Canada, Mexico Stick to NAFTA Guns

Canada, Mexico Stick to NAFTA Guns

Canada, Mexico Stick to NAFTA Guns

The Trump administration is seeking to use NAFTA to boost the US steel and other basic materials industries by proposing stricter automotive content rules that require the use of North American-made steel, aluminum, copper and plastic resins.

The comments came as negotiators from the three countries meet in the United States for their latest round of what Trump vowed would be tough talks on a new version of NAFTA.

Though initial reaction was positive, the source said the US could still make more demands. With that in mind, he said he's warned US trade representative Robert Lighthizer to tread carefully around the sector.

Three people who were briefed on the matter said that the USA rules of origin proposal would put these materials on the North American Free Trade Agreement's auto parts tracing list for the first time.

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Business and farm groups say abandoning the 23-year-old pact would wreak economic havoc, disrupting cross-border manufacturing supply chains and slapping high tariffs on agricultural products.

An exodus of jobs to Mexico, particularly in the auto sector, is a major concern of both Canada and the US, but business leaders in Mexico have argued that workers rights' and pay should be an internal issue for each country.

"NAFTA is not going anywhere".

Despite clear signs of impatience from Canada in particular, USA negotiators have yet to submit their proposal on rules of origin for the auto sector.

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Trudeau said he's appreciative of Mexico's support for the idea of placing a gender chapter into a renegotiated NAFTA, but at the same time he met civil society leaders during his trip and heard stories about unacceptable treatment of women and girls.

Negotiators were also set to cover the hard issue of government procurement on Thursday.

Canada had been expecting extreme demands from the US, after President Donald Trump said Canadian dairy rules were "unfair" to American farmers back in April.

The United States on Friday formally unveiled proposals to boost the amount of regional content that autos must contain to qualify for NAFTA tariff-free access, three sources familiar with the negotiations told Reuters on Friday.

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The rules of origin demands are among several conditions that the U.S. Chamber of Commerce has labeled "poison pill proposals" that threaten to torpedo the talks.

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