NAFTA talks put on hold until May 7 for consultations
Negotiations on a new NAFTA will stall until May 7, allowing time for consultations with the auto industry in Mexico and for U.S. Trade Representative Robert Lighthizer to visit China, Reuters reported.
According to auto industry officials, the U.S. currently demands 75% of NAFTA content in vehicles built in North America to qualify for duty-free status, with production of certain components specified in areas that pay higher wages. The Mexican team will use the timeout for consultations with auto industry executives on the proposals.
It’s worth noting that the Trump administration threatened to impose sanctions on Canadian and Mexican steel and aluminum on May 1 if there was not enough progress in the talks, but it was not clear if that deadline has been postponed.