Loading ...WASHINGTON — The United States on Friday formally unveiled proposals to boost the amount of regional content that autos must contain to qualify for NAFTA tariff-free access, three sources familiar with the negotiations told Reuters on Friday.
The push for higher content is one of the Trump administration’s key demands at talks to modernize the North American Free Trade Agreement.
Canada and Mexico, the other two members of the pact, strongly oppose the idea on the grounds that it will disrupt the highly-integrated continental auto industry.
One of the sources said the U.S. wants to increase the North American content requirement for trucks, autos and large engines to 85 percent from 62.5 percent. Furthermore, Washington insists 50 percent of content must be U.S.-made.
Trump administration officials complain the current content rules are too lax and have allowed auto companies to build more autos in Mexico, where wages are much lower.
A spokeswoman for U.S. Trade Representative Robert Lighthizer declined to comment.