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update 1-u.s. auto parts firms urge nafta compromise to cover engineering work

by:ShenHao     2020-06-20
Add details of proposal, comments, background)
David Lloyd, Washington, January 22 (Reuters)-
A trade group representing the United StatesS.
Auto parts makers on Monday urged the Trump administration to adopt the North American Free Trade Agreement auto rule, which covers research, engineering, design and software development as part of the North American regional value content objectives.
Proposal of the Association of Motor and Equipment Manufacturers (MEMA)was sent to U. S.
As the sixth round of negotiations to amend the North American Free Trade Agreement, Trade Representative Robert Lighthizer began in Montreal. U. S.
In the North American Free Trade Agreement negotiations, the requirement for a comprehensive revision of the rules of automobile content is one of the most controversial issues, including half of the value of all North American vehicles from the United States, and 85% of the much higher content requirements from North America.
Canada and Mexico said,S.
The goal is not feasible but no counter is madeproposals.
They are expected to do so during the Montreal talks that ended on January 29.
Lack of progress in bridging the car gap could jeopardize negotiations and increase the likelihood that President Donald Trump will continue to threaten to seek American automakersS.
Exit the North American Free Trade AgreementThe U. S.
Automobile industry including MEMA and trade groups representing Detroit and foreign countries
Brand car manufacturers stand with Canada and Mexico to a large extent, believing that the United StatesS.
The proposal will hurt the competitive edge of the industry.
MEMA letter to Lighthizer did not mention the proposed United StatesS.
And regional content objectives, but focus on proposals that its members believe will help to preserve and increase American car employment.
\"We think this is very consistent with the president\'s initiative and his stated goals for NAFTA and other free trade agreements,\" said Ann Wilson, senior vice president of government affairs at MEMA, told Reuters
\"We have been trying to find other ways to achieve the president\'s goals without having to meet the 50% domestic requirements.
Counting the well --
As part of the value content of the vehicle, paid engineering, design, research and software development will motivate companies to retain work that is currently primarily engaged in this work in the United States.
The proposal also urged the Trump administration to maintain \"tariffs-
Shift of auto parts \"as a means to maintain higher value --
Added work on complex automotive electronics and other systems.
Currently, companies that import parts and materials to North America and convert them into auto parts can \"transfer\" or apply NAFTA tariffs
The free benefits of this input.
For example, off-the-
Shelf electronic parts from Asia, such as lidar and radar units, cameras, sensors and circuit boards, are currently getting this good when assembled into a vehicle collision avoidance system.
The benefits of converting steel pipes into fuel syringes can also be obtained.
However, the current USTR autos proposal requires that almost all components must comply with the \"tracking list\" to verify their North American sources so that they can be included in the regional value target.
Under the proposal, the tracking list will be extended to steel, glass, plastic resin and other materials.
Industry executives believe that these requirements may drive car and parts companies to purchase more products outside the region and pay lower fees. 5 percent U. S.
Tariffs on many parts.
MEMA also urged Lighthizer to negotiate an agreement to provide incentives for the United StatesS.
Training and expanding companies in the US marketS.
As parts companies strive to fill vacant positions in an increasing number of retirees, the number of employees is also increasing.
The group also urged after-sales parts to comply with the same North American Free Trade Agreement rules as original equipment parts. (
Reports from David Lloyd;
Edited by Grant McCool and Leslie Adler)
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