Monday, November 20, 2017

Mexico Horrified By U.S. Nafta Car Negotiations

Here's the latest on the asinine anti-free trade negotiation position of the Trump administration.

The Mexican government views the U.S. proposal for tightening content rules for car manufacturing under Nafta as not viable and likely to cause serious damage to the North American auto industry, said a person familiar with the nation’s stance, reports Bloomberg.

Mexico hasn’t
prepared or presented a counter-proposal because it sees the problem as going beyond the specific levels sought by the U.S. and thinks the entire concept is unworkable, said the person, who asked not to be identified discussing negotiations taking place behind closed doors.

The Trump administration has proposed major changes to Nafta’s auto rules, introducing a requirement that 50 percent of parts or vehicles be U.S.-made, and increasing the minimum amount of regional content needed to 85 percent from 62.5 percent.

This is just plain loopy, cronyism, central planning and bad economics.


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