The U.S. has proposed requiring a greater proportion of a car’s value to be manufactured in North America to qualify for favorable treatment. It has also proposed various rules that would require carmakers to use a certain proportion of steel, aluminum and automobile components made in North America, sources indicate, and to have a certain proportion of a car’s value be made by workers earning at least $16 per hour.
In return, Mexico has asked the U.S. drop a proposal that would let American farmers block Mexican products, notably fruits and vegetables, more easily. Mexican negotiators fought back against the produce plan, saying it was unacceptable and would violate WTO rules.
It has also sought assurances that the Trump administration would lift the tariffs it has already imposed on steel and aluminum shipments from Mexico, and not hit Mexican products with the new tariffs Trump has threatened on imported cars.
That could be a key situation, especially for U.S. exports of pork to Mexico.