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NAFTA Partners Balk At United States’ ’Insane’ Automotive Production Demands

Posted November 20, 2017

Under Economic Issues, International Trade Issues

(Stef Schrader – Jalopnik)

Canada and Mexico aren’t expected to make a counter-proposal to the United States’ demands to tweak NAFTA’s automotive content rules today, according to people close to the talks who spoke with Reuters. Rather, they’re going to offer rebuttals and ask technical questions of the American negotiators, as the proposal is simply too out there to even counter-propose.

The United States wants more of each automobile to be produced in the United States, as Reuters explains: “The Trump administration last month stunned its NAFTA partners by unveiling demands that half of the value content of all North American-built autos be produced in the United States and that the regional vehicle content requirement be sharply increased to 85 percent from the current 62.5 percent.”

The demands are aimed at meeting U.S. President Donald Trump’s NAFTA goals of stemming the flow of U.S. carmaking jobs to low-wage Mexico and reversing a $64 billion U.S. trade deficit with its southern neighbor. However, our NAFTA partners say that this is too much. Click here to read more.