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U.S. unveils proposal to boost autos content in NAFTA - sources

Reuters  |  WASHINGTON 

(Reuters) - The United States on Friday formally unveiled proposals to boost the amount of regional content that autos must contain to qualify for tariff-free access, three sources familiar with the negotiations told on Friday.

The push for higher content is one of the Trump administration's key demands at talks to modernize the North American Free Agreement.

Canada and Mexico, the other two members of the pact, strongly oppose the idea on the grounds that it will disrupt the highly-integrated continental auto industry.

One of the sources said the U.S. wants to increase the North American content requirement for trucks, autos and large engines to 85 percent from 62.5 percent. Furthermore, insists 50 percent of content must be U.S.-made.

Trump administration officials complain the current content rules are too lax and have allowed auto companies to build more autos in Mexico, where wages are much lower.

A spokeswoman for U.S. Representative Robert Lighthizer declined to comment.

(Reporting by David Ljunggren and Dave Graham; Editing by Bernadette Baum and Marguerita Choy)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, October 13 2017. 20:10 IST