The United States and Mexico will convene for a fourth round of negotiations to renew the North American trade pact in early September, Mexico’s economy ministry said on Thursday. The talks come as the countries renegotiate the six-year-old agreement, which underpins nearly $1.6 trillion in once duty-free regional trade.
Key Issues
One of the biggest sticking points is Washington’s demand that vehicles contain 50% U.S. content to qualify for preferential market access. The proposal has been a non-starter for the Mexican government. Mexico is unwilling to accept “even 1%” of American content, and such a provision “opens the door for a potential increase in the future” and sets a problematic precedent.
Mexico, meanwhile, is asking Washington to adjust “Section 232” national security tariffs of 25% on autos and 50% on steel and aluminum from Mexico and Canada before making concessions on other issues. But U.S. President Donald Trump has shown no sign of easing the tariffs.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
