SNAPSHOTS

U.S., Mexico: NAFTA Negotiators Agree to New Vehicle Tariff Rules

MIN READAug 24, 2018 | 20:09 GMT

(Stratfor)

Negotiators from the United States and Mexico have reached a breakthrough on a key NAFTA sticking point. For months, Mexican and U.S. trade teams have been locked in talks in attempt to resolve demands from the United States that new automobiles contain a greater percentage of parts produced within the North American trade bloc and meet higher wage requirements in order to be traded without import tariffs under a renegotiated North American Free Trade Agreement (NAFTA). On Aug. 23, Mexican negotiators agreed that vehicles assembled at existing plants that do not meet new rule-of-origin percentages and wage requirements will be subject to a 2.5 percent tariff. Vehicles produced at yet-to-be-built factories will be subject to higher tariffs that will be determined by the White House upon recommendations by the U.S. Department of Commerce....

image of globe

Connected Content

Article Search