Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

UPDATE 1-Mexico econ minister says U.S. NAFTA autos proposal 'not viable'

Published 2017-11-29, 04:30 p/m
Updated 2017-11-29, 04:40 p/m
© Reuters.  UPDATE 1-Mexico econ minister says U.S. NAFTA autos proposal 'not viable'

© Reuters. UPDATE 1-Mexico econ minister says U.S. NAFTA autos proposal 'not viable'

By David Lawder

WASHINGTON, Nov 29 (Reuters) - Mexican Economy Minister Ildefonso Guajardo said on Wednesday that a Trump administration demand for a U.S.-specific automotive content requirement in NAFTA was "not viable," and declined to say when Mexico would offer a counterproposal.

At a news conference following a series of meetings with U.S. trade officials and lawmakers in Washington, Guajardo said that Mexico was still trying to understand the U.S. proposals to 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.

U.S. officials had complained that during the last NAFTA negotiating round Mexico and Canada had not offered counterproposals to its demands on autos and other major areas aimed at "rebalancing" the trade pact to shrink U.S. trade deficits. United States also is seeking to lift the regional value content requirement for NAFTA-produced cars and trucks to 85 percent from 62.5 percent. Guajardo said that once Mexico has a firm understanding of the U.S. autos proposal, it can work with its own stakeholders to see what adjustments could be made to regional content for autos.

But he said that the U.S. demand to move to 85 percent regional content within three years was "entirely unrealistic."

On dispute settlement, Guajardo said that Mexico would be willing to consider some adjustments to the investor-state dispute settlement system, after the United States proposed making the use of such arbitration panels optional.

"We can explore the opt-in, as long as we can define our own opt-in," Guajardo said of the dispute settlement proposal. "If the intention is to write, collectively, our opt-in, we're not interested, because then we would not have control over our own commitments that we have with investments."

He added that Mexico needed to send "clear messages" on NAFTA proposals that are unacceptable.

Another round of NAFTA negotiation is expected in mid-December in Washington.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.