U.S. WANTS 85% OF EVERY NAFTA CAR BUILT IN AMERICA
The U.S. has delivered one of its most high-profile NAFTA demands, proposing to boost how much American and regional content must be in cars and trucks to quality for duty-free access under the pact, according to an official.
The U.S. proposed late Thursday raising the so-called auto rules of origin to 85 percent from the current 62.5 percent, the official said, speaking on the condition of anonymity. The rules govern what share of a product must be sourced within NAFTA to receive the pact’s benefits.
Trump’s team also wants to add steel to the tracing list, in effect requiring proof of where the steel comes from, two officials said Friday. The U.S. proposed vastly expanding the list to include textiles, aluminum and other metals, one official said. A spokesperson for U.S. Trade Representative Robert Lighthizer declined to comment.
Canadian Prime Minister Justin Trudeau raised the issue of Mexico’s persistently low wages during a visit to the nation Friday.
In a speech to the Mexican senate, Trudeau said support for NAFTA “depends on the fruits of this trade being fairly shared.”
Mexican wages are a key element in NAFTA talks, with Washington pushing to increase labor protections and pay. Auto workers in Mexico, for example, often earn about $2 per hour compared with $30 or more by their counterparts in the other two countries.