Trump administration to present hefty list of auto parts demands in NAFTA negotiations


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ARLINGTON, United States – The United States is presenting a triple-whammy of a demand on auto parts at the NAFTA negotiations, including a strict “Made In America” requirement that’s viewed as a non-starter by virtually every party involved in automobile production.It’s one of the biggest issues of the talks and it’s sure to provoke a backlash on multiple fronts: Canada, Mexico, U.S. industry, and even some labour groups were calling the proposed numbers completely impractical.Story continues belowTwo sources say the U.S. negotiating team has been showing industry representatives the proposal they are expected to present Canada and Mexico as early as Friday.READ MORE: Justin Trudeau says Canada will not abandon NAFTA talks despite drastic U.S. proposalsIt contains three ideas that automakers say would complicate production.First, it requires all cars to include 85 per cent North American content to avoid a tariff, up from the current 62.5 per cent; 50 per cent of a car’s content would have to come from the U.S.; and it would toughen the way content is calculated, with a list upgraded to include parts that didn’t exist in 1994 when NAFTA was originally implemented.So impractical are the U.S. demands, the talk in the hallways at the conference site involves trying to decipher which of two objectives the Americans are trying to achieve: Sabotage the talks, or shock other parties into concessions.A Canadian auto-parts representative tends toward the latter.WATCH: Trudeau, Mexico pushing for ‘gender chapter’ in NAFTA deal

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