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International Relation

Mexico to stand firm on NAFTA automotive rules of origin during talks

November 09, 2017


Abstract : Mexican negotiators in North America Free Trade Agreement (NAFTA) talks will defend the country's stance on maintaining current automotive rules of origin requirements, said Eduardo Solis.

美国-墨西哥

 

MEXICO CITY, Nov. 8 (Xinhua) -- Mexican negotiators in North America Free Trade Agreement (NAFTA) talks will defend the country's stance on maintaining current automotive rules of origin requirements, said Eduardo Solis, president of the Mexican Association of the Automotive Industry (AMIA), on Wednesday.

"Our proposal is unique and we are not preparing any other," said Solis at a press conference after revealing Mexico's automotive statistics for October.

Negotiators from Canada, Mexico and the U.S. will meet from Nov. 17-21 in Mexico City for the fifth round of NAFTA renegotiation talks, which is set to tackle some of the most controversial topics.

The fourth round finished in Washington on Oct. 17, with new challenges facing Canada and Mexico over differences concerning U.S. proposals.

In terms of automotive rules of origin, Mexico and Canada have stood firm on their desire to maintain them at their current levels, 62.5 percent for vehicles and 60 percent for autoparts.

However, the U.S. government is seeking to raise this to 85 percent, including 50 percent reserved for the United States.

Solis said the U.S. demands were unacceptable, and said that current levels had proven to be successful for all three NAFTA partners.

Besides rules of origin, the fifth round will tackle other hard topics such as local content for the textile industry, government purchasing, agricultural trade, and the elimination of a chapter on dispute resolution.

"It seems to me that the serious negotiation is just starting," explained the AMIA chief.

Mexico, Canada and the U.S. have been renegotiating NAFTA since August, at the request of Trump, who feels the agreement has hurt American interests.

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Keyword: US-Mexico NAFTA

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