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Steel Rules for Cars Stall Progress on the Revised Nafta Agreement

  • U.S. rules-of-origin demand presents new challenge for Mexico
  • Requirements for cars are among most complicated USMCA topics
Photographer: Susana Gonzalez/Bloomberg
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The rules governing the use of steel and aluminum in cars have emerged as the latest obstacle to completing a revised Nafta deal between the U.S., Mexico and Canada in time for congressional approval by year end.

The three nations are discussing the fine print of the agreement that requires 70% of steel and aluminum in vehicles to come from the continent in order to receive duty-free treatment, according to half a dozen people familiar with the talks, who asked not to be named because they’re private. Mexico and the U.S. administration are seeking to agree on changes to the text as early as Friday before presenting a proposal to House Democrats.