U.S. Trade representatives involved in the renegotiation of the North American Free Trade Agreement (NAFTA) gave in to one of the most controversial requests of the process, as the demand for regional content in cars dropped by 75% from 85%, revealed on Friday Eduardo Solis, president of the Mexican Association of the Automotive Industry (AMIA) to Reuters. The official also said that the request that 50% of the vehicle content be manufactured exclusively in the United States was also ruled out.
U.S. representatives had initially demanded that North American-built vehicles contain 85% content made in NAFTA countries by value, up from the current 62.5%, along with 50% of the value coming from the United States.
“The U.S. put on the table 75% instead of 85% for the regional content value of the vehicle and its core components,” said Solis. “All of this is being carefully analyzed and specific questions are being asked during this round of the U.S. negotiators (in charge of) rules of origin,” he added in a statement.
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