“Canadian Foreign Minister Chrystia Freeland said on Wednesday that good progress has been made at the NAFTA trade talks on the key issue of auto rules, though the threat of proposed U.S. steel and aluminum tariffs coming into force next week clouded the mood.”
The U.S.Trade Representative Robert Lighthizer and the Mexican Economy Minister Ildefonso Guajardo met for a second time a day to discuss the progress report on NAFTA Auto rules and steel tariffs loom for overhauling the North American Free Trade Agreement and heave to fasten a quick deal on it.
“Freeland told reporters after talks with the Robert Lighthizer said; there is a very strong, very committed, good-faith effort for all three parties to work 24/7 on this and to try and reach an agreement,”
“The bulk of talks focused on rules of origin governing what percentage of a car needs to be built in the NAFTA region in order to be sold tariff-free within North America, she said”.
And she also added “I think we made some good progress. We’re very much working on a set of proposals based on the creative ideas the U.S. came up with in March and I think there was good constructive progress.”
The Ministers are to be expecting to meet again on Thursday.
The Donald Trump’s, a President of U.S. representatives initially demanded that North American construct vehicles which contain 85 percent of the content that values are made in NAFTA countries, that is really up from 62.5 percent now. But according to industry officials, it has been cut up to 75 percent, with some of the certain components that will come from areas that pay higher wages.
The representative of U.S. trade was pushing its proposal for salary standards in some certain auto parts. This plan would surely set for the overall regional content requirement for autos at 75 percent, but it would offer more credit toward the goal for final meeting and manufacturing of the certain high-cost parts like engines in higher wage areas paying around $15 an hour. Some of the lower-value parts and materials will qualify for 70 percent and 65 percent regional thresholds limits.
“Freeland said Canada remained opposed to the U.S. idea of introducing a “sunset clause” that would allow one of the three NAFTA members to quit the pact after five years.”
“Our view is that this is absolutely unnecessary,” she said, noting that NAFTA already contained a withdrawal mechanism.”
Some of the stakeholders disagree that setting such a clause in a place would surely create a uncertainty for the purpose of investments. Mexico’s negotiators are also unpleased about having a deal with the steel tariff threat in similar to the NAFTA discussions.
Freeland restates that Canada’s opposition to the proposed U.S. steel and aluminum duties. Trump also revealed the tariffs in March but suspended them for Canada and Mexico until May 1.
Freeland said “Canada’s position has been clear from the outset and that is that Canada expects to have a full and permanent exemption from any quotas or tariffs”.
Eden, the writer of this article is an experienced digital marketing professional with a keen interest in writing on Microsoft, Outlook, Office.com/Setup and more. With all his articles and blogs, he focuses on making the readers aware of the latest as well as upcoming technologies in this domain.