Mexico is opening the door to compromise on the key NAFTA issue of auto manufacturing, though it’s unclear if the flexibility is enough to reach a deal with the U.S. and Canada, according to four people familiar with the talks, Automotive News Canada reports.
In talks in Washington on Monday and Tuesday, Mexico for the first time indicated a specific level to which it’s willing to raise North American automotive content – 70 percent, according to the people, who asked not to be identified discussing private negotiations.
While that’s up from the current 62.5 percent, it’s unclear if it’s enough to strike a deal because the U.S. has been calling for 75 percent for the biggest components of cars. Mexico is also seeking to implement the changes more slowly than the U.S. wants – over a period of a decade, according to two of the people.