Mexican head of the trade and NAFTA office Guillermo Malpica said yesterday that the US had “started showing more flexibility last week” on NAFTA renegotiation. And, he added that “we are getting close” to an agreement on one of the sticky point, autos rule of origin.
Mexican Economy Minister Ildefonso Guajardo also indicated earlier there was a shift in the focus of the debate in auto contents. He said “now what we are talking about is that a percentage of what is made in North America would be made in a high-salary zone … What does this mean? That clearly, within the component of 100 percent of an automobile made in (the NAFTA zone), a percentage, it could be about 35 to 40 percent, is made in a high-salary zone.”
Canadian trade negotiator Colin Bird also said in an auto industry conference in Michigan that there was progress on auto content rules. He added that “harnessing the power of trade agreements to promote higher wages is the kind of policy all three countries can get behind.”
However, another sticky point of the sunset clause is not cleared yet. Bird also warned that “any one country being able to hold the agreement hostage every five years does not provide the certainty” for businesses.
