NAFTA Round Two: Rules of Origin

Round two of NAFTA negotiations wound up today, with no resolution in sight. Among the many issues being debated, the topic of rules-of-origin is proving to be contentious for Canadian and Mexican negotiators, as well as auto producers.

U.S. negotiators are proposing that U.S. content in NAFTA-eligible vehicles be raised to between 35-50 percent, according to sources cited by Reuters. A lobbyist told Reuters that at least 35 percent content would be necessary to meet Trump administration requirements. “Anything less would not be a political victory” for Trump, the lobbyist said.