Mexican Media Brands
Mexico Ready to Tackle NAFTA’s “Rules of Origin”
Mexico has signaled readiness to open discussions with the Trump administration on definitions governing tariffs on finished goods shipped between Canada, Mexico and the U.S. under the North American Free Trade Agreement, Reuters reports.
#economics
Share
Mexico has signaled readiness to open discussions with the Trump administration on definitions governing tariffs on finished goods shipped between Canada, Mexico and the U.S. under the North American Free Trade Agreement, Reuters reports.
Trump has argued for tighter “rules or origin,” which apply to parts used to make finished goods within the NAFTA region. For example, Mexican-made vehicles that contain at least 62.5% content from North America may be shipped duty-free to the U.S. market.
Raising the local content target would make suppliers in North America more competitive than those in Europe or Asia. Sources tell Reuters that Mexico believes that agreeing to such adjustments could satisfy Trump’s “America First” objectives without wrecking the country’s economy and flourishing auto industry.
Mexico’s foreign minister and economy minister are scheduled to meet with Trump administration officials today and Thursday to discuss trade, security and migration issues. The delegation said on Monday its goal is to retain free access for Mexican products.
Wilbur Ross, Trump’s nominee for secretary of commerce, has indicated that rules of origin will be central to talks with Mexico and Canada about modifying the 23-year-old NAFTA agreement.
RELATED CONTENT
-
Inside Ford
On this edition of “Autoline After Hours” Joann Muller, Detroit bureau chief for Forbes, provides insights into what she’s learned about Ford, insights that are amplified on the show by our other panelists, Stephanie Brinley, principal analyst at IHS Markit who specializes in the auto industry, and Todd Lassa, Detroit Bureau Chief for Automobile.
-
On Lincoln-Shinola, Euro EV Sales, Engineered Carbon, and more
On a Lincoln-Shinola concept, Euro EV sales, engineered carbon for fuel cells, a thermal sensor for ADAS, battery analytics, and measuring vehicle performance in use with big data
-
China and U.S. OEMs
When Ford announced its 3rd quarter earning on October 24, the official announcement said, in part, “Company revenue was up 3 percent year over year, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China.” The previous day, perhaps as a preemptive move to answer the question “If things are going poorly in China, what are you doing about it?, Ford announced that it was establishing Ford China as a stand-alone business unit.