CEO DATELINE - Auto Alliance cautions against changing ‘Made in America' requirements
CEO DATELINE - Auto Alliance cautions against changing ‘Made in America' requirements
- November 21, 2017 |
- Walt Williams
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The head of the Alliance of Automobile Manufacturers is warning that a Trump administration proposal to rewrite "Made in America" requirements for automobiles would result in no vehicles qualifying for the label, the Washington Examiner reported.
Currently, automobiles can be advertised as "Made in America" as long 62.5 percent of a vehicle's parts come from the U.S. or Canada, according to the newspaper. Trump administration officials are proposing raising the requirement to 85 percent as part of a broader effort to renegotiate the North American Free Trade Agreement. They also want to require that at least half the parts in a vehicle were manufactured in the U.S.
Auto Alliance CEO Mitch Bainwol told the Senate Finance Committee Monday that the current labeling rule was strict enough.
"Taken in its entirety, [the administration's] proposal is unprecedented and would have significant ramifications on our industry and the U.S. economy as a whole," Bainwol told committee members. "No vehicle produced today could meet such an onerous standard. It is unlikely that any vehicle ever could, even if sourcing changes were made in an attempt to do so."
U.S. officials are currently in negotiaions with their Canadian and Mexican counterparts about amending NAFTA. So far the two countries have resisted changes sought by the Trump administration. http://washex.am/2BaY7YW
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