Mexico City — Rules for automotive content, one of the most contentious issues in the North American Free Trade Agreement (Nafta), will be among the first tackled at the upcoming seventh round of talks in Mexico City. On February 25, Negotiators from the US, Canada and Mexico plan to begin on rules of origin, which govern how much geographic content a product must have to benefit from Nafta tariff exemptions, according to a draft agenda obtained by Bloomberg News. The issue is set to receive more than 20 hours of discussion, among the most of any topic, according to the schedule, which has not been released publicly because talks are held behind closed doors. In a bid to revive US factories, the White House has proposed raising the regional automotive rules of origin for passenger cars to 85% from 62.5% and adding a US-specific requirement of 50%. The US says the changes are to reduce a trade deficit with Mexico, which it says results from companies moving factories south of the bor...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.