WXXI AM News

Connections: Understanding How Trade Deals Work, Or, "Is That Honda Accord An American Car?"

Aug 24, 2016

Honda makes Accords in Ohio, which raises an interesting question: at what point does a Honda Accord become "North American," and eligible for free export into Canada or Mexico under NAFTA? How many parts need to be domestic for this consideration?

In the world of global supply chains, it's easy to get confused about what is and is not an American product. And when trade deals are coming together, someone has to draw that line, and then police it. 

We sit down with Rob Shum, a professor of political science and international studies at SUNY Brockport (who also happens to have been a Canadian representative on the NAFTA Committee on Trade in Goods), and Jeongho Choi, an assistant professor in the School of Business at St. John Fisher College, to discuss how these deals come together, and what questions they would have for how the mysterious TPP is constructed.