NAFTA Talks Remain Stalled on Key Issues

Negotiators have wrapped up the fifth round of talks with no progress on key issues about the future of the North American Free Trade Agreement.

Seven days of meetings in Mexico City produced no final results among Canada, Mexico and the U.S. regarding the auto industry or such less contentious topics as e-commerce an telecommunications.

The goal of updating the automotive portion of the 23-year-old NAFTA pact has been stalled since October. Canada and Mexico have refused to offer a counterproposal to a U.S. demand that local content requirements for free trade among the participants be hiked from 62.5% to 85%, with half that content supplied by the U.S.

Negotiators from the two countries have described the U.S. position as “harsh,” “absurd” and “a non-starter.” They also are skeptical that the proposed rules would benefit the U.S. as the Trump administration believes. Auto industry groups have opined that such lofty local content standards will eventually push jobs out of the U.S.

The sixth round of NAFTA talks will be held in Canada. Observers are increasingly skeptical that negotiators will reach an agreement by March, when the seventh and perhaps final set of discussions are scheduled to conclude in Washington, D.C.