUPO PRODENSA, an operations consulting firm based in Mexico. GRUPO PRODENSA leverages current import and export operations data to develop simulation models which, under different scenarios, help companies anticipate and plan for the outcome(s) of the NAFTA Renegotiation on their business strategy and operations.
 
The services are meant to help organizations:

  1. Better understand the current level of benefits given by NAFTA and the options available to reduce import duties, improve visibility and better anticipate the impact to operations.
  2. Effectively assess the qualifications of new suppliers and new markets for informed decisions regarding the potential changes to the Rules of Origin.
  3. Identify and avoid the key materials that may jeopardize current NAFTA benefits and/or increase import duties.
NKF and GRUPO PRODENSA will be attending this year’s Industrial Asset Management Council (IAMC) Internal Conference May 3rd and 4th in Monterey, Mexico. To schedule an onsite meeting to discuss your NAFTA strategy, contact us
 
About GRUPO PRONDENSA
GRUPO PRODENSA is focused on assisting companies in the process of starting operations; from the preliminary evaluations to the ongoing operation. With over 30 years of experience and over 150 successful manufacturing projects, GRUPO PRONDENSA has supported companies in many different industries including electronics, metal mechanics, plastics, automotive, appliances, medical and aerospace. Learn more at http://www.prodensa.com.mx.
 

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