Mexican Media Brands
House Members Urge Trump to Drop NAFTA Local-Content Demand
Dozens of U.S. House of Representatives members are urging the White House to abandon its demand to raise the North American Free Trade Agreement’s local content rule for cars.
#economics
Share
Dozens of U.S. House of Representatives members are urging the White House to abandon its demand to raise the North American Free Trade Agreement’s local content rule for cars.
NAFTA says cars built in North America can avoid tariffs when shipped between Canada, Mexico and the U.S. only if their local content is at least 62.5%. The Trump administration wants that proportion hiked to 85%, with half the total coming from the U.S. Canada and Mexico have indicated they will reject those terms.
In a letter to the White House, a bipartisan group of more than 70 representatives warns that the proposed increase would hurt U.S. vehicle production, sales, exports and jobs. They say the outcome would be the same whether Canada and Mexico agree to the targets or opt to abandon NAFTA instead. Carmakers and suppliers have been making similar pleas to avoid actions that would make the North American auto industry less competitive globally.
A fifth round of trade talks began yesterday in Mexico City and is scheduled to run through Nov. 21. The three countries had hoped to finalize updates to the 24-year-old agreement by the end of December, but they now expect negotiations will continue into 2018.
RELATED CONTENT
-
On Global EV Sales, Lean and the Supply Chain & Dealing With Snow
The distribution of EVs and potential implications, why lean still matters even with supply chain issues, where there are the most industrial robots, a potential coming shortage that isn’t a microprocessor, mapping tech and obscured signs, and a look at the future
-
Global Car Market to Shrink for 2-3 Years
Global sales of light vehicles will decline year on year through at least 2021, predicts LMC Automotive at its annual outlook conference outside Detroit, Mich.
-
Study: Border Tax, NAFTA Exit Would Hurt U.S.
The U.S. auto industry would lose at least 31,000 manufacturing jobs and 450,000 units of annual sales if the U.S. imposes 35% tariffs on cars from Mexico, as President-elect Donald Trump has vowed to do.