|
The agreement reached by the U.S. and Mexico will have the
following elements:
-Requires 75 percent of the
value of a vehicle to be produced in the United States or
Mexico, up from the NAFTA threshold of 62.5 percent.
-Requires greater use of U.S. and Mexican steel,
aluminum, glass and plastics.
-Established
a requirement of 40 to 45 percent of a vehicle’s value to be
made in high wage areas paying at least $16 an hour,
requiring significant automotive production in the United
States.
-Mexico agreed to eliminate a
settlement system for anti-dumping disputes, NAFTA’s Chapter
19.
-The new deal will keep tariffs on
agricultural products traded between the United States and
Mexico at zero.
- It contains enforceable labor provisions that
require Mexico to adhere to International Labor Organization
labor rights standards in an effort to drive Mexican wages
higher.
-The United States and Mexico
agreed to a 16-year lifespan for NAFTA, with a review every
six years that can extend the pact for 16 years more,
providing more business certainty.
Negotiations with Canada is currently ongoing.
If no agreement is reached with Canada the agreement
with Mexico will be sent to for congressional approval.
|
