USA to demand higher American auto content in NAFTA talks, Ross warns

USA to demand higher American auto content in NAFTA talks, Ross warns

McKenna struck the hopeful note on the eve of the third round of talks to reform the trade agreement between Canada, the US and Mexico, as union demonstrators marched past Parliament Hill and a blimp bearing the message "NAFTA hijacks democracy" floated in the sky.

Rules of origin - one of the most complicated and contentious issues on the table, particularly when it comes to the auto sector - is on the agenda for the third round which starts Saturday in Ottawa.

"Since 2011, the USA position vis-a-vis Canada has improved materially from numbers that are already wrong", Mr. Volpe said.

These data debunk the claim that USA content in the form of parts is so high that we shouldn't worry about headline gross-deficit figures.

Renegotiating NAFTA was a central theme of Trump's campaign as he promised voters that he would take steps to improve economic conditions, especially in auto-dependent states in the Midwest. The declining US share of content in imports from Canada and Mexico puts those jobs at risk.

The New York Times reported that, during a question-and-answer session Monday at the Center for Strategic and International Studies (CSIS), Lighthizer said negotiations were "moving at warp speed, but we don't know whether we're going to get to a conclusion, that's the problem".

Napolitano, who was secretary of Homeland Security under President Barack Obama when the DACA program began in 2012, also expressed doubt that Congress will be able to approve the DREAM Act before March, when Trump has said he'll rescind the deferred deportation program.

And if there is no deal early in the new year, some experts predict U.S. President Donald Trump will follow through on his threat to pull the plug on NAFTA rather than go empty-handed into primaries for mid-term congressional elections.

The report comes as chief USA negotiator John Melle prepares to present new text proposals at the third round of NAFTA talks in Ottawa starting on Saturday, where he said "more challenging issues will start taking center stage".

A second government official, speaking on background, says talks at this point are where Canadian negotiators had anticipated.

"Unless you fix the rest of the mess, it's meaningless", says Dias, who "absolutely" expects to see more detail on the American position during the next few days.

This is according to Scotiabank's most recent Global Auto Report. Round three of the talks are planned in Ottaway September 23rd through September 27th. Canada last month suggested it could walk away if the United States pushed to remove a key dispute-settlement mechanism. The Liberals also want to add new NAFTA chapters on gender rights and Indigenous peoples.

The Trump administration believes erasing the U.S.'s trade deficit - the amount that imports exceed exports - should be the country's top trade priority.

Sarukhan said that if the Trump administration continues to prioritize USA interests over those of Mexico and Canada, the US risks losing exports to its two largest trading partners. Both Canada and Mexico sell more than three-quarters of their exported goods to the United States. That is why we have a NAFTA net trade deficit in goods of $70 billion.

The 23-year-old pact underpins over $1 trillion per year in trade between the three economies ranging from agricultural and industrial goods to intellectual property and environmental regulation. Mr. DiMicco is the former CEO of Nucor and author of American Made: Why Making Things Will Return Us to Greatness.

In a paper published Thursday, Scotiabank Economics argues that there is no need to tighten rules of origin for the auto sector; more than 75 per cent of vehicle parts are already made in North America.

"The President is committed to having free and fair trade with our trading partners ... but we're not going to be taken advantage of".