NAFTA 2.0 and a U.S.-Mexico Trade Agreement: What’s the Deal?

Five things that you need to know about the preliminary U.S.-Mexico Trade Agreement: The main part of NAFTA–duty-free access–remains in place. The regional content requirement on automobiles has increased from 62.5 percent. The United States and Mexico agreed to use more U.S. and Mexican steel and aluminum, but the contentious U.S. tariffs on steel and aluminum remain in place. About 40-45 percent of a vehicles value must be manufactured by workers earning no less than US$16 per hour. The lifespan for NAFTA will be 16 years with a review every six years that would extend the pact for another 16 years.