The Globe and Mail reports in its Tuesday edition that a 12-country transpacific trading
bloc must guarantee that half
the content of cars is locally
made within the group, say Mexican officials.
A Reuters dispatch to The Globe reports that failure to agree with Mexico on
rules for automaking was a key
stumbling block when negotiators
fell short of a deal for the
Trans-Pacific Partnership
at the end of July.
Mexican officials have expressed
confidence a deal
can be reached in the coming
weeks, but car manufacturing remains
a sticking point, and
upcoming elections in Canada
this year and the United States in
2016 risk complicating matters.
The head of AMIA, the Mexican
automakers' association,
said the content of vehicles,
engines and transmissions had
to be sourced "at least 50 per
cent" from within the bloc to
ensure the principal beneficiaries
of the deal were member countries.
"A lower rule would allow
more input from outside the
region to be brought in," says AMIA
president Eduardo Solis.
Mexico is trying to agree to
TPP auto terms that are close to
rules for the North American
free-trade agreement, which stipulate
that 62.5 per cent of the net
cost should be local.
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