The North American Free Trade Agreement, NAFTA, tri party negotiating teams form the United States, Mexico and Canada have put a halt to their on going negotiations to go back and look to get input from some of the top auto industry executives.
The three negotiators for the three countries have agreed to put off negotiations until May seventh, twenty eighteen when they will re-group after having a chance to speak with their domestic auto execs as well as other government officials before getting back to the negotiating table to see if they can hammer out a deal.
This move clearly signals that things may not be going as smoothly as we were all led to believe on the negotiation front. Many speculated that the three nations were super close to actually closing in on getting a deal done, however this latest hiatus may send things in a different direction.
The biggest obstacle still seems to be the percentage of content that any vehicles entering the United States must have, the US was pushing to have that number come in somewhere around 80%, which is way up from the current 65% and has been a stumbling block from day 1. The US, it was assumed, was trying to get through the NAFTA negotiations more quickly as it found itself dealing with a number of other national and international issues that were seeming to take on greater priorities within the Trump administration.