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Renegotiations
The renegotiation of the North American Free Trade Agreement (NAFTA) is underway, and it is unclear what the future of the trade deal will be. The United States, Mexico, and Canada began renegotiating NAFTA in August of 2017, and they have made some progress, but there are still many areas that need to be addressed.
One of the main issues that needs to be resolved is the automotive sector. The United States wants to increase the percentage of auto parts that must be made in North America in order for a car to be considered "NAFTA-compliant." The current requirement is 62.5%, and the United States is proposing that it be raised to 85%. Mexico and Canada are opposed to this, and they argue that it would damage the automotive industry in their countries.
Another issue that needs to be resolved is the dispute resolution process. The United States wants to make it easier to terminate NAFTA, and it also wants to change the process for resolving disputes. Mexico and Canada are opposed to these changes, and they argue that they would make it more difficult to resolve disputes.
The renegotiations are ongoing, and it is unclear what the final outcome will be. However, it is clear that there are still some major issues that need to be resolved.
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