World Economy
0

NAFTA Talks Drag On

NAFTA Talks Drag OnNAFTA Talks Drag On

Talks between the United States and Mexico over the future of the North American Free Trade Agreement were set to drag into next week, as auto industry officials said that new sticking points had emerged over President Donald Trump’s threat to impose steep automotive tariffs, Reuters reported. Auto industry officials familiar with the talks said the Trump administration wants the ability to impose national security tariffs on future Mexican production from new auto assembly and parts plants. These officials said US negotiators had essentially agreed that a new NAFTA trade deal would exempt existing Mexican auto plants from any “Section 232” tariffs that Trump may impose. But the US negotiators do not want to apply the same guarantees to new Mexican auto plants, the officials said, as the potential threat of 25% tariffs would discourage new automotive investment in Mexico to serve the US market. Administration officials and congressional aides have said the car tariff probe, like the metals tariffs, in part is aimed at winning concessions during ongoing NAFTA renegotiation talks.

 

Add new comment

Read our comment policy before posting your viewpoints

Financialtribune.com