Mexico-Us deal includes Mexican auto export cap

30 August 2018 | Motors
A proposed US-Mexico trade deal would allow President Donald Trump to slap punitive tariffs of up to 25% on imports of Mexican-made cars, sport utility vehicles and auto parts above certain volumes, auto executives and sources said on Tuesday.

he United States and Mexico agreed on Monday to overhaul the North American Free Trade Agreement (NAFTA), pressuring Canada to sign up to new auto trade and dispute settlement rules to remain part of the three-way pact.

But a previously unreported side agreement between the two countries would allow the United States to pursue “national security” tariffs on annual Mexican car and SUV imports of over 2.4 million vehicles. The side deal would allow national security levies on auto parts imports above a value of US$90 billion per year on the same grounds. The administration plans to announce the results of a probe into whether autos and part imports pose a national security risk in the coming weeks.

The study could be used to justify 25% US tariffs on automotive imports on the basis that protecting the US auto industry is vital to national security under a Cold War-era trade law.

Automakers are concerned that the agreement signals the United States will proceed with national security tariffs – and are likely to use the tariffs to win concessions from the European Union and Japan as well. They have said the tariffs could cost hundreds of thousands of jobs and dramatically raise vehicle prices.

A separate side-agreement lays out a possible scenario in which the United States increases its normal “most-favored nation” tariffs on autos, currently 2.5%. A potential new, unspecified rate would be applied to vehicles that do not meet the existing or revamped NAFTA.

MEXICAN EXPORT CAP

Mexico reserves the right to challenge the US use of “national security” tariffs at the World Trade Organisation, people briefed on the talks said.

Exports of cars and SUVs from Mexico would face a 25% US tariff if they exceed 2.4 million vehicles and the United States imposes the national security tariffs, the sources said. Below the cap, vehicles that comply with new, tougher regional content requirements could enter the US duty-free.

Vehicles within the cap which fail to comply with the new, tougher content rules would pay a 2.5% tariff, the sources said.

In 2017, nearly 1.8 million cars and SUVs were exported to the United States from Mexico.

The sources did not want to be identified because the details of the agreement have not been officially released.

US officials have said the agreement is aimed at pulling more auto industry jobs into the United States and Mexico. Terms of the deal are not final, and could change depending on the outcome of negotiations between the United States and Canada, and other factors.

Duty-free auto parts exports from Mexico to the United States could be capped at US$90 billion a year under the agreement, said Ann Wilson, senior vice president of government affairs at the Motor and Equipment Manufacturers Association.

The figure exceeds current levels, but parts shipments above that quota could be subject to 232 tariffs, Wilson said.

Mexican pickup trucks that do not comply with regional content quotas already pay a 25% duty. It was not clear whether they could also be subject to an additional quota.

Moises Kalach, head of the international negotiating arm of Mexico’s CCE business lobby, said it was far from certain the United States would impose the 232 tariffs, and that the current trading arrangements for the industry were now safeguarded.

“We have a fall-back plan if they impose the 232, but there’s also the possibility that Mexico is exempted from the 232,” Kalach told Reuters.

It is not clear how the quotas would be counted or administered.

-Nampa/Reuters

Soortgelyk

 

Hepatitis E woed landswyd voort

20 ure gelede | Ministeries

Henriette Lamprecht – Kort duskant ‘n jaar ná ‘n uitbreking van hepatitis E amptelik in Desember 2017 in Windhoek verklaar is, is byna 4...

Nuwe plan teen misdaad onthul

20 ure gelede | Misdaad

Denver KistingRooftogte, veral gewapende rooftogte, het in die afgelope ses jaar met 44% die hoogte in geskiet.Dié syfer is vervat in misdaadstatistieke van die afgelope...

Hittegolf rý Namibië

20 ure gelede | Weer

Ondangwa is vandag die heel warmste plek met ‘n verwagte maksimum temperatuur van 41°C. Boonop word geen verligting van snikhete temperature hierdie naweek verwag nie....

SOE’s: Direksies moet vir mislukkings pa staan

20 ure gelede | Ministeries

Ronelle Rademeyer - Voor staatsondernemings (SOE’s) nie prestasiegedrewe volgens goeie korporatiewe beginsels bestuur word nie, sal die ekonomie nie beter vaar nie.Daarom sal die vergoeding...

Weer, Vrydag 16 November 2018

20 ure gelede | Weer

BINNELAND: Sonnig en bloedig warm in die Suide. Elders sal dit gedeeltelik bewolk en bloedig wees. Enkele donerbuie word in Otjozondjupa, Khomas en Omaheke verwag.KUS:...

Kalender 16 November

20 ure gelede | Kuns en vermaak

Nou aan die gang» Die Nasionale Kunsgalery van Namibië (NAGN) bied met trots die 2018 Unam Visuele Kunste-uitstalling aan, wat tans in die hoofgalery van...

Die misterie van poësie

20 ure gelede | Kuns en vermaak

Lloyd Zandberg Terwyl die meerderheid van die mensdom soggens teen die wekker stoei, kinders vir skool aantrek, die hewige verkeer aandurf en uiteindelik laat vir...

Ons is nie teen gays, sê Sioka

20 ure gelede | Ministeries

Denver Kisting – Die minister van geslagsgelykheid en kinderwelsyn, me. Doreen Sioka, sê die regering het niks teen gay mense nie.Sý veral diskrimineer nie teen...

Mense oor miltsiekte gewaarsku ná 2 uitbrekings

20 ure gelede | Gesondheid

Ronelle Rademeyer - ’n Bewegingsverbod vir diere is by Sesfontein en die Bwabwata Nasionale Park ingestel nadat uitbrekings van miltsiekte op 1 November in dié...