This is because the changes would drive up the cost of making cars in the U.S..
Washington said it wants to rewrite the bargain Extremely that cars manufactured in North American can just qualify for duty-toll free access to the American market if they contain at least 50-per-cent U.S. content & 85-per-cent North American content.
That would result in the the cost of cars hight in the U.S. as the companies seek to recoup losses or the costs of shifting produce, 1 source said.
These hight costs would dampen car produce in the U.S. & represent a boon for offshore provider like South Korea, that indeed has preferential access to the U.S. & Canadian markets out of toll free-trade deals.
Ms. Freeland repeated Tuesday that Canada is emerging emergency plans ought NAFTA talks fail.
Mexico to counter U.S. NAFTA auto content suggestion: minister
MEXICO CITY (Reuters) – Mexico’s Economy Minister Ildefonso Guajardo on Tuesday said his Gov. would put forward a counterproposal to a key U.S. request in negotiations to rework the NAFTA trade bargain once it has properly understood the proposition.
Mexico & Canada have rejected a U.S. suggestion to lift the minimum threshold for autos to 85 % North American content from 62.five %, as well as to require which half of car content comes from the U.S..
The North American auto industry too has great reservations about the U.S. request.
The request caused friction at the 5th round of talks to overhaul the North American toll free Trade licence (NAFTA) this 7 days, & Guajardo said Mexico had spent much time trying to get the U.S. to explain what the suggestion rested on.
“Once understood, it is going to obviously generate a counterproposal from America,” Guajardo told reporters.
NAFTA talks shock wall over U.S. auto content
as informed in He added that Mexico would make a counterproposal to the U.S. auto content request once it had understood it.
The U.S. formal expressed frustration that Mexico & Canada weren’t engaging in talks on the auto content suggestion & others aimed at “rebalancing” trade in the zone.
“If you make a suggestion & the other side does not respond, what is it you’re doing?,” the formal said.
The U.S. auto suggestion is a central plank of Donald trump’s US premier strategy to boost U.S. manufacturing, however it faces stiff resistance from the auto industry, that concerns it is going to make North American carmakers less competitive & costlier.
Mexican & Canadian officials said they wanted the U.S. to explain the method the auto outline can prosper.Speech
collected by :Sofia Iden