The apparent progress sheds light on less controversial aspects of the sprawling 30-chapter NAFTA renegotiation, where Canadian counter-proposals to so-called US poison pills on autos, dispute resolution and a sunset clause are front and centre. The current list does not include many high-tech auto components developed subsequent to the signing of NAFTA in 1994.
As a result, the AFL-CIO is monitoring the new NAFTA talks, now occurring in Montreal, for Trump administration backsliding.
There are some things Canada does not intend to raise this week, according to sources.
The Canadian proposals are being presented as ideas for discussion and not as formal counter-offers, allowing Ottawa to suss out Washington's willingness to compromise without making any formal concessions.
Jerry Dias, president of Unifor, one of the largest Canadian trade unions which represents workers in the auto industry, who participated in the stakeholder briefing with Canada's chief negotiator Steve Verheul said there seems to be an understanding among USA negotiators that the Canadian counter-proposals on so-called tracing and rules of origin offer a track to break some of the negotiating logjams.
However, he said it gives the industry a sense of urgency to fight so that NAFTA doesn't cause a further erosion.
"That's the real threat".
"They've got to be able to come back to their capitals and say, 'We have made substantive movement'". "We've got seven weeks". Mexico is the only NAFTA partner impacted by the washing machine measure.
The country ran up a $157 million deficit in December, bringing the full-year 2017 trade deficit to $10.88 billion, the National Statistics Institute said Friday. Since most farms are organized as pass-through businesses, they will benefit from both lower across-the-board tax rates and a 20 percent deduction in their taxable income.
"There is a set of what we call the unconventional USA proposals in areas like rules of origin, particularly for the auto sector, like the sunset clause proposal. there is a greater distance between the parties", Freeland said. "And we're really focused on how we can improve NAFTA", Finance Minister Bill Morneau said, speaking during the, Switzerland.
"We're reaching the danger zone right now", said Stephen Moore, a visiting fellow at the Heritage Foundation who was an economic adviser to Trump during the 2016 campaign.
Negotiators from all three countries have given themselves until March to finalize a renegotiation, a timeline that would see talks wrap up before the Mexican presidential election and the US mid-term elections in November.
Lighthizer is to close the talks at a joint news conference Monday with Foreign Affairs Minister Chrystia Freeland and their Mexican counterpart, Ildefonso Guajardo.
As the industry moves toward self-driving cars, the use of radar systems, sensors, cameras and electronics will become more prominent. It wants 50 percent of the parts to be made in the United States.
The NAFTA agreement has been criticized by labor groups and leftists within Mexico for having kept down Mexican wages, turning it into a manufacturing-based export economy with poor labor safety standards, and a poor environment for unions. It included not just requiring higher labor standards and free - not company and government-controlled - unions in Mexico, but tougher enforcement in the US and repeal of so-called "right to work" laws.