WASHINGTON 91裸聊视频 Early indications are pointing to a potential No. 1 priority for the U.S. in a renegotiated NAFTA: automobiles.
It91裸聊视频檚 the specific issue that was mentioned first, at greatest length, and in most detail by Donald Trump91裸聊视频檚 trade czar as talks got underway Wednesday.
Robert Lighthizer pointed to the carnage in the manufacturing sector as the reason so many Americans view NAFTA as a failed agreement.
91裸聊视频淭housands of American factory workers have lost their jobs because of these provisions,91裸聊视频 Lighthizer said in his opening remarks.
This morning, Ambassador Robert Lighthizer delivered an opening statement at the first round of renegotiations.
91裸聊视频 Department of State (@StateDept)
He cited priorities for the sector, designed to boost production of parts in North America, and in the United States.
Industry members are warning Lighthizer to handle the matter with care as the details are complicated, and any wrong moves could either drive up vehicle prices.
There91裸聊视频檚 also a risk that changes could make North American producers less competitive, or even force them to just ignore the new rules and simply pay a tariff that would be passed along to consumers.
Lighthizer listed four priorities for the sector:
91裸聊视频 A higher North American content requirement to avoid a tariff. The current rule of origin calls for 62.5 per cent of a car91裸聊视频檚 parts to be made in North America.
91裸聊视频 Substantial U.S. content in cars. It was unclear whether he was advocating a new, specific requirement for U.S. content 91裸聊视频 a move that would surely be controversial 91裸聊视频 or whether he was simply stating that the desired changes should positively affect the region, with more cars being made in the U.S.
91裸聊视频 Stricter monitoring to make sure companies comply with the rules of origin. Lighthizer said country of origin 91裸聊视频渟hould be verified, not deemed.91裸聊视频 Labour provisions should be included in the agreement and be as strong as possible.
91裸聊视频 Tougher labour standards. Some insiders in Canada and the U.S. suggest better worker conditions in Mexico, and more pay, would not only be good for Mexicans but also for making non-Mexican production more cost-effective and preserving vehicle production in Canada and the U.S.
A Canadian auto-industry representative at the talks said he91裸聊视频檚 not worried by what he heard: 91裸聊视频淭here91裸聊视频檚 no anxiety about it with us,91裸聊视频 said Flavio Volpe, president of the Automotive Parts Manufacturers91裸聊视频 Association.
For example, Volpe interpreted Lighthizer91裸聊视频檚 words to mean that he91裸聊视频檚 hoping for more production in the U.S. as a spinoff effect of a stronger North American industry, not as a demand that plants move there from other countries.
But he urged negotiators to be very careful when touching the current rules. He warned of ample possibilities for unintended consequences.
91裸聊视频淚t91裸聊视频檚 not simple,91裸聊视频 Volpe said. 91裸聊视频滻f you make it too onerous, does a company or supplier say, 91裸聊视频楩orget about compliance. I91裸聊视频檒l just pay the tariff.91裸聊视频91裸聊视频
That means production would actually shift abroad: companies would simply pay the tariffs, ranging from 2.5 to 6.1 per cent, as a cheaper alternative to following complicated new rules.
It91裸聊视频檚 also risky to try requiring companies to produce certain products at home, Volpe added: some industries that produce certain types of electronics for automobiles simply don91裸聊视频檛 exist in North America.
Happy to sit down with Secretary in to discuss the strong ties between Canadians & Mexicans.
91裸聊视频 Chrystia Freeland (@cafreeland)
Finally, damaging Mexican competitiveness can boomerang on companies from the other countries.
He said Canadian auto-parts companies have 43,000 employees in Mexico.
Alexander Panetta, The Canadian Press