trade deal

NAFTA Negotiators Focusing on Cars and Finances

Dan Industry News Release, Trade

naftaAgriculture will not be a big focus in the current round of talks on the North American Free Trade Agreement (NAFTA).

Bloomberg says negotiators will focus this round on regional content rules for products like cars, as well as financial services. One of the most contentious proposals from the U.S. deals with rules-of-origin for cars. Those rules determine how much of a vehicle must be produced in North America to trade without tariffs.

The Trump Administration wants the requirement raised from 62.5 percent to 85 percent. The White House wants 50 percent of a vehicle’s content to come from the U.S.

Other proposals that Canada and Mexico are balking at include a five-year sunset clause, getting rid of settlement dispute panels, and ending Canada’s dairy supply management program.

Bloomberg says there are other topics negotiators will discuss, including telecommunications, digital trade, government procurement, investment, labor, and intellectual property.

From the National Association of Farm Broadcasting News Service.