NAFTA Watch: Mexican Engines May Lose Power In Rules of Origin Shift — Panjiva
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NAFTA Watch: Mexican Engines May Lose Power In Rules of Origin Shift

Cons. Discr. - Autos 1255 Mexico 931 Trade Deals 1020 U.S. 5418 USMCA 462

Automotive rules of origin have formed the center of NAFTA negotiations, which are running out of time ahead of forthcoming negotiations. Mexican officials have indicated that there will be a push to ensure more engines are produced in the U.S., partly by applying assumed wage rates of $15/hour in calculating the regional content values. Mexico is already a net exporter of engines to the U.S. to the tune of $1.1 billion in the past 12 months. That follows a 17% rise in imports from (led by Ford and Cummins) and a 13% drop in exports to the U.S. on a year earlier.

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