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Mexico Awaits Details of Plan to Bring Auto Engines to U.S., Officials Say

Posted April 11, 2018

Under Economic Issues, International Trade Issues

(Anthony Esposito & Adriana Barrera – Reuters)

A U.S. proposal that automobiles should be built in high-wage areas within the NAFTA region is partly aimed at increasing engine production in the United States, and more details on the plan are expected this week, Mexican officials said.

In an idea aimed at breaking a deadlock in talks, Washington last month suggested some automotive production should happen in areas of North America paying higher salaries.

U.S. negotiators discussing changes to the North American Free Trade Agreement floated the idea that 40 percent of automotive production must happen in areas paying wages of between $16 to $19 per hour, Fausto Cuevas, the director general of auto industry group AMIA, said on Tuesday. Click here to read more.