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Canadian Auto Plan in Doubt After Lifting NAFTA Talks

(Allison Lampert and Anthony Esposito – Reuters)

Canada’s compromise plan to boost NAFTA auto content rules lifted talks in Montreal, following negotiation gridlock during earlier rounds, but its future looked doubtful after President Donald Trump’s trade chief declared it unworkable on Monday.

Reaching a deal on autos, a key export sector for the United States, Canada and Mexico, has emerged as one of the toughest issues negotiators face in modernizing the 1994 North American Free Trade Agreement.

Canada’s plan to include expenses for engineering, research and development and other high-value work to be counted in higher targets for North American content was aimed at safeguarding high-paying jobs in the region, with Mexico calling it "innovative," but declining to offer its own specific position. Click here to read more.

Related: Canada Could Pay a Steep Price For ‘Progress’ in NAFTA Talks (Financial Post)