{"id":34752,"date":"2017-07-14T08:01:39","date_gmt":"2017-07-14T08:01:39","guid":{"rendered":"http:\/\/www.biphoo.com\/bipnews\/?p=34752"},"modified":"2017-07-14T08:01:39","modified_gmt":"2017-07-14T08:01:39","slug":"mexico-industry-eyes-nafta-changes-find-common-ground-trump","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/news\/mexico-industry-eyes-nafta-changes-find-common-ground-trump.html","title":{"rendered":"Mexico industry eyes NAFTA changes to find common ground with Trump"},"content":{"rendered":"

Mexico industry eyes NAFTA changes to find common ground with<\/span> Trump<\/span><\/span><\/strong><\/span><\/h2>\n

Mexican i<\/span>ndustry is<\/span> exploring revising trade rules to ensure U.S. workers benefit from a renegotiated North American Free Trade Agreement (NAFTA) to address head-on U.S. President Donald Trump’s biggest beef with the treaty.<\/span><\/span><\/p>\n

With talks due to start next month between the United States, Mexico and Canada, Mexican officials have stressed the need to craft a new deal that would strengthen the region against competitors, particularly in Asia.<\/span><\/span><\/p>\n

Trump has threatened to ditch NAFTA if he cannot rework it to the benefit of the United States, arguing it has fueled a trade deficit with Mexico and cost thousands of U.S. jobs.<\/span><\/span><\/p>\n

Mexican officials say a revamped NAFTA must further integrate the region and are awaiting U.S. negotiating objectives, due to be published on or around Sunday.<\/span><\/span><\/p>\n

They point to sectors like autos, where U.S. inputs make up some 40 percent of the value of products imported into the United States from <\/span><\/span>Mexico, while Chinese exports contain only 4 percent, according to the U.S. Center for Automotive Research.<\/span><\/span><\/p>\n

“If we integrate further and make Mexico more competitive versus China … even if our exports rise, U.S. jobs will rise, because when we export (to the United States), they’re exporting too (via U.S. content),” said Jaime Serra, a former trade minister who led the initial NAFTA negotiations for Mexico.<\/span><\/span><\/p>\n

However, mindful that Trump needs to be able to claim a more obvious win from the shake-up, they are also looking at rules governing how much of a product is made in the region.<\/span><\/span><\/p>\n

NAFTA rules of origin stipulate that to qualify for tariff-free access, some products need to be sourced to a certain degree regionally. Cars, a recurring point of attack for Trump, must meet a threshold of 62.5 percent.<\/span><\/span><\/p>\n

Because raising that threshold would not automatically benefit U.S. workers – firms could just expand capacity in Mexico – Trump’s trade team want to have some national content rules within the regional framework, Mexican officials say.<\/span><\/span><\/p>\n

http:\/\/www.reuters.com\/article\/us-usa-trade-mexico-nafta-idUSKBN19Z0EB<\/span><\/span><\/p>\n

\n\t\t\t
\n\t\t\t <\/div><\/div>\n\t\t