Mexico City — A US proposal that vehicles should be built in high-wage areas in the North American Free Trade Agreement (Nafta) region is partly aimed at increasing engine production in the US, Mexican officials said. More details on the plan are expected this week. In an idea aimed at breaking a deadlock in talks, Washington last month suggested some automotive production should take place in areas of North America that pay higher salaries. US negotiators discussing changes to Nafta floated the idea that 40% of automotive production must happen in areas paying wages of between $16 and $19 per hour, Fausto Cuevas, the director general of industry group AMIA, said on Tuesday. The negotiators also indicated a preference that motors be built in the US, Mexican Deputy Economy Minister Juan Carlos Baker said. "The US proposed baskets of products that they are more interested in. They prefer engines, the most profitable part of cars, to be made in the US," he said late on Monday. Mexico w...
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