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Report: BRP vows to stay in Mexico if U.S. leaves NAFTA

BRP has reportedly said it will keep its factories in Mexico if president-elect Donald Trump pulls the United States out of the North American free trade agreement, according to an article in The Globe and Mail.

“BRP calculates that after the U.S. gives a mandatory six-month notice of withdrawal, Mexico would fall under most-favored nation certification status and BRP products manufactured there would be subject to import tariffs of between 1.4 per cent and 2.9 per cent per transaction.”

With BRP’s three plants in Mexico worth more than $1 billion, the company would be subject to added costs of $20 to $25 million a year, which it could pass down to supplier or counter with price increases.

Jose Boisjoli commented: “When you manage a multinational business, you are constantly faced with regulatory changes and you find ways to adjust. While we are monitoring the situation closely, we believe that the potential impact is manageable.”

To read the full article, click here.

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