Posts Tagged ‘NA content percentages’

New US Content Proposal for NAFTA Gets Tepid Response

Mexico balks at new demands from negotiators.

by on May.01, 2018

Trade representatives from Canada, Mexico and the U.S. continue negotiating a revised NAFTA agreement.

The latest proposals from the U.S. in the ongoing North American Free Trade Agreement talks have been met with tepid curiosity and outright defiance from Mexico’s delegation.

The U.S. proposal, according to Reuters, increases NAFTA’s regional automotive content and would carry a four-year phase-in to meet a higher, 75% regional value threshold. The current level is 62.5% while new labor content rules requiring substantial work at wages of $16 an hour or higher.

Trade News!

The new deal would require the $16 wage on work comprising 40% of the value of light-duty passenger vehicles and 45% for pickup trucks. Mexico, where salaries average less than $6 per hour at automakers, wasn’t keen on the new idea. (more…)