NAFTA further imperilled by U.S. demand for stringent American auto content
OTTAWA — Pessimism about the fate of NAFTA is mounting amid dismay that the U.S. wants to impose stringent new American content requirements on vehicles that are allowed duty-free movement across North America.
The United States is set to propose that cars and trucks must have at least 85 per cent North American content and at least 50 per cent specifically American content to qualify for duty-free status, according to a report by Inside U.S. Trade.
The rules of origin proposal is expected to be tabled next week in Washington during the fourth round of negotiations to rewrite the North American Free Trade Agreement.
Canada and Mexico have, from the outset of talks, been adamant that they won’t agree to a specific American content requirement that would bolster the U.S. industry at the expense of automobile and auto parts manufacturers in the other two countries.