Mexico warns on NAFTA sourcing: ‘Don’t shoot ourselves in the foot’

5/23/2017 Reuters

27424865601_1ff00195fd_kMexico’s economy minister on Tuesday sounded a note of caution to the three countries involved in NAFTA trade negotiations, saying they should be careful not to adjust rules on local sourcing of parts too much, or risk driving business elsewhere.

Speaking at an event in Mexico City with Canada’s Minster of Foreign Affairs Chrystia Freeland, Mexican Economy Minister Ildefonso Guajardo said Mexico was not opposed to revising so-called rules of origin – which stipulate that products must meet minimum NAFTA-wide content requirements to be tariff-free.

But he warned that Mexico, the United States and Canada could “shoot ourselves in the foot” if they tweak rules too much and drive investment elsewhere.

Under these rules, manufacturers must obtain a minimum percentage of components for their products from Canada, Mexico or the United States.

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