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Trump Downplays Urgency for NAFTA Deal
President Donald Trump says NAFTA talks are progressing well, but he discounts reports that the White House is eager to reach agreement quickly.
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President Donald Trump says NAFTA talks are progressing well, but he discounts reports that the White House is eager to reach agreement quickly.
Trump tells reporters a deal on the North American Free Trade Agreement could be anywhere from three weeks to five months or more away. “I don’t care,” he declares.
Trump, referring to his crusade to repatriate more auto production to the U.S., points out that uncertainty about the outcome of negotiations means “nobody’s going to build billion-dollar plants in Mexico” as long as the talks continue.
The U.S. has backpedaled on its demand to hike local content required for tariff-free shipping between Canada, Mexico and the U.S. to 85% from the current 62.5%. It also has dropped a proposal that 50% of content must originate in the U.S., regardless of which country produces the vehicle.
A new proposal being discussed would create three categories of components (down from the original five groups), each with its own so-called rule of origin. The local content goals would be capped at 75% for such high-value components as engines and transmissions.
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