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Goal of Latest U.S. NAFTA Pitch: Credit Countries For Higher Auto Wages

Posted March 28, 2018

(Alexander Panetta & Joanna Smith – Canadian Press)

Here’s an idea that has shaken up the NAFTA negotiations: Crediting countries for higher auto wages.

It’s at the heart of the latest proposal from the United States.

Several sources in different countries say the U.S. has offered to drop its controversial demand for 50 per cent U.S. content in every car — but it comes with conditions attached.

Sources say the U.S. still wants a higher level of North American content in vehicles, and is now suggesting rules that reward jurisdictions for offering salaries beyond a certain level.

One American source familiar with the proposal told the Canadian Press the level in question involves incentives for a salary range between $13 and $17 an hour — which is significantly higher than the current average hourly wage in Mexico. Click here to read more.

Related: Higher Auto Wages Centre of Major U.S. NAFTA Proposal (Automotive News)