Auto Industry Lobbies Trump to Save NAFTA

A coalition of trade groups that represent carmakers, parts suppliers and dealerships is pushing the view that more U.S. jobs will result from retaining the North American Free Trade Agreement than dumping it as the Trump administration threatens to do.

The groups argue that the health of the U.S. auto industry depends on trade and says data show “there‘s no question” that NAFTA has made the industry more competitive globally.

Talks to update NAFTA have slogged through four rounds with little result. Mexico and Canada have flatly rejected a White House proposal to hike the local content requirement to 85% to enable vehicles to qualify for tariff-free shipping among the three countries—with 50% of that content originating in the U.S.

American trade negotiators also want to impose an automatic review of the pact every five years, a process that critics say would stifle growth by discouraging long-term investments. The coalition doesn’t object to revising the 23-year-old agreement. But it warns against what it considers draconian demands that will destroy the agreement.

The campaign, dubbed Driving American Jobs, is headed by the American Automotive Policy Council and comprises the Alliance of Automobile Manufacturers, Assn. of Global Automakers, American International Automobile Dealers Assn. and the Motor & Equipment Manufacturers Assn.