LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » World News

Autos officials hopeful that industry can avoid a NAFTA disaster

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Updated: Sat, Jan 27, 2018
03:34 am
Reuters
RELATED NEWS
Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here
India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global
RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21 RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21

Auto industry officials fretting about hardline U.S. NAFTA demands with the potential to turn a globally integrated industry upside down now are hopeful that a Canadian compromise plan could avert disaster.

The officials, speaking to Reuters on the sidelines of NAFTA talks here, said strenuous lobbying efforts on behalf of the industry were starting to sink in with some key members of the Trump administration.

Automakers and their suppliers are worried that the U.S. demands will cause the 24-year-old North American Free Trade Agreement to collapse, or render its tariff-free benefits unusable. Either outcome would wreak havoc on supply chains that have auto parts and vehicles regularly crisscrossing North American borders

Industry trade groups have estimated that a full reversion to World Trade Organization tariff levels would cost the industry some $10 billion a year and cause the loss of up to 50,000 U.S. auto parts jobs.

The Trump administration, which blames NAFTA for killing off U.S. manufacturing jobs, wants the requirement for the value content, or net cost, of autos sourced from the three NAFTA countries boosted to 85 percent from 62.5 percent for tariff-free trade.

It also insists that 50 percent of the content of every vehicle produced in the region come from the United States, an option that Canada and Mexico have dismissed as unworkable.

In a bid to keep the talks alive Canada is now suggesting that North American content in autos - known as rules of origin - should be calculated to also include the value of software, engineering and other high-value work, which currently is not counted towards the regional content targets

The plan got a boost from Fiat Chrysler Automobiles Chief Executive Sergio Marchionne on Thursday, who called it a "defensible" concept and a "step in the right direction."

"Within the structure proposed by the Canadians, there appears to be the beginnings of a solution to this problem," Marchionne said on an earnings conference call.

Canadian officials say their U.S. counterparts have asked a series of questions about how the plan would work. It is unclear how U.S. Trade Representative Robert Lighthizer will react to the plan when he arrives in Montreal on Sunday.

The current round of talks in Montreal is the penultimate in the negotiations to update NAFTA.

"I think I`m more optimistic now than I have been in quite some time, because we have an opportunity here for having a true dialogue on what a 21st century rule of origin for NAFTA might look like," said Ann Wilson, senior vice president of government affairs at the Washington-based Motor and Equipment Manufacturers Association.

The industry fears that if North American content demands are set too high, manufacturers will simply forego NAFTA`s tariff-free access and pay low 2.5 percent U.S. tariffs on parts and passenger cars produced outside the region. The result could be less automotive production in the United States, not more, industry representatives say.

"We`re very appreciative of the Canadians putting forth some fresh new ideas. It`s a positive signal and hopefully a shift in the talks," said Jennifer Thomas, vice president of federal government affairs at the Alliance of Automobile Manufacturers,

Thomas, noting that U.S. domestic sales were expected to decline after a seven-year run that set records, added, "We`re kind of bracing for a downturn and we don`t need to have any additional burdens further harming the industry."

John Bozzella, president of the trade group Global Automakers, said executives had pressed senior White House officials about the importance of NAFTA.

"I think those meetings have been impactful. They have gotten key players within the administration thinking about how the industry can remain competitive going forward in a way they hadn`t before," he said.

Flavio Volpe, president of Canada`s Automotive Parts Manufacturers Association, said the Trump administration would not be selling out its base by agreeing to focus on the value of high-tech in autos.

"The science in specialised steel is as space ages as it is in app writing for vehicle operation. They`re smart enough to know they do really well in both," he told reporters.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Economy
RELATED NEWS
Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here
India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global
RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21 RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21

LATEST NEWS

Salman Khan, Katrina Kaif, Emraan Hashmi attend puja before ''Tiger 3'' goes on floors

7th Pay Commission: DA, TA, DR, salary hike—what central government employees and pensioners must know

PUBG Mobile 1.3 beta update: APK download link for global version - Check all details here!

Realme 8 Series with huge 108MP camera coming soon in India - Here's all you need to know!

Arsenal and Milan reach Europa League last 16, Napoli and PSV exit

SSC Delhi Police SI Paper 1 2021 result to be announced today on ssc.nic.in —Here is how you can check it

West Bengal, Assam, Kerala, Tamil Nadu and Puducherry election dates announced; polls begin on 27th March; results to be declared on 2nd May

MTAR Technologies IPO date: Issue opens on March 3, 2021 I Details here highlighted by Axis Securities

Analysis: Hedge funds worry about market fallout from Tesla, ARK and spiking yields

SBI SME Gold Loan: Get this SBI business loan up to RS 50 lakh at 'attractive' rate without any financial document

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved