20 Dec 17

Mexico seeks original NAFTA rule for prototype vehicles

Amid discussions of the newly proposed rules by the United States under the North America Free Trade Agreement (NAFTA), the Mexican government is pushing to maintain the 50% content origin rule for the production of prototype vehicles.

To qualify for export tariff exemption under the 23-year old agreement, Washington now wants 85% of the content of cars made in the region to originate from North America (Canada, the US, or Mexico) and most of it - at least 50% - to come from the United States.

Today, NAFTA stipulates that 62.5% needs to come from North America and, for prototypes, 50% for up to five years after the prototype started being manufactured.

Authored by: Daniel Bland