Mexico pitches auto proposal as NAFTA talks grind on

WASHINGTON: Mexico has launched a counterproposal to US demands to toughen automotive industry content rules under the North American Free Trade Agreement (NAFTA), officials said, as ministers again pushed for a deal to rework the 24-yearold accord.

Canadian, Mexican and US officials hailed progress on revamping NAFTA on Tuesday, but there was no sign of a major breakthrough after more than eight months of negotiations.

Canadian Foreign Minister Chrystia Freeland, US Trade Representative (USTR) Robert Lighthizer and Mexican Economy Minister Ildefonso Guajardo held separate meetings in Washington, and hopes for a deal hinge on the three sides’ ability to update rules for the automotive sector.

Guajardo said Mexico’s negotiators had discussed the Mexican auto sector proposal during a ‘productive’ meeting with Lighthizer.

But he gave no indication the three were nearing a common position that would work for the respective industries.

“Each one faces a different challenge. So we are trying to accommodate the different positions,” he said, adding that “everything is still on the table” regarding autos.

Retooling auto industry rules is the central plank of the Trump administration’s push to make changes to NAFTA that bring more jobs and investment to the United States.

The latest US proposal includes raising North American auto content to 75 per cent from the current 62.5 per cent over four years for light vehicles, but the Mexican auto industry has rejected that as “not acceptable.”