MEXICO CITY (Reuters) - The latest U.S. proposal to redraw auto sector rules under a revised North American Free Trade Agreement (NAFTA) is not acceptable and not viable, the head of Mexico’s automotive industry association (AMIA) said on Monday.
AMIA President Eduardo Solis said the U.S. proposal sought to raise the regional automotive content requirement to 75 percent, from 62.5 percent now, and envisioned a phase-in of four years for light vehicles and two years for pick-up trucks.
The U.S. plan also proposed that 40 percent of the value of light vehicles would need to be produced in areas paying an hourly wage of at least $16, and 45 percent at that salary for pick-up trucks, Solis told reporters.
The plan is not acceptable, Solis said.
Reporting by Anthony Esposito; Editing by Christine Murray