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

Exclusive: U.S. seeks to include steel, aluminum in NAFTA autos rules - sources

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Updated: Fri, Oct 13, 2017
11:37 pm
Reuters
RELATED NEWS
Expert Views: BIG! India's retail inflation eases to 4.59% in December Expert Views: BIG! India's retail inflation eases to 4.59% in December
Budget 2021 Expectations – HOME BUYERS to benefit if Govt accepts this demand; JLL CEO lists following demands Budget 2021 Expectations – HOME BUYERS to benefit if Govt accepts this demand; JLL CEO lists following demands
Jobs, land prices, Covid-19 vaccine, rural India, household savings, NBFCs, banks, consumption, capex - Positives and Negatives | EXPLAINED Jobs, land prices, Covid-19 vaccine, rural India, household savings, NBFCs, banks, consumption, capex - Positives and Negatives | EXPLAINED
Economy, markets, FIIs, chemicals, IT and Pharma - Make money, as India powers to new highs | EXPLAINED    Economy, markets, FIIs, chemicals, IT and Pharma - Make money, as India powers to new highs | EXPLAINED
Setback for China – Trend reversing in favour of India; SFI lands big blow! Know here WHY! Setback for China – Trend reversing in favour of India; SFI lands big blow! Know here WHY!

The Trump administration is seeking to use NAFTA to boost the U.S. steel and other basic materials industries by proposing stricter automotive content rules that require the use of North American-made steel, aluminum, copper and plastic resins.

Three people who were briefed on the matter said that the U.S. rules of origin proposal would put these materials on the North American Free Trade Agreement`s auto parts tracing list for the first time.

The list is used to verify the regional content level of vehicles and parts so that they can qualify for tariff-free shipment to all three NAFTA countries.

U.S. negotiators submitted their rules of origin proposal to Mexican and Canadian counterparts on Friday. Other sources briefed on the talks said the proposal includes raising the threshold for overall North American value content for cars, trucks and large engines to 85 percent from the current 62.5 percent and a first-ever U.S.-specific content requirement of 50 percent.

A spokeswoman for the U.S. Trade Represntative`s office declined to comment on the autos proposal.

U.S. Commerce Secretary Wilbur Ross has vowed to close "loopholes" in the parts list that he says allow too many cheap auto parts from Asia and other regions to enter the United States.

The proposal would also give a boost to the steel and aluminum industries that Ross has sought to protect from subsidized imports with national security reviews.

In some ways, the proposed steel, aluminum, copper and plastics requirement would help vehicle and parts makers meet the higher thresholds. Auto plants in North America already largely use North American steel and aluminum, but the metals` value does not count towards reaching the threshold because it is not on the tracing list.

But the bigger problem is that President Donald Trump`s administration also wants the auto parts tracing list expanded to include many components in modern cars and trucks that did not exist when NAFTA was first negotiated in the early 1990s, such as sophisticated electronics that largely come from Asia.

Gains from tracing steel and aluminum would be offset by the higher overall content thresholds and the need to find other sources for electronics, said Kristin Dziczek, a trade and labor economist with the Center for Automotive Research in Ann Arbor, Michigan.

Dziczek and auto industry groups say that the U.S. content proposal is likely to backfire, with automakers and suppliers simply choosing to pay the 2.5 percent U.S. tariffs for passenger cars and many parts, sourcing more of them from China and other low wage countries in Asia.

"That could be the preferred trading route if NAFTA becomes too strict, and that means content could come from any country with most favored nation status," she added.

(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
Expert Views: BIG! India's retail inflation eases to 4.59% in December Expert Views: BIG! India's retail inflation eases to 4.59% in December
Budget 2021 Expectations – HOME BUYERS to benefit if Govt accepts this demand; JLL CEO lists following demands Budget 2021 Expectations – HOME BUYERS to benefit if Govt accepts this demand; JLL CEO lists following demands
Jobs, land prices, Covid-19 vaccine, rural India, household savings, NBFCs, banks, consumption, capex - Positives and Negatives | EXPLAINED Jobs, land prices, Covid-19 vaccine, rural India, household savings, NBFCs, banks, consumption, capex - Positives and Negatives | EXPLAINED
Economy, markets, FIIs, chemicals, IT and Pharma - Make money, as India powers to new highs | EXPLAINED    Economy, markets, FIIs, chemicals, IT and Pharma - Make money, as India powers to new highs | EXPLAINED
Setback for China – Trend reversing in favour of India; SFI lands big blow! Know here WHY! Setback for China – Trend reversing in favour of India; SFI lands big blow! Know here WHY!

LATEST NEWS

UPSC Recruitment 2020: Result for these written examinations declared - Check full list of roll numbers

Recovery of excess pension made to pensioners: Big decision! Important notification by RBI

Budget 2021 Expectations LIVE: Here is what India wants - Check latest news, updates, demands here

Nearly Rs 10 lakh fine on wedding organiser for breaching Covid-19 lockdown; many guests left as police arrived

Rs 5, 10 and 100 news: Will old notes be valid after March 2021? Here is truth from Modi government

Check Modi government's latest notices to Chinese apps including Tiktok, PUBG mobile game

Budget 2021 Expectations: Mobile industry raises demand for GST rate cut in Union Budget 2021-2022

Policy reforms, sops and tax breaks? Volatility in key stock markets set to flare up as investors bet big on Budget 2021

Bullet Train: Undersea tunnel! Here is latest news update on Mumbai-Ahmedabad High Speed Rail

Budget 2021: Unprecedented! 1st time ever since 1947, this is going to happen in Union Budget 2021-2022

  • 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