U.S. Calls for “Substantial U.S. Content” in Auto Rules of Origin

The United States, Canada and Mexico completed the first round of NAFTA renegotiation after five full days of meetings in Washington, D.C. concluded Sunday, Aug. 20. U.S. Trade Representative Robert Lighthizer’s opening statement prioritized tightening the auto rules of origin and said that the U.S. would seek a higher NAFTA value content and substantial U.S. content for autos and auto parts.

Lighthizer warned that the Trump administration “is not interested in a mere tweaking” and emphasized the need for major improvement. Mexican and Canadian representatives have pushed back, stating that rules of origin is extremely complicated and that any changes made should not disrupt existing supply chains.

 

Negotiators will reconvene in Mexico for a second round of talks in early September, followed by additional talks in Canada and, again, in the U.S. later this fall.