NAFTA: american offensive in the automotive industry

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QMI agency

Friday, 13 October, 2017 16:03

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Friday, 13 October, 2017 16:03

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The representatives of the United States demanded on Friday, in the table of the renegotiation of the free trade Agreement north american (NAFTA), substantially increase the amount of coins in the us that are used in the manufacture of cars.

They have asked that any cars traded in the framework of the NAFTA are to be made 50 per cent from american coin. The negotiators are also asking that 85 % of the content of vehicles in north american, report sources close to the negotiations.

The rules currently in effect require 62.5% of content in north american cars, but no proportion of coins from a particular country.

The canadian Association of vehicle manufacturers has called on the negotiators to keep the rules currently in place, indicating that any change would cause “major disruptions on the north american market”.

“We want a good agreement, not any. […] We will not accept proposals that put at risk canadian jobs,” responded Adam, Austen, press secretary of the canadian minister of foreign Affairs, asked by chrystia Freeland.

On Wednesday evening, the United States had already submitted another request controversial. They demanded the inclusion in NAFTA of a termination clause, which would put an end to the agreement at the end of five years if a new agreement was not negotiated.

The fourth round of discussions surrounding the redesign of the NAFTA is currently taking place in Virginia and will continue until Tuesday.

Several experts are wondering if the requirements of the United States are not intended to derail the negotiations.

Other significant claims are expected on the american side. The United States wants to have better access to the milk market canadian and also want to abolish an independent mechanism that allows for settling trade disputes to which Canada opposes.

In the framework of the visit to Washington of the prime minister of Canada, Justin Trudeau, us president, Donald Trump, reiterated this week his threats to tear up NAFTA. He also spoke about the possibility of signing an agreement of two countries, a possibility that Mr. Trudeau has not excluded.