WASHINGTON/MEXICO CITY, May 29 (Reuters) – The Trump administration wants to increase the level of regional content in North American-built vehicles to 82% to qualify for preferential treatment under the U.S.-Mexico-Canada Agreement on trade, with 50% of that value produced in the United States, four people familiar with the U.S. negotiating position said.
The proposal, unveiled during this week’s U.S.-Mexico negotiations over revisions to the six-year-old USMCA in Mexico City, has no provision for requiring any content from Canada, which is not represented at the talks, the sources said.
The shift, if accepted, would be a major break from the current USMCA, which requires that 40% of the “core parts” value of North American passenger vehicle passenger cars be produced in high-wage jurisdictions, effectively the U.S. or Canada. That threshold is 45% for pickup trucks. Overall vehicles must have 75% North American content to qualify for preferential treatment under USMCA.
(Reporting by David Lawder and Emily Green in Mexico City, David Shepardson and Nora Eckert in Washington and Kalea Hall in Detroit.)
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