Mexican auto sector wants NAFTA rules of origin to remain

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The current North American Free Trade Agreement (NAFTA) rule of origin requirements "should remain at the current level," the president of the Mexican Automotive Industry Association (AMIA), Eduardo Solis, said on Tuesday.

Products must meet minimum regional or NAFTA-wide content requirements to be tariff-free, according to the trade deal between the US, Mexico, and Canada.

The current regional content required for vehicles and auto parts within NAFTA is 62.5 percent, making it the strictest sector in the free-trade agreement.

Solis noted that, of all the vehicles sold in the US, only 14 percent are made in Mexico.

"We have determined, along with our colleagues from the United States and Canada, that this rule of origin should be maintained as it is known that it has succeeded in helping the three countries in the success we have had," he told journalists during a press call.

As the first round of NAFTA renegotiation closed on Sunday in Washington DC, US Trade Representative Robert Lighthizer has said his government is seeking to increase the percentage of local products mandated by NAFTA rules of origin, in order to reduce its trade deficit with Mexico.

The automotive sectors in all three countries have called upon negotiators to oppose stricter rules of origin requirements.

Solis commented that no details about the automotive sector were discussed during the first round.

"Topics relevant to our sector were not addressed...they are revising general matters about the negotiation itself, but did not make it to specific topics," he explained.

The second round of renegotiations will take place in Mexico City from September 1 to 5.

Source(s): Xinhua News Agency