US stance on auto industry sows more doubt about Nafta overhaul
arlington — The Trump administration on Friday demanded that US-made content account for half the value of the cars and trucks sold under the North American Free Trade Agreement, raising further doubts about any potential deal to renew the pact.
Three sources briefed on the protectionist US proposal, which is in line with President Donald Trump’s goal of shrinking a trade deficit with Mexico and stemming the loss of US manufacturing jobs, said it also seeks sharply higher North American automotive content overall.
The proposal was made during contentious talks in Washington, in the fourth of seven planned rounds of negotiations to overhaul the treaty.
Some Mexican sources denounced it as “absurd,” but Juan Carlos Baker, Mexico’s deputy economy minister, put a brave face on the state of Nafta negotiations at the halfway point.
“There’s no question there are some difficult proposals,” Baker told reporters at Mexico’s embassy in Washington.
He said Mexico will consider all of them, though he said, “It’s clear to us that there are certain things that are proposals that go against the country’s objectives.”
Trump, who claims that the original 1994 pact has been a disaster for the United States, is threatening to walk away from the agreement unless major changes are made. —