Trade Cases

Automakers Tell Pence to Drop NAFTA Rules of Origin Proposal
Written by Sandy Williams
November 28, 2017
Detroit automakers met with Vice President Mike Pence and U.S. Trade Representative Robert Lighthizer on Monday to express concerns about the U.S. proposal on NAFTA automotive rules of origin.
General Motors Co. CEO Mary Barra, Fiat Chrysler Automobiles CEO Sergio Marchionne and Ford Motor Co. Executive Vice President and President of Global Operations Joe Hinrichs told Pence, Lighthizer and National Economic Council Director Gary Cohn that increasing the minimum percentage of parts for autos manufactured in North America could add thousands of dollars to the price of vehicles for consumers.
The U.S. has proposed that the minimum percentage of NAFTA parts in North American-manufactured vehicles be increased from 62.5 percent to 85 percent. In addition, U.S. negotiators want 50 percent of automotive content to come from the United States.
Matt Blunt, President of the American Automotive Policy Council (AAPC), which lobbies for Ford, GM and Fiat Chrysler, said the face-to-face meeting was appreciated by the automakers. The automakers urged Pence to tell the president to focus on preventing currency manipulation rather than changing rules of origin.
“We believe achieving inclusion of strong and enforceable currency discipline and ensuring foreign markets accept products built to our standards are important components of a modern NAFTA agreement,” said Blunt in a statement following the meeting.
A spokesperson for Pence said, “The Vice President emphasized President Trump’s commitment to enact historic tax cuts that will enable companies to create jobs, raise wages and spur American innovation. The Vice President also discussed the President’s firm commitment to grow manufacturing in the United States, reduce trade deficits, and strengthen the U.S. auto industry.”
The fifth round of NAFTA negotiations concluded last week without much progress. Round six is scheduled for Jan. 23-28 in Montreal.

Sandy Williams
Read more from Sandy WilliamsLatest in Trade Cases

SMU Survey: Less support seen for Trump tariff policies
Meanwhile, an increasing number think it's too early to say whether the penalties are going to bring more manufacturing to the US.

CRU: USW seeks exclusion for Canada from Trump’s tariffs
The union is also urging stronger enforcement against countries such as China which break trade rules, and a coordinated Canada-US strategy to protect union jobs across the North America

Price on trade: A lot happened last week – and it wasn’t all about tariffs
Should foreign investment be allowed to reshape the American steel Industry? Not to be lost in the recent on-again-off-again tariff frenzy, Nippon Steel’s proposed takeover of U.S. Steel has also found itself in President Trump’s crosshairs when it comes to trade and industrial policy. Nippon Steel initially announced its nearly $15-billion bid for U.S. Steel […]

Trump signs executive order aimed at making US shipbuilding ‘great again’
President Trump on Wednesday signed an executive order meant to breathe new life into American shipbuilding and curb Chinese dominance in the sector.

Trump still against selling USS to Japanese firm: Report
Despite ordering a new review of Nippon Steel’s bid for U.S. Steel, President Trump said he is still against selling USS to a Japanese company, according to media reports.