US, Mexico near deal in Nafta car talks

mexico city — The US and Mexico are in the final stages of negotiating a deal on rules for cars sold under Nafta, one of the biggest sticking points in discussions to overhaul the North American Free Trade Agreement, according to five people familiar with the talks.

The two sides have exchanged new proposals for the auto industry, and Mexican Economy Minister Ildefonso Guajardo is scheduled to travel to Washington on Thursday for meetings with US Trade Representative Robert Lighthizer, his second visit in as many weeks, according to two of the people.

Mexico in May told the US that it could be flexible on automotive wages and content, including acceptance of a requirement that at least 20 per cent of a car’s value would come from higherpaid workers, in exchange for President Donald Trump’s negotiators withdrawing some of their other tougher demands. At the time, Lighthizer said the proposal wasn’t enough for the US, which had previously demanded that 40 per cent of a car, and 45 per cent of trucks, be made by workers earning wages of at least $16 per hour.

Offers on regional content weren’t that far apart. While Mexico was willing to accept 70 per cent of car components coming from Nafta countries, up from the current 62.5 per cent, the US called for 75 per cent. Trump has threatened to impose new tariffs on imported vehicles in a possible attempt to pressure Mexico and Canada into striking a deal that would help drive manufacturing jobs back to the US.