Published On: Thu, Nov 30th, 2017

Mexico Economy Minister says U.S. NAFTA autos proposal ‘Not Viable’

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WASHINGTON (Reuters) – Mexican Economy Minister Ildefonso Guajardo said on Wednesday that demands by the Trump administration for a U.S.-specific automotive content requirement in NAFTA was “not viable,” and declined to specify when Mexico would formally respond.

At a news conference following a series of meetings with senior U.S. trade officials and lawmakers in Washington, Guajardo said that Mexico was still trying to understand the U.S. proposals that would require 50 percent of vehicles’ value content be produced in the United States as part of updated North American Free Trade Agreement rules.

“I was clear that the domestic content (requirement) is something that is not viable at this point,” Guajardo said.

He added that Mexico would eventually make a counterproposal on automotive rules of origin, but declined to specify the timing of that response.

His visit was partly aimed at bolstering support in Congress for NAFTA at a time when tax legislation is consuming lawmakers’ attention and U.S. Trade Representative Robert Lighthizer is growing frustrated with the slow pace of NAFTA talks.

U.S. President Donald Trump has repeatedly threatened to scrap the trade agreement if it cannot be renegotiated to shrink U.S. trade deficits and return manufacturing jobs to the United States.

House Speaker Paul Ryan said after meeting with Guajardo earlier on Wednesday NOvember 29 that congressional Republicans “are determined” to strengthen trade ties with Mexico.

Click here for full article on money.usnews.com

Source: https://money.usnews.com/

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