Mexican Economy Secretary Ildefonso Guajardo said on Tuesday that the North American Free Trade Agreement’s rules of origin can be improved but denied that Mexico was a “back door” for Chinese goods to enter the United States.
Speaking in a live interview on CNBC, Guajardo also said he believed there were grounds to believe that NAFTA can be renegotiated to benefit the United States, Canada and Mexico.
He said, however, that “Plan B” for Mexico would be to revert to World Trade Organization tariff rates for exports to the United States such as the 2.5 percent tariff for passenger cars.
“Obviously, (it is) a little bit more expensive, but it’s not the end of the world,” he added.
He said that the Chinese content of cars traded between North American countries was very low, about 3 percent, largely using parts that are no longer produced in the region, such as flat panel display screens and other electronic items.