Mexico says NAFTA rules of origin for autos will change

MEXICO CITY (Reuters) – Mexico’s Economy Minister Ildefonso Guajardo said on Thursday that the country had to be realistic about the rules of origin for automobiles under the North American Free Trade Agreement (NAFTA), saying that the current level will change.

Under NAFTA, at least 62.5 percent of the net cost of a passenger car or light truck must originate in the United States, Canada or Mexico to avoid tariffs. U.S. President Donald Trump’s administration wants to hike this to 85 percent.

“You have to be very prudent on what the level is because you can shoot yourself in the foot,” Guajardo said on local television. “Let’s put a realistic integration figure that everyone agrees on, its not going to be the current 62.5 percent … but it also can’t be 85.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.