The U.S. and Mexico have reached a preliminary agreement on portions of NAFTA involving the auto industry, according to the New York Times and the Washington Post.
This story appeared in Automotive News.
According to the Times report, automakers would be required to manufacture at least 75 percent of a light vehicle’s value in North America under the new rules – up from 62.5 percent – in order to qualify for zero tariffs. They will also be required to use more local steel, aluminum and auto parts, and have a certain proportion of the vehicle made by workers earning at least $16 an hour, the Times reported.
President Donald Trump in a Monday-morning tweet suggested the two nations were close to an agreement on revising the North American Free Trade Agreement: “A big deal looking good with Mexico!”
The Mexican economy minister said on Monday that Mexican and U.S. officials were nearing an agreement on bilateral issues, but a major issue still needed to be settled. The preliminary agreement still excludes Canada.
