Although negotiators remain optimistic about reaching an agreement on NAFTA soon, it seems the industry itself is not ready to give into the US’ demands. However, collaboration continues between government officials and industry leaders to reach a mutually-beneficial result. Whether this resolution will come before the end of August is still unclear.
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Deal or No Deal
Sources close to the negotiation confirm that Mexico is open to the US’ requests to raise regional content to 75 percent from its current level of 62.5 percent, as well as a rule for 40-45 percent of production completed in US$16 salary regions.
Minister of Economy, Ildefonso Guajardo, says Mexico has already presented its counterproposal to the US and is talking with the automotive industry to finalize details regarding rules of origin. “Nothing is agreed until it is agreed,” he says.
Sources also claim Mexico has conditioned its open position toward rules of origin to maintaining Chapter 20 regarding controversy resolution between states and the ditching of the Sunset Clause that would end NAFTA every five years unless every country agrees to renew it.
AMIA, on the other hand, emphatically denies Mexico’s approval of the US’ proposals. “Nothing has been accepted and nothing has been confirmed,” says Fausto Cuevas, Director of AMIA.
Canada will soon rejoin the negotiations to finalize the agreement. “If they (Mexico and the US) can resolve their differences … then I think we can move ahead and have the three of us talk about some of the other issues that affect all of us,” said David MacNaughton, Canada’s Ambassador to the US.
Show Me the Money, Tesla
Elon Musk announces plan to privatize Tesla once stock reaches US$420. This would be one of the largest exits from the stock market, worth approximately US$72 billion.
Tesla’s board is considering Musk’s plan but analysts are skeptical about the company’s capacity to pull off this move. “The stockholders remaining will be left with less information than before and depending more and more on Elon Musk,” said Frank Schwope, Analyst at NordLB. The board is also asking Musk for a more detailed financing plan to show how the company will fund its repurchase.