DETROIT — A new treaty between the European Union and Mexico gives automakers a better starting point to decide on direct investment in Mexico. The EU's approval in January of a free-trade agreement with Mexico means European car companies now are on the same competitive level as U.S. automakers, which have the North American Free Trade Agreement (NAFTA), says a spokesperson for Volkswagen AG, which has a plant in Puebla, Mexico. “This treaty was looking to level the competitive conditions ...

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