MEXICO CITY--The United States called back its negotiator for the contentious issue of regional auto content rules from a round of NAFTA talks for consultations in Washington on Monday, delaying the ongoing conversations in Mexico City, three Mexican and Canadian trade officials said.
One of the officials said the negotiator, Jason Bernstein, had been called for meetings with U.S. automakers and U.S. Trade Representative Robert Lighthizer, and was due back later in the week.
U.S., Mexican and Canadian trade teams began a seventh round of talks to renegotiate the 1994 North American Free Trade Agreement on Sunday aiming to finish reworking less contentious chapters while also meeting to discuss the trickiest subjects.
The change in plans disrupted a schedule for talks early in the week about a proposal by the administration of U.S. President Donald Trump to make automakers source more parts from the region and specifically the United States, a major sticking point that the industry itself opposes. However, it was not immediately clear if the disruption was a setback or could help lead to a breakthrough after months of talks to rework the trade pact the underpins $1.2 trillion in annual trade between the three countries.
Mexican negotiators have said the auto content issue must be resolved in large part between the White House and the Big Three Detroit automakers who dominate the industry. “What I’ve heard is that he’s back in Washington because apparently they are meeting with the Detroit three. If that’s the case, that’s really positive," said Flavio Volpe, president ?of the Toronto-based Automotive Parts Manufacturers’ Association.
"The timing is awkward. But if USTR is finally talking to those companies it’s something that we've been asking for for months," Volpe said, referring to the United States Trade Representative (USTR)
