United States seeks to include steel, aluminum in NAFTA autos rules

Trudeau, Pena Nieto reaffirm commitment to NAFTA after meeting

President Trump is a vocal critic of the trade agreement, and has threatened to withdraw from it unless changes are made.

Although sources briefed on the talks describe the mood as sour, Mexican and Canadian politicians say there is no question of leaving the table for now.

At the NAFTA talks, Canada has introduced a proposal aimed at compelling Mexico to pay workers higher wages and do away with so-called "yellow" unions that represent employers rather than employees.

A collapse of NAFTA would wreak havoc throughout the North American economy, disrupting highly integrated manufacturing supply chains and agricultural exports with steep tariffs that would snap back into place.

One industry representative called the demands so comically impractical and potentially damaging for producers across the content that he can't believe the U.S.is serious about it. Trade between the United States, Canada and Mexico has quadrupled under NAFTA, now topping $1.2 trillion a year.

Among those he met Thursday were groups active in advancing reproductive choice for Mexican women - in January, U.S. President Donald Trump reinstated and expanded the controversial "Mexico City Policy" that bans using foreign aid for abortion-related activities.

The chamber, the most powerful US business lobby, has also warned that the proposal would cost jobs, since automakers and parts suppliers would likely forgo NAFTA benefits and simply pay the 2.5 percent USA tariff for imported cars and many parts. They are also seeking to halt the shift of vehicle production and jobs to Mexico from the United States.

His remarks and the tension around NAFTA helped push the peso down 1 percent against the US dollar to a five-month low.

The U.S. side proposed the sunset clause late on Wednesday during the fourth of seven scheduled rounds to update the rules governing one of the world's biggest trade blocs, said two officials, who asked not to be identified because the talks are confidential. "As we move forward with NAFTA renegotiations, I am confident that, with our American partners, we can come to an agreement that is a win-win-win for people of all three countries".

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