Mexico’s economy minister says the country, alongside Canada and the United States, could alter rules regarding a product’s country of origin as part of a renegotiation to the North American Free Trade Agreement (NAFTA).
Reuters reports that rules of origin in NAFTA will play a key role in the recognition of the deal being led by President Trump.
Speaking on Mexican radio, Mexican economy minister Ildefonso Guajardo said “They want to strengthen the value chains in North America and this means we’ll have to conduct a very thorough review of the treaty’s rules of origin.”
The existing rules of origin of NAFTA outlines where products are sourced from and if restrictions on rules of origin are tightened, North American companies may have to increase their reliance on regional content.
One of Trump’s key reasons for wanting to alter or scrap NAFTA relates to the automotive sector. He wants to dissuade automakers from building cars in Mexico and importing them into the United States in an attempt to increase U.S. manufacturing jobs.
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