Mexico would reportedly accept a “US-specific steel requirement” to advance the USMCA agreement, but only five years the deal is actually ratified by all parties, according to media reports in Spanish and English.
US trade representative Robert Lighthizer made what media reports called a “last-minute” demand, requiring a revised definition for what would be considered as steel under the North American automotive origin rules.
Canada, Mexico and the US have already agreed that local automakers would be required to purchase 70 percent of steel and aluminum through North American sources. However, US unions are reportedly worried the 70 percent requirement would still allow automakers to buy slab and semi-finished aluminum from China and other countries.
Mexican foreign relations minister, Marcelo Ebrard, said such a demand by the US would “bring a ton of problems.”
The minister added that Mexican negotiator, Jesus Seade, would immediately travel to Washington to present Mexico’s thoughts on the USMCA agreement.
“We will tell them (the US) that we won’t accept … that such an obligation comes into effect by the time the agreement is ratified,” Ebrard said.