Sources said Mexico this week presented ideas on auto parts that differed substantially from the American goal at these talks: to benefit production in high-wage jurisdictions. Sources say Mexico has proposed that 70 per cent of all cars comprise North American parts to avoid a tariff — the U.S. has asked for 75 per cent. And if Mexico flatly refuses then I suggest we should wait until after July 1, when there's a new Mexican president. One big unknown is what happens after an agreement on autos and whether the U.S. will soften other demands in order to get a quick deal. The auto rules themselves must be adjusted with care, as seemingly small changes could have far-reaching effects.

Source: CBC News May 08, 2018 15:08 UTC